According to the latest figures from the Czech Statistical Office, the Green received 2,348 flats to start construction. By the way, this is the same as last year and is the best result in the first half of the last five years. At first glance, this is a great result.
However, this is not the case compared to the real needs of the capital. Just look at the current demand for housing in Prague. In the first half of this year alone, 4,750 flats were sold, which is about twice what can be built. However, the number of permitted flats is insufficient even in a longer-term comparison. In the last 5 years, 17,382 flats have received building permits, but 29,950 have found new buyers during that time. However, the real demand for new housing is even higher. The population of the metropolis has grown at a rate of around 14,000 a year in recent years, and at least another tens of thousands of people commute to Prague daily for work and ideally therefore would like to move to the place of work. According to expert estimates, the capital would need to permit and build at least 10,000 apartments a year. In reality, however, only about a third of them are allowed. The lack of new flats is thus the main reason for the rapid rise in prices of real estate.
The light at the end of the tunnel could be the new building code. However, it will not take effect until mid-2023, and it will take at least a few more years after its consequences are reflected in practice. Until then, unfortunately, we will have to come to terms with the fact that our country will be at the top of the rankings in the unavailability of housing.
Source: Central Group
