At the end of 2020, there were slightly more planned constructions. Along with them, interest in real estate investments is growing.
According to a CEEC Research survey of 40 developer companies, demand for new apartments in Prague in 2020 increased by 3.4 percent year over year, while supply grew by 1.4 percent.
In 2021, demand should grow by 3.1 percent and supply by just 0.8 percent.
While the constraints caused by the coronavirus epidemic are also affecting the real estate market, quality housing remains a major need.
There are currently 120,649 apartments in 762 projects being prepared in the capital.
While a year ago, there were almost 109,000 new apartments being prepared in Prague, now it’s more than 120,000. This is an increase, but demand for new apartments in Prague is still very high compared to the supply of housing, which significantly increases property prices.
According to an analysis by a large development company, the most sought-after 2-bedroom layout is 55 square meters.
For example, all currently planned new apartments in the capital, whose population is growing annually on average 15,000 people, will cover the housing needs of about a quarter of a million people.
The number of apartments in new buildings has increased in five districts of the city:
Prague 5 – 186 new apartments, representing 35 percent of the total supply, and the number of vacant apartments increased by 12 percent.
In Prague 9 – 169 new apartments, accounting for 32% of the total supply and a 17% increase in the number of apartments available.
In Prague 4 – 96 new apartments, representing 18% of the total supply, and the number of apartments available increased by 9%.
In Prague 10 – 43 new apartments, representing 8% of the total supply, and the number of apartments available increased by 9%.
Prague 8 has 42 new apartments, representing 8% of the total supply, and the number of vacant apartments has increased by 5%.
Due to the large number of built-up areas in former industrial areas, the areas of Prague 5, Prague 9 and Prague 4 are expected to develop the most this year. According to an analysis by a major development company, more than half of all currently planned apartments in the capital will be built in these three urban areas.
Two-thirds of the apartments in preparation are for projects planned in unused areas. Supporting construction in these areas should be a priority for the city’s leadership. This could make a significant contribution to resolving the current housing crisis. In addition, these plots are usually located where the infrastructure is already in place. This is also beneficial for the city. They are often large tracts of land in the broader downtown area. Turning them into a residential area is a logical step.
Prague will be relevant at any time of the year. It is all-season and, as the current difficult conditions have shown, interest in it will remain.