Central Group announced it is no longer going to reduce flat prices in its projects. In fact, after Christmas, the developer plans to increase prices on units that fell below CZK 30,000 per sqm. The company is also changing its strategy and plans to create a portfolio of approximately 1,000 rental apartments, according to the website Stavební fórum. The first project to offer rental units will be Central Plaza.
Central Group plans to test its new strategy by offering between 100 and 200 rental units in January. Dušan Kunovský, Central Group’s CEO, told Stavební fórum that the company will stop offering discounts and will start renting the unsold units instead. “It makes more sense to rent out unsold units than to further decrease prices,” he said. “We would sell the flats below costs if we did so.”
