Flat sales could drop in Prague in 2017 after seven years of steady rises. Central Group blames the city’s slow planning process with throttling new supply. In the first half of 2017, a total of 3,000 flats will be sold. That’s a drop of 10 percent compared to last year. 19 percent price growth was a record one. In 2017, developers expect the prices to go up by further 10 percent. The analysis by Central Group, Skanska Reality and Trigema indicates that 3,450 flats are currently on offer in Prague, down by some 30 percent y-o-y. The average price of a flat reached CZK 72,000/sqm in Q1 2017 and it continues to rise, while there’s no longer anything available for less than CZK 45,000/sqm. Overall, 80 percent of flats on offer cost more than CZK 60,000/sqm. Even more ominously, a studio that today costs CZK 3m would have set its owner back just CZK 1 million five years ago.
