The growth in the offer prices of new Prague apartments slowed slightly in May and June this year. On average, the price in the metropolis increased by 1.1 percent, three tenths less than in March and April. In this period, a square meter cost CZK 152,900, which is an increase of 17.1 percent in a year-on-year comparison, this is according to a study by Deloitte Index Praha.
According to the index, the prices of new apartments offered by developers fell in two city districts before the holidays. In Prague 3, they fell by 5.9 percent to CZK 163,600 per square meter and in Prague 9 by 0.7 percent to CZK 136,900 per square meter.
The price in Prague 8 recorded the biggest increase, by 5.2 percent to CZK 147,500 per square meter. Offer prices in Prague 6 rose by five percent (CZK 158,800 sqm). With a price of CZK 205,300 sqm, Prague 7 remained the most expensive part of the capital. According to a previously published analysis by Skanska, the most expensive new apartments were on average in the second district (CZK 207,465 sqm). In the Deloitte Index, Prague 2 is the third most expensive (CZK 192,600 sqm), followed by Prague 1 (CZK 194,100 sqm). Conversely, the cheapest new apartments were available in Prague 10, where the average price per square meter was CZK 142,000.
Apartment prices could be as much as 15 percent lower if building permits were obtained more quickly, said Dušan Kunovský, head of the largest residential builder in Prague, Central Group. According to the index, his company sold 147 apartments for 1.24 billion crowns in May and June, developer Trigema sold 118 apartments for CZK 1.27 billion and Finep 117 apartments for CZK 678 million.
The Prague Develop Index indicates the percentage change in the average price of vacant apartments offered by developers compared to the previous period. The price represents the average offer price per square meter of a new apartment in Prague offered by developers in the monitored period.
The current level of mortgages and utilities, which affect the purchasing power of the population, may affect the development of prices in the future. “Housing construction will be hit hard, development projects will not be easy to sell. As soon as the source of money dries up, it will be reflected in construction work,” said Martin Hanzlík, deputy chairman of the Supervisory Board of the National Development Bank and investment banker.
Similar prices to Deloitte’s study were obtained for the same period by the analysis of the development companies Trigema, Skanska Reality and Central Group, which showed that the average offer price of new apartments in Prague was CZK 152,051 sqm in the second quarter of this year, and the price of a sold apartment was CZK 145,783 sqm.
Source: Deloitte and CTK
