Czech Republic

In the Czech Republic will probably soon begin to decline in real estate prices. In some cases, they may fall by 15 per cent – writes with reference to the Czech edition of Business Prague. "The fall in prices in some segments of the market is likely actually, it's already happening – commented CEO Next Finance Market Shihtarzhova. – Lower prices, especially for apartments in prefabricated homes, which rose in price before this is mainly due to speculation. In the worst cases, such housing can become cheaper by 15 percent.

" As for new homes or luxury apartments, their price, according to Shihtarzhovoy, will only increase. And this is thanks to that the country has recently increased the difference between rich and poor. Wealthy residents have have more money to buy expensive real estate. From the fact that people will in future be put on more expensive housing and agree analyst Ale Mihl Raiffeisenbank. For new projects to be built in areas of good value will also increase. "People are increasingly looking for quality and are less willing to invest in housing panel", – says Mihl.

Price, in his opinion, would be strongly depend on the growth of Czech economy. In the event that happens a significant decline in economic growth, prices will fall. If he hold out for the 5 percent level, the real estate market is expected to stagnate. The mortgage crisis in the Czech Republic in the next five years, analysts do not predict. Possible risks in the property market yet are counted. In their study, the Czech National Bank cites that in the event of crisis, Prices may drop to 30 percent. Despite the fact that such a scenario is considered unlikely, the CNB is considering this option and, in case the worst, be prepared for an adequate response. Economists are of the opinion that the Czech Republic completed the "golden age" of development companies who have to live with the decrease in demand for new housing. "The economy is not growing at a pace as before, does not increase the number of people who can afford new housing. Rising mortgage rates also played a significant role. Those who wanted to buy a new home, most of them have already done "- describes the situation Shihtarzhova. Developers themselves on substantial reduction in demand for new housing until they think. For example, in one of the largest in this market, the company Finep, marked only a small decline in sales. Nevertheless, analysts agree that if the decrease real estate prices in the near future and will then only for apartments in prefabricated houses.