What Do Apartments in Prague Actually Cost?

What Do Apartments in Prague Actually Cost?

Published at: 2019-06-28 12:32 | Author: Svoboda & Williams
Agents of Svoboda & Williams have increasingly been coming across the claim that the average price of an apartment in Prague is currently almost CZK 110,000/sq. m. When real estate owners then sell their properties, they set astronomical starting prices that don’t seem to correspond to reality. Newspaper headlines then flaunt these high numbers, but don’t explain the difference between the asking price and the actual achieved price.

According to the current data collected by Deloitte, the average asking price of a new apartment in Prague is CZ 107,100/sq. m. However, this figure only includes newly built residential projects and starting prices, which don’t include any reductions or subsequent special offers. In reality, the asking price is often quite different from the actually achieved price. This is doubly true in today’s decline in demand for real estate and the increasing rate of discounts offered by developers. Deloitte’s regularly published so-called Prague Real Index factors in the average price of a realized real estate transaction, which it acquires from the cadastre of real estate, and includes prices of older resale properties as well. In fact, the average actually achieved sales price is currently CZK 77,400/sq. m. This is the number that Prague apartment owners should consider when they are thinking about how much to sell their property for. Or even rent it out for, since this misunderstanding of the market also influences how property owners establish adequate rental prices.

The Svoboda & Williams real estate agency maps the premium property segment, which has a higher average achieved price – currently around CZK 112,000/sq. m., with a median value of CZK 103,000/sq. m. Properties at the very top of the real estate pyramid are significantly shifting average values upwards.

Similar Stories:

Robyg to build micro-apartments in Wola district
Robyg is planning to build micro-apartments in its City Sfera residential project in Warsa  »
Unibep to build second stage of YIT’s Nordic Sadyba in Warsaw
YIT Development has tapped Unibep to build the second phase of its Nordic Sadyba residenti  »
Hypoteční banka raises mortgage rates 0.2 percent
Hypoteční banka has raised its mortgage rates 0.2 percent because of what it says are hi  »
Resi4Rent opens new building in Łódź
Resi4Rent, the first corporate residential platform specializing in medium- and long-term  »
Where do you see your company going over the next two years? Since I became GM of the co   »
Construction has begun on Bispevika, a brownfield project along Oslo’s waterfront that   »
PSN has sold 350,000 sqm of land to the dominant Czech residential developer Central Group   »
Investors from China, Russia and other countries are leading a growing influx of foreign f   »