A total of 6,330 flats in apartment buildings were permitted in the metropolis from January to November last year. This is the most since 2007, when 6,010 flats were allowed, and it is thus certain that the year 2021 will set a modern record in this respect. But in a way, it’s a sad record. Prague needs to permit and build at least 10,000 new flats a year, and even last year’s record year will most likely not come close. Moreover, this is only an exception, as in the previous ten years, less than three thousand new flats a year were allowed in the capital on average.
At the same time, there would be a place to take. According to CENTRAL GROUP’s latest statistics, developers are preparing more than 130,000 new flats in Prague. But the vast majority of them are still waiting for permission. Faster permitting would not only help address the ever-worsening housing crisis, but would also greatly help the pandemic of a hard-hit economy. If all the flats in preparation were given the green light, they would bring the state more than CZK 155 billion in VAT alone. This is more than 1.5 times this year’s capital budget.
Source: CENTRAL GROUP
