130,000 New Flats to be Built in Prague

129,440 new flats are now being built in the capital. However, less than 50,000 have entered the approval process.

More than half of the flats will be built in Prague 9, 5 and 4, where there are a large number of brownfields. In Prague 9, the prices are the lowest thanks to a larger offer and competition.

Compared to the previous half of the year, the number of new flats in preparation increased by more than six thousand and more than 50 percent compared to five years ago.

In the last 10 years, only 2,900 flats in apartment buildings have passed through the permitting network every year. This year, the authorities have approved a record 5,952 flats, the highest since 2007. However, in order to improve the availability of housing, it is necessary to permit at least 10,000 flats a year.

“Currently, the total value of all prepared projects reaches almost 1.2 million crowns. If they got the green light, the state would have at least CZK 155 billion in VAT alone. Accelerating the permit would therefore not only help solve the current housing crisis, but it is also in the great economic interest of the state,” says Central Group founder and head Dušan Kunovský.

Projects planned on brownfields account for two-thirds of all apartments being prepared.

“Construction on these mostly neglected areas usually does not require high costs for new infrastructure. Therefore, it is significantly more advantageous for the city than new construction on undeveloped areas on the outskirts, “says Kunovský.

In the years 2011-2020, the authorities in Prague 9 approved over 8,000 flats. The average bid price remains below CZK 130,000 per square meter. The average selling price of an apartment is around CZK 115,000 per square meter, while the Prague-wide average is over CZK 126,000 per square meter.

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