Czech Real estate development in 2020

Are you wondering how the coronavirus affected the real estate market in the Czech Republic? Read bellow a brief overview of Czech real estate market.

At the beginning of this year many forecasted prices of real estate to fall as they thought there will be many people selling their properties. However, the actual situation is quite different. Except in rare cases, there was no significant increase in the properties offered on the market.
What happened was that selling prices continued to grow, albeit in slower pace. The reason for this is insufficient supply of real estate and the crisis made it even worst as there was lower output of construction industry this year.

Shortage of offered real estate is pushing selling prices up as the demand is still higher than offer. Mortgage loan market is affected by the economic situation as well as by the situation on real estate market. Therefore we have witnessed a sharp decline in interest rates this year. Another important aspect an impact on mortgage and real estate market was abolition of 4% real estate transfer tax.