According to real estate agent AAAByty.cz prices of residential housing are expected to increase next year by 6% y/y on the average while by c9% y/y in Prague.
Our view: The expected increase in residential housing prices is supportive for developers including Orco, ECM and GTC (Lighthouse in the Czech Republic) as it implies continuation of a strong demand for residential housing driven by wide availability of mortgage financing, low interest rate environment, increasing affluence of population and demographic structure; i.e. baby-boomers from the 70s are purchasing their own living.