Housing cost in Prague continues to grow

The first thing that is to be said is that the Czech Republic is considered to be one of the most thriving and forward-looking countries to invest. The Czech capital is a breathtaking place with its great amount of bridges, cathedrals, domes and castles reflected on every street and especially in the Vltava River. It`s absolutely undeniable that Prague is the preferred location among tourists all over the world. Both commercial and residential real estate here provide entrepreneurs with incredible earnings.

Demand and real estate prices started growing early in 2016, owing to low mortgage rates. With that, in 2017 the growth was not as fast-moving as the year before. By the fall it began to slow down. In the second quarter of 2018 was noticed a 7.5% annual rise in house prices. Nevertheless, although costs are still rising, the Czech Republic is no longer the European Union country with the fastest growing house prices, in accordance with the latest data from Eurostat, the EU statistical office. The average cost per square meter of housing in Prague is $ 4,323.

Other circumstances incorporate an enormous demand for new residential real estate stimulated by increasing wages, interest rates that were comparatively low in the latter days, and the open mortgage policies of a variety of banks in the Czech Republic. Combined with these, poor approval procedures for new residential developments have created a lack of new apartment buildings, increasing the value of older apartments and leading to ever-increasing house prices.

One can make an investment in an apartment in Prague in the accomplished house and choose special options at the construction stage. Fortunately, they will cost 10-15% cheaper. The average duration of the project is one and a half years. You cannot come across different risks here: all objects are done on time. The fact is that in the Czech Republic the developer does not depend on co-investors – the bank supplies him with financial resources. Purchasing property during the construction phase, the

investor has access to the best layouts. Furthermore, he can select finishing materials in order to receive the residential real estate of his cherished dream.

In case the apartment is purchased in a mortgage, the rental income covers the payment of monthly loan payments