It’s not that it doesn’t sell, but the market for second-hand properties has also slowed down considerably. However, a more fundamental price correction has not yet occurred across the board. For some types of real estate and locations, however, prices drop by as much as 15 percent. Regarding the block of flats, Tomáš Jelínek, director of the Century 21 network of real estate agencies, in the next episode of the Realitní Club podcast, which we will bring tomorrow. He expects further discounting.
The price drop will apply to available 2kk apartments in traditional housing estates that were purchased by investors. These are the ones that appear most often on the menu now. “This category used to be a very sought-after item, now there are ten of them for sale in one street for a similar price. But the market doesn’t accept it,” explains Tomáš Jelínek from Century 21 in the next episode of the Realitní Club podcast.
The increase in rates and also the tightening of the conditions for concluding a mortgage have a significant impact on the market with older apartments, of course. “In order for a person to buy a 3kk, 60 square meter apartment for his family with a mortgage, he would have to borrow 80,000 per month,” adds Jelínek, adding that there are not many such people.
Real estate agents deal with rentals
The ratio of executed transactions has also changed. While in the past sales clearly prevailed, today it is the other way around. “The number of transactions has not changed. Only currently, the majority of their volume is made up of rentals,” Jelínek adds.
However, the rental growth is related to last year and the year before last, when there was a drop in interest in renting due to covid. “Now we have returned to this level and we continue to grow,” adds Jelínek.
Jiří Pácal: The state has failed and continues to fail for a long time when it comes to housing. It’s wall to wall
Reality
The state has been failing to support rental housing for a long time. Whether municipal or top politicians talk about its construction, but for 20 years they only supported the ownership, says Jiří Pácal in an interview for Newstream. According to him, a change in the Civil Code, for example, would help significantly.
Read the article
According to him, the interest in rental housing is caused by two factors, namely the influx of people from Ukraine and, at the same time, the postponement of buying one’s own property.
Listen to other episodes of the Realitní Club podcast:
The land market is starting to move. Before, people said, maybe I’ll sell. They will sell today, claims the developer
Reality
The current downturn in the real estate market is affecting us like everyone else. But from the beginning, we tried for a huge diversification, so I can’t imagine that we would have any serious problem, for example with cashflow, says Jan Řežáb, the founder and owner of the company JRD, which is not only a developer, but has ventured into a number of related areas, but even in completely different fields. It has a total of five divisions.
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Jiří Pácal: At the end of the 90s, apartments were much more expensive to rent than they are today
Reality
In the Czech Republic, real estate is not sold very often, a family house once every fifty years, an apartment once every thirty years, says Jiří Pácal, director of Central Europe Holding and member of the board of the Association for the Development of the Real Estate Market, in the next episode of the Realitní Club podcast.
Read the article
Special Real Estate Club
Realitní Club is a multi-platform project of the newstream.cz server dedicated to real estate, aimed at the B2B and B2C segment. It has three basic parts – web, print and event with a strong focus on social networks. The Realitní Club’s special page was the first to launch. The special is divided into four categories that deal with key areas of the real estate market in a “deep dive” manner.
- Brownfields: the vision and future of undeveloped areas, especially in big cities;
- Commercial real estate: offices, coworking;
- New construction: development, rental housing, cooperative housing, mortgages;
- Reality and politics: how municipalities and the highest levels of central politics participate in construction.
They will be included conversations with developers, politicians, architects and designers.
