Deloitte Develop Index
How is the price of real estate in Prague changing?
The Deloitte Develop Index monitors the qualitative and quantitative indicators of supply and demand on Prague’s development market. Its task is to describe, on a bi-monthly basis, the current state of the residential market and its development. The set of indicators is based solely on declaratory information obtained from the websites of individual development companies and pricelists of development projects. The basis of the index is formed by the numbers and proposed prices of vacant units under development projects towards the end of the monitored period.
The increase in the average price of Prague apartments continued in the first two months of 2021, too. The price increased by 2.8% to CZK 123,400 per square metre. The price growth rate is thus on its highest level compared to individual monitored periods of 2020. The most significant increase occurred in Prague 10 (6.8% to CZK 117,200 per square metre), whereas the most significant decrease was recorded in Prague 7 (-1.5% to CZK 117,500 per square metre). Prague 1 remains the most expensive district (CZK 203,500 per square metre), while the least expensive apartments can be still found in Prague 9 (CZK 106,600 per square metre).
In November and December, the price offer of new apartments in Prague increased again by 1.5% to the average cost of CZK 120,000 per sq. metre, which can be expressed as a 6.7% year-on-year increase. Compared to 2014, the price level of the offer in Prague rose by 84%. The most significant growth of 8.7% was recorded in Prague 2 (CZK 165,100 per sq. metre). On the contrary, a very mild decrease was recorded in Prague 10 (-0.6%), Prague 5 (-0.3%) and Prague 1 (-0.42%). The most expensive apartments remain in Prague 1 (CZK 205,800 per sq. metre), while the cheapest ones are offered in Prague 9 (CZK 105,700 per sq. metre). In the last two months of 2020, a total of 1,419 apartments were sold on Prague’s development market.
In September and October, the average price offer per sq. metre on the Prague market with apartments continued to increase modestly. The average price soared by 0.9% to CZK 118,200 per sq. metre. The offer prices grew the fastest in Prague 6 (by 1.8% to CZK 129,200 per sq. metre), contrarily the slowest growth (by 0.1% to CZK 206,700 per sq. metre) was recorded in Prague 1. Prague 1 remains the most expensive location in the capital, while the cheapest apartments are offered in Prague 9 (CZK 104,000 per sq. metre). As a surprise came the significant growth of the demand, i.e. by 61% compared to the summer months.