In the third quarter of 2014, Czech Republic real estate prices for homes rose for the sixth-straight quarter, experiencing a 1.29% increase, according to the Czech Statistical Office.
While the price increases during the past six quarters have been modest, hovering around the 1% mark, the positive trend follows a 17-quarter stretch without any increase. From the fourth quarter of 2008 until the second quarter of 2013, the Czech market did not experience a single quarter of growth.
In 2014, Czech housing starts rose 10.15% after experiencing a 10% average annual decline from 2008 to 2013.
The Czech National Bank’s key interest rate has sat at a near-zero 0.05% since December 2012. The average interest rate on mortgages fell to 2.56% in December 2014, dropping from 3.26% a year earlier.
The Czech Republic’s economy returned to growth in 2014 with GDP growth of 2%, following 0.7% declines in both 2012 and 2013. For the EU in 2014, the average GDP growth rate was 1.3%. The Czech National Bank forecasts further economic growth, projecting 2.6% GDP growth in 2015 and 3% in 2016.