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.
During September and October, the average price of apartments in Prague only increased by 0.5%, i.e. to CZK 110,500 per square metre. The number of available apartments increased to 5,533. On the other hand, the average offer price of apartments in development projects decreased to CZK 104,300 per square metre. With the average purchase price of CZK 195,000 per square metre, apartments in Prague 1 were traditionally the most expensive ones. The largest increase of 4.1%, i.e. to CZK 118,900 per square metre, was reported in Prague 3. Contrarily, the biggest price drop was seen in Prague 8 where the cost of available apartments decreased by 6.3% to CZK 103,300 per square metre.
The real estate market has seen a price drop for the first time in 2019. The number of available apartments on the Prague market decreased to 5,442, which was caused, inter alia, by good sales figures, a small number of new apartments as well as the withdrawal of two development projects from the market. The average price of available apartments offered in the development projects on the Prague market was CZK 110,000/sq. metre, which is a year-on-year increase of more than 7%. With an average offer price of CZK 193,000/ sq. metre, Prague 1 remains the most expensive Prague district. Contrarily, the cheapest apartments may be purchased in Prague 9, for CZK 97,200/sq. metre on average.
The set price level on the market of development projects together with the measures of the Czech National Bank resulted in lower sales and an increased offer of available apartments on the Prague market. The dynamic price growth trend slowed down significantly, but a price drop cannot be expected. In May and June, the average price of a Prague apartment increased only slightly, specifically by 0.6% to CZK 107,700 per square meter. The most significant price growth was recorded by Prague 10 (+7.3%) and Prague 7 (+7.1%). By contrast, a substantial drop was recorded in Prague 8, where apartments became cheaper by 10.4%. The most expensive apartments continue to be in Prague 1 with a price of CZK 193,000 per square meter, while Prague 9 became the cheapest Prague district at a price of CZK 95,400 per square meter.
The current situation on the Prague residential market indicates the advent of possible change. The prices of new Prague apartments will probably not grow significantly in the near future. In March and April, the average price of a Prague apartment decreased slightly compared to the previous two months, specifically by 0.7% to CZK 117,100 per square meter. The total number of available apartments on the Prague market decreased in March and April 2019 and at the beginning of May 2019 it amounted to 5,775. The most significant price growth was recorded by Prague 10 (+4.1%). On the other hand, prices decreased e.g. in Prague 4 (-2.5%) and Prague 2 (-1.7%). Prague 1 remains the most expensive Prague district with the average offer price of CZK 192,300 per square meter. The cheapest apartments were for sale at the end of April in Prague 9, where an apartment could be purchased for CZK 93,900 per square meter.
In January and February the average price of a Prague apartment grew by 1.7%, i.e. to CZK 107,900 per square meter. Most significant growth was recorded by Prague 4, where apartment prices grew on average by 8%, and Prague 3 (+5.2%). On the other hand, a decrease, albeit very slight, occurred in Prague 6 (-0.4%) and Prague 1 (-0.08%), which nevertheless remains the most expensive Prague district with the price of CZK 189,600 per m2. The cheapest district is Prague 10 (CZK 92,600 per m2). In the monitored period, 13 new development projects and 371 new apartments were put on the market.
In November and December, 703 apartments and 23 residential projects were added to the Prague residential market. On a year-on-year basis, the total offer of free new apartments in Prague increased by more than 35%. Altogether, at the end of 2018, 4,775 apartments in new constructions were offered at an average price of CZK 98,500 per square meter and 1,339 apartments in refurbished apartment buildings at an average offer price of CZK 133,000 per square meter. Prague 1 remains the most expensive city borough with the average offer price of CZK 189,800 per square meter (-3.44%). By contrast, in the reference period, the cheapest apartments can be purchased in Prague 10 for CZK 91,700 per square meter (-0.2%).
September and October were poorer in terms of new offers of apartments than in previous years. 965 new apartments with the average proposed price of CZK 102,200 per square meter were put up for direct sale. The total number of available apartments in the Prague market increased almost by 6%, representing 5,587 apartments in early November 2018. The average proposed price for Prague’s available apartments in development projects amounted to CZK 104,100 per square metre in the autumn. This represented an almost 12% increase year-on-year and, when compared to 2014, the price level of the apartments on offer in Prague already increased by more than 59%. Prague 1 remains the most expensive city borough, with the highest average proposed price of CZK 196,500 per square meter. In late October, the cheapest apartments could be bought in Prague 4 (with the average proposed price of CZK 89,100 per square meter).
The prices of apartments that are currently offered by developers in their residential projects in Prague continue to rise. The average offer price of available apartments in Prague grew by 1.8% to CZK 102,100 per square meter in the July – August 2018 period. The greatest rise in prices was recorded in Prague 9 (+6.9%) and Prague 7 (+4.7%) while Prague 1 (-3.38%) and Prague 3 (-1.4%) saw a fall in prices. Prague 1 remains by far the most expensive city borough with the price of CZK 204,500 per square meter. In contrast, the cheapest apartments can be purchased in Prague 4 at a price of CZK 86,200 per square meter. 13 new projects and 387 apartments were put on the market in the monitored period.
May and June have seen the greatest number of apartments (1,449) added to Prague’s housing market in the two months since 2014. The average proposed price for Prague’s available apartments in development projects amounted to CZK 100,300 per square metre. A total of 952 apartments were sold during the period on Prague’s housing market, with the average price for a sold apartment amounting to CZK 6,210,000. Its unit price was CZK 98,000 per m2, and the size was 63 m2. Prague 1 remains to be the most expensive city borough. In late June, the cheapest apartments could be bought in Prague 9, and the greatest growth in prices was recorded by Prague 6 (+8%).
The situation on Prague’s housing market remains substantially unchanged. During the monitored period, the average price of a Prague apartment grew by 3.8%, ie to CZK 99,400 per square metre. During March-April 2018, a total of 23 new development projects and 945 new apartments were put on the market. The greatest rise in prices is currently being recorded by city boroughs on the periphery: Prague 10 (+5.8%), Prague 4 (+5.2%) and Prague 5 (+4.7%). In contrast, Prague 8 has seen a minor fall in prices (-1.3%).
The first two months of 2018 brought the highest number of offerings in five years. In early 2018, the average proposed price of available apartments in development projects stagnated at CZK 95,800 per m2. In Prague, the greatest growth in prices is currently recorded by border districts, specifically Prague 9 (+6.9%) and Prague 10 (+5%).
In the last two months of 2017 the number of available apartments declined. Prices continued to rise and reached CZK 95,900/m2. This represents a year-on-year increase of 12%. Apartments were the most expensive in Prague 1, and the cheapest in Prague 4.
In September and October, the proposed prices of Prague’s new apartments dropped by 0.4% to CZK 93,100 per m2, with Prague 3 seeing the greatest decline. In contrast, the prices of apartments in Prague 1 increased by 18.8%. The number of projects under construction at the end of the period totalled 130.
In July and August, the proposed prices of Prague’s new apartments grew by 1% to CZK 93,500 per m2. During the period, developers placed 14 projects with a total of 1,011 apartments on the market, of which 775 apartments were sold. The most apartments were sold by Central Group, followed by Crestyl and Skanska.
The situation on the Prague residential market remains gloomy. Number of new available apartments in Prague increased, but prices continue to rise. While a total of 4,259 new apartments were for sale at the end of June, which is 178 more than was available for sale two months ago, the average price for the same period grew by 2.4% to a total of CZK 92,600/m2. This represents a year-on-year increase of CZK 17,000/m2. Find out more information in the press release here.
Despite the fact that spring has so far been the main season for developers, the sell-out rate in the capital keeps growing. While sales of apartments used to be the highest in the period, this year’s figure has been the lowest in recent years. What is more, the number of newly offered apartments which will be available in the foreseeable future is declining. Find out more information here.
The average offer price for new vacant apartments rose by 2.5% to CZK 88,500 per m2 in January and February of this year, which is a 21.2% growth year-on-year. With the increasing average price per square meter, the average total price per apartment has grown by CZK 243 thousand up to CZK 6,925,000. There are 40% fewer new apartments on the market than two years ago. Find out more information here.
The average offer price of new apartments in November and December of last year grew by 5.4% to CZK 85,320/m2, which represents a year-on-year increase of 19.4%. With the rising average price per square meter, the average total price per apartment increased by CZK 506,000 to CZK 6,682,000. Find out more information here.
In Q3, the average offer price of new available apartments grew to CZK 80,950 per square metre. At the end of September, Prague recorded 4,713 apartments available for sale. Apartments were the most expensive in Prague 1 (CZK 154,500 per square metre) and the cheapest in Prague 9 (CZK 63,800 per square metre). Take a look at the conclusions of the latest Deloitte Develop Index. Find out more information here.
In July and August, the average proposed prices for new vacant apartments in Prague recorded a slight increase to CZK 75,650 per m2. In late August, the number of vacant apartments for sale in Prague was 4,715, which is 2,134 less than last year. As in the previous period, prices for which apartments were sold were highest in Prague 2 (CZK 139,200 per m2) and lowest in Prague 9 (CZK 58,600 per m2). Overall, there was less activity on the development market in summer; however, prices in Prague reported a 12% year-on-year increase nonetheless. These are the conclusions of the latest Deloitte Develop Index. Find out more information here.
In May and June, the average offer price of new flats in Prague amounted to CZK 75,600 per m2, which represents a 2.8% increase compared to the previous two months. At the end of June, there were 4,713 vacant units for sale in the capital (which is a decrease of 2,108 units compared to the previous year). In total, Prague citizens bought new flats amounting to almost CZK 6.5 billion. The highest prices of flats were in Prague 2 (CZK 139, 200 per m2), the cheapest flats were in Prague 9 (CZK 59,100 per m2). Proposed prices for property in the capital are rising, there are fewer new projects in the residential market and their proposed prices are higher. Find out more information here.
The average offer price of a new flat in Prague grew by 1.6% to CZK 73,500 per square meter in March and April. Developers’ offering included a total of 25 new residential projects (both apartment buildings and family houses) with the total volume of 1,241 flats. These are the results of the latest Deloitte Develop Index, which analyses the offering of the Prague development market every two months and monitors the offer price development of flats sold. The figures are based on the data from Cenovamapa.org. Find out more information here.
The development in the proposed price index of apartments under development projects confirmed the increase in the prices of Prague’s new apartments, which amounted to 1.2% compared to late 2015. In the first two months of 2016, the average proposed price for a new Prague apartment was CZK 72,300 per square metre. Find out more information here.