Predictions for Prague’s expat real estate market

It’s as yet uncertain as to the effect of the worldwide coronavirus pandemic will have on property prices and rental charges, but Prague’s version is expected to slow down as regards both sales and rentals.

Over the past decade, the Czech Republic and its capital Prague have been a popular destination for expat professionals as well as entrepreneurs in the tech sector. As in many other European Union member states, the influx of expats has resulted in both rental and sale price increases as well as in shortages of inner city accommodation for local people.
Obviously, due to the pandemic, both sectors are expected to see a decrease in demand, but real estate agents are looking to positive price growth later in the year.

Europe as a whole is likely to experience a recession this year, although the long-term attractiveness of Central and Eastern Europe’s real estate market isn’t likely to be affected. At present, the Prague lockdown is slowing activity in the sector, causing increases in unemployment numbers as well as weakness in company financial prospects. As a result, the decline in prices and rental charges is expected to be gradual and continue for several years.

For already established expats in the region, buying a property at the right time could be a good option, with 90 per cent mortgages now on the table again and financial requirements easing. Unfortunately, those in severely hit sectors such as tourism, the overall hospitality sector, travel and culture are likely to have a hard job getting a property loan. One possibility is buy-to-let based on Airbnb-style rentals, still a strong market and possibly the way forward for property investment in Europe as a whole.