The Price Map information portal carries out a monthly analysis of the real estate market in Prague. According to their research, it can be concluded that the growth of real estate prices in Prague continues and the supply of new apartments does not match the market requirements.
According to the official data, after seven months of this year, the supply of new apartments is the lowest since 2014, which led to a 12% increase in prices as demand for real estate did not decrease. However, 111 new homes were introduced in July 2021, 93 more than in July 2020, but this is only 38% of the total natural supply compared to the average of the last 7 years.
The first half of 2021 is not as dramatic in year-on-year comparison. According to official data, the average size of an apartment in Prague has fallen by 2.8% - from 62.88 to 61.12 sqm, and the average price per sqm has risen by 4% - from 116 669 Czech crowns to 121 360 Czech crowns per sqm. The price of an average apartment thus increased by 1.1% from 7 336 581 to 7 417 114 Czech crowns. The highest increase was recorded in Prague 3, by 13.9 per cent to CZK 147 376 Czech crowns. The lowest was in Prague 1 - by 0.7 percent to CZK 194 327 Czech crowns.
The good news for everyone is the approval of the new building law, which will come into force in 2023. This will allow developers to speed up the time of obtaining a building permit and reduce bureaucratic costs. As a result, the volume of construction is expected to increase and the situation on the real estate market to stabilize. The second good news is that today's mortgage conditions are still more favourable than the indicators of previous years. This means that acquiring a property is currently a sensible option. If you are thinking of buying a new home, we will be happy to advise you.
Below (Tab. 1- 4) you can see information on the change in average prices per square metre in Prague, the number of newly built apartments and the average size of an apartment in July over the last 7 years. We have also prepared a timeline of the change in the total number of apartments on the market in July over the last 7 years.