According to Eurostat data, prices of apartments in the Czech Republic grew by 9.4% in Q1. Although it is half a percent slower than at the end of last year, the speed of price increase in real estate in the Czech Republic is still very fast.
Obviously not much has changed after the CNB tightened its mortgage lending rules. Demand remains strong, although some bidders have probably given up under pressure from already high prices. Yet there are still many who are interested in buying apartments, whether they are domestic investors or foreign ones. Add to this the expanding Airbnb or relatively low interest rates and bond yields, this interest is understandable, especially in terms of rental income, growing almost all over the market.
However, rising property prices are not only the prerogative of the Czech Republic. With the exception of Italy, where prices are falling, or Greece, which is not able to show these prices at all, property prices are increasing across the continent, eg in Germany it is currently 5%.
The Czech, but especially the Prague housing market, where several Israeli companies have been active and still are active, remains very interesting for investors.
Prepared by the team of CzechTrade / CzechInvest Israel