Real Estate

Czechs Face Europe’s Longest Wait to Buy a Home

Buying a home is increasingly difficult for Czechs. High mortgage rates and rising house prices complicate the situation. Last year, the Czech Republic dropped in the international rankings, making domestic housing the least affordable in Europe. “The affordability of owning a home in the Czech Republic remains poor and it doesn’t look like it will change yet,” said Miroslav Linhart, a senior partner in Deloitte’s financial advisory department. Deloitte’s Property Index survey calculates the average income and the cost of a new 70-square-meter apartment. In the Czech Republic, it takes 13.3 annual salaries to buy such an apartment, the same as last year. The Czech Republic now ranks alongside Slovakia, where people need to save for 12.7 years. In contrast, in Denmark and Norway, it takes less than five annual salaries to buy a home. Among cities, Amsterdam is the toughest for purchasing a flat, requiring around 15 years’ wages. Prague is the second most expensive, where buyers need 13.5 years’ worth of savings. Renting Instead of Owning Expensive housing particularly affects young people, according to Martin Lux, a sociologist at the Institute of Sociology of the Academy of Sciences. “Many young people live in rented accommodation or stay with...

 by Prague Morning Aug 07, 2024

Czech Housing Market Rebounds: New Apartment Sales and Prices on the Rise

The Czech apartment market is experiencing a significant rebound, with sales of both new and older apartments surging across major cities. In Prague, developers sold a staggering 2.5 times more new apartments in the first three months of 2024 compared to the same period last year. This surge follows a historically slow period for sales in 2022 and early 2023, attributed to high mortgage rates and economic uncertainty. Despite the recent increase, 2023 still marked the second-worst year for new apartment sales in Prague’s history. However, prices have shown signs of stabilization, with the average price per square meter seeing only a slight increase of 1.2% compared to the end of 2023, Hospodářské noviny reports. Brno’s apartment market also saw a significant boost, exceeding the expectations of many experts. Sales doubled compared to the previous year’s quarterly average, driven by mortgage rate reductions and pent-up demand. While prices haven’t reached the heights of 2020-2021, analysts predict a gradual upward trend in the coming months. According to the analysis of the company FérMakléři.cz, which is available to the editors of FAEI.cz, an older apartment in Prague can currently be bought for an average of CZK 125,400 per m2. Roughly three months...

 by Prague Morning Apr 30, 2024

Prague Flats Selling on Average 7.62% Under First Advertised Price

How do you define what is a real property price? It surely is not what you see online on sreality.cz or other web servers. Most statistics you can find work with advertised prices, or the last known advertised prices of real estate, rather than the real hard data. The real price for the purpose of this article is how much was the property really sold for,  and for that, you need to go to the land registry. Getting the data from the land registry can be done by anyone, however, it requires certain know-how and a visit to the land registry in person, via their website, or through other services like valuo.cz where you can purchase data on the real prices from your neighborhood. Valuo has collected data for a few years now and compares advertised prices with actual prices from the land registry. If you would have guessed the real prices are lower than advertised, you are correct. But by how much are they lower? It is common practice that real estate agencies set the prices a bit above the expected price of the owner just so that they have some room for negotiations. In recent years, the average...

 by Robin Petrasek Apr 10, 2024

How to Sell a Property with a Mortgage in the Czech Republic

Wondering how to sell a property burdened with a mortgage in the Czech Republic? There’s no need to worry – it’s a common scenario in the real estate market. Selling a property with an outstanding mortgage does come with its specifics, but that doesn’t mean it’s impossible. What are your options when selling a property with a mortgage, and what should you prepare for? There are several ways to go about selling such a property. However, the first step is always to obtain a mortgage balance statement from your bank, detailing the remaining mortgage amount by the time of the property transfer. You might visit a bank branch, but nowadays, most banks in the Czech Republic offer remote services – a call or filling out a form on the bank’s website might suffice. What’s crucial in this step is how high the fees for early repayment will be. If the transfer coincides with the end of your fixed interest period, the fees will be minimal. In most cases, though, the sale won’t be timed perfectly with the interest period’s end, and it’s often unnecessary. If your mortgage contract was signed after December 1, 2016, or you renewed the fixed interest...

 by Daniel Kotula Apr 02, 2024

Selling a Cooperative Apartment in the Czech Republic

Selling a cooperative apartment in the Czech Republic follows different rules compared to selling a personally-owned apartment. But don’t worry—though it might seem like there’s more to navigate than selling a regular flat, it’s not a complex process. What do you need to arrange for a successful sale of a cooperative apartment? How do cooperative apartments in the Czech Republic differ from individually-owned ones? The biggest distinction lies in the owner—while the ownership of a personally-owned flat is registered under a specific individual’s name, with a cooperative apartment, the housing cooperative is the owner, and you are a tenant of this cooperative with a membership share in it. This means that when selling, you have different rights and obligations compared to a “regular” apartment owner. So, how does the sale of a cooperative apartment in the Czech Republic work? Notifying the cooperative Since you’re not the owner of the cooperative apartment, you also need to involve the cooperative in the sale. Therefore, it’s advisable to consult the statutes to understand the conditions under which you can sell your membership share within the cooperative. Discuss your intention to sell with the cooperative and determine the conditions for transferring the share. These...

 by Daniel Kotula Mar 27, 2024

ČNB Lowers Rates Again: Cheaper Mortgages and Less Interest on Savings Accounts

The Monetary Board of the Czech National Bank (CNB) has reduced the key interest rate by half a percentage point to 5.75 percent, reaching a level last seen in mid-June 2022. Both the market and analysts were expecting a half percentage point decrease, so the Monetary Board’s decision should not have a significant impact on the exchange rate of the crown, stated Jakub Seidler, Chief Economist of the Czech Banking Association. According to Seidler, a decline in interest rates can now be expected for both corporate loans and deposits, as well as mortgages. “The central bank’s decision only confirms the established trend and market expectations, which have already been reflected in longer-term market rates. These rates began to decline at the end of last year due to expectations of faster rate cuts by central banks.” From my point of view as a mortgage advisor, given rates have finally dropped under 5%, I think later this year the trend will surely continue. This will help revive the real estate market which, over the last two years, has experienced the lowest interest in a long time. What is a bit surprising is the amount of interest in purchasing properties we are experiencing...

 by Robin Petrasek Mar 25, 2024

How to Sell Land in the Czech Republic

Do you own land in the Czech Republic that you don’t have a use for and have decided to sell? Then you’ll need to do more than just write an ad. This article will guide you on how to proceed with selling land, avoiding common mistakes, and getting the highest possible price. Selling land in the Czech Republic can be done either on your own or with the help of a real estate agent. If you choose the first option, be prepared that the process of selling land might take more time, energy, and ultimately money than you thought. But if you’re ready for this reality, nothing’s stopping you. But what should you keep in mind when selling your land? Building, weadow, field? Not all land is the same – that’s how the first and most important point of the sale can be summarized. The potential buyer will be most interested in how they can utilize the land you have for sale. Will they be able to build a family house or a recreational facility? Or plant gardens and fruit trees? Therefore, it’s important to gather all the necessary information about the land you are selling. You should definitely familiarize...

 by Prague Morning Mar 20, 2024

How to Sell a Family House in the Czech Republic

Are you looking to sell a family house in the Czech Republic, but are unsure how to proceed? We’ve got you covered with a comprehensive guide on what needs to be arranged before selling, how to prepare the house for sale, and how to maximize the value of your property. Selling a family house is generally a bit more complicated and can take longer than selling an apartment. After all, buyers are usually looking for a home for a lifetime, a place for their family, and that decision naturally takes more time. Furthermore, there is slightly less demand for houses in the Czech Republic compared to apartments. That’s why it’s essential not to underestimate anything. If you’re uncertain about how to sell your house, we’re here to help! Start at the cadastre Your first step should be a (virtual) visit to the ‘cadastre’ (the land registry of the Czech Republic). You should verify whether the information in it matches reality – from the owner to the land area and all the structures on the property. If you discover any discrepancies, such as an unapproved garage or a fence in the wrong place, it’s important to rectify everything. The relevant authorities...

 by Daniel Kotula Mar 12, 2024

Selling Your Apartment in Prague

Are you thinking about selling your apartment or flat in Prague and wondering about all the steps you need to take to get the maximum value for your property or ensure a hassle-free transaction, and above all, do it quickly? In this article, we’ve got some tips for you on how to go about selling your apartment. You might be thinking that selling an apartment in Prague can’t be that different from selling one in other regions, right? Well, the rules are pretty much the same in places like Uherské Hradiště as they are in the capital city. However, the Prague real estate market has its unique features that you should keep in mind. It starts with the number of apartments available and ends with their prices. So, how do you sell an apartment in Prague? Is Prague expensive? When we talk about the real estate market in Prague, what often comes to mind is the high prices at which apartments are offered in the city. As a seller, this could work in your favour, because you’d get an amount for your property that you might not get in most other regions. However, for some sellers, this might lead to...

 by Daniel Kotula Mar 01, 2024

Property Prices Around Prague Metro Stations Increase

Over the past seven years Valuo, a company specialising in property valuation and related data collection, has meticulously tracked price trends within the Prague metro area. Its efforts have revealed a remarkable 68% increase in prices along the green line (Line A), where figures soared from an initial 79,000 CZK/m² to over 130,000 CZK/m². This sustained growth highlights the unwavering demand for housing near metro stations. Valuo’s analysis has been instrumental in providing insights into the real estate market. It focused on 80 m² apartments in personal ownership that have undergone full renovations. Leveraging data from finalised offers on real estate platforms, Valuo has offered a clear picture of the selling prices—a task not feasible with land registry data alone, which often lacks detailed information on the condition and floor area of sold properties. In its selection, only apartments located within a maximum of 1km from the nearest metro station were considered. An exception was made for the Letňany station on the red line (Line C), which is less densely populated and therefore the radius was expanded to 1.5km. Despite the uncertainties of 2022, 2023 showcased Prague’s resilience in maintaining high property values. According to Valuo’s findings, most locations around...

 by Robin Petrasek Feb 28, 2024
Apartments prices prague

What are the Types of Escrow in Czechia and What are Their Advantages and Disadvantages?

If you’re buying or selling property in the Czech Republic, you’ll come across the term “escrow of funds (úschova peněz)” or “escrow of the purchase price (úschova kupní ceny).” What does these terms mean, and why should you always make use of escrow? Let’s take a closer look at this article. In general, when selling or buying property in the Czech Republic, you can choose from three basic types of escrow for funds. These are: Lawyer’s escrow Notary’s escrow Bank escrow There’s also a special fourth category, which is the real estate escrow, meaning funds are held directly by the real estate agency. Each type of property escrow has its own advantages and disadvantages when selling a property. So what are they, and what factors should you consider before deciding on the one that suits both the seller and the buyer? Do you really need it? Are you wondering why escrow of funds is important when selling an apartment, house, or land? Well, the reasons are quite crucial, even though the buyer and the seller usually have different motivations for choosing the right type of escrow. In the Czech Republic, escrows are mainly used because there’s a gap of approximately...

 by Daniel Kotula Feb 27, 2024

Selling Property in the Czech Republic

Are you thinking about selling an apartment, family house, or land in the Czech Republic, but are unsure about all the steps you need to take for a smooth transaction and to get the best price? In this article, we’ll guide you through the process of selling property. Right from the start, it’s important to mention that if you decide to sell property in the Czech Republic entirely on your own, that is, without the help of a real estate agency, you’re in for a quite challenging time. Many people believe that selling “by themselves” will lead to higher profits because they won’t have to pay for a real estate agent’s services. However, this is rarely the case. Even after paying commissions etc., a reputable real estate agency can help determine a better value for your property, promote it effectively, and find suitable buyers, leaving you with more money. The important factor here is that you must work with a quality, reputable real estate agency. However, if you do decide to try and sell your apartment, family house, or land on your own, let’s explore how to sell property without involving a real estate agent. Setting the price The first...

 by Daniel Kotula Feb 21, 2024

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