Affordability Becoming an Issue in Czech Housing Market
- New Europe Investor
- February 23, 2016
Prices in the Czech residential housing market are currently at levels not seen in the last five years with demand currently higher than before the financial crisis.
Competitively priced mortgages combined with rising salaries are fueling the impressive demand according to analysts.
However, there are now concerns that affordability is beginning to become an issue again like it was back in 2008 prior to the financial crisis.
In 2008 the average apartment in the country cost 134 times the average monthly salary. Following this, it fell to a low of 94 times towards the end of 2013.
At the end of last year, the number rose to 100 times average salary according to radio.cz, with concerns that more and more people are being priced out of the market.
At the top end of the market, Prague is increasingly becoming an attractive proposition for those seeking luxury apartments. Demand in this sector is expected to grow by up to 18% every year until the end of 2018, according to real estate agent, Lexxus Norton.