Research (Investicniweb.cz)
Real estate  |  September 03, 2010 11:03:05

Ales Mazgaj: Czech real estate prices will continue to stagnate


Real estate market in the U.S. is still far from its bottom found, while the cheapest houses are for 6.5 years. Shaking it with the Czech real estate market? How will the Czech real estate prices do in the end. How to choose a real estate agent, we nenapálili? Questions for Alex Mazgaje, director of Century 21 Real Estate

How to develop the real estate market in the CR within individual regions? They buy more old or new property?

Ales Mazgaj (AM): Real estate market is not developing since early in this matter very well, which also shows statistics. If we compare it with 2008, sales of old apartments dropped by an average of 7%, the new flats by 9% and recreational facilities by 13%. As for individual locations, preferably on Brno (-9%), the Hradec Kralove (-9.5%) and Prague (-10.5%). Worse numbers as in Ostrava (-22.5%) and Olomouc (-17.5%).

What is more interested in the Czech Republic - a mortgage or rental housing?

AM: Thanks to falling prices of rent, interest in this form of living increases and becomes current again. Another reason is the lower availability of mortgage loans in banks.People often compare the prices of rents and prices of the monthly mortgage installments with interest, but need to realize that, after repayment of the mortgage loan is no longer your property, while those living in rent is not.

You spoke about mortgage loans. How are the currently popular?

AM: Mortgage Loans in the Czech Republic are still popular, because people do not have enough money to buy real estate. This of course is not just a Czech issue abroad is more than 90% financed real estate mortgage loans. The popularity will continue to rise because of credit exposure in the Czech Republic is not at such a high level as in other developed European countries.Of course, the demand will depend on the economic situation - now we are in a period of stagnation, because banks generally have more stringent credit policy, so the mortgage loan reaches a smaller percentage of the population.

What is your view of the end of the year? On what will carry the trend - what is IN and what is OUT?

AM: No one can completely determine the long-term view of the real estate market. There may be many things that can affect this development. In the shorter term, expect a decline in sales of older apartments and some new ones. Nowadays, people think differently, instead of buying another property rather resort to the reconstruction of existing ones. This will, in my view in the fall of the "IN".

Continuation of article can be found on the server Investicniweb.cz, specifically HERE

Michael Solin , editor, investicniweb.cz

Více zpráv k tématu Czech Credit Bureau

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