Prague’s real estate portfolio value climbs to CZK 8.843 billion following strategic developments

The Prague Development Company (PDS), an organization managing the capital city’s real estate assets, has reported a rise in its portfolio value to CZK 8.843 billion. The latest valuation, conducted by international consultancy Knight Frank, reflects the market value of 757,000 square meters of urban land designated primarily for residential projects, underscoring Prague’s ongoing commitment to expanding urban rental housing.

This updated market valuation, effective as of August 1, serves as a key reference for Prague’s strategic planning, informing decisions on property use and future development financing. “Our proactive approach in managing these public assets is producing real value, as demonstrated by the consistent growth in market worth,” said Petr Hlaváček, Prague’s Deputy Mayor and Minister for Territorial Development. He noted the impact of recent zoning changes in Nové Dvory and Palmovka, which have unlocked new development potential and significantly increased land values.

PDS first assessed its land portfolio’s market value in 2021, with an initial estimate of CZK 2.939 billion. By 2023, the portfolio’s worth had risen to CZK 7.123 billion, and this year it stands at CZK 8.843 billion, marking a substantial increase as new land assets have been incorporated and previously untapped potential has been realized.

The 2023 valuation was influenced by adjustments in the property portfolio, including the transfer of Nová Palmovka Centre out of PDS management, with comparable land values increasing nearly CZK 3 billion year-over-year. Notably, the original 10 sites appraised in 2021 have nearly doubled in value, reaching CZK 6.604 billion this year, thanks to ongoing development initiatives.

“The active management approach we apply aligns with private-sector standards, ensuring the highest possible return on municipal assets,” stated PDS Director Petr Urbánek. “Regular market valuation not only provides the city with insight into the current market, but also guides upcoming investment and development financing decisions.”

The latest valuation marks a shift in Prague’s approach to public land management, with an emphasis on retaining city ownership rather than outright sale. Adam Zábranský, Prague’s property councillor, praised the move toward value-added urban asset management. “This strategic approach gives the city control over the future of its land and will support the construction of new city apartments, contributing long-term value for Prague’s residents,” he said.

Prague’s market-aligned valuation approach positions it to maintain control over urban development, while boosting public assets and expanding housing opportunities.