Apartment prices have risen by as much as forty-five percent around the capital
“The third quarter, when the growth rate was again record, is associated with the beginning of rising interest rates and fears of future price increases, which drove demand for all types of real estate,” explains Jiří Feix, Chairman of the Board of Directors of Hypoteční banka and ČSOB Stavební spořitelna. According to him, the same situation will be in the last quarter of this year. “But then the situation on the mortgage market should be reflected more in real estate prices. Next year, we expect a slowdown in housing demand, ie a slowdown in price growth. But not their decline, “Feix predicts.
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However, the dynamic growth of housing prices in Central Bohemia only confirms the current trend. “The situation is given both by the general growth of the market and the current trend of Prague demand outside the metropolis. Due to its economic strength, it is an attractive place to live, but there is little going on in its territory, which means that only a large number of people can be accommodated there, ”wrote Petr Hána from Deloitte.
“In addition, the current transaction prices of flats in Prague, which in the third quarter reached an average of 109,800 crowns per square meter, are no longer justified for many, so they are looking for the Central Bohemian Region,” he added.
Pressure for better amenities
However, for places that now focus on people’s attention, this means, among other things, increased pressure on amenities. “Interest in living in our country is growing, and with it the requirements for infrastructure go hand in hand. We are responding to this fact with various investment projects, which are necessary to maintain the current quality of life, “said the mayor of Brandýs nad Labem-Staré Boleslav Vlastimil Picek. “The jump in population, the number is already approaching 20,000, caused us, for example, a problem with the insufficient capacity of kindergartens,” he explained. Hundreds of new flats should be added to his city in the coming years as part of two major development projects.
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“In 2020, a working group of the city council for development areas was established, the task of which was to develop clear conditions for development construction. They were introduced in April this year. Among other things, they set the rules for the construction of the appropriate infrastructure within the project precisely and for all developers without exception. It also introduces a fixed fee, which the developer undertakes to pay to the city. The city then invests these funds in priority segments, which include infrastructure, including road repairs, sewerage and education, ”said Mayor Picek.
The center of the metropolis without young people
According to Marcel Soural, Chairman of the Board of Trigema Group, moving people to Prague is not always the optimal solution due to the lack of flats. “Many places need to bring water, electricity, build sewers and roads, build or expand schools and kindergartens,” Soural said. “On the other hand, the demographic curve in the center of Prague will show that they will not need school facilities there for some time, because no young people will live here due to expensive flats and high rents. And that’s not good. “
How the price of the apartment changed during the year
City | 3rd quarter 2021 | 3rd quarter 2020 | Year-on-year change |
Benešov | 63 238 CZK | CZK 43,597 | + 45% |
Beroun | 67 609 CZK | CZK 55,860 | +21% |
Kladno | 64 221 CZK | CZK 50,088 | + 28% |
Cologne | CZK 54,457 | CZK 44,764 | + 22% |
Kutna Hora | 48 167 CZK | CZK 40,722 | + 18% |
Mělník | 59 481 CZK | CZK 47,522 | + 25% |
Jr. Boleslav | 59 897 CZK | CZK 45,472 | + 32% |
Nymburk | CZK 56,059 | CZK 39,546 | + 42% |
Prague East | 74 279 CZK | 64 029 CZK | + 16% |
Prague West | CZK 80,637 | 66 863 CZK | +21% |
Příbram | CZK 50,108 | CZK 38,331 | + 31% |
Rakovník | CZK 45,672 | CZK 38,513 | + 19% |
Source: Deloitte, data per square meter