Demand for new apartments in Prague increased last year, especially towards the end of the year

Prague – The demand for new apartments in Prague began to grow last year, especially towards the end of the year. In the last quarter of last year, there were 1,385 sales, which is an increase of 118 percent year-on-year and a quarter more than in the previous quarter. Last year, 4,407 new apartments were sold in the city. The largest Czech residential developer, Central Group, sold the most new apartments in the last part of the year. Following them, albeit at a distance, were Finep and Penta Real Estate.

"The new construction market is driven primarily by the transformation of brownfields and adjacent areas, such as the former ČKD factories or the Žižkov Freight Station. Another important factor last year was also the new financial instruments, such as subsidized mortgage repayments, bonuses for apartment fittings, or guaranteed interest rates, which developers used to attract potential buyers," said CEO Martin Decký. According to him, cash buyers also had an advantage. People with capital could purchase properties, for instance from Central Group or Finep, at a discount if they were able to pay 90 percent of the price directly in the first installment.

In the fourth quarter of last year, the most sought-after housing was in projects by developer Central Group, which recorded 226 sales. Next in line was Finep with 106 sales, followed by Penta Real Estate with 77 sales. The best-selling project was Tesla Hloubětín by Central Group with 66 sales, followed by the Byty Nad Krocínkou II project by Finep with 65 sales. The third best-selling project was Byty na Vackově by Metrostav Development with 55 sales.

The increase in sales in the last quarter of 2023 contributed significantly to the reduction of the market supply, according to the analysis. The number of available apartments was approximately 5,600. Quarter-on-quarter, this represented a decrease of up to 17 percent. The last time Prague saw such a decline was in the third quarter of 2020 during the COVID-19 pandemic, when the supply fell by 11 percent.

Apartments intended for rental housing were also selling. In 2023, large rental projects such as AFI Kolbenova, AFI Karlín, Mozaika Holešovice, and Vysočanský mlýn were initiated or completed.

According to an analysis by the development companies Central Group, Skanska Residential, and Trigema, the selling price of a new Prague apartment in the last quarter of last year fell by 2.7 percent quarter-on-quarter and by six percent year-on-year to 142,511 crowns per square meter. The asking price per square meter in a new Prague apartment was 10,000 crowns higher. According to their data, 4,000 new apartments were sold last year, which is an increase of 29 percent year-on-year.