Prices of flats, which have risen to dizzying heights, have been slowly but surely falling since 2008 when they reached an absolute peak. They are currently the lowest in history.
What about affecting the price of an apartment?
The price of each apartment is influenced by many factors, especially the location where the apartment is located – the most expensive housing is in the center of Prague, but in general apartments in larger cities are more expensive. (Prague is followed by Brno.)
It also depends on the equipment of the apartment – such as the windows, floors, sanitary units, whether the apartment has undergone renovation or the new owner will have to invest considerable sums.
Of course, it also depends on the age of the entire house, its insulation, which depends on the expected gas consumption, whether the apartment has a balcony, belongs to it cellar, or even a garage space.
Why prices are falling
According to experts, apartment prices are falling mainly due to a decline in demand . Real household incomes have decreased, and the amount of funds available to citizens has fallen significantly, which has obviously reduced purchasing power.
(This applies not only to the Czech Republic but to the whole of Europe.) People are also somewhat sober in estimating their future incomes and are more wondering whether the repayment of a mortgage would be beyond their power in the future. However, the decline in prices depends on several factors and was therefore not the same everywhere.
In general, however, it can be said that the greatest decline occurred in the economically weakest regions. As an example, we can use the Ostrava region, where apartment prices have fallen by up to a quarter. The prices of older flats drop most significantly.
Buy now is convenient
Financial uncertainty in times of crisis hampered the entire real estate market, who did not have to sell or buy rather preferred to wait.
Sellers have been waiting and often are waiting for higher prices, while buyers are waiting for their further decline. Given the long-term price cuts to the historical minimum, however, it is not possible to count on another. Buying an apartment is now as convenient as it has never been.
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