The travel ban instituted due to the ongoing coronavirus epidemic has had an effect on the prices of rent within Prague, with some owners of Airbnb properties offering their flats for long-term rent instead. A wider impact on property prices is also possible, some experts say. In order to stimulate the housing market, the finance minister has proposed the cancellation of the real estate transfer tax.
A group of activists protested against the practice of Airbnb at the weekend, holding a three-day-long brainstorm on how to tackle the phenomenon of short-term letting platforms which many believe is hollowing out organic neighbourhoods in the centre. They were joined by Prague Mayor Zdeněk Hřib, who revealed details about a new City Hall plan for tougher regulations.
Moscow authorities have given PPF Group, controlled by Czech billionaire
Petr Kellner, permission to build 1,500 flats in the Russian capital.
Separately, PPF is moving ahead with its mixed-use Comcity project in south-west Moscow, which will include two office buildings and a four-star Novotel hotel.
PPF now has six real estate projects underway or completed in Russia, including the Metropolis Administration Center and the South Gate Industrial Park in Moscow.
The Czech economy grew at a healthy pace, the country’s unemployment rate is at the lowest in decades, wage growth remained solid and inflation stayed under control. By most measures, 2019 was a good year for the country, former central bank governor Miroslav Singer says. But he cautions that while the Czech Republic has caught with some Western European countries in purchasing power, it has neglected investment in infrastructure for the long haul.
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.