Work began on 2,300 flats in 34 projects across Prague during the second half of 2015, according to JLL’s latest research. In 2015, construction began on 5,000 units, which was a fall of 19 percent y-o-y. In 2016, the number of construction starts will increase again to 5,500 flats. Blanka Vačkova, head of research at JLL, says that a record number of flats – 6,700 – are scheduled for completion in 2016. “This will be the highest number since 2009,” she says. Prague 9, 10 and 5 will have the highest proportion of started flats, according to Vačkova.
Around 3,600 flats were sold in the second half of 2015, down by 400 units compared to the first half of the year. However, sales were up 18 percent y-o-y. The total number of apartments sold in 2015 reached 7,500, a 29 percent improvement on 2014’s numbers. The biggest number of flats were sold in Prague’s 10th, 9th and 5th districts, with 4,700 flats sold in 2015. Record low interest rates on mortgage loans was the main driver of sales, according to JLL. The average price of apartments by the end of 2015 stood CZK 54,100/sqm, up 3.5 percent since the beginning of the year, and 7 percent more than 12 months previous. “Development projects in the cheapest segment – less than CZK 35,000/sqm – have almost disappeared from the market. On the other hand, we have registered an increase in the number of projects in the price category of CZK 45,000/sqm to CZK 65,000/sqm,” says Vačkova.
