The average offer price of vacant new flats in Prague at the end of April rose by 8.4 percent year on year to CZK 125,400 per sqm. The growth rate of prices has been roughly the same for the last two years. The number of vacant available flats in the offer of developers fell by 16.7 percent year-on-year to 4,489 at the end of April.
“The rise in house prices is the result of a mismatch between growing demand and lagging supply. Demand may not only be supported by available mortgages, but also by expectations of further price increases or higher loan prices due to the CNB’s announced rate hike. an attractive opportunity for foreign investors who are pushing domestic demand even further up,” according to ČSOB analyst Petr Dufek.
Given that construction costs are rising due to rising construction materials, he said that further growth in real estate prices should be expected. “Of course, it will always depend on the location and quality of the project,” Dufek said.
In March and April, the new projects brought 1,525 flats in 25 projects to the Prague market for the direct offer of developers. The number of dwellings increased by almost three fifths year-on-year.
The most expensive district of Prague remains Prague 1 with an average price of CZK 193,000 per sqm of living space. It is followed by Prague 2 with an average price of CZK 175,500. The cheapest are Prague 9 with an average of CZK 110,400 per sqm and Prague 10 with an average price of CZK 115,900.
Year-on-year, prices rose the most in Prague 2, by almost 30 percent, and in Prague 7 by about two-fifths. On the other hand, new flats in Prague 3 fell by 1.7 percent year-on-year. Prices fell in Prague 1, by 0.6 percent.
Compared to the situation at the end of February, prices in the capital rose by an average of 1.6 percent. Most in Prague 7 (by 13.6 percent) and Prague 3 (by 4.9 percent). Prices fell in three city districts, namely in Prague 1 (by 5.2 percent), Prague 6 (by 4.5 percent) and Prague 10 (by 1.2 percent).
Almost two-fifths of the apartments offered by developers belonged to the 2 + KK category. This was followed by apartments 3 + KK (26 percent), 1 + KK (21 percent) and 4 + KK (11 percent).
In March and April, developers sold 1,645 new flats in Prague, almost four times more year-on-year. Most belonged to Finep (264). This was followed by Central Group (146), Skanska (146), YIT (91) and Penta (70).
Source: Deloitte and CTK
Photo: YIT
