Czech property price growth likely to stay strong, may slowdown from 2018 – Erste Group

Czech property prices have quickened considerably since the turn of 2016/2017. Realized prices of apartments arrived at 17 percent year-on-year in the first quarter of this year, whereas nominal GDP growth was seen at 3.6 percent in the same period, noted Erste Group Research.

Besides the risk of the depreciation of currency due to the overboughtness of the koruna, the situation in the housing market was the second most significant reason behind the Czech National Bank’s rate hike.

For the remainder of this year, property price growth is expected to stay strong; however, it is likely to decelerate from next year because of the effect of the Czech National Bank’s measures, stated Erste Group Research.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest