What awaits the Czech real estate market in 2022?
Last year will be commemorated by an unprecedented rise in inflation across Europe. The Czech Republic was no exception. To stabilise the situation, the Czech central bank was forced to raise the base rate and tighten the conditions for obtaining mortgages.
It is clear that similar measures will also have a significant impact on the property market. Analysts believe that many who were planning to buy their own home will no longer be able to afford it this year. This is due not only to rising interest rates and tighter mortgage conditions, but also to the expectation of further increases in property prices. After all, fewer homes are currently being built than are needed to meet the needs of the country's population. At the same time, we can observe a rise in the price of building materials and a shortage of labour, which directly affects property pricing. On the basis of the above, it can be concluded that the value of real estate in the Czech Republic will continue to rise despite the tightening of mortgage conditions. In this context, the demand for rental housing will also grow along with rents. The largest price growth is expected in large cities.
According to Petr Golka, an analyst at Ronda Invest, demand for apartments with balconies and terraces, family houses and properties in rural areas can be expected to increase in 2022. This trend has been set by the coronavirus pandemic and the associated limited travel options. Petr Golka also expects land values to rise as the supply is physically limited. Investments in such assets have traditionally been among the most reliable.
Based on the above, it can be concluded that property prices and rents will continue to rise in 2022, which will allow investors' capital to be preserved from high inflation.
If you are thinking of buying a property, we will be happy to advise you and select the best solution to suit your requirements.
