This restrictive measure was taken by the CNB in 2017 to slow down the ever-growing volume of newly-provided mortgages.
Respondents predominate that real estate prices have reached a new high. They mention the long-term acute shortage of residential real estate in Prague, and they are not afraid of their own housing in large cities becoming inaccessible to a certain group of people, especially young people. They do not have the financial reserves required to cover the required 20 percent of the mortgage loan, as well as to cover the property tax of four percent. On the other hand, they point out that for Prague investors continue to remain cheap and therefore very attractive, and do not expect their outflow to other destinations. They define the Czech Republic as an attractive and safe country with good macroeconomic indicators.
The moderate growth in the commercial real estate investment market will be driven by a stable financial market situation in the future, but experts agree that high-quality real estate is being dismantled and, as with residential real estate, demand exceeds supply.
Since January 2018, an amendment to the Building Act has begun, which has brought about a number of changes and novelties. The amendment is intended to help builders and relieve overburdened building authorities. The Ministry for Regional Development promises to simplify the changes in land-use planning documentation, shortening the deadline for attacking the land use plan, extending the deadline for towns and municipalities to acquire new land use plans by two years, simplified procedures and joint management for land and building management, etc. these changes will lead to the declared goal in the form of speeding up and simplifying authorization processes, of course, it will show up in practice.
When questioning whether airbnb services affect residential property prices and whether the rents should be regulated, respondents respond similarly – the service has a lesser impact on the price but a more dramatic impact on the depopulation of large city centers, especially in Prague. The answer to this trend is, according to them, a reasonable degree of regulation, mainly linked to taxation, which should ensure the same conditions for all types of residential businesses.
Source and quotes: http://artn.cz/wp-content/uploads/2018/04/cz_01-pruzkum_trhu_tr2018_web.pdf