The demand for investment apartments continues to grow
According to the statistics of the information portal Cenová mapa, there were built 536 new apartments in Prague during October 2020. It is 28% less compared to the same period of the previous year. However, according to the development companies Central Group, Skanska Reality and Trigema, the sales decreased by only 7%. The demand for the new projects grows mainly due to the investors, who buy apartments for the subsequent rental. For example, the share of such clients by the development company Finep is more than 70% for now.
The agency Media Buyers, that creates marketing strategies for developers, confirmed the strong growth of the demand for the investment apartments.According to the owner of the agency, this is because of the low mortgage rates compared to the real level of inflation, the simplification of the requirements for obtaining mortgages, as well as the financial savings of wealthy citizens who are currently choosing to invest in real estate.The commercial director of the development company JRD notes, that, according to his forecasts,we can expect minimally a 5% price growth of the new apartments in Prague during the 2021.By his point of view there is no point to expect the decline of the real estate market during the next year. However, we can expect a decreasing tempo of sales, as most of the apartments in the development projects will be sold before the construction approval of the building. Actually the number of issued building permits is decreasing every year.
The leader of the mortgage market - Hypoteční banka confirms the increasing demand of mortgages and believes that 2020 will be a record year in terms of the issued volume of mortgages.
