GDP vs Rental Growth :: Available Housing per 1000 Inhabitants – Deloitte Czech Republic

Czech Point 101 July 22, 2014 @ 2:49PM

I enjoyed a recent webcast by Deloitte Czech Republic on the theme: Expected Real Estate Market Development in Central Europe. I think it is still possible to go to this link and download the presentation.

GDP vs Rental Growth – UK Statistics

GDP vs Rental Growth Chart

This chart shows the direct correlation between overall rental growth and the UK's GDP.

Although most of it focused on the office and commercial real estate markets, some of it touched on the residential. One particularly interesting chart was this one showing the relationship in the UK over the last years between GDP growth and rental growth.

Could the same be said for Czech Republic?

It is hard to say if you also take into account all the commercial rental rates but I would say the general trends hold true. During 2006 and 2007 when GDP was taking off we saw also increase of rents in residential properties, although not to the same degree as actual GDP.

In 2009 when Czech GDP fell 4.1% we also saw residential rents fall over the next six to nine months into 2010.

It will be interesting to see if this trend also holds true over the next couple of years as GDP recovers.

Available Housing per 1000 Inhabitants

Czech Housing Statistics

Czech Republic has the highest number of housing units per 1,000 inhabitants of the new EU members.

The second chart which I found very interesting was this one which shows the available housing units per 1000 inhabitants. Czech Republic is the highest of the new members of the EU but still below most Western European countries.

What are your thoughts? Do you think that these indicators point to the future rent and price trends in Czech real estate?

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