New flats in Prague rose by 9.4 percent year on year by the end of June

by   CIJ News iDesk III
2021-07-28   10:33

Sales prices of new flats in Prague at the end of June rose by an average of 9.4 percent year on year to CZK 118,480 per sqm. Compared to the first quarter, prices rose by 5.6 percent. This follows from the current analysis of the development companies Trigema, Skanska Reality and Central Group. According to them, the growth of prices accelerated due to the excess of demand over supply, it also reflects the rising prices of construction materials.

"Sales have been at record levels for nine months in a row. Demand is still driven by very affordable mortgages and fears of devaluation of savings due to inflation," said founder and head of Central Group Dušan Kunovský.

The analysis shows that during the second quarter of this year, a record 2,650 new flats were sold in the metropolis, while the number of units offered fell to 3,350. According to companies in Prague, 4,750 new flats were sold in the whole half of the year. When buying, people showed the greatest interest in the layout of 2+kk, the second store with the strongest position was occupied by three-room apartments.

"An above-average number of new flats went on sale, but even so, the enormous interest of buyers was able to bring supply to an all-time low," said Petr Michálek, CEO of Skanska Reality.

According to statistics, the average price of one-room flats has risen sharply. Their unit price averaged CZK 128,278 per sqm. They are followed by the price of large, five-room flats, for which the average price remained at CZK 123,823 per sqm. For dispositions 2+kk it was CZK 116,848 per sqm, for 3+kk then CZK 113,079 per sqm, the prices of four-room flats then climbed to CZK 116,315 per sqm, the analysis shows.

"In the period of expected inflation growth, the savings of Czech households and investors are turning into real estate purchases. We have been following this trend for more than three years. therefore, the growth of prices of new flats in Prague accelerated again to ten percent. It is highly probable that similar growth will continue for several more months, "added Marcel Soural, Chairman of the Board of Trigema.

Source: Trigema, Skanska and Central Group