Developers will complete thousands of flats in Prague this year at below-average prices. While the average price stood at CZK 152,600 per square metre in the fourth quarter of last year, according to Deloitte data, completed flats may be cheaper by around 10 percent. The projects that will start construction this year do not yet have a set price, according to the developers contacted.. The launch of their sales, which usually starts before construction starts or in its early phase, will depend on the development of the real estate market.
Central Group, the largest Czech residential developer, plans to complete 1,100 flats this year in the projects Rezidence Parková čtvrt’ in Prague 3, Rezidence Kotlaska in Prague 8, Tesla Hloubětín in Prague 9 and U Hostivařské přehrady in Prague 10. Central Group plans to include another 1,500 apartments in the sale this year. Their total number will also depend on the permitting processes.
Skanska Residential is in a similar position. It will complete 208 apartments in the Albatros Kbely and Modřanský cukrovar projects this year. “In the third stage of the Albatros Kbely residential project, the average price is CZK 123,000 per square metre and currently over 73 per cent of the flats have been sold. In the first stage of Modřanský cukrovar, the average price is CZK 140,000 per square metre and over 72 per cent of the apartments have been sold,” said Renata Vildomcová, a spokeswoman for the company.
Developer Finep will complete 500 flats this year. They will be in the fully sold-out U Šárky, Hloubětíno, Nad Krocínkou and Kralupy nad Vltavou projects. Their price started from CZK 82,000. The reason, according to Finep spokesman Tomáš Heček, was that Finep sold off most of these apartment buildings before their completion, and therefore at prices corresponding to a different economic situation. In 2024, Finep will start construction of 26 apartment buildings and 2,150 flats in Západní město, Britská čtvrt’, Hloubětín, U Šárky, but also in Nový Opatov and Kralupy nad Vltavou. These will be houses which, in addition to owner-occupied housing, will offer rental and cooperative flats.
On the other hand, Penta Real Estate is selling residential properties completed this year at above-average Prague prices. This year it plans to complete 600 flats in the Victoria Palace project on Vítězné náměstí, Rezidenci Juliska in Prague 6, the first stage of Nuselský pivovar in Prague 4 and Nová Waltrovka in Prague 5. The reason for the higher prices, according to the company’s representatives, is that most of these properties offer apartments for demanding clientele.
According to a study by Central Group, Skanska Residential and Trigema, the average selling price of Prague flats in the fourth quarter was CZK 142,511 per square metre. This was a decrease of six percent year-on-year and 2.7 percent quarter-on-quarter. This was mainly due to more sales of cheaper properties offered below the average offer price of developers. Since 2016, the average size of apartments on offer has decreased by almost 19 square metres to 63.2 square metres. This has been caused by lower demand for larger, and therefore more expensive, apartments, but also by the increased marketing of small and medium-sized apartments.
Source: CTK
