Czech Real Estate Will Grow 9% Annually in the Following 10 Years
Anticipating a new real estate boom, experts project a significant global rise in property prices over the next decade.
The German economic institute Ifo and the Institute for Swiss Economic Policy jointly conducted a survey, revealing that real estate prices are expected to increase by an average of nine percent annually. In Eastern Europe, the growth is predicted to be even higher.
Timo Wochner, an analyst at Ifo, explains that the primary driving force behind this surge in house prices is the increasing demand, rather than supply factors.
The survey, which gathered insights from 1,405 experts across 133 countries, suggests that rising living standards, higher incomes, population growth, and the desire for more living space will fuel demand worldwide. Furthermore, the trend towards remote working, including the growing popularity of home offices, will also contribute to the increased demand for housing.
Wochner further explains that limited production capacity, rising building material costs, and a scarcity of building land are some of the factors responsible for driving up property prices, as identified by 27 percent of the experts.
Moreover, 12 percent of respondents attribute the expected price growth to central bank monetary policies, inflation, and government measures.
Regarding regional variations, economists predict that house price growth in Western Europe (6.4 percent) and North America (7.7 percent) is likely to remain slightly below the global average.
Conversely, significantly higher growth rates are expected in Southern and Eastern Europe, with forecasts of 18.4 percent and 14.9 percent, respectively. South and West Asia, along with Central America, are anticipated to experience even more substantial increases, with predicted growth rates of 25.1 percent and 22.4 percent, respectively.
It is essential to note that the survey’s results were based on nominal values, not adjusted for inflation. As clarified by Philipp Heil, a researcher at Ifo, the actual growth rate is expected to be lower than the nominal values indicate.
Overall, the experts’ outlook suggests a promising future for the global real estate market, with strong demand and various economic factors fueling the anticipated price growth in the coming years.
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