Flat prices in Prague jumped 19.5 percent to average CZK 69,517/sqm. “There is nothing to choose from, and that’s why people buy more expensive flats,” says Trigema chairman Marcel Soural. The stats Trigema compiled in cooperation with Central Group and Skanska Reality indicate that supply shrunk from the usual 6,000-7,000 units on offer to a mere 4,000. With low-cost flats sold out, people have shifted their focus to flats priced around CZK 70,000/sqm, which has sent the average price up. The trend is driven by cheap mortgages, making more expensive flats attainable. Residential development is being blocked by officials who are hampering the planning process. Flat sales are slowing down, due to lack of supply, according to the study. In Q3, a mere 1,450 units sold in Prague, down by 15 percent q-o-q and by 3 percent y-o-y.
