Another year is coming to its end and traditionally we have prepared a short summary of its results in the real estate market of Prague. A funny monkey of 2016 played its role well, sometimes fooling us, sometimes pleasing, and puzzling with the question, “So, what to expect tomorrow? Whether the rooster bite?”
On the one hand, the year of 2016 pleased us with a stable demand for new dwellings that have increased in their price for more than 19%, in addition to the lowest (1.82%) interest rate on mortgages. On another hand, there are changes in regulatory standards of construction that have puzzled local developers. Many of them must change the project documentation, which is an imposing cost that will be reflected in the final sales price of the property, not in a buyer’s favor. Because of such changes, the new projects construction fell by 10%. By the end of 2016, Prague is waiting for the delivery of 4 000 new dwellings, instead of 13 761 flats in 2015 and 11 126 in 2014, while the market demand is not less than 5 000 new apartments.
Banks will help to stabilize prices and prevent speculation slightly since many issue mortgages for no more than 90% of the housing price. However, stricter rules of construction regulations and the favorable economic situation in the Czech Republic allow us to stand on the prediction that the prices for the residential real estate in Prague will increase in an upcoming year.
In 2016 our company has grown with another project. After 7 years of waiting, we have received a construction permit for the MÉLANGE Residence, a residential house for 34 dwellings, located in Smíchov, Prague 5. We are happy that we are growing and that in 2017 we will be doing what we love the most – to build a new and comfortable housing for you!
Merry Christmas and a very Happy New Year to you, our dear friends, clients and partners. Let the new year will bring to you many new ideas along with an inspiration and strength for their successful implementation. We do not wait for what will happen tomorrow, we build that tomorrow!
