Apartment prices in Prague continue to rise (2019)

According to data from the development companies Trigema, Skanska Reality, and Central Group, a 70-square-meter apartment in Prague currently costs almost CZK 105,000 per square meter. In other words, an average 70 m² apartment in Prague sells for about CZK 7.5 million—an increase of over 18% compared to the previous year. Since 2015, the prices of new apartments in Prague have increased by 88%!

However, according to recently published data from the Czech Statistical Office, the average monthly salary in Prague in the first quarter of 2019 rose by only 7% year-over-year to CZK 41,450.

“The sharp increase in apartment prices can only be halted by massive construction of new housing,” says Dušan Kunovský, one of the owners of the development company Central Group, to the Czech news agency.

For the first time since 1989, the number of apartments developers want to build exceeds 100,000. However, only a small portion of these apartments are currently under construction. Most are still awaiting permits.

According to data from the Czech Statistical Office, last year only 2,700 apartments began construction, while various developers in the city sold around 5,000 new apartments.

“At the current pace of Prague’s building authorities, which over the past ten years have approved the construction of only about 2,400 new apartments per year, it will take 40 years for all these projects to reach the sales stage,” says Kunovský, adding: “Meanwhile, we need to build around 10,000 apartments in Prague each year, because the number of people moving to the city keeps growing.”

In Summary

It seems that apartment prices in Prague will continue to rise in the coming years due to a significant shortage of housing for locals. Interested in purchasing a property in Prague and benefiting from the expected value increases? Contact us and we’ll be happy to assist you.