“The offer price of new apartments has hardly changed compared to the previous period. The input parameters of new construction simply do not allow development companies to offer their products at lower prices. However, new development projects are finally appearing on the market again. A one-year break caused by an unstable energy situation, a significant increase in construction costs and high inflation is over,” said Kateřina Poláková, head of the residential real estate department at Knight Frank.
According to the analysis, the average price of one square meter in a new Prague apartment is 150,287 crowns. There were 5,538 apartments on offer at the end of the third quarter, i.e. almost 190 more. For new premium apartments of the highest quality, the average price is around 15 million crowns. According to the analysis, sales of new apartments available in this segment of 1+kk and 4+kk increased by four percent. Three percent more were also sold for the generally less popular 3+kk layouts. On the contrary, sales of the traditionally most popular 2+kk apartments fell by nine percent compared to the previous monitored period. The most luxurious 5+kk and 6+kk apartments recorded the biggest decline, but the main reason was their limited offer on the market.
In the last six months the prices of older apartments reached the level of 124,020 crowns per square meter. According to the analysis, the increase was caused by a new offer of real estate in premium locations. The prices of smaller apartments in panel houses and in apartments before reconstruction fell. In Prague 9, the offer prices fell by 7.1 percent. The most significant price increase of 5.4 percent was recorded in Prague 6. There, properties that clients had previously withdrawn in order to avoid disadvantageous sales reappeared on the offer. According to Knight Frank, the prices of older Prague apartments should not fall any further.
According to the analysis, the average amount of a mortgage for an apartment in Prague was around 5.85 million crowns and with an average maturity of 25 years. Rents in most locations in the metropolis continued to rise in the last six months. By an average of five percent, the most significant increases were in Prague 8, 6 and 7. Due to the low availability of own housing, however, Knight Frank expects a significant increase in demand for rent.
Knight Frank has been operating in the Czech Republic for more than 30 years and is engaged in real estate consulting, property management, office leasing, property valuation, market research and international investments. It also focuses on industrial and residential real estate. It was founded at the end of the 19th century in England and has 488 branches worldwide and employs over 20,000 people.
Prague 7 will build city apartments on the corner of Železničářů and Za Papírnou streets. The sub-section of the apartment building arose from an architectural competition
Author: APROPOS ARCHITECTS