The construction industry has been in a significant slump over the last year. Due to the unfavourable economic situation, investors have been forced to postpone many projects. However, the housing market is starting to catch its second wind and sales of new flats have recently been growing. Therefore, Central Group plans to put up for sale and start construction of about 2,700 new apartments in 11 locations in Prague by the end of next year. Currently, it has already started selling flats in the 2nd large block of the Tesla Hloubětín residential district in Prague 9. Metrostav won the tender for the construction of about 370 flats and commercial space in this phase.
After a big drop in sales of new flats in the second half of last year, demand is significantly higher this year. But developers now have to work with many costly client bonuses and help with financing, including, for example, subsidising clients’ mortgage repayments, to boost sales. Very expensive mortgages and commercial loans froze the market last year. This was then compounded by unsustainably rising building supply prices due to an exacerbated and unpredictable market. Because of this, most investors postponed a number of upcoming projects because the economics were no longer working out to make construction worthwhile.
“This year we expect to sell half as many apartments as last year. That’s why we’re starting massive new construction, using our own money without a loan. But we have already informed the construction companies in advance that we expect significantly lower delivery prices than last year. I am very happy that we were able to agree on acceptable price conditions with Metrostav for the new phase of Tesla Hloubětín. Only thanks to this can this large building now be launched and the apartments here can go on sale. Metrostav is one of our key and very reliable suppliers,” says Dušan Kunovský, founder and head of Central Group.
“The situation in the construction industry is difficult now and we all have to look for ways to optimise and find reserves and savings. And this applies not only to us general contractors, but also to subcontractors and material manufacturers and sellers. We have successfully completed nearly 3,500 homes in 16 projects for Central Group over the past 18 years. I have no doubt that Tesla Hloubětín will be our next successful project. And I believe that Central Group’s investment plans will be an impulse for other developers not to postpone new projects any longer,” comments Jaroslav Heran, CEO of Metrostav, on the market situation.
According to statistics, the new flats in the Tesla Hloubětín residential area by Central Group are the best-selling in Prague. So far, the first block of flats has been sold, where the rough construction is being finalised and where the flats will be completed for delivery at the end of next year. Currently, the 2nd residential block is already on sale, where limited-time introductory prices of flats are now valid from CZK 4.1 million.
The Tesla Hloubětín residential district is being built on the site of the former factory of the same name. It is a very popular, dynamically developing location right next to the tram stops and close to the metro station. Many new restaurants, cafes, services and shops, including a supermarket, will be built on the ground floor of the apartment buildings facing Poděbradská Street. There will be a new modern primary school U Elektry in the immediate vicinity and two new kindergartens, a public park with a pedestrian zone, several playgrounds, outdoor fitness zones for adults and a pétanque court.
Source: Central Group
