NEWS
Strong demand for apartments in Prague continues
Apartment sales in Prague have risen sharply this year, with 5,350 new apartments sold since the beginning of the year, almost twice as many as last year. This increase in demand has also been reflected in property prices. A square meter in a new building in Prague now costs CZK 160,720, an increase of 6.8% yearly. Prices also rose by 2.5% compared to the second quarter. Despite some seasonal fluctuations, the sales price of apartments increased by around 4%.
The summer months traditionally bring a decline in sales, but this year 1,850 units were sold in the third quarter. Although this is a slight decrease compared to the second quarter, it is a significant increase of more than three quarters compared to a year ago.
"Interest in new apartments remains high, despite the quieter summer season. In my opinion, the demand for apartments will continue in the coming months," comments Filip Veselý of MORITZ & BAKER. "We can see that the market is growing steadily, despite the more difficult macroeconomic conditions".
Rising housing prices result from several factors, including delayed demand from previous years and ever-increasing mortgage costs. On the other hand, the lack of supply and the rapid growth in demand continues to push up prices. Some apartments from new developments are more than 3% more expensive than those previously offered.
"The existing housing stock in Prague does not fully meet the market's needs. Developers expect prices to continue to rise until the pace of construction increases," adds Filip Veselý of MORITZ & BAKER. New projects have brought 5,750 new apartments to the market, but due to the huge demand, these numbers are insufficient to satisfy all those interested.
