Stabilization of the Czech economy, low interest rates, people’s desire to improve their living conditions and as a consequence of, a slight increase in property prices, are a few positive aspects that marked the year 2015.
Property prices raised on average by 4% – 5% in 2015, and the interest rates for mortgage loans got its slight increase as well. Currently an average interest rate in Czech banks varies in a range from 1.7% to 2.12% for Czech residents, and for non Czech residents from 3.6% to 4.8% per annum.
The volume of mortgage loans issued has been increased significantly in 2015. The share of mortgage loans assigned to the real estate acquisition accounts 63%; while for the real estate construction is only 17%; and for other purposes is 20%. In October 2015 the total amount of loans granted amounted to CZK 155.6 billions and expected to increase further to CZK 195 billions, which is going to be an absolute record (source: Stavební forum).
The real estate market in 2015 has been quite successful, and the demand for new apartments continues its steady growth. In the same time the price of construction land and the apartment houses for its further reconstruction has increased, while the construction permits, especially in the central areas of Prague was practically not issued at all. Thus currently, the demand for new energy-efficient, high-quality apartments in attractive and central locations of Prague exceeds its supply. And if the new year will not please us with the reactivation of the local government’s procedures, this trend will continue.
Dear friends, let your desires and countless responsibilities are there for you in a harmony and great success follows you in the realization of your wildest ideas. Merry Christmas to you and Happy New Year!
With wishes of lots of joy and limitless inspiration in upcoming year,
