By the beginning of 2015 the largest developers sell apartments in Prague for a few percentage points more than in the previous year. According to the ČTK survey among residential developers, the average selling price for new flat has increased by 250 000 Kc (czech crowns). They also predict the future price growth for the real estate in Prague.
The Central Group company’s representatives anonces that the average price of actually sold flat by them increased during the year for about 7%. However, this is a three times cheaper than the prices of new flats before the economic crisis in 2008.
A larger amount of capital for buying new flat have to arenge clients of the Skanska Reality as well. “Making the price of new flats, we take into account the market prices in a given area, so in comparison with the previous year, we can begin to set prices by an average of 3% – 5% higher,” said CEO Nadia Ptachkova. She believes that even with the best prognose for the reale state market, prices for the purchase of new flats in Prague will continue to grow in a similar pace.
Following the example of other developers, Ekospol has incresed flat prices, in about 3%. “Parcial impact on the rise of prices for new apartments has a VAT exemption on the land since the beginning of this year. Another factor is a greater interest to the small apartments among investors, “shared CEO of Ekospol, Evžen Koretz. In addition, Mr. Koretz expects a similar price growth in the next year. “The increas in prices, first of all, has impact the demand growth for smaller apartments, as well as for apartments purchased for the investment purposes. Mortgages currently are at their lowest rate, the Czech economy is growing, which means that the conditions for the purchase of new apartments will be at least as good as in the previous year, “predicts Mr. Koretz.
Among the five biggest developers Trigema a Finep have not increased their prices yet. “According to out estimates, the prices of new flats in Prague during the year remained at the same level, or practically did not changed,” said chief financial officer of FINEP holding, Stepan Gavlas. We can assume that the Prague real estate market prices will gently increase in 2015, due to the rise in prices of construction work. According to CEO of Trigema Marcel Sourala , currently it is rather difficult to determine the prices of apartments for sale. “Looking at the average apartments there is a well known trend that the cheapest apartments is usually are sold faster. The average price per square meter is going to smaller immediately after the launch of a new project at the initial stage of the sales, than by the end of the project. Therefore it follows, that “the average price per square meter of an apartment throughout the year is unstable and depends on thу competition level, especially on the number of apartments in the project at the initial stage of construction”, pointed out by M. Soural.
