“The method of acquiring a constructing allow itself usually takes greater than 10 years,” mentioned Michaela Tomaskova, government director of Central Group, an condominium developer. “Builders battle to place new flats available on the market and the availability is just not enough to fulfill the demand.”
In central Prague, condominium costs have soared from 55,555 Czech korunas a sq. meter (about $220 a sq. foot) in 2015 to 102,058 korunas a sq. meter (about $407 a sq. foot), an 84 p.c enhance, in response to a report from the property corporations Trigema, Skanska Actuality and Central Group. (The Czech Republic has been a member of the European Union since 2004, however makes use of its personal forex, the koruna, reasonably than the euro.)
The rising costs have triggered gross sales quantity to sluggish in current months, mentioned Blanka Vackova, head of analysis for the Prague workplace of JLL, the property consultancy. “The market is just not as scorching because it was,” she mentioned.
However demand stays excessive, particularly for less-expensive, one-bedroom flats, which accounted for 37 p.c of gross sales in Prague in 2018, Ms. Vackova mentioned. About 30 p.c of patrons are buyers, trying to capitalize on the rising variety of renters who can’t afford to purchase, she mentioned.
Masarykovo Embankment, the place demand stays excessive, is considered one of Prague’s most costly areas, prized for its river views, central location and historic websites, brokers mentioned. House costs in Prague are “usually decided by the accessibility to the middle and the space from the general public transportation, which is broadly utilized by Prague’s residents,” mentioned Pavel Hassman, proprietor of Re/Max four You, an area company.