If you’re looking for the latest housing news in the Czech Republic, look no further than the Deloitte Real Index. This new index gathers data from realised sales of flats registered with the Real Estate Cadastre as purchase contracts. Based on the results, it is possible to predict real prices of flats in Prague. While the country’s economy contracted by 5% last year, it’s on the mend this year.
Despite the continued price increase, the Czech Republic’s housing market remains unaffordable. According to the World Bank, the country ranks 156th globally for ease of acquiring building permits. While developers say the process is typically five years long, the current legislation actually says it should take as little as two and a half years. The result is a tight housing market that is becoming unaffordable for many. bydleni
The lack of available homes has kept the demand for housing low. A recent survey showed that in the Czech Republic, purchase prices for apartments have risen by nearly a quarter. Although this is lower than the official rate of inflation, it is still higher than the price of renting. But the interest in buying an apartment in the country is rising, and it is possible that the Czechs will eventually own their own homes. With interest rates so low, investors are sapping Czech’s savings.
Because of this, the cost of real estate in the Czech Republic is slightly more expensive than in many other countries in the EU. On average, a Czech needs to earn at least 7.8 gross annual salary in order to purchase a 70-square-meter apartment. Hungary, however, costs only EUR 917 per square metre. The Czech Republic’s prices for residential real estate are still more affordable than those in other Central European countries.
In the Czech Republic, prices of new dwellings increased by 65.5% over the past year. In the country’s capital, the cost of a new 70-sq. apartment is more than twice the average gross-annual salary of the average citizen. With the price of housing skyrocketing, investors are flocking to the Czech Republic to secure property. The government has argued against this increase, but the country’s prices are still rising strongly.
Compared to other Central European countries, the Czech Republic has the most expensive housing. The average Czech needs a minimum of 6.9 times their average gross annual salary in order to buy a new home. Moreover, the Czechs are able to afford their new home more affordably than people in other Central European countries. But, the cost of real estate in the Czech Republic is still high, which means that it’s still worth living in the country.