New Prague apartments increased in price at the beginning of the year to 154,500 CZK per m²

Prague – The average asking price of new apartments in Prague increased in the first quarter of this year by one percent compared to the end of last year, reaching 154,500 crowns per square meter. The most significant price increase was observed in Prague 8, but also in Prague 1, where living costs are traditionally the highest. Conversely, the price of new apartments slightly decreased quarter-on-quarter in Prague 6 and Prague 4. This information comes from the Develop Index of the consulting and technology company Deloitte, which is available to ČTK. According to this, the reason for the price increase of new apartments is the higher demand, which has arisen with the improving economic situation. In the first quarter, 1,490 new apartments were sold, which is 39 less than in the last quarter of last year.

"The interest in new apartments, which is associated with the subsequent rise in their prices, is aided by the improving economic situation, a gradual decrease in interest rates, and a reduction in the VAT rate for apartments up to 120 m², which has been in effect since the beginning of this year. The asking prices of available apartments in Prague today are more than double the prices from ten years ago, and it currently seems that they will continue to rise in the next period,” said Petr Hána from Deloitte.

New apartments in the capital at the beginning of this year increased quarter-on-quarter in Prague 8 by one-tenth to 157,700 CZK per m². In the city center in Prague 1, apartment prices increased by five percent to an average of 252,900 CZK per m², and the price in Prague 10 rose by 3.5 percent. Prices only fell in two city districts within the capital. In Prague 6, it was down 3.6 percent to 165,500 crowns per m² and in Prague 4 by half a percent to 145,200 CZK per m². In Prague 7, prices per square meter remained at 208,700 crowns.

Over 200,000 crowns per square meter for a new apartment can be paid not only in Prague 1 and Prague 7 but also in another central area in Prague 2. Conversely, the lowest average price of new apartments is in Prague 9, at 138,300 CZK per m². Following that are Prague 4 and Prague 10.

During the first three months of this year, 1,490 new apartments were sold in the Prague residential market, according to the index that drew information from developers' price lists. In the same period, 652 apartments were reintroduced to the market. The most new apartments on the Prague real estate market during this period were sold by the developer Central Group, with 216 apartments sold. It was followed by Vivus with 130 sold apartments, Finep with 118, YIT with 106, and Metrostav with 73.

A slight increase in prices and an increase in sales in the first quarter were also recorded earlier by the developers themselves. An analysis by Central Group, Skanska Residential, and Trigema indicates that the number of sold new Prague apartments in the first quarter increased quarter-on-quarter by almost a quarter and year-on-year by nearly 150 percent. However, the year-on-year change may have been influenced by the comparative base from the beginning of 2023, when sales of new apartments were the lowest in the history of measurement. The prices of new apartments remained nearly the same quarter-on-quarter, with the average selling price amounting to 142,073 crowns per m², which is approximately 10,000 crowns per m² less than the average price in the offers.