The property market recovery is officially in full swing.
In the cities of Prague and Brno the real estate market has quickly turned over the last year from a buyer’s market into a seller’s market.
Here are some signs that the market has turned:
1. Real estate agents often no long want to cooperate with other agents who bring buyers. They are confident they will sell it without help. (No comment on agents who don’t try to get the best sale price for their clients.)
2. Buyers purchase properties without even asking about a discount. They need to act quickly to reserve a property as there are multiple interested parties.
3. The well-priced properties in the highest demand sectors (1+kk, 2+kk) of the market are reserved within 2 to 3 weeks of first being advertised.
4. Developers have mostly erased incentives (or these incentives are fully priced into the overall package) and are unwilling to give discounts even on multiple unit purchases.
Below are figures from the Czech Statistical Office for the realized sales prices to the end of Q1 2014. The first chart is for newly constructed flats and the second for resale flats.
What does this mean for you?
If you currently own property, congratulations on gritting your teeth and holding your property through the recession. You are through the worst and things will only get better.
If you are looking for property, it will be harder and harder to find the deals which we saw on the market in 2012 and 2013. However, with some legwork you can still do it. Be sure to have all your ducks in a row and be ready to proceed with the purchase. The market now waits for no one.
by Nathan Brown (Google+) - email@example.com - owner and managing director of Czech Point 101 - "You’re in good hands whether buying, selling or managing property in the Czech Republic."