House and apartment prices have been rising in recent years, and for more and more people owning their own home is becoming an unattainable dream. Recently, they have also contributed to this high interest rates that made it even more difficult to apply for mortgages. “Real estate prices have risen significantly in the past five years, and after the rapid increase in mortgage prices, these loans are practically unattainable for young applicants,” Miroslav Majer, the head of the fintech startup hyponamíru.cz, told the website iDnes last May. Now, however, it seems that some will be able to buy their own home, to put it mildly, for a few crowns.
Housing for a few hundred thousand?
Czechs who are interested in buying their own house or apartment usually prepare for the fact that they have to do the math with amounts in the millions of crowns. However, this may not always be the case. As the CNN Prima News website writes, there are currently opportunities to buy housing for less than 1 million crowns in many places in the Czech Republic, which was previously unimaginable.
Of course, you won’t come across a cheap apartment under a million crowns everywhere. For example, in Prague or other lucrative locations, prices remain understandably high. For example in regions such as the Ústecký, Liberec or Karlovy Vary regions but it is already different, reports the website CNN Prima News. Although these are often smaller apartments that are often before reconstruction, the housing offer for several hundred thousand crowns is extremely advantageous.
Cheap apartments won’t be around forever
Do these amounts sound like science fiction? It really is. According to the Deník website, it was in the last quarter of last year average price per square meter is 89,300 crowns. “This was 1.8 percent less than in the previous period, and the price also fell for the fourth time in a row,” writes the Deník website. However, this bargain appears to be for a limited time only. As many experts warn, the demand for real estate is expected to grow. And together with it, the price of housing will logically increase.
According to experts, housing prices will return along with mortgage discounting. “The time of expectation that apartments will continue to become cheaper is over,” Pavel Kliment, partner of the consulting company KPMG, told the Novinky website. According to the Lidovka server, they could even at the end of the year the interest rate will reach 4 percent. This would reduce the Czechs’ monthly installments by thousands of crowns, and thus interest in mortgages can be expected to grow. So if you are thinking about owning your own home, it seems that now is a very favorable time for it and there is nothing to wait for.
