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Prices for the real estate are falling all over the world. Although the Czech Republic keeps its head above the water, but still it could not resist the influence of global economic crisis.
Of course, the world-wide trends in the real estate market have the greatest influence in Prague, the capital of the Czech Republic. According to the Hospodářské noviny edition, the large apartments have become cheaper and the demand for them has decreased markedly, while the small bachelor flats are in high demand and become more expensive progressively.
This trend is quite natural, because the substantial investments are bound up with high risks, granting the current situation in the global real estate market. And despite the fact that the Czech Republic is still fairly stable in this regard, people are afraid to buy large apartments and try to find less expensive variants. In addition, obtaining a mortgage loan today is much more difficult than it was half a year ago, and this also promotes the demand for bachelor flats.
More than the half of young people in the Czech Republic buys bachelor flats, where the kitchen is situated in a corner of the dwelling. The apartments of this type are cheaper than the full-growth bachelor flats. For comparison, such apartments were on a low demand a year ago and hardly a third of young people bought them. Naturally, with the higher demand the prices have increased as well. And in this year the small flats are 10% more expensive than in 2008.
Regarding the two-room apartments which were in the greatest demand before the crisis, the prices for them have fallen by more than 5%, and three-room flats became cheaper by nearly 8.5%. The trend for the prices to fall in mostly concerns large apartments in Prague, especially in its historic center. Solvency of the population is falling, and mortgages are not so easy to get - of course, the demand has declined so much that the prices could not remain at the same level. Besides Prague, the significantly reducing of the prices for realty is seen in Ostrava and Hradec Karlovy. The small towns were all affected least of all.
01.04.2009
Of course, the world-wide trends in the real estate market have the greatest influence in Prague, the capital of the Czech Republic. According to the Hospodářské noviny edition, the large apartments have become cheaper and the demand for them has decreased markedly, while the small bachelor flats are in high demand and become more expensive progressively.
This trend is quite natural, because the substantial investments are bound up with high risks, granting the current situation in the global real estate market. And despite the fact that the Czech Republic is still fairly stable in this regard, people are afraid to buy large apartments and try to find less expensive variants. In addition, obtaining a mortgage loan today is much more difficult than it was half a year ago, and this also promotes the demand for bachelor flats.
More than the half of young people in the Czech Republic buys bachelor flats, where the kitchen is situated in a corner of the dwelling. The apartments of this type are cheaper than the full-growth bachelor flats. For comparison, such apartments were on a low demand a year ago and hardly a third of young people bought them. Naturally, with the higher demand the prices have increased as well. And in this year the small flats are 10% more expensive than in 2008.
Regarding the two-room apartments which were in the greatest demand before the crisis, the prices for them have fallen by more than 5%, and three-room flats became cheaper by nearly 8.5%. The trend for the prices to fall in mostly concerns large apartments in Prague, especially in its historic center. Solvency of the population is falling, and mortgages are not so easy to get - of course, the demand has declined so much that the prices could not remain at the same level. Besides Prague, the significantly reducing of the prices for realty is seen in Ostrava and Hradec Karlovy. The small towns were all affected least of all.
01.04.2009