What will be the situation on the real estate market in 2022? Filip Žoldák from RK Herrys talks about the trends that will influence our thinking on investments and real estate. We will all be facing several challenges, but history shows that a new situation forces people to be more creative and look for new solutions. And this will almost always be reflected in society’s further progress.
One topic will be how to best protect your property
This year, we will be facing quite difficult challenges, such as rising inflation, rising energy prices, rising prices of building materials, change in the geopolitical situation, escalating real estate prices, and a dwindling supply of housing. I, myself, am curious as to what this year will bring, what the opportunities will be, because they are always there. The situation will prompt us to rethink, thanks to which many will exceed their possibilities and goals in various areas. People will think more intensively about which strategy to choose to protect their finances, how to diversify and what investment strategy to choose.
I always advise our clients that the best protection is to invest in real estate.
Prices will continue to rise, interest in rentals will increase
Rising prices of new apartments and low supply are reasons that could lead to an increasing share of rental housing. However, it is necessary to take into account that even here there will be an increase in prices because apartment owners will reflect higher costs in prices associated with the use of the apartment and in the amount of rent.
We do not expect any miracles in the real estate offer this year. We can see from the Herrys surveys that old apartments are responding to the insufficient supply and have approached prices of new-builds.
In the case of new apartments, it may also be a warning sign that due to rising inflation and a directly proportional growth in prices and materials, developers are likely to raise apartment prices. And so when buying an apartment on paper, clients should be informed about the “inflation clause” in the contract.
Keeping an overview of the market situation under all conditions
For us at Herrys, it will again this year be a priority to monitor the situation and have the most up-to-date market overview, since this is crucial for making strategic decisions. The role of a real estate agency will be to accurately determine the state of the market, know the competition, be able to advise the client, and correctly set up property for sale, or advise the buyer. That is why we are introducing new technologies, we have our own CRM system, and we are constantly improving, so that we are able to continue to provide our clients the best service.
The mood in society will improve, new opportunities will come
I take an optimistic view of the forecasts related to the pandemic, which is now gradually losing strength. Even though some measures will remain, I expect that there will not be any more lockdown restrictions this year, and that social life will return to normal. A better mood in society will bring new plans, ideas, and it will be important to see newly emerging opportunities, and to seize them at the right time. And maybe this year will surprise us with setting some new records.