Houses in the Czech Republic rise in price twice as fast as apartments in 2020
The real estate market continues to maintain a tendency to increase the value of objects. This is primarily due to increased demand for homes with a limited number of offers. Despite the active construction of new buildings, there is a shortage of free house in the Czech Republic. This applies to both secondary and primary real estate. This is evidenced by research data that was conducted at the end of 2019 by EU financial analysts.
According to the Housing Price Index (HPI) in the Czech Republic, the price of housing has increased by 8.7% compared to the same period of the previous year. Experts from financial issues predict that 2020 will be the peak of the rising cost of houses in the Czech Republic. This is due to factors such as population migration from the central regions of the country to the suburbs, a decrease in the number of available apartments, and the lengthy process of obtaining permission to build new facilities.
Of particular interest, this year is real estate in the mountainous regions of the country, where resort complexes are actively developing. Mountain huts built of wood are popular with foreign tourists. Now the price of a house of 90 sq.m. increased to 2 million Czech crowns. Experts also argue that in 2020 the cost of private houses, villas, and cottages in prestigious areas of the Czech Republic will rise sharply.
The rise in price of a house in the Czech Republic: reasons
According to statistics, the profitability and profitability of a house in the Czech Republic is 5-6% per year. This indicator is the highest among other EU countries. The increase in value is caused by the following factors:
- demand exceeds supply: due to the large-scale process of acquiring and selling houses, the country has a shortage of vacant facilities. This is due to a large number of people who want to move to the Czech Republic for employment or business development, as well as favorable conditions for buying real estate.
- active tourism development: the Czech Republic is among the most visited countries in Europe. Every year, the flow of tourists increases and, accordingly, developers see this as the basis for increasing the value of houses.
- developed infrastructure system: the cost of a house is also affected by the presence of several key infrastructure objects, such as a school, trading houses, business centers, restaurants, metro stations.
Are you interested in buying a house in the Czech Republic? The experts of our company are ready to help you with the choice of the object, based on your wishes and the planned budget.
