THE EXPECTED DEVELOPMENT OF REAL ESTATE PRICES- THIS IS WHAT SELLERS AND BUYERS ARE PROBABLY MOST INTERESTED IN TODAY. WHEN THE SECOND WAVE OF PANDEMIC HIT THE CZECH REPUBLIC THE ECONOMY COLLAPSED THE MOST IN WHOLE HISTORY. IT SEEMS THAT THE ECONOMIC RECESSION WILL NOT PASS US BY.
Experts in the industry believe that the prices of apartments and houses are waiting to fall due to the economic crisis brought by measures against coronavirus. Economists estimate that real estate prices may descent by 10 to 15%. but if this scenario comes true, no one knows for sure. If prices were to fall, flats (especially older and prefabicate ones) would be hitted the hardest, prices of family houses would fall a little less, and from experiende, land prices always remain the most stable. It is also assumed that the prices of new apartments in development projects would not have to descent almost at all.
So how will the price situation develop in 2021? Reasons tells us that we should probably expect a gradual decline(in the order of few percent). However, we must realize that in addition to the development of the economy as a whole, it also depends on the ratio between supply and demands. For example, there are generally much fewer flas for sale in the Czech Republic than would be needed. And if we také in mind thhe proven fact that in the long run, real estate prices and especially apartment prices will rise again – investing in real estate will definetly pay off even at this times.
Ing. Ivo Drnovský, real estate broker/specialist