Quarter-on-quarter price growth was 9.1 percent. In 2021, 7,450 new flats were sold in Prague. This follows from a joint analysis of the development companies Trigema, Skanska Reality and Central Group, which published a joint press conference on Wednesday.
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Last year, sales were the strongest in the last 13 years, which we evaluate the market. Last year, sales were reflected in the buyers’ efforts to protect their disputes from inflation, even knowing that it would be a safe asset, which, in addition to growing its value, could generate such revenue. Thus, it is important that private and, moreover, institutional investors were the driving force behind the growing demand, said Marcel Soural, Chairman of the Board of Trigema.
In 2021, the apartment was offered the lowest in history. Last year, the number of new flats on the market kept at 3,300, which was 1980 less than in 2020. According to developers, this was the lowest number of offers in the last ten years. The offer was similarly low in 2017, when 3725 new flats were available.
In the fourth quarter of 2021, there were 2,850 vacant new dwellings on offer, a quarter more quarter on quarter, but in the interim, it was a decrease of 2,100 vacant dwellings, ie 42.4 percent.
The situation is critical
According to Developei, they emphasized that in 2011 and 2020, only 2,900 flats per year were allowed on average. According to the presented information, 6,330 flats were permitted in January and November 2021, which is the most since 2007 for a given period, which, according to the opinion of the founder and Central Group Duan Kunovsky, is not enough.
The situation is really critical. And especially nothing will change in the coming years, because the new construction bill that could help will be postponed and changed. At the same time, fast clearance is in a large economic sense. In Prague alone, more than 130,000 new flats are being prepared, which could cost 155 billion crowns in VAT alone, Kunovsk said.
Developer estimated value for the year sold new apartments in Prague exceeded 57 billion crowns. The average bid price, ie the price at which the flats are offered, but not the purchase, was 144,408 crowns per square meter on the last day of last year.
The chairman of the board of Skanska Reality, Petr Michlek, stated that at a significant year-on-year increase in prices, the buyer, with a low bid caused by a slow permit, but thus record material, labor and energy prices. This was exacerbated by an election year, which, unfortunately, did not contribute to market predictability or to speeding up the permitting process, he said.