In recent years, between five and six thousand new flats will be completed in Prague. At the same time, the demand is such that construction should be raised by at least half, but even better doubled. At the same time, more supply would help curb price growth, because it always applies: the more competition, the better for the customer.
We looked at what it looks like on the Prague market today, because construction is unevenly distributed in the capital, and while in some localities a number of projects are fighting for the favor of buyers, elsewhere there is nothing to choose from. For this purpose, data from the analytical company Realtify show projects that are essential for pricing, ie sold and already sold out, but for which the possibility that some apartments will return to the offer is not ruled out. The result is somewhat surprising, the “dense” has recently been especially on the market in the central areas of the city.
For example, in the very center, in a circuit that includes the Old and New Towns and extends beyond Florenc, the beginning of Žižkov and Vinohrady, today there are almost two dozen projects with more than three hundred apartments. These are mostly smaller projects with an average of 18 apartments. The average price per square meter corresponds to the locality: CZK 182,000.
The center is the most interesting and liquid housing that every developer wants to build. Only intense coidemic epidemics have been able to change that, it is possible to play with standards, try more luxurious concepts, according to co-founder of the development company GARTAL Ing. Rostislav Petchenko.
It is similarly charged in the area east of the center, including Žižkov and Karlín, where there are about 15 projects with nine hundred apartments. Those interested in housing here pay significantly less than in the center, on average it is CZK 140,000 per square meter.
The area enjoying new construction then continues at the divide of Žižkov and Malešice and spills into the south to Strašnice and to the north to Libno and Vysočany. As part of the competition evaluation, Realtify’s analysis shows over thirty projects with more than 2,500 apartments. With the distance from the center and the Vltava, the price drops to an average of about 100 thousand per meter in Vysočina projects.
It is also being built on the opposite bank of the Vltava in Holešovice. The list here includes seven current projects with almost six hundred flats, of which the vast majority are sold out. This is probably due to the “reasonable” average price of CZK 120,000 per square meter in Prague. Many projects, often smaller, are also concentrated in Vinohrady, Nusle and Vršovice. Altogether, more than a thousand flats can be counted here.
But lively is not just in the center. The area with about thirty projects, which represent more than a thousand flats, is Smíchov and the adjoining Košíře. The average price here is around CZK 130,000 per meter in the southern part of Smíchov up to CZK 150,000.
The CEO of the GARTAL development group notes that the intensity of construction and the resulting competition are influenced by the relatively small number of permitted constructions. One or two projects can then significantly change the market situation in a given area. The overall picture is changing relatively quickly because of this. “Half a year ago, we might have solved strong competition in the outskirts of Prague,” he added.
Source: GARTAL and CTK
