The price of real estate in the Czech Republic is steadily rising, which pleases investors but bothers those who are thinking about buying an apartment. Currently, according to a study by Generali Investments CEE 77% of Czechs think they will not be able to afford their own flat in the future. Last year it was 62 %.
It is clear that high property prices are stimulating the rental market. Recently, there has been an increase in interest in rental housing in large cities, where properties are mostly more expensive.
According to analysts, the interest in renting is growing not only because of high property prices, but also because of the change in the lifestyle of the Czech population. People want to be more flexible and be able to move more easily if their living situation changes and they need a larger apartment, closer to nature or in a different part of the city. After COVID-19 forced people to work from home, the location of the apartment ceased to be a priority for many and other amenities, such as air conditioning or a balcony or terrace, became even more desirable. Moreover, Czechs are now willing to pay more for renting an apartment than before. Many have started to spend all their free time at home and comfortable housing plays an important role for them. Developers have also noticed the trend of growing interest in rental housing and are already preparing a number of projects where apartments will be exclusively for rent and not for sale.
Experts note that despite high property prices, demand is still growing. It is noteworthy that today the main buyer of an apartment is not a young family, but an investor who plans to rent it out. It can be assumed that in the near future, buying a property for personal living will be an unattainable luxury for the average Czech, and renting will become the only possible way of life in big cities. In conclusion, if you are thinking of buying a property as an investment or for personal living, then there is no reason to expect a fall in its price in the foreseeable future and you should not postpone the purchase. Do not hesitate to contact us, we will be happy to advise you and find the best solution for you