3Things: Mortgage rate shocks, Germans blacklist Czechs, YIT

Robert McLean

#cee, #proptech, #development a #architecture

Economists, companies and consumers are still coming to grips with the Czech Central Bank’s shock interest rate hike from last week. Those with no time to spare are bank clients who took out mortgages with a 5-year fixation in 2017, or anyone else whose rates change next year. David Eim (Gepard Finance) told SeznamZpravy that rates in 2016 and 2017 averaged around 2.1%, meaning that many people will have signed on to mortgages at below 2%. Already, they’ll be unable to find offers below 3.59%, while some will struggle to do better than 5%. He illustrates the issue with the example of a customer who’s borrowed CZK 3 million for 30 years at 2%. Having paid a little over CZK 11,000 for the past five years, his installments could jump to more than CZK 16,000. All of which sounds suspiciously like: here endeth the bubble.

Germany has placed the Czech Republic on its list of high-risk countries for Covid-19. The result is bad news primarily for those who haven’t gotten around to getting vaccinated. Unless they’re just transiting through the country, non-immunized people arriving from the Czech Republic will have to self-isolate for five days. This includes children under 12, for whom health officials haven’t given the green light for vaccinations yet. With a miserable 58% of the population fully inoculated, the Czech Republic has once again lost control of the pandemic, with well over 10,000 new cases detected daily. By comparison, Spain, with its population of 47 million and a vaccination rate of 80%, the number of new cases per day has slumped to just 2,700.

YIT’s project Vesi Hostivař

The residential developer YIT has begun work in Prague 15 on its newest project Vesi Hostivař. The 208 units now under construction are due for completion in the third quarter of 2023. The project is located in a revitalized former industrial complex, which required the demolition of around 10 decrepit warehouse buildings and concrete panels that served as a driving surface. YIT’s director Marek Lokaj says workers were forced to remove a great deal of the shrubs that had taken over the complex. “But we’ll replace them with a great deal of new greenery that we’ll take good care of.” He said the company will use water from rainwater rention tanks to water the new shrubs and trees.


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