The gap is widening between luxury and affordable housing prices, according to CBRE. While affordable housing prices range between CZK 45-50,000/sqm, luxury apartment developments are successful if priced between CZK 100,000 and 140,000/sqm. High-end housing with prices running between CZK 60,000 and 70,000/sqm has experienced a downturn, according to the CBRE report. “The market has begun to specialize in either less expensive and affordable housing on the one hand or on luxury housing projects on the other. The mainstream of high-quality housing is stagnating at the moment and we do not expect any major changes, even in the coming year,” says Jan Hospodář, head of sales and acquisition at CBRE.
The average price of an apartment in Prague has risen to CZK 55,000 and 60,000/sqm following the recent launch of several high-end projects in Prague, says Hospodář. In the long term, Prague’s average is not expected to exceed CZK 55,000/sqm, he adds. The high number of projects currently under construction is expected to lead to slight oversupply in the second half of 2016. Prices of older flats, meanwhile, have dropped slightly to CZK 30,000 – CZK 40,000/sqm.
