The real estate market in Prague: trends and future prospects
Prague is a city steeped in rich cultural heritage, vibrant nightlife, and stunning architecture. Boasting over 1.3 million inhabitants, it is the capital of the Czech Republic and home to a thriving real estate market. In this article, we’ll take a closer look at the current state of the real estate market in Prague and provide a forecast of its future prospects.
Current market trends
The real estate market in Prague has been on a steady upward trajectory for several years. According to data from Deloitte, in 2019, residential property prices in Prague rose by more than 8%, marking a continuation of the trend observed over the preceding years. This trend has been further fueled by low-interest rates on mortgages, increased tourism, and a growing influx of foreign investors.
In recent years, the demand for modern, high-quality properties in well-connected areas has driven prices up in the city center. At the same time, there has been a notable increase in demand for affordable housing on the outskirts of the city. Across the spectrum, the supply of properties has mostly kept up with demand, though there have been instances of shortages, particularly in the high end of the market.
Forecasts for the future
Despite the many challenges that the world has faced in recent times due to COVID-19, the real estate market in Prague has remained resilient. According to estimates from Deloitte, the pandemic had little impact on the housing market in the city, and unlike other European capitals, it continued to thrive throughout 2020. The forecast for 2021 is also positive, with continuing demand for housing, particularly in the mid-range market.
One factor that bodes well for the future of real estate in Prague is the country’s strong economic growth. Overall, the economy grew by 2.5% in 2019 pre-COVID, and despite the pandemic, the country lay a strong foundation for continued economic growth. Prague offers investors an attractive investment environment, with a lot of promise in the development of new properties and the refurbishment of existing buildings
Prague’s real estate market has demonstrated itself to be an attractive investment opportunity in recent years. Due to the steady increase in demand and supply, there is a healthy balance between buyers and sellers, with forecasts pointing towards more opportunities for growth. With its vibrant cultural scene, liberal investment laws, and robust economy, Prague is an excellent option for anyone looking to invest in real estate in Europe.
Sources:
https://www.ilsole24ore.com/art/a-praga-prezzi-case-massimi-la-lunga-crisi-ACXDUnJ?refresh_ce=1
