Prices for new apartments in Prague increased by 5.5%

Year on year, selling prices for new apartments in Prague rose an average of 5.5% to 112,233 CZK per square meter, compared to an appreciation of 2.2% last year, property developers report.

Data from construction companies also showed that the number of apartments sold skyrocketed by about three-fifths to 2,100, the highest number in the past decade. At the same time, the number of apartments on offer fell by more than a tenth to 4,200, the fewest in the past three years.

By category, developers mainly sold two-room apartments, or 44%. Next come one-bedroom apartments (23%), three-bedroom apartments (22%) and four-bedroom apartments (11%).

Among the individual city districts, developers sold the most apartments in Prague 5 (23%), Prague 9 (18%) and Prague 4 (16%). In contrast, in Prague 1 and 2, only 3% of all apartments were sold.

Real estate developers say prices will continue to rise provided local governments approve new projects at the same rate they are currently doing.

“Currently, the market is experiencing record demand for new housing. The highest in ten years, in fact. However, the situation is further complicated due to the lack of new construction of residential housing, which is currently insufficient to meet the needs of the public in a timely and flexible manner. The reason remains the same – the complicated and lengthy process to authorize new projects, ”said Marcel Soural, Chairman of the Board of Trigema Company.

“The situation is becoming critical. The new supply has absolutely no time to cover the increase in demand, which is why we are now seeing the fewest apartments on the market in three years. For this reason, the prices of new apartments continue to rise. If the situation with the authorization of new apartments does not change and local governments remain reluctant to approve new construction, the current state will not improve, ”said Dušan Kunovský, owner of housing company Central Group .

According to the real estate portal Bezrealitky, prices for renting apartments with a separate working space are also on the rise. The portal associates this trend with a prospect of working from home even after the coronavirus restrictions are lifted.

By far the greatest interest in studio apartments is in Prague and Brno, which are also the cities with the highest office density per capita.

These types of apartments are offered at a higher price – apartments with a working room are around fifteen percent more expensive than comparable facilities.

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