The planned reduction in value added tax (VAT) has the potential to save buyers of new apartments considerable amounts of money. The government's proposal, which is expected to come into effect in January next year, includes a merger of VAT rates at 12% for new apartments up to 120 m². This could bring savings of up to hundreds of thousands of crowns for buyers of an average-sized apartment.

According to experts, this change should shift purchasing decisions to next year, when the new rates could be applied. Analysts say this could lead to increased demand and a shift in sales to the new year.

The supply of new apartments remains limited, which supports price increases. Despite the planned VAT reduction, real estate prices could remain stable, as developers are unlikely to pass on the entire savings to the final sale price.

Mortgages remain a key factor for buyers, and the VAT reduction may not mean a dramatic difference in monthly payments. The easing of restrictive limits on mortgages was another factor influencing the real estate market.

While the planned VAT adjustment promises savings for buyers, the real impact on prices and the availability of new apartments depends on the strategy chosen by the developers themselves. The VAT reduction may be a step towards price stabilization, but the shortage of new apartments on the market could continue to push prices up.

In conclusion, it is clear that while the planned VAT change offers hope for savings, the impact on the final prices of new apartments and overall affordability will depend on developers' strategies and other factors affecting the real estate market.

Source: seznamzpravy.cz