People are more interested in living in Central Bohemia. Prague is getting more and more expensive
Quite logically, the most attractive are places with complete civic amenities and good transport connections. “Locations with a rail connection that are not subject to traffic jams are preferred. These include, for example, Kladno, Beroun, Kolín, Poděbrady or Kralupy nad Vltavou,” says Peter Višňovský, managing partner of Lexxus. “However, buyers are also looking for cities and towns in the immediate vicinity of highways or expressways and, of course, places connected to suburban transport,” adds Dagmar Schejbalová, spokesperson for Re/Max ČR.
is a limited quantity
The current situation of the residential real estate business is not very promising. However, according to Martin Protiva, the commercial director of the company Ekonomické stavby, the prospects for the prices of building plots to start falling are slim. “Land prices have been rising steadily since 2010. Unlike apartments or family houses, they are stagnant and have never been affected by temporary price reductions during this time. And given that these are scarce goods that simply cannot be ‘produced’, price reductions are highly unlikely,” explains Protiva.
Rents in Prague have increased by up to thirty percent, but the number of interested people is still increasing
According to Schejbalová, the demand for land in the Central Bohemia region is constantly increasing, so it cannot be assumed that their price would ever start to fall. And that’s precisely because their quantity is limited. “In addition to the fact that a good location and own land are the basis for building family houses, many people see the plot as an investment for the future, even if they don’t want it at the time they buy it,” says Schejbalová.
A certain cooling of demand, caused by the deterioration of the availability of mortgages, the high price of real estate and rising construction costs, although this is the perception of Višňovský in these months, however, even according to him, the prices of construction land – due to the mentioned influences – are still rising slightly. And their offer is insufficient. “Lots of land that do not meet this parameter according to the zoning plan are often offered as building plots. Some may not have a connection to the utility network, i.e. to electricity, water or a water purifier,” Višňovský demands.
Economic situation demand
According to the real estate experts interviewed, people are not only increasingly looking for their own housing away from big cities due to the prices, but they are also asking for land. “Traditionally, the most requested and at the same time the type of land I offer for the construction of family houses are the gridded ones with a size of 700 to 1000 square meters. While earlier the demand was mainly for plots of land around 800 meters, lately the client’s demand targets are more towards the lower end of the range. Often even below it,” Martin Protiva explains the trend.
The speed of apartment sales will decrease, but not their prices, according to the analyst
According to Dagmar Schejbalová, because of the price, interest was always more interested in smaller plots, and those up to 1,000 square meters sold best. Now, even half the acreage would be enough for people, but there are not many such plots due to regional plans. Peter Višňovský also confirms that the trend is demand for lower acreage.
For how much?
Defining the average plot of land, and thus the average price, is quite complicated. However, as shown by the experience of Ekonomických staveb, we can simply say that in the peripheral parts of Prague, prices range between 20 and 25 thousand per square meter. Just beyond the border of Prague, they reach between 15 and 20 thousand. And the further we move away from the border of the capital, the lower the price. According to Martin Protiva, within a radius of 15 kilometers, the amount per square meter varies from eight to thirteen thousand, and within a radius of 25 kilometers between five and ten thousand.
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“However, the resulting price is determined not only by the size of the plot, location, civic amenities and transport accessibility, but also the shape of the plots, their slope and construction readiness – i.e. connections to communications, engineering and the like. There is one more thing related to this that you need to pay attention to – if you do not have connections and the municipality is preparing a new road, or has recently built one, it is possible that it will not interfere with the surface and complete the connections for a few years. This does not affect the price, but it can prolong the construction or limit its use,” adds Protiva.