Prague is catching up with West European real estate markets, the daily e15 reports, citing a new survey released by PriceWaterhouseCooper and the Urban Land Institute, carried out among developers and investors. According to the 2019 report, Prague is one of the 20 most sought after cities in Europe for real estate purchases.
Prague inhabitants with an average salary would have to work for nearly fifteen years for a flat of approximately seventy square metres, if they didn’t have any other expenses, suggests a study by the developer company Central group. Just a year ago, Praguers needed to work less than 14 years to acquire a flat, while in 2014 it was less than ten years.
The mansion where Nazi governor of Bohemia and Moravia Reinhard Heydrich
lived on the outskirts of Prague has been sold at auction for nearly CZK 39
million. The auction was anonymous. The building in Panenské Břežany in
Prague East had fallen into a state of disrepair when the previous owner, a
research institute, went bankrupt.
The Nazi’s first “protector” of the Czech lands, Konstantin von Neurath, moved into the property. When he was replaced by Heydrich the latter and his family took it over. The “Butcher of Prague” was living there when he was assassinated in 1942 by Czechoslovak paratroopers sent from the UK.
The growth in apartment prices in the Czech Republic is expected to come to
a halt this year, according to a survey carried out by the Association of
Real Estate Market Development, released on Tuesday.
Last year, prices of apartments across the country increased on average from six to ten percent. The highest growth rate was recorded in Prague. In the first quarter of 2019, the price of new flats increased by nearly a fifth year-on-year to 104,666 crowns per square metre. Since the mid-2015, prices of Prague apartments grew by nearly 90 percent.
The amount of property investment in the Czech Republic went down by EUR
2.62 billion in 2018, a cut back of 30 percent compared to the previous
year, a study by consultancy company Colliers International says.
Transactions also decreased by 27 percent. According to the authors of the
study this is a consequence of the low amount of quality property
investments currently on offer.
Colliers International says it expects this year’s investment rate to remain largely the same as in 2018.
The average price of new homes sold in Prague reached 101,091 crowns per
square metre by the end of 2018, an increase of 18.6 percent year on year,
a group of developers said on Wednesday.
The number of residential dwellings sold dropped by 9 percent to 5,000 last year, the lowest since 2012, according to data compiled by the developers Trigema, Skanska Reality and Central Group.
The most expensive flats are traditionally in Prague 1 (currently at 198,000 crowns per sqm on average) and in Prague 2 (164,000 crowns per sqm). The most affordable apartments are in Prague 4 and Prague 10, where the average price is 89,000 crowns per sqm.
In terms of price per square metre, smaller flats are more expensive than larger ones, regardless of location, the developers said.
The Prague City Council plans to raise rents on flats now leased out by the
municipality or city administration at below market rates, councillor Adam
Zábranský (Pirates) told the ČTK news agency in an interview.
Zábranský said the council plans to review the contracts of up to 10,000 flats, many of which are rented out at one-third the going rate “for no apparent reason”.
According to the developer Trigema, as cited by ČTK, tenants of city dwellings usually pay 60 to 120 crowns per square metre, so between 4,680 to 9360 crowns for a standard 78 sq m flat. The market rate would be above 20,000 crowns.