Despite a cooling housing market, Czech citizens borrowed CZK 217 billion (around $10 billion) for housing in 2020, according to data from the Czech National Bank. This indicates that despite the economic uncertainty caused by the COVID-19 pandemic and the cooling housing market, Czech citizens are still willing to invest in their homes.

The data shows that the majority of the borrowed funds were used for mortgages, with CZK 186 billion borrowed for this purpose. The remaining CZK 31 billion was borrowed for other housing-related expenses such as home renovations and construction.

This strong demand for housing loans is likely driven by a number of factors, including low interest rates and government incentives for housing. The Czech government has implemented a number of measures to support the housing market, including a program that provides subsidies for energy-efficient renovations and a program that provides low-interest loans for home construction.

Despite the cooling housing market, the demand for housing loans in the Czech Republic remains high, indicating that Czech citizens are still willing to invest in their homes. The government’s support measures and low-interest rates have likely played a role in this trend, and it’s likely that this demand will continue in the future.

Overall, The Czech housing market is facing a cooling trend but the citizens are still willing to invest in their homes. This is driven by the low interest rates and Government support and incentives. The data shows that the majority of the borrowed funds were used for mortgages and this trend is likely to continue in the future.

Article by Prague Forum