Clear sky
_article-detail.jpg)
Prague flat prices continue to rise
A combination of factors have made flats all but unaffordable
The average price of a new flat in Prague last year rose 18.6 percent to more than Kč 101,061 per square meter, according to combined data from developers Trigema, Skanska Reality
Mortgage restrictions have made flats almost inaccessible for many people.
Interest in living in Prague continues to rise, and many new buyers will have to compromise on location and size to find something affordable. Cheaper housing has virtually disappeared from the market, according to experts.
Prices began to rise rapidly in the middle of
The most expensive apartments are in Prague 1 at Kč 198,000 per square meter and Prague 2 at 164,000. The most affordable apartments are in Prague 4 and Prague 10, at slightly below Kč 89,000 sqm.
In all of 2018, developers in Prague sold 5,000 new homes, down 9 percent year-on-year.
It was the lowest level since 2012 and a drop of nearly 30 percent against the record in 2015, when 7,000 were sold. The largest share of the dwellings sold were in Prague 5 at 23 percent, Prague 9 at 20 percent and Prague 10 at 17 percent. The lowest was 2 percent in Prague 6.
Sales of new flats from developers are expected to drop again in 2019, to between 4,600 and 4,800.
Smaller flats are more expensive per square meter, but still cost less than larger flats.
Last year was the third year in a row that sales dropped. It was due in part to new legal
Developers claim that part of the problem is also a lack of new building permits, which keeps them from meeting demand.
The most expensive flats are 1+kk, or one room and a kitchenette, which cost an average of Kč 120,000 per sqm. Flats designed as 3+kk average at Kč 92,000 per sqm. Some 70 percent of apartments are sold at over Kč 90,000 per sqm. The price segment up to Kč 60,000 per sqm has all but disappeared from the market.
In Prague the highest annual office rents rose year on year by an average of 2.5 percent to Kč 6,300 per sqm per year. But this was half as much as in Munich, at Kč 11 345. Berlin was at Kč 10,142, followed by Vienna at Kč 7,913 and Warsaw at Kč 7,376. Prague was in fifth place in a survey by KPMG. Bucharest was cheaper, at Kč 5,685.
Year-on-year rental growth was the lowest in Prague and Munich last year. Warsaw's office rent increase was the greatest, at 4.3 percent.
The volume of real estate transactions, according to estimates in the Czech Republic, fell year-on-year by about one third to Kč 60 billion. Less than 60 percent was from domestic investors, and about a fifth was from German investors.
Related articles
-
Prague preparing plan for climate change by Raymond Johnston - Prague.TV (Foto: fotolia)
The city is hoping to make a large reduction in its environmental impact
-
Libeňský most to be restored by Raymond Johnston - Prague.TV (Foto: praha.eu)
City Hall has decided against tearing down the bridge and will repair it instead
-
City Hall advances the renovation of Karlovo náměstí by Raymond Johnston - Prague.TV (Foto: praha.eu)
A plan approved last year is undergoing some modifications before implementation
-
Prague plans new cooperative housing by Raymond Johnston - Prague.TV (Foto: fotolia)
The project aims to create affordable housing for the middle class
-
Prague 8 ends contract for Nová Palmovka by Raymond Johnston - Prague.TV (Foto: MČ Praha 8)
The building that was supposed to be the new Town Hall is left unfinished
-
Prague moving forward with new bridges by Raymond Johnston - Prague.TV (Foto: praha.eu)
Construction on the planned Dvorecký most could start in 2021
-
Industrial Palace reconstruction expected in 2020 by Raymond Johnston - Prague.TV (Foto: vystavistepraha.eu)
The new City Hall administration is moving ahead with plans to rebuild
-
Proposals for Rohan City’s second phase unveiled by Raymond Johnston - Prague.TV (Foto: schindlerseko.cz)
A new neighborhood is rising up slowly in the Prague 8 district
-
City wins in Pražská tržnice case by Raymond Johnston - Prague.TV (Foto: wikipedia)
The Showpark border and other tenants are likely to be forced out
-
David Černý statues support Prague 8 complex by Raymond Johnston - Prague.TV (Foto: trigema.cz)
Nová Invalidovna is an innovative housing project filled with new technologies
Facebook comments
A true legend in the restaurant industry - TGI Friday's
Best Irish Pub in Prague
Our meat and products straight to your table
Enjoy Prague from a different view
Honeco can help you to increase the income on your...
Learn Czech with Empire, speak like a local
Nothing is more important than your health!

Prague’s # 1 source for Czech news in English…

Expat and Czech Business Professional Network

German Language Info Service