Mediafax (Mediafax)
Markets  |  March 26, 2013 15:42:06

Real estate prices are falling and will fall even further

In Prague apartments sold for an average of 46,000 crowns per square meter. In Brno, then for 31,800 crowns and Hradec Králové for 26,000 crowns. "Housing prices soared high in Kladno, which occupied the fourth place with 24,124 crowns per square meter," says the director of the Price Statistics Jiri Mrazek., But still there are lower prices by almost half compared to the metropolis. Praguers would therefore be worthwhile to build a house or buy an apartment in Kladno. addition pathos is around half an hour. "On the contrary, the price of older houses in Kladno moves at very low prices," said Mrazek.

Prices of apartments and houses for several years now falling, but rather the value of land either stagnated or slightly increasing.

According to the House Price Index (HPI), which consists of the prices of older and new flats and houses with land, the Czech Republic is moving around the EU average.
In regions outside the annual prices of older apartments fell by seven percent. The exception is the market in Prague - on the contrary here in 2011 prices rose slightly, by 0.2 percent.

"Bubbles, when real estate prices jump sharply upward, flat and hardest hit markets of Spain, where property prices have fallen since 2007 by 30 percent," said Mrazek, with the share of the blame for the economic crisis clearly had. On the contrary, he said that did not affect the prices in Germany, where on the contrary increased. Likewise, rising in France.

In the Czech Republic, real estate prices have risen about 2.5 times. "Inflation has increased only 1.5 times and the impact of the rise in purchasing power and the development of the mortgage market," said Mrazek.

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