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 Prague City Hall coalition is due to meet on Friday to discuss a controversial proposal to collect anonymous data from electricity meters to identify vacant housing units. Mayor Zdeněk Hřib of the Pirate Party, which is behind the move, says despite alarm calls by his coalition partners, the intention was never to try to identify the owners of vacant properties – whether ‘foreign speculators’ or local investors – in order to tax them.
Interest in rental housing has seen a significant rise in recent months, in
response to the central bank tightening mortgage rules, the ctk news agency
reported citing real estate companies.
The interest in rental housing has driven rents higher, by an average 3 percent in Prague (to 340 crowns per square metre) but as much as 11 percent in the most lucrative areas.
The monthly rent for a medium-sized two-room flat in Prague is now between 15 to 19 thousand crowns, depending on its proximity to the city centre.
The Czech Foreign Ministry has summoned Russia’s ambassador for talks
over the news that apartments for Russian diplomats are reportedly being
rented to third parties in Prague.
The ambassador was summoned following reports in the Czech media that thousands of apartments intended for diplomatic personnel were being leased to third party tenants, which is in violation of the Vienna Convention on Diplomatic Relations.
Russian Foreign Ministry spokeswoman Maria Zakharova previously said that the reports were based on local sources that “distort the truth.”
A new study by the Prague Institute of Planning and Development suggests
the Czech capital could face a sizable housing crisis in the future.
According to the report, which was quoted by news site iDnes.cz, the
city’s population will grow by 160,000 by 2030. To satisfy projected
housing demand, 8,000 new apartments would need to be built annually, a
representative of the institute said.
However, last year fewer than 5,300 flats were completed and developers say a log-jam relating to zoning and planning permits means the number will only decline further in the next few years.