Czechs are buying smaller apartments more often; instead of living in them, they want to rent them out

Prague - Czechs are buying smaller apartments more this year, which they intend to rent out further. This type of investment is supported by still very low interest rates on mortgage loans. This is evident from the experiences of representatives from real estate agencies contacted by ČTK.
    "The trend remains small apartments, also as an investment for subsequent rental. The greatest interest is in 2+kk apartments up to 50 square meters in the wider center or in locations with good transport accessibility to the center, which are suitable for rental and meet the lifestyle of so-called singles," noted Jan Zachystal from the real estate company Re/Max Alfa.
    Increased interest in apartments purchased for further rental is also observed by brokers from the real estate network RK Sting or Maxima Reality, according to which mainly 2+kk apartments are most commonly bought by young couples for their own housing or by people as an investment.
    "Compared to previous years, there is an increasing interest in the investment purchase of older apartments intended for subsequent rental, which is driven by the combination of low prices and very favorable mortgage rates," confirmed this year’s trend the executive director of ERA Reality Czech Republic Marek Sklenář, who noted the greatest interest in smaller apartments and apartments for renovation. As for houses, economic projects on smaller plots are reportedly dominating.
    "Outside of Prague, low-rise houses with smaller gardens are also popular," added Zachystal's colleague from Re/Max ALfa, adding that the interest in these types of properties has been long-term.
    This year, people are also looking more for smaller apartments according to Maxima Reality broker Otakar Schuma. "Compared to last year, we are seeing a slight increase in interest in 2+kk and 2+1 apartments. The most sold are also 3+1 apartments in personal ownership, which are most frequently sought by young families with children," Schuma stated.
    Outside the capital, the price plays an even bigger role. This is confirmed, for example, by Radka Černá from Century 21 Bonus Brno. "This year, compared to previous years, there is more focus on the price of real estate. There is also less interest in property viewings than before. This year there is a smaller supply," noted Černá, adding that in Brno, there is the greatest interest in 1+1 and 3+1 apartments as well as apartments in new constructions.
    In South Bohemia, the greatest interest remains in small 2+1 and 2+kk apartments in housing estates. Older apartments within reach of public transport are also interesting. "We have noticed a decreased interest in plots. Until now, their prices have been rising, but now they are rather stagnating. Conversely, there is greater interest in parcels outside of dense development," pointed out Hana Kovandová from the České Budějovice real estate company Century 21 Stejskal. In addition, clients are more attentive to the quality of construction and increasingly demand assessments from builders.
    "This year, there is also a noticeable increase in interest in recreational properties, especially those that can also be used for permanent residence," added another trend this year, commercial director of RK Sting Michal Kresta.
    The improving economic situation and persistently low mortgage rates, according to the director of Lexxus Peter Višňovský, will also drive the entire real estate market upward. "This year will be a transitional year, in which, after several years of stagnation, the market will grow relatively significantly - certainly in terms of transaction numbers and very likely also in property prices. Compared to the last rise from 2005 to 2008, however, it is a healthy growth driven by rational demand and not by the threat of an unclear increase in VAT," estimates Višňovský.