Are you planning to sell property in Czech Republic online in 2017? The property market in the Czech Republic was one of the few to have escaped the worst effects of the global housing crisis of 2007-08. Czech Republic is a very stable country, politically and economically and has done very well to weather the storm.
2016 was a good year for real estate in the Czech Republic as the country witnessed record low interest rates. This led to a wave of optimism in the economy.
2017 is expected to continue in the same vein. We expect cheap mortgage rates to continue. Real wages should increase as well. Certainly, there is no risk of any drop in property prices over the foreseeable future in the Czech Republic.
The local real estate market will be helped by any improvement in the European and the global economy. Domestic investment should reach a record high because of higher disposable incomes in the country, helped by the expanding middle class.
There is a lot of foreign interest in Czech real estate, with a number of cash rich, high net worth individuals from Russia, Ukraine and other countries in Eastern Europe looking to invest here.
Let us consider each of these factors in detail.
Mortgage rates in the Czech Republic are very close to their historical lows. The Czech National Bank seems determined to keep it that way. This is likely to fuel the property boom in the country and keep the demand high.
Real wages in the Czech Republic have been rising fast over the last few years because of the newfound confidence in the economy. The Czech Republic is today a middle-income country with a growing middle class, who are more prosperous than at any time in the past. There are a plenty of jobs and business opportunities available to everyone.
The situation in Europe is beyond the control of anyone in the Czech Republic, but a strong Europe, and a strong European Union in particular would certainly help. Germany is the country’s leading business partner, so any improvement in the German economy would have a positive impact on the Czech real estate market as well.
There is also a strong belief that property prices here are set for a consistent growth over the foreseeable future. Most analysts feel that Czech real estate is grossly undervalued, so we are set for a period of sustained growth.
This has made many Czechs to view property as an investment of choice, compared to investment in gold, bonds or the stock market. That the lending rates here are at their lowest right now has certainly helped fuel this demand.
Most importantly, foreign direct investment in the Czech real estate market is higher than it has ever been. There is a lot of interest in the country, which compares well to other popular overseas property destinations such as Turkey and Greece because of its stability and overall positive economic outlook. Certainly, this is a good time to buy property in the Czech Republic.