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Almost 140 thousand per meter: apartment prices in Prague have risen in price by a third in a year

Last year, according to Trigema, it was supposed to be the strongest year in the last 13 years.

“Last year’s sales reflected the efforts of buyers to protect their savings from inflation and the knowledge that the apartment is a safe asset that, in addition to growing in value, can also generate revenue. Thus, it can be said that the driving force behind the growing demand was private and, increasingly, institutional investors, “said Marcel Soural, Chairman of the Board of Trigema.

In 2021, the least historically offered flats were continuously offered. Last year, the number of new flats on the market was continuously maintained at 3,300, which was 1980 less than in 2020. According to developers, this was the lowest continuous offer in the last ten years. The offer was similarly low only in 2017, when 3,725 new flats were continuously available.

In the fourth quarter of 2021, there were 2,850 vacant new flats on offer, 100 more quarter-on-quarter, but in a year-on-year comparison it was a decrease of 2,100 vacant flats, ie by 42.4 percent.

The developers further emphasized that in the years 2011 to 2020, only 2,900 flats per year were permitted on average. According to the presented information, 6,330 flats were permitted in January to November 2021, which is the most since 2007 for the given period, but according to the statement of the founder and head of the Central Group Dušan Kunovský, this is still not enough.

In preparation over 130 thousand apartments

“The situation is really critical. And apparently nothing will change in the coming years, as a new building law that could help will be postponed and changed. At the same time, faster permitting is in the great economic interest of the state. In Prague alone, more than 130,000 new flats are being prepared, which could bring the state over 155 billion crowns in VAT alone, ”said Kunovský.

The estimated value of new flats sold in Prague for the year exceeded 57 billion crowns. The average offer price, ie the price at which the flats are offered but not bought, was 144,408 crowns per square meter on the last day of last year.

Petr Michálek, Chairman of the Board of Skanska Reality, said that he saw the purchase boom related to buyers’ interest in saving their savings, low supply due to slow permitting, but also record prices for materials, labor and energy behind the significant year-on-year price increase.

Big rise in price also in Brno

New flats also became significantly more expensive in Brno. According to the director of Impera Styl, František Šudřich, prices there rose by 23 percent year on year.

People in the second largest city of the republic will pay 100,100 crowns per square meter. At the same time, even in 2015, the average price per square meter in a new building was half (50,200 crowns).

According to a recent analysis by FérMakléři.cz, the prices of flats per square meter in all major cities in the Czech Republic have risen in the last quarter of last year. Most in Ústí nad Labem, where the price went up almost 61 percent year on year.

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