Developers are planning next year to increase property prices by 9%
The company CEEC Research explores the real estate market and also conducts annual surveys among developers. According to data obtained from the latest survey, 91% of the developers surveyed believe that the price of their properties will increase by 9% in the year 2022.
The other developers surveyed do not plan to increase prices yet and do not intend to decrease them in the next year. The reason for this decision is rising inflation and the demand exceeding the supply of real estate in the Czech Republic.
According to CEEC Research, the demand for real estate will continue to grow next year. This is also confirmed by Martin Svoboda, director of JRD Development. He explains this using the example of Prague by the fact that the city needs 10 000 new flats annually, which is mainly related to the housing needs of Prague residents. In terms of the volume of construction, about 5-7 thousand newly built and commissioned flats appear on the market annually. It is obvious that in such a situation, demand will continue to exceed supply, which will lead to a further increase in property prices. The Czech Statistical Office has pointed out that, among other things, the real prices of building materials have increased, and this has a real impact on the cost of building real estate. As regards building permits issued, there was a 7.6% year-on-year increase in August. However, there were 27.6% fewer dwellings completed.
If you're thinking of buying a property, don't expect prices to fall in the year 2022. Flats are only likely to get more expensive. We encourage you not to delay your decision and contact us. We will be happy to advise you and choose the best solution for you.
