Apartments may become cheaper by up to sixteen percent this year, and they may not recover from price drops until at least the end of 2025. This is at least the more dramatic of the two current scenarios for the development of apartment prices, according to the Czech National Bank. However, even the more optimistic option, counting next year’s growth in the order of one percent, is nowhere near bringing real estate investors a boom at the level of the pandemic years. The CNB published its outlook in the June report on financial stability.
“Following on from its spring forecast, in the basic scenario, the CNB expects the year-on-year growth rate of residential real estate transaction prices to exceed slightly negative values in mid-2023 and remain in negative values for two quarters. However, the risk of a significant price correction in the medium term has significantly decreased,” the CNB’s analytical team states in the June report on financial stability. “A further price correction may occur, especially for older apartments in less lucrative locations,” adds the central bank’s analysis.
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2023-06-28 17:00:00
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