The year 2014 is beginning in a much more positive way than 2013 did.
The collapse of the Euro currency is not even a topic of discussion anymore neither is a divorcing of any of the EU member states. The economic situations in both the US and EU are markedly better and shows signs of continued improvement.
In Czech Republic, besides unemployment, the news is also looking more and more positive for the year ahead.
What does this mean for the Prague real estate market in residential (homes and flats/apartments)?
The outlook for Prague property in 2014 definitely looks more cheery than the last few years.
According to HBIndex and their latest data on Q4, prices for apartments overall stagnated in Prague in 2013 with a small growth in the price of new construction which was initially priced at 40k to 50k CZK per m2. There was also recorded stronger demand for smaller units while larger ones, such as 4 + kk (3 bedroom) fell slightly.
A strong element of demand in Prague came from investors who were looking for smaller sized flats (under 50 m2), which give the best investment yield.
While our property forecast overall for Czech Republic is a 3% growth in prices, we feel that Prague’s real estate market will underperform this benchmark in 2014. Why is this?
Although the capital city has seen an increase of sales of newly constructed flats, there is still a backlog of new apartments at various stages of construction. This will continue to negatively affect prices in 2014.
However, there are many positive influences such as the record low interest rates as well as an acceptance by buyers and would-be buyers that property price declines are behind us. Read a detailed forecast of the 2014 Czech property market or watch a 5 minute YouTube video overview.
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."