Trend Report 2019 - Czech real estate market survey
Published by Association for Real Estate Market Development (AREMD)
Summary:
The Association for Real Estate Market Development is a non-profit interest association. In 2017 the ARTN member base has 102 members, including 14 corporations, active in all the fields of the real estate market. AREMD's Trend Report has been published since 2002 as a regular expert study of developments in the real estate market in the Czech Republic.
The increase in residential real estate prices came true. Most of the respondents believe that real estate prices reached their peak. "They mention the acute shortage of residential properties in Prague and they are concerned with the fact that having one’s own housing in large cities is becoming unaffordable for a certain group of people, particularly young people. These people don’t have financial buffers, which are necessary to cover twenty percent of the amount of mortgage required by banks, as well as four percent to cover the tax on the acquisition of immovable property."
All the respondents across the sector agreed that the two key factors that negatively affect the real estate market is the very slow process of permitting construction and the missing Metropolitan plan.
The is a strong demand for residential real estate in large cities such as Prague, Brno, Plzeň and Olomouc, mainly motivated by low interest rates of mortgages.
Airbnb increases the prices of long-term rents in large cities. Housing - as well as rental housing, is becoming unaffordable for people with lower incomes, especially for young people.
The respondents see reasonable regulation of Airbnb as a suitable response to this issue, mainly in relation to taxes, which should ensure equal conditions for all types of residential businesses.
Keywords: EU, Europe, Czech Republic, Czechia, Prague, real estate, financialisation, financialization, real estate, tenants, tourists, Airbnb
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