The price of flats in the Czech Republic is overinflated by 15 to 20
percent, according to the Czech National Bank. However, the bank board has
not changed its recommendations for mortgage lending. The forecast is that
the growth in real estate prices will slow in the coming months.
According to Deloitte, the price of an apartment in the Czech Republic rose to CZK 60,700 per square meter this year. An apartment with an area of 70 meters is selling for 4.2 million on average. In the large cities, especially Prague and Brno, prices are significantly higher.
The sharp rise in apartment prices in major Czech cities in recent years combined with stricter mortgage conditions have led more people to rent, with a study by consultants KPMG quoted by Hospodářské noviny finding that the number of rental properties on the market has fallen by a third in only two years.
Around 20 percent of new apartments in Prague are bought by foreigners,
according to developers addressed by the Czech News Agency. The level of
purchases by non-Czech nationals is around the same as last year, they
Slovaks are the most frequent foreign buyers of Prague properties, followed by people from Western Europe and post-Soviet states.
Foreigners display the greatest interest in small flats, frequently in upscale projects, the developers said.
Despite being in his early 30s, Martin Mucha is already a successful Czech businessman in New York. Many locals may know Igluu, the real estate website he co-founded which claims to be the largest source of verified home listings in the Big Apple. Apart from looking into ways of expanding and innovating the company, Mr. Mucha also plays an active role among America’s Czech community. I recently had the chance to catch up with him and began by asking when he first decided to be an entrepreneur.
The number of construction projects launched in the Czech Republic in the
first half of 2019 was the highest for the period since 2008. Work began on
almost 6,000 new apartments between the start of January and the end of
June this year, according to official figures released on Tuesday. Work
began on 2.3 percent more family houses in the first half of this year than
in the same period in 2018.
In Prague construction began on almost 2,000 new apartments, 75 percent more than in the first six months of last year. One-third of new construction projects of that kind are in the capital.
However, a representative of developers Central Group said around 10,000 new flats a year could easily be sold in Prague.
The price of flats in Prague has gotten cheaper by 0.3 percent according to data for the past three months, the first drop since 2011, according to the Czech Statistics Agency. However, experts say they do not expect any sharp decrease or increase. Meanwhile, prices for flats outside Prague continue to grow, Czech Radio’s news site iRozhlas reports.