Over the next year years, 33,000 flats are set to go up in Prague, with Smíchov in Prague 5, Karlín in Prague 8 and Vysočany in Prague 9 the most popular districts for residential development, according to a new research report conducted by the Institute of Planning and Development of Prague (IPR). The construction boom is driven by intense demand: developers sold 7,000 flats last year due to low mortgage rates. The number is higher than the number of started flats (5,227). In 2016, the construction boom should culminate, according to IPR. In the following years, 5,500 new units are expected to hit the Prague market annually. The suburbs will have only limited supply, as IPR does not want intensive development in the outer city. In Troja, Šeberov and Velká Chuchle, for example, a mere 100 flats will be added by 2020. IPR spokesman Adam Švejda says that developers should target brownfields in the city.
