Real estate market sales: value vs. interest
Real estate market sales: value vs. interest
The real estate agency Svoboda &Williams stated that the cost of new luxury flats in Prague increased by 9.8% year on year. On average, a premium flat with an area of 102 square meters costs almost 14.5 million crowns. The expensive ones are the flats in the center of Prague 1, where the average price per square meters reached 193,550 crowns. Meanwhile, in Prague 10 it is possible to buy premium properties for 127,851 crowns per square meter. While the value increases, the concern in premium residences falls, in fact, it has decreased by 17.3% year-on-year and approximately 76% of interested buyers are Czechs.
According to the company, the drop in demand has not yet shown up in the volume of realized sales, but due to the current war in Ukraine and rising inflation, the real estate market is soon expected to stagnate or correct in the near future. Prokop Svoboda, the agency’s managing partner, announced that the temporary slowdown in demand in the Czech Republic offers opportunities for investors, as valuable properties are entering the market. There is also speculation that future developments will most likely accelerate the segment’s transition to the Euro. Svoboda does not say he would be at all surprised if developers will start to publish their price lists in the European currency and subsequently recalculate them in Czech crowns, based on the exchange rate.
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