The average price of a new 55-square metrehome in Prague grew by 22 percent yr/yr to CZK 142,740 sqm and the number of new homes sold in the capital city hit 1,540 in H1, which is almost three times fewer in annual terms and the lowest figure in 15 years, developer Ekospol announced yesterday.
Ekospol started monitoring home sales 15 years ago.
The price of a new home is about CZK 1.5 million higher yr/yr at CZK 7.85 million. Prices increased by 5.6 percent or CZK 414,000 in qtr/qtr terms, said the developer.
“Growing prices of material, construction work and land, which is in very short supply in Prague, and a long building procedure are the factors sending home prices higher,” said Ekospol CEO Evzen Korec.
Some 4,330 new homes were sold in Prague in the Jan-June period last year.
More expensive mortgage loans, which are almost impossible to get, are to blame for a drop in new home sales this year (1,540), said Ekospol.
In the past, there were about 50 percent of people taking out a mortgage to buy a home, while this year it is 20 percent. “The rest are clients using own money to buy a new home mostly as protection against high inflation,” said Korec.
He said he does not expect the prices of homes to go down markedly despite the drop in sales.
An analysis of another developer JRD Group shows that the average monthly expenses in Prague are about CZK 2,000 higher than the expenses in towns near Prague like Ricany, Benesov and Kolin.
Mortgage expenses are higher in Prague while transport expenses are higher outside Prague, the group said.
It is 30 to 40 percent more expensive to buy 3+kk (three bedrooms and kitchen corner) in a broader centre of Prague than in the aforementioned towns.
A survey of 3,000 Prague homes and 200 homes outside Prague shows that an average monthly mortgage installment is around CZK 38,000 in Prague and CZK 27,000 outside Prague.
When it comes to vehicle operation costs, Prague residents spend less than CZK 3,500 a month while people in its vicinity pay more than CZK 7,300 a month.
In terms of transport costs, people in Prague can save up to CZK 9,000 a month compared to residents in the towns near Prague.
Overall, the average monthly mortgage and transport expenses reach some CZK 43,700 in Prague and CZK 41,900 in its vicinity, said the analysis.
Source: CTK
