Do not delay selling your property – there is still strong demand
With increasingly strict measures intended to help combat coronavirus, one might expect interest in property to decline for a time. However, surveys speak clearly: there are still plenty of prospective property buyers. Can such enormous demand be sustained? And when is the best time to sell a property in the coming year? We put these questions to David Novotný, owner of the independent real estate company Bohemian Estates International.
There have certainly been more than enough property market predictions this year. Yet none of them anticipated a second wave of the pandemic as strong as the one we are experiencing now. “When I see how this year has unfolded and continues to unfold, I no longer feel like making any predictions. However, we cannot ignore the situation entirely, so we work with what we already know. The figures also speak clearly, and I am not afraid to say that demand for property will persist for some time. Even so, people should not delay selling their property,” says David Novotný of Bohemian Estates International.
The company has been operating on the market since 2006 and, alongside property investment, also provides property management. This gives it first-hand insight into demand for both property purchases and rentals. “Apart from the capital, I would not say that the pandemic has had any significant effect on rentals. Interest increased slightly only in Prague, where, contrary to expectations, there was no significant fall in rental prices,” Novotný adds.
So what is helping people decide to buy in the current situation? According to David Novotný, several key factors are at play. “First, we need to take into account the abolition of property acquisition tax, which many people had been waiting for and had postponed their purchase because of. Lower mortgage rates are also important, with some banks currently offering interest below 2 %. Nor should we overlook the expectation that property prices would fall, at least slightly. That did not happen; on the contrary, they rose slightly. A modest increase can also be expected at the beginning of next year, so people have stopped delaying and are taking action.”
For sellers, the end of this year is therefore a very good opportunity to sell. “There is no point deluding ourselves. The economic situation is still not under control, and coronavirus has devastated several sectors for some time. People will therefore continue wanting to buy property, but banks may well not grant them a mortgage. We can expect lenders to pay greater attention in mortgage applications to factors such as the applicant’s profession,” Novotný explains, outlining what may affect the property market.
For this reason, anyone considering a sale should not deliberate much longer. “Now really is the ideal time to sell. The effects of the economic crisis have not yet fully emerged, and people want to invest in life’s certainties, and a roof over one’s head is certainly one of them. However, the sale itself should be properly targeted, the asking price should be set well, and I strongly recommend having the entire process handled by a professional broker. This is not the time for mistakes, and it is essential to find a serious buyer as quickly as possible. However, this will be difficult through standard property websites. Statistics also show that professionally marketed properties are sold in record time and at far higher prices than when handled independently,” concludes David Novotný of Bohemian Estates International.