Multiple reports indicate that Prague property prices have skyrocketed. This is especially true with newly developed apartments. Here is some of that research that has hit the news over the last month.

Deloitte research on Prague property prices

Deloitte published statistics in August 2016 that showed that average offering prices by developers had increased 11% over 2015 and 16% over 2014.

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).

The supply of new flats and projects in offer has also decreased substantially. Last year, Deloitte reported there were 1,555 new flats built within 31 projects in May and June, whereas in the same period this year, only 19 projects were completed which had 1,058 new flats.

Many developers are now complaining that building permits are being issued at a very slow pace by the authorities. This means projects are slower being built and it takes longer to get new projects approved.

These factors indicate a further strengthening of Prague property prices in the months to come.

Prague property prices skyrocketed for new construction and existing flats

Cenovamapa.org reports 11.1% y-o-y price growth

Portal Cenovamapa.org reported a growth of 11.1% in the realized prices of apartment sales over all of Czech Republic compared to 2015.

“Rising property prices in Prague in the last three quarters are a reflection of several factors. Higher housing demand, low interest mortgages and now especially the loss of vacant new flats, as in Prague in the last three years significantly slowed down the process of approving new housing projects” said the director of portal CenovaMapa.org, Milan Roček.

HB Index documents an 8.1% increase in property prices over 2015

The HB Index, a reliable source of housing prices in Czech Republic, reported growth of 8.1% in apartment sale prices y-o-y.

The director of Hypoteční banka, Petr Němeček, reported: “The biggest price growth was recorded in Prague, South Moravia (Brno), and Hradec Kralove region.”

In a surprising development Němeček said that apartments in prefabricated concrete constructed buildings from the Communist era were increasing at a faster rate than apartments of brick construction: “Prices of older prefabricated dwellings grew two times faster than the brick dwellings.”

Invest in Prague property

With average mortgage interest rates under 2% it is a great time to make an investment. Rents are also strengthening and gross yields of up to 5% can be found. Drop me an email: [email protected] and we can discuss what investment option that would be best for you.