Central Group is predicting that the Czech residential market will grow by 10 percent in 2016, down from 15 percent last year. In 2015, a total of CZK 30bn in flat sales were reported on the Czech market, with CZK 22bn sold in Prague alone. Sixty percent of the total number of new residential projects on the Czech market last year broke ground in Prague, and Central Group expects the capital will outperform its 2015 sales record. The average price of a flat in Prague is CZK 3.5m. While prices have gone up by 6 percent for comparable flats, they jumped 14 percent on average due to more high-end offers. This year, 7,200 units are expected to sell, up 10 percent from last year. The price curve will mirror the growth, bringing the total value of flats sold in 2016 to CZK 27bn. Dušan Kunovský, chairman of the Central Group board, says, however, that only 4,000 units have started due to blocked planning in Prague, and developers are looking for prepared projects with permits already in place.
