Dear readers, the holiday season is slowly coming to an end, and with it the holiday mode of the housing window, in which I regularly introduce you to news and key topics in the field of housing policy.
After a series of rather relaxing posts, let’s see how prices are developing on the Prague real estate market. As for property prices, the good news is that their growth has stopped. At least compared to the first quarter of this year. However, a look at the year-on-year comparison does not seem so optimistic: Prague apartments have risen in price by a full 23%, and the price per square meter currently comes out to an average of 145,783 crowns. One of the reasons for the stabilization of real estate prices is the lower demand for mortgage loans due to the rapid increase in interest rates.
However, rising mortgage prices, together with a rapid increase in energy prices, have a negative impact on the financial availability of rental housing: the average commercial rent has risen to 374 crowns per square meter since last July, i.e. by approximately 25%. Another factor contributing to the rise in rental prices is the decreasing supply of rental properties. According to estimates, this dropped to approximately 5,000 housing units at the beginning of the summer.
Finally, we will look at housing construction. Prague continues to lag behind in the area of construction management. Although more than 134,000 housing units are now under construction, the building authorities have so far granted permits for the construction of only 2,315 apartments this year. As for the number of completed apartments, the capital recorded a year-on-year decrease of 22.9% for the first quarter. Only 1,304 housing units were finalized during this period. It is therefore obvious that the lack of apartments, which currently amounts to around 30,000 apartments, will continue to grow. The prospects for affordable housing in Prague are therefore still very slim. But I believe that for the coming period we will choose a leadership that will take the solution of the housing crisis really seriously. What do you think would help the most in ending the housing crisis? I look forward to your contributions to the discussion.
Taken from the politician’s profile.
- YES 2011
- Spatial Planning
The article was taken from the Profile of Ing. Ondrej Prokop
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