Only 4,569 new flats were permitted in the capital city last year. This is a year-on-year drop of 43%. The latest data from the Czech Statistical Office show this. According to a study by IPR and ČVUT, at least 10,000 flats need to be permitted and built annually to improve the availability of housing in Prague. However, only around 3.5 thousand flats have been permitted and built in Prague in the long term. Compared to neighbouring metropolises, the pace of permitting in the Czech capital is the slowest. In Warsaw or Vienna, 2.5 to 3 times as many flats are permitted per 1,000 inhabitants as in Prague.
“The year 2021 was an exception with a record of more than 8,000 apartments permitted in Prague. This is confirmed by last year’s figures, which are roughly halfway there. Last year’s permitted flats in Prague mean the possibility of new housing for only about 9.5 thousand people. The deficit of new housing in the metropolis is thus still growing. Slow permitting is one of the main reasons why new flats cannot become cheaper, in addition to significantly rising costs,” says Michaela Tomášková, executive director of Central Group.
Prague 9 is a good example for the city. It accounts for roughly a third of all flats permitted in Prague in the last ten years. Thanks to its dynamic development and large supply, prices here are below the Prague average.
Faster permitting is also of great economic interest to the state. Residential construction is the strongest segment of the construction industry with the greatest potential contribution to the economy. The state would gain over CZK 190 billion in VAT alone from all 137,000 flats in the pipeline in Prague.
Source: Central Group
