In the year 2008 Ostrava region saw the incredible property price increase of close to 30%. So far this year prices have either decreased slightly or stagnated. The developers for new flats have, in most cases, been keeping the same prices as during the peak but offering things like free kitchens or a 10% discount for the first 10 buyers. Purchases have not seen a recent increase in transaction activity which other centers like Brno and Prague saw.  

However, on the good side, there is increasing demand for the renting of flats, so rents in many localities have gone up. One website which lists properties for rent, bezrealitky.cz, said that there was an increase of rents, on average, of about 8% from the beginning of this year in the region and demand for rental properties has increased by about 10%.  

Ostrava is certainly a region with growing potential, for many reasons including progress on the highway between Ostrava and Prague. It promises better traffic access and will bring more opportunities to the area. 

As well, car production factory Hyundai expects to employ around an additional 700 people in next few months and another 700 to the end of 2010.  This does not include the additional jobs created by all the related businesses with this factory.  

One of the regions of Ostrava, Frydek-Mistek, also saw the rapid increase of property prices in 2008. Market prices of flats and the rents have been positively affected by the fact that a lot of money has been invested into manufacturing in this region (including the above mentioned Hyundai factory and satellite companies) and the fact that the highway between Frydek-Mistek and Trinec (Cesky Tesin – Poland) was completed. However, the area became overheated and there has been an overall decrease in values in the area since the beginning of 2009. All indications are that this has stopped by the time of the writing of this article.  

All of these developments over the last year or so in the Ostrava region have emphasized the importance of considering factors such as locality, type of dwelling and the overall quality of living when considering where to purchase.

Tomasz Repasky (Czech Point 101).

©2009 CZECH POINT 101 s.r.o.

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