The Czech National Bank has issued a Financial Stability Report outlining likely scenarios for the residential market. For the first half of this year, its basic scenario still envisages a slight decline in house prices of a few percent, but then it expects a gradual return to growth, which should be relatively stable in the following years.
“Under the optimistic scenario, which we share, the central bank forecasts a 5% year-on-year decline in prices. However, this should mainly concern older flats in less attractive locations. Residential property values should start to rise again next year. Demand for new housing is still high and there is a long-term shortage of new flats on the Prague market,” says Michaela Tomášková, Executive Director of Central Group.
Source: Central Group
