Why apartments in Prague are getting more expensive

Most of the real estate purchase and sale transactions in the Czech Republic, in which the Russians participate, are carried out in the capital. Five years ago, the situation was different. Along with Prague, Russian investors also enjoyed housing in resort towns: Teplice and others. Now the supply there exceeds the demand, despite the fact that last year in Karlovy Vary a decrease in the cost of a square meter by 3.8% was noted. On the contrary, affordable apartments in Prague are not enough for everyone. According to rough estimates, the deficit is about 8 thousand objects. At the same time, in 2018 developers issued only 3 thousand permits for the construction of new apartments.

Increasing demand and rising prices for apartments in Prague
The number of residents of the capital over the past two decades has been constantly increasing – up to 14 thousand people annually. Favorable factors contribute to population growth and a related boom in the Czech real estate market. The economy is experiencing a boom, so in 2018 GDP grew by 3%. High patches attract foreign workers. There is a need for qualified personnel in the country. Free quality education at prestigious universities in Prague contributes to the influx of students from abroad. The statistics fixes the growth of incomes of residents of the capital, it is more than twice the rate of inflation, which predictably leads to stimulation of demand for services and goods, including real estate. Continue reading →