Skanska bought the Michelské barracks area and will build apartments there

Prague - The company Skanska Reality from the Skanska group has purchased a four-hectare site of the Michel Bakery in Prague 4. On the site of the former industrial area, which is now referred to as a brownfield, hundreds of apartments will be built, creating a new residential neighborhood. The company announced the transaction today in a press release, but did not disclose the price.
    "From our development perspective, we see this brownfield as an attractive location in the wider city center. We believe that by revitalizing the area we can create a new residential neighborhood that will suitably complement the existing building," stated the CEO of Skanska Reality, Naděžda Ptáčková. The E15 newspaper reported today that the Michel Bakery is relocating part of its production from Michle to northern Bohemia.
    For Skanska, this is the second announced land acquisition for apartment construction this year. Some time ago, it informed that it purchased a project with a valid zoning decision in Prague 8 - Karlín known as River Gardens East from the Karlín Group and Ungelt Partners. In Thámova Street, 533 apartments are to be created, which Skanska Reality plans to sell in six phases. The first is expected to be launched on the market at the turn of this year and next year.
    However, the development division of the Skanska construction group does not end with land acquisitions. "We have allocated financial resources in the hundreds of millions of crowns for the purchase of new projects. Our primary interest is in projects in the wider center of Prague with good transport accessibility and civic amenities, typically with hundreds of apartments. We would like to consistently have around 600 new apartments available," revealed Ptáčková.
    The market for new apartments in Prague has significantly revived recently. According to joint statistics from Ekospol, Trigema, and Skanska Reality, people purchased 5,950 new apartments in Prague last year, which is an increase of 18.6% year-on-year. Growth has continued this year, with a record 1,850 new apartments sold in the capital in the first quarter, which is a third (37%) more than last year. All major market players are trying to take advantage of this trend, focusing on acquiring the remaining suitable plots and projects at various stages of the permitting process.
    Skanska Reality is among the top five largest developers in the Prague market. Last year, it sold a total of 402 new apartments, which is an increase of 28% year-on-year. The developer currently has 306 new apartments on offer in six Prague projects. This year, the company aims to have around 800 apartments available in eight projects. Over eighteen years in the market, it has built around 7,000 new apartments. The company is part of the Skanska group.