The Future




For over many years now, the Czech real estate market has seen a boom in the sale of its properties - especially by foreign nationals from European Union and even other nations. Many important factors go to determine the future of real estate market in Czech Republic in 2009. Some of the important ones are:

1.Global Credit Crunch:




The Czech nationals have traditionally remained more conservative in adopting the western credit mentality and their saving factor might have helped them stay afloat of the recession situation. Even the banks in Czech Republic have always remained on a good note, being cleansed recently of all bad assets and the overall credit scenario in the country is favourable for easy loans and simple procedures as well.

2.Health of Czech economy:

With a record growth of 6.6% in 2007 and more than 5% growth in 2008, in spite of the recession, the overall health of Czech economy looks really good. Being at the peak of the economic cycle, as compared to its other counter parts, the slowdown will be comparatively ineffective in the Czech economy. This will help to increase the boom in the real estate sector of the country.

3.Housing Market in America:

History shows that the housing market in Europe follows suit to the housing market in America, with a two year lag. The conditions in USA are rather bleak at this time but the contradictory economic conditions of the Czech Republic will help the real estate sector in the country to gain from the loss at the housing market in America. With inflow of more investors from foreign lands, the overall health of the real estate market is only set to rise up.

4.Rent and housing prices in the Czech Republic:

The gross rent is expected to rise to almost double in the coming years due to various reasons:

- Less active buying of houses by locals in the place.

- Moving of non-residents back to their countries in view of recession scenario, to save living costs.

The property prices are favourably affected by rise in rent. Better credit market, transaction costs and risk premiums are called for with rise in rent and also the property prospects look great in such a scenario.

5.Czech wages and housing prices:

A massive growth of wages over 41% in the past seven years and sharp decline in unemployment levels has brought in more affordability for the Czech. In short, this an indication towards a strong growth of housing sector in the near future for the Czech Republic.

6.Succession to the Euro:

This is surely going to boost the Czech currency levels in the near future and this in turn will mean a big boost to the real estate market as well. Buying now will mean a huge profit margin for them.

In short, the conditions of Real Estate purchase are better in Czech Republic than in most other parts of the world. The reason for this is the overall better economic scenario and better mentality of locals towards accepting foreign nationals into their country.