Investors are looking for new apartments. The market leader is preparing a record year

“This year we plan to launch a record up to two thousand new flats in Prague. Compared to last year, when we launched three new projects with approximately 740 apartments, this will be a really big increase, “said Ondřej Šťastný, a spokesman for the largest Prague developer, Central Group.

“If all goes well, it will be our record year,” he added. This year, the company will launch large projects Park District at the Žižkov Freight Station and Tesla Hloubětín.

YIT Stavo is also planning to increase the offer of new buildings. “This year we plan to build almost 565 new housing units. The difference compared to 2020 is more than 150 apartments, which we will launch this year, “said Dana Bartoňová, the developer’s sales director.

“The reason is the continuing great interest of clients who buy apartments either for their own housing or often as a stable and safe investment,” she said. The company started a new project in Liben at the beginning of this year and will continue construction in Hloubětín.

“As many as one-fifth of mortgage applicants on are currently interested in financing investment real estate. We expect that the share of applicants with an investment plan will continue to grow this year, “said Marek Kříž, co-owner of Zaloto’s company specializing in online financial advice.

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“The price of average housing is growing faster than the average income, which gives room for investors who have money and can use a mortgage to invest relatively conservatively,” he says.

In addition to flats, investors also buy building plots, “This year we expect increased investor interest in investment flats, but also in land as a form of safe value for money,” predicts Petr Beneš, director of Geosan Development, which sells land in Choťánky near Poděbrady.

Developers are also increasing the supply of flats due to the entry of institutional investors into the market. In addition to movable individuals, funds also began to buy apartments in bulk. For example, the Swedish company Heimstaden plans to buy around a thousand rental apartments in the Czech Republic this year.

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“The share of investor purchases in the Prague real estate market will strengthen again this year. Investors will take advantage of more advantageous options for purchasing larger housing portfolios directly from developers, “says Jiří Kučera, director of the Luxent real estate agency.

For example, the developer AFI Europe used the advent of funds to redirect its construction to rental housing. In January this year, the company began construction of 320 rental apartments in Prague’s Vysočany.

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The developer holding FINEP also began to attach more weight to rental housing. “It is one of the concepts we are working on and through which we want to deliver affordable rental housing for various groups in several locations in Prague,” said FINEP holding spokesman David Jirušek.

Due to high demand, apartment prices continue to rise. According to the Czech Statistical Office, the prices of Prague’s new buildings rose by 9.7 percent year on year in the third quarter of last year. At the same time, the mortgage market reached a record level last year. Banks provided mortgages for 250 billion crowns, according to an estimate by the ČSOB Group.

Source: by

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