Sales prices of new flats in the last quarter 2021 in Prague rose by 27.9 percent year on year to 137,946 crowns per square meter. Quarter-on-quarter growth was 9.1 percent. 7450 new flats were sold in Prague in 2021. This follows from a joint analysis of the development companies Trigema, Skanska Reality and Central Group, which they published yesterday at a joint press conference.
“Last year was the strongest store in the last 13 years that the market has been evaluating. Last year, sales reflected the efforts of buyers to protect their savings from inflation and the knowledge that the apartment is a safe asset that can generate revenue. “Private investors and, increasingly, institutional investors were the driving force behind the growing demand,” said Trigemy Chairman Marcel Soural.
In 2021, the least historically offered flats were continuously offered. Last year, the number of new flats on the market was continuously maintained at 3,300, which was 1980 less than in 2020. According to developers, this was the lowest continuous offer in the last ten years. The offer was similarly low only in 2017, when 3,725 new flats were continuously available.
In the fourth quarter of 2021, there were 2,850 vacant new flats on offer, 100 more quarter-on-quarter, but in a year-on-year comparison it was a decrease of 2,100 vacant flats, ie by 42.4 percent.
The developers further emphasized that in the years 2011 to 2020, only 2,900 flats per year were permitted on average. According to the presented information, 6,330 flats were permitted in January to November 2021, which is the most since 2007 for the given period, which, however, is still not sufficient, according to the founder and head of the Central Group, Dušan Kunovský.
“The situation is really critical. And probably nothing will change in the coming years, because the new building law that could help will be postponed and changed. At the same time, faster permits are in the great economic interest of the state. Only in Prague is more than 130,000 new flats, which could bring the state over 155 billion crowns in VAT alone,” said Kunovský.
The estimated value of new flats sold in Prague for the year exceeded CZK 57 billion. The average offer price, ie the price at which the flats are offered but not bought, was CZK 144,408 per sqm on the last day of last year.
Petr Michálek, Chairman of the Board of Skanska Reality, stated that he saw the purchase boom related to buyers’ interest in saving their savings, low supply due to slow approval, but also record prices for materials, labor and energy behind the significant year-on-year price increase. “All this was exacerbated by the election year, which unfortunately did not contribute to greater market predictability or speeding up permitting processes,” he said.
Source: CTK
