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 square metre. Compared to the first quarter, prices rose by 5.6 percent. The results are from the latest analysis of the development companies Trigema, Skanska Reality and Central Group.
According to them, the price growth accelerated due to the excess of demand over supply, also reflecting the increasing prices of building materials.
“Sales have been at a record level for nine months in a row. Demand is being driven by still very affordable mortgages and also by fears of inflation devaluing savings. There are even queues forming for apartments and new projects are largely sold out almost as soon as they are launched on the market,” said Dušan Kunovský, founder and head of Central Group.
The analysis shows that during the second quarter of this year, a record 2,650 new apartments were sold in the capital, while the number of units on offer fell to 3,350.
According to the company, 4,750 new flats were sold in Prague during the whole half-year, almost doubling year-on-year. People were most interested in buying 2+kk flats, while the second strongest sales position was occupied by three-room flats.
According to statistics, the average price of one-room flats has risen dramatically. Their unit price reached on average CZK 128,278 per square metre. The price of large, five-room flats, where the average price stood at 123,823 per square metre (m2), is right behind them. For 2+kk layouts, it was CZK 116,848 per sqm, for 3+kk it was CZK 113,079 per sqm, while the prices of four-room flats climbed to CZK 116,315 per sqm, according to the analysis.
“In a period of expected inflationary growth, savings of Czech households and investors are turning into real estate purchases. We have been following this trend for more than three years. However, in the last year, influenced by the covid atmosphere, it has increased even more. The insufficient supply of new flats is unable to satisfy the demand appetite, which is why the price growth of new flats in Prague has accelerated again to ten per cent. It is highly probable that similar growth will continue for several more months,” said Marcel Soural, Chairman of the Board of Trigema.