The Czech developer Central Group is on track to sell 800 flats in 2020, which would represent an increase of around 100 compared to 2019. It’s a surprising result, at least compared to expectations for the residential market in general at the end of the first quarter, which was marred by a severe lockdown and economic panic. “The coronavirus brought specific things to the market,” said Dusan Kunovsky, owner of Central Grup and the tenth richest Czech. “Foreigners dropped out, the number of speculative purchases in Prague’s wider center fell where people would buy one and two-room flats for Airbnb.” Kunovsky says that the number of customers buying as a safe, long-term investment grew. In addition, the Czech National Bank’s decision to loosen restrictions on mortgage loans breathed new life into the residential market. According to a market survey carried out together with Trigema, Central Group and Skanska Reality, new apartment prices in Prague have gone up 98 percent since 2015 to CZK 110,117 per square meter. However, the rate of increase has fallen to single digit percentage growth and Kunovsky expects price stagnation for the next couple of years.
