Real Estate

New flats in the Czech Republic have risen out of reach for many people, and that has put pressure on the prices of already existing flats, according to data from real estate server Bezrealitky.cz.

Prices for new Prague flats are continuing to rise, and the situation is not expected to change soon. The average price of a new flat in Prague last year rose 18.6 percent to more than CZK 101,061 per square meter, according to combined data from developers Trigema, Skanska Reality and Central Group. Mortgage restrictions have made flats almost inaccessible for many people. Interest in living in Prague continues to rise, and many new buyers will have to compromise on location and size to find something affordable.

Czech developer Central Group has acquired a brownfield site in Prague's Zličín district and plans to use it to build a new neighborhood with up to 6,000 apartments and tram service. The land was the former site of a Siemens factory. Central Group purchased the land from the firm PSN. It is the largest acquisition in Central Group's history. The price of the deal was not disclosed.

The sale price of a flat in Prague and the regional Czech capitals increased on average by 10.1 percent year-on-year at the end of the third quarter of 2018 to 56,800 per square metre, according to a study by the consultancy Deloitte.