Real Estate Market Autumn 2024: The Post-Crisis Real Estate Boom Continues

The conference’s three panels saw experts debate today’s real estate market trends. We discussed a wide range of topics, from the development of non-residential locations, through the transformation of the urban environment, to the current investment strategies. 

Panelists talked about the impacts of the amendment of the Building Act, which became effective on July 1st of this year, and the digitization complications. Though problematic, it’s an essential step in making the spatial planning and building permit acquisition processes simpler and faster. Early this November, the Chamber of Deputies quickly approved the amendment of the law—a partial or full legislative technological bypass that will act as a bridge until the time when the new digital system will be up and running without any glitches.

According to experts, the gap between the rapidly growing demand for apartments and the current stock is widening, both in the affordable segment and in the premium one. “The premium property market follows the same trends as the mainstream market. Exceptional projects are being built, but development isn’t able to satisfy the accelerating demand. Properties are becoming a rare commodity, making them an excellent asset for investors,” stated Prokop Svoboda, managing partner of Svoboda & Williams. 

New builds are often slowed down by interminable processes, including the complicated building permit process. However, demand for residential real estate is pushing prices steadily upward. Owner-occupied housing in the Czech Republic has long been among the least affordable in the EU. Clients and developers are therefore turning increasingly to rental housing. 

Experts predict that the ratio of people living in rented properties will continue to rise. According to the panelists, the shift of some capital toward rental housing projects will continue to be an observable trend in the coming years, which will have an effect on rental prices. “Rental housing is definitely a trend we can see. People are hungry for properties for sale, but there are few options, which is why interest in rental housing is gradually going up. We can observe this interest not only among individuals, but also among investors and institutions,” confirms Prokop Svoboda.