Today it is possible to view several formal evidences of the fact that the prices for the Czech real estate are continuing to fall, though not so fast as in the other European countries. Czech Republic is still in the top five European leaders on the stability of the real estate market, but during the past three months prices for apartments in the Czech Republic have fallen on average by 3%. In Prague the prices have fallen by no more than 1%, but in other regions of the country the tendency is less optimistic and the reduction of the prices has reached the mark of 4-5%.

The analysts expect that this trend will be continued in the near future, and the prices will be reduced more, especially in the secondary market (up to 10%), while the primary market is most likely not be affected. Real Estate Agencies in the Czech Republic do not deny the fact that prices do really fall, but they also say that this trend will stop in the nearest future, as the prices have already reached their potential minimal level. Now the Czech real estate market is in some kind of stagnation:  the buyers are waiting for the further reduction of prices while the developers are waiting for the moment when the property will be in a higher price. Of course, the crisis has played an important role in this situation: the purchasing capacity of the Czech citizen and foreign investors has declined, while those who can afford investing in the real estate prefer waiting, at this critical point.

According to the official figures provided by various developing companies of the Czech Republic, despite the numerous promotions, bonuses and discounts, the demand for residential real estate has declined by almost 50%, compared with the first quarter of 2008. According to the most pessimistic projections, the situation is not likely to improve in 2009, and prices can fall not by 10%, but by 20% (in the secondary market), while the prices for the flats in the panel houses are to fall even up to 30%. New buildings have much more optimistic prospects: the prices are expected to fall by not more than 10-15.

05.05.2009