Czechs are racing to file applications for building permits, with official figures showing that the number of applications in the first half of 2019 was the highest in 10 years. The main reason appears to be an EU directive that will make building more expensive from 2020, when stricter environmental rules come in. However, representatives of both business and government say that modern technologies will help save money in the long term.
The market with prefabricated wooden houses in the Czech Republic is experiencing a major boom, the website ihned.cz reports. While ten years ago, there were around one thousand prefabricated wooden houses built in the country, last year it was nearly three thousand. “Over the past year, the demand has grown by one fifth,” Martin Fojtíko of the company Bidli, which specializes in low-energy wooden buildings, told the website.
Prague inhabitants with an average salary would have to work for nearly fifteen years for a flat of approximately seventy square metres, if they didn’t have any other expenses, suggests a study by the developer company Central group. Just a year ago, Praguers needed to work less than 14 years to acquire a flat, while in 2014 it was less than ten years.
High energy expenditures are forcing nearly a quarter of Czechs to cut back on other types of spending, a recent survey conducted by the polling agency STEM revealed. However, other data shows that 68 percent of the population likes to rank up their heating to temperatures by up to 25 degrees, resulting in unnecessary costs.
The growth in apartment prices in the Czech Republic is expected to come to
a halt this year, according to a survey carried out by the Association of
Real Estate Market Development, released on Tuesday.
Last year, prices of apartments across the country increased on average from six to ten percent. The highest growth rate was recorded in Prague. In the first quarter of 2019, the price of new flats increased by nearly a fifth year-on-year to 104,666 crowns per square metre. Since the mid-2015, prices of Prague apartments grew by nearly 90 percent.
The Prague City Hall coalition is due to meet on Friday to discuss a controversial proposal to collect anonymous data from electricity meters to identify vacant housing units. Mayor Zdeněk Hřib of the Pirate Party, which is behind the move, says despite alarm calls by his coalition partners, the intention was never to try to identify the owners of vacant properties – whether ‘foreign speculators’ or local investors – in order to tax them.
Interest in rental housing has seen a significant rise in recent months, in
response to the central bank tightening mortgage rules, the ctk news agency
reported citing real estate companies.
The interest in rental housing has driven rents higher, by an average 3 percent in Prague (to 340 crowns per square metre) but as much as 11 percent in the most lucrative areas.
The monthly rent for a medium-sized two-room flat in Prague is now between 15 to 19 thousand crowns, depending on its proximity to the city centre.