In a previous article, at the beginning of the first wave of coronavirus, I wrote about the development of real estate prices. We are now at the beginning of the second wave of the pandemic. Those investors who expected a decline in property prices are probably very surprised.
Yes, according to the assumption with the decline of tourism in the two large cities of Prague and Brno, the offer of long-term apartment rentals increased rapidly, but the owners are waiting with the sale and preferred to offer the apartments for long-term rent. This has caused a reduction in rental prices in these apartments, but prices for the sale of 1 m2 of living space of apartments are not falling anywhere.
On the contrary, almost all categories of real estate are still growing, as the supply of real estate for sale is still declining.
According to the assumptions, the greatest demand is for cottages, family houses and flats.
Uncertainty in the economy, the departure of foreign construction workers to their homeland slowed the rate of completion of construction projects and the development of new construction. Property owners who were considering selling their property before the viral pandemic are also waiting for price developments and have begun to consider a later suitable time to sell.
Yes, during the first wave, real estate was almost not traded. But this was mainly due to confusion over the abolition of property acquisition tax. Although this tax is still not definitively abolished at present, no one probably assumes that it will not be abolished. As a result, most real estate agents did not stop during the holidays and deferred transactions took place. According to the Ministry of Finance of the Czech Republic, the purpose of abolishing the acquisition tax was to increase the supply of real estate on the market and reduce real estate prices.
How is it possible that it didn't happen? The abolition of property acquisition tax does not put such pressure on the real estate market for construction companies or potential sellers to change their behavior when considering the sale of their property.
The extension of the tax exemption from acquired real estate from 2021 from 5 to 10 years should also have caused a greater supply of real estate on the market and caused a fall in prices. Also nothing. Unfortunately, I think the opposite here. It does not motivate the current owners in any way, they still have the exemption after 5 years and the new owners who buy the property from next year will be motivated to sell after 10 years. And this will again cause a smaller offer of real estate on the market and again an increase in real estate prices !!!
In conclusion, I can only recommend to everyone. Please do not sell your property below the price !!!
The properties you have decided to offer for sale are not sold at the usual (maximum) market price if you sell them within a week or within one month. If, in turn, you have your offer price significantly above the market price (usual), it is just a waste of time and money with such a sale - your property will not be sold.
Let us prepare a professional current market valuation and strategy for the sale of the real estate you offer free of charge, even with the development of the future market price of the real estate at the time of sale.
As part of the market valuation, we will prepare a SWOT analysis and evaluate the strengths and weaknesses, and we will also focus on the opportunities and threats of the property you are selling.
Please contact specialists with the sale of your property. You will then see for yourself that it was a very good decision and you will definitely not regret it.
Most property owners sell their property once in a lifetime, and unfortunately some realize it's too late to sell it at a much higher price.
4. 9. 2020