2 February, 2023

Buyers, get ready for 2023!

Last year was so busy that I did not have time to write any posts unfortunately. Let me sum up now briefly what happened on the market in the last year and what can we expect from this year.

2022 started by heavy demand and big price increase after a bit of stagnation caused by Covid in 2021. The price increase stopped for a short moment in the springtime when the Ukrainian war shocked the country, but then it continued during the summer. The increase of demand was fuelled also by sky-rocketing inflation (15 %) which pushed people to invest their savings into property rather than keeping on their bank accounts.

By the end of the year the price increase stopped and DEMAND FALL BACK heavily. January 2023 started very low, we can experience a 50% drop in demand compared to last year. Bank loans are expensive. Renovation costs doubled in the past 2 years. For a full RENOVATION you need to calculate 1-1,400 EUR/sqm. There is a big lack in workers which frightens most people away from buying an unrenovated property.

TOURISM is recovering from Covid, the number of tourist nights in 2022 almost reached the level of the peak year 2019. In the past years the number of the tourist rental apartments dropped not only because of less tourists, but also due to restrictions introduced by municipalities. Now district 6 is already easing the process of getting permission for tourist rental which can increase again the number of buyers who decide for this type of business.

As demand dropped by 50% while the apartment offers increased by 30%, this year is expected to be for the buyer’s. Prices most likely will stagnate, in some cases we will see price drops, but BUYERS will be definately in a much BETTER POSITION than before.