Why is property in the Czech Republic rise in price?
Over the past 5 years, investment in Czech property has grown several times. Both local and foreign entrepreneurs see great prospects in acquiring residential and commercial real estate in the country. In turn, the increased interest in real estate in the Czech Republic has caused a trend to increase the value of objects. A prime example is the residential real estate market. According to the statistics, the cost of housing in the Czech Republic in the first quarter of 2019 increased by 13%.
The rise in the price of real estate is characteristic not only in the central resort towns but also on the outskirts of the country. Experts argue that this situation is caused by the desire of the local population to change their place of residence: due to the large flow of tourists, increased foreign investment in the central regions, they move to the suburbs, the so-called sleeping areas, where there is a more moderate pace of life.
The main reasons for the rise in the price of property
A sharp change in the value of objects on the market is a natural process that is characteristic of most countries that are attractive to foreign entrepreneurs. There are several reasons of this trend:
- Demand exceeds supply: in the country due to a large number of already acquired objects, there are not enough premises. Most offices that are just starting to be built are already leased out.
- Competition for free real estate: due to the high demand for real estate, owners of offices, warehouses, cafes have the opportunity to increase the cost of rent several times.
- Increase in the number of labor migrants: the Czech Republic is an attractive country for foreigners who are in search of work because here wages are higher than in other European countries. Thus, the demand for short-term rental housing is increasing.
If you decide to investment in Czech property, hurry up! Now the market has created the most favorable conditions for the acquisition of objects for the purpose of resale or lease.
