12 Reasons why flat prices are high
Published by SMART Magazine - Construction, Development, Investments, by Deloitte, in summer 2018
The magazine focuses on the topics such as housing availability, unsustainable rise in flat prices, thickening of city brownfields, regulation on the mortgage market, prolonging permit processes, new territorial plans etc.
The centrepiece of the magazine is '12 reasons why flat prices are high' in the Czech Republic. According to the piece, the reasons are: demand being higher than the offer, economic boom, 'rapid changes of extremes' (refers to a quick shift between opposite economic cycles), demography (long life expectancy of the baby boom generation and young generations starting families much later), state-induced market changes, low interest rates, changes in people's behaviour ('era of singles'), political populism ('anti-property-development attitude'), tax increase, technical regulations related to building new flats, approval process, the lack of rental housing.
The issue features an interview with Stanislav Kubáček, investment manager for Central Europe at Round Hill Capital, who is active in the field of investment, development and asset management and became an important investment in the Czech market.
Keywords: EU, Europe, Czech Republic, Czechia, Prague, real estate, financialisation, financialization, real estate, tenants, tourists, tax regulation, investment, development, low interest rates.