 |
|
|
|
|
|
 |
|
|
|
| Hundreds of thousands of Czechs will inherit, which could shake up the housing market |
| Prag, 17.02.2025 |
|
| The lack of housing in the Czech Republic will not be as clear-cut as it seems at the moment in the next decade. Although the average prices of houses and apartments will undoubtedly continue to increase, the price increase will be dragged down by the high activity in the strongest markets in Prague, Brno and the Central Bohemian Region, as it has been so far. This distorts the average prices in the country. However, in the background, a large intergenerational transfer of property, especially real estate, is starting to occur, which will affect hundreds of thousands of people. Some smaller cities may not be able to handle the large influx of older apartments on the market. This was reported by the E15.cz portal.
"It is important to realize that demographics are completely changing the view on the development of the housing market," said Milan Roček, founder of the Dataligence platform, who, together with representatives of the Flatzone company, prepared an analysis of the impact of the aging population on the housing market. "The baby boomer generation is the one that has the greatest impact on the housing market in the Czech Republic today," added Roček.The post-war generation of people born between 1945 and 1955 is the largest age group in the Czech Republic. It represents approximately 1.9 million people. Approximately one million panel apartments were built for their families between 1965 and 1980, with many of them acquiring ownership of these apartments through privatization after the revolution. Today they are between 70 and 80 years old, and it is already clear that in the next decade these apartments, as well as houses, will most likely gradually become the subject of inheritance proceedings.
There is no shortage of these properties. According to the analysis, more than 367,000 apartments, most often two- and three-room apartments, and almost half a million family houses are owned in the Czech Republic by people over the age of 70. The problem, however, is that many properties are not located where the heirs would like to live.
As elsewhere in the world, there is interest in larger cities. In the Czech Republic, the largest population growth has been recorded in Prague, Brno, Ostrava and Pilsen. On the contrary, young people are moving out of smaller towns and villages, where the proportion of the oldest property owners is increasing.
"In ten years, the relationship between supply and demand may change significantly," said Roček. Regional cities will be able to cope with this easily, while in medium-sized cities it may at least slow down the growth of prices, as sellers will have to discount their claims. "However, many cities with 5,000 to 10,000 inhabitants will not be able to absorb the increased supply," the analyst warned.
In these cities, the supply of older apartments for sale may increase more than fourfold, which will lead to a significant drop in prices and owners will have great problems selling their properties at all. According to Roček, the risk concerns at least 50 cities, mainly in East Bohemia, Vysočina and North Moravia.
"It is interesting that the state subsidizes the construction of affordable housing in the regions and does not monitor at all how this may affect the supply of apartments in the given municipalities," Roček warned. This year, the first municipalities should draw subsidies or preferential loans for the construction and purchase of affordable rental housing. The State Investment Support Fund has prepared more than 7 billion CZK (279.52 million euros) for this purpose, and according to the Minister for Local Development, Petr Kulhánek, municipalities are very interested in the program.odkaz na stránku |
|
|
|
|
|
|
|
|
|
|
|
|
Address : Euro-Brew Ltd., Hlboká 22, 917 01 Trnava, Slovakia
Tel. : +421 33 53 418 53, Fax : +421 33 53 418 52, E-mail : info@eurobrew.sk |
|
|
