Vladimír Urbánek (Kurzy.cz)
Personal finance  |  December 14, 2012 16:16:20

What lies ahead for the real estate market in 2013? The inevitable price drop and new buildings rise in demand for second hand properties


Prices to fall further in tens percent for new buildings and development projects is just one of the many predictions for the upcoming 2013. Significant price increases for older, so-called second-hand property, already in 2013, experts expect. The price level will stagnate or fall slightly. The main reasons are rising unemployment, unfavorable tax law - increased real estate transfer tax - and the overall negative sentiment in the market.

The year 2012 was a turning point for the real estate business. The rapid reduction in mortgage interest rates caused their decline to historically low levels and demand began to rise. Compared to last year increased volumes of mortgages granted in the order of several units of percent. Annual changes discussed in the autumn of this year even more than 3 percent.

Real estate prices in contrast to interest rates stagnated, possibly in selected regions increased by 1-2%. It follows that this year was a great success not only for buyers who have a higher chance of getting a mortgage due to milder conditions for its establishment and preferably to buy the property, but also for real estate agents, which naturally increased profits.

"For us, 2012 was very successful. We managed to increase its sales by more than 20%, thus exceeding the plan that we have identified for this year. I am glad that the banks understand that retail clients are alive, and adjust mortgage terms so that they are available to everyone, "says Miroslav Jonas, Managing Director and Vice Chairman of M & M reality. He expects next year revenue growth of your company by at least 10-15%.

Overall, however, following the success of last year probably will not be repeated. According to forecasts of the Czech National Bank will be 2013 in the real estate market in the sign of decline. Expected stagnation or reduction of prices of older properties by 1-3%, due to a decline in economic activity, reducing household income and rising unemployment. Development projects fall into decay phase and construction is gradually slowing down.

"Falling share apartments sold before completion, the completion time increases in sales and the higher the variability of success between developers in terms of quality and location,"Eva finds Zamrazilová, CNB Board member. For Miroslava Jonah is not surprising that situation. "This confirms our New Year's assertion that development projects are overpriced and generally not interested in them. This will greatly increase the demand for our main brand - the second hand property, "says Jonah. It is expected that many small and medium-sized real estate offerings will be forced to complete their work and brokers are added, as it already did in 2012, the greatest players in the domestic market - M & M reality. "Just this year we have expanded our hundreds of brokers to Provisional number 2 700th For a lot of them come to us precisely for failing Realtors, which they obviously are not able to offer such facilities as we "he added.

Land recognized in next year only minimal changes in its price setting. Moderate growth in prices achieved only land in good locations due to the fact that the land has not increased and people's interest in plots 600-800 m 2 according to the survey year rose by more than 40%.

On the buyers' side at the beginning of 2013 will continue gradually increasing demand for real estate purchases, because interest rates in late 2012 still maintain a very low level, which is not a sustainable situation.Continue the trend of purchasing real estate for investment, since revenues from the lease in most regions exceed the cost of a monthly mortgage payment.


The real estate agency M & M reality

M & M reality holding, as is engaged in the provision of real estate sales, leasing and management of objects and of course provides a broad legal and financial advice on real estate. With the financial strength, the network of branches throughout the Czech Republic and brokers trained specialist training program is able to sell any property in unmatched short time.

 

M & M reality holding more than 2,500 brokers in 116 offices in the Czech Republic. Every day, M & M Real Estate sells 42 properties per year is more than 10,000 from a wide range including 28,000 orders. Currently works with more than 57 thousand poptávajícími clients. In 2011, the property traded for a total of nearly 12 billion crowns. Real estate agency for its clients, of course, provides comprehensive legal services and financial advice - her mortgage center, which for 2011 brokered mortgage loans in excess of 2.5 billion crowns. Czech Chamber of Commerce has established an M & M reality as the best real estate agency in the prestigious competition for domestic entrepreneurs Czech PATRON 2011th

 

Monika Buřičová

M & M reality holding, as

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