Survey: One in ten young people plans to buy or build a property within 12 months

Prague – Every tenth young Czech aged 26 to 36 plans to buy or build a property within the next 12 months, which amounts to approximately 150,000 people. Another 15 percent of young people intend to renovate their housing. This is revealed by a March survey conducted by NMS Market Research among 1,000 respondents, which was presented to journalists today by the ČSOB group.

The survey further indicated that about half of young people plan to change their housing within the next five years. According to the survey, the effort to secure their own housing remains very important for young families, despite rising interest rates and property prices.

"The current situation in the mortgage market and increasing interest rates has the greatest impact on young families who long for their own housing. These people represent an exceptionally important sector for the entire economy," said ČSOB board member Jan Sadil.

Half of young people consider a net monthly income of at least 35,000 crowns to be sufficient to cover a mortgage, and most commonly they would apply for a mortgage between two and three million crowns. One-third of them would prefer that the monthly installment does not exceed 10,000 crowns. Currently, 70 percent of young people are saving, often through building savings. The proportion of those who have saved over 100,000 crowns is gradually increasing.

However, data show that young people underestimate the amount of the mortgage as well as the amount of monthly installments compared to the current market situation. "For example, the average mortgage for this age group currently reaches 3.6 million crowns," added Jiří Feix, chairman of the board of the Hypoteční banka and ČSOB Stavební spořitelny.