Changes on the housing market in Ostrava.
Where are we at now?
You should know by now, that I always try to offer the most realistic look on housing market here in Ostrava based on my experience, data analysis and all other factors taken into consideration. We could look at the market in a tunnel vision, but I would love to offer you something broader, that would help you understand current situation. About buying, selling, then renting.
To help you understand the situation now, we really need to compare it to not only to last year, but also year before. In 2021, the market was booming. Low interest rates supported the willingness to sell and purchase, and many people were standing queues to get a viewing. The downside was the low supply, low number of properties on the market which counted to at maximum around 300 in the whole Ostrava. High demand, low supply.
Last year, in 2022, the bubble popped. Interest rates were very high, energy costs went up, war started in Ukraine and inflation went through the roof. Market at that time offered around 1000 properties, but hardly anyone wanted to purchase. Low demand, high supply.
When we look at the market today, I would say it kind of settled. Yes, the prices might still appear to be higher, but I would suggest purchasing at last within the next year, as after this, we predict prices to rise again. Also, many prices on the market are not the actual sale prices. Many are negotiated and end up being much lower than advertised. In terms of investing, you might not get the margins you would want in the first year, but the rents will be rising as well as the property prices so hence my tip to purchase now. To help you understand even better, window like this only appears once every 10 years. There are over 500 flats to choose from so use it to your advantage. Equilibrium.
Less people know about this but another reason to support the theory that next year prices of properties will stay low is because although people have higher incomes, the “real income” (income versus what you can purchase for such money due to inflation) keeps declining and the purchasing power is said to be around the same as it was back in 2017.
When it comes to renting today, there is high demand for higher quality housing and even furnished apartments in Ostrava town centre and Poruba area. Many expats are moving here for work and to study and they require these types of properties. What then happens is that these kind of properties in Ostrava are becoming more expensive and flats which are slightly older are stagnating. So, if you are planning on moving to Ostrava and would like to save money, try to find slightly older properties rather than newbuilts and explore other areas than just town centre or Poruba as the public transport here is great.
So, in a nutshell, developers keep building, buyers keep buying, sellers think about if you need to sell right now and be prepared to negotiate if you do and renters, stay open-minded.
Also a little teaser for my workshop which is coming soon! Save the date: 8th of February 2024. The name of the workshop is The Ultimate Guide to Real Estate and will help you better understand Ostrava’s real estate market. If interested, send me an email to tereza@nemovisto.cz to request a link to register. We have limited capacity, so secure your place ASAP.
Have a great day everyone!
Tereza Klozikova
Real Estate Agent in Ostrava
+420 731 533 001
www.terezaklozikova.cz
