Real Estate - Czechia

Czechia

The Real Estate market market in Czechia is expected to reach a value of US$1.89tn in 2024.
The residential segment dominates this market, with a projected market volume of US$1.51tn in the same year.
Furthermore, it is anticipated that the market will experience an annual growth rate of 5.33% from 2024 to 2029, resulting in a market volume of US$2.45tn by 2029.
When compared globally, it is worth noting that United States is projected to generate the highest value in the Real Estate market sector, amounting to US$132.0tn in 2024.
The real estate market in Czechia is experiencing a surge in demand for residential properties due to the country's strong economic growth and favorable investment climate.

Key regions: United States, China, Japan, Germany, United Kingdom

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Analyst Opinion

The Real Estate market in Czechia is experiencing significant growth and development.

Customer preferences: Customers in Czechia are increasingly interested in investing in real estate properties. This can be attributed to several factors, including the stability of the market and the potential for high returns on investment. Additionally, there is a growing trend of individuals and families looking to own their own homes, rather than renting. This shift in customer preferences is driving the demand for residential properties in Czechia.

Trends in the market: One of the key trends in the Czech real estate market is the increasing demand for residential properties, particularly in urban areas. This can be attributed to the growing population and the influx of people moving to cities for better job opportunities. As a result, there is a shortage of affordable housing options, leading to a rise in property prices. Another trend in the market is the growing interest in commercial real estate, especially in the retail and office sectors. Czechia is experiencing a boom in tourism and a thriving business environment, attracting both local and international companies. This has led to an increased demand for office spaces and retail properties, driving up rental prices and property values.

Local special circumstances: One of the unique aspects of the Czech real estate market is the presence of historical buildings and architecture. Czechia is known for its rich history and cultural heritage, and many investors are attracted to the opportunity to own a piece of this history. This has led to a niche market for historical properties, which often come with their own set of challenges and regulations.

Underlying macroeconomic factors: The growth and development of the real estate market in Czechia can be attributed to several macroeconomic factors. Firstly, the country has a stable economy with a low unemployment rate and a high GDP growth rate. This creates a favorable environment for investment and encourages individuals and businesses to invest in real estate. Additionally, low interest rates and favorable mortgage conditions make it easier for individuals to purchase properties. This has further fueled the demand for residential properties, as more people are able to afford homeownership. Furthermore, the government has implemented policies and incentives to attract foreign investors to the real estate market. This has led to an increase in foreign investment in properties, particularly in the luxury segment. In conclusion, the Real Estate market in Czechia is experiencing significant growth and development, driven by customer preferences for residential and commercial properties, as well as the presence of historical buildings. The underlying macroeconomic factors, such as a stable economy and favorable mortgage conditions, are also contributing to the growth of the market.

Methodology

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.