Property prices in Czech Republic will grow during the 2016

Property prices in Czech Republic will grow during the 2016

According to the director of the Czech development company Ekospol Evzhena Koretz, the cost of new buildings and the secondary real estate in the Czech Republic will continue to grow throughout 2016. At the end of the fourth quarter of 2015 new buildings went up by more than 5%, and the secondary market - by 6.7%. It is the most intensive growth in property prices in the Czech Republic since 2009.

Houses and apartments in the Czech Republic attract not only local residents - in 2015 one third of all objects was acquired by foreigners.

Increased demand and purchasing power is due to economic growth, an increase in the size of salaries and, of course, reduced rates on mortgage loans. The annual interest rate on loans in the Czech Republic in 2015 was only 2.53%. The interest rate on consumer loans was higher - 11-13%. Only in February of this year residents of the Czech Republic have taken loans amounting to 34.8 billion kroons.

Demand for housing is so high that developers are not able to satisfy it. In Prague 7000 apartments were sold last year, and this year the number is able to rise to a record 8000.

Based on materials of livenews.cz

Photocredit Depositphotos.com