The unavailability of owner-occupied housing in the Czech Republic is still increasing. And the current situation on the market does not promise – at least in the short term – favorable changes that would illuminate at least a hint of light at the end of the tunnel. Construction, almost paralyzed in places, cannot keep up with demand, and even rising mortgage interest rates have not yet contributed to a significant slowdown in the growth of new apartment prices. Any pressures aimed at making them cheaper are hampered by high inflation (and not only that), which continues to be reflected in the prices of materials, energy and construction works.
Due to unaffordable real estate in big cities, people are therefore turning their attention to localities beyond their borders, which offer cheaper apartments. However, experts from the analytical department of the JRD group warn against an ill-advised decision. When choosing between buying real estate in a big city, for example in Prague, or in nearby locations, not only the price comes into play, but also a number of other factors that the buyer should really consider carefully. When comparing both housing alternatives, it is most important not to forget to consider all other associated costs in addition to the purchase price. And then put your personal preferences and advantages/resp. the disadvantages that an urban or, conversely, non-urban way of life brings with it.
In order to get a better idea of the costs that must be taken into account when choosing between the two housing alternatives, the analytical department of the JRD group made a comparison between two locations – the wider center of Prague and a suburban area including, for example, the cities of Říčany, Benešov and Kolín. The analysts worked with a representative sample of 3,000 3+kk apartments in Prague and 200 outside Prague. Although the value of an apartment designed in this way is usually 30 to 40% lower in a suburban location than in Prague, additional items related primarily to transport and logistics must also be reflected in the resulting price: poorer mobility within public transport, more kilometers traveled and wear and tear or car maintenance. In addition, other costs should also be included in the total amount, which includes, for example, time spent on the road. However, their real value is determined very problematically.
The analysis shows that in terms of explicit costs associated with transport, logistics, operation and maintenance of the vehicle, Prague residents save up to 9,000 CZK per month compared to residents of locations outside of Prague. However, on the other hand, people from the metropolis will pay approximately CZK 11,000 more per month than people outside of Prague, if the different costs of acquiring a new home are compared. Given the relatively negligible difference of CZK 2,000, it is therefore all the more important to consider other than financial criteria when choosing between the two options and to bring them into line with your personal needs and preferences: level of civic amenities, transport accessibility, proximity to nature, privacy, etc.
JRD Development, a division of the JRD Group, which is dedicated to the construction of environmentally friendly housing, recommends that buyers also be interested in the sustainability of the chosen property. And that pays off, especially nowadays, when the prices of fuel and energy are rising sharply. More frequent use of public transport at the expense of a personal vehicle and increasing the energy efficiency of the house through the wider use of renewable resources reduces the overall carbon footprint that a given household produces and benefits its family budget. Examples are the residential projects of JRD Development (for example Bohdalecké quartet or Císařská vinice), in which, thanks to the use of modern materials and technologies, the temperature should not drop below 18 °C even if it does not heat up here at all. Passive apartments can thus save more than 85% of heating costs compared to conventional buildings.
Author: Adam Greguš from the analytical department of JRD Group
