More and more Czechs are buying luxury apartments

Prague - Interest in luxury housing is growing in the Czech Republic. More and more people are purchasing spacious apartments with terraces, views, and other accessories, for which they are willing to spend up to tens of millions of crowns. With the increasing demand, its structure is also changing. Fewer foreigners are buying luxury apartments, while interest among Czech nationals is rising, according to a survey by ČTK among real estate agencies.
    "The demand for luxury apartments costing more than ten million crowns has increased by 15 percent compared to last year," said Petr Illetško, director of a real estate agency. Other real estate companies have also recorded rising demand, which they note is changing in structure.
    "We are seeing a slightly growing interest in more luxurious apartments. However, there has been a significant change in the structure of the customers buying these apartments. Recently, interest from foreigners has been declining while Czech demand is increasing," noted David Černík, sales director of MAXIMA REALITY.
    The highest demand for luxury apartments is in Prague, especially in the city center, in Vinohrady, and in Dejvice. "In the capital, the number of people willing to pay a significantly higher price for an apartment, compared to the regular average of up to tens of millions of crowns, is increasing," stated Jakub Sedmihradský from the Lexxus real estate agency.
    Last year, luxury apartments accounted for three and a half to four percent of the total residential market in Prague. According to Sedmihradský, this ratio could increase to ten percent within five years.
    "The demand for luxury apartments mainly concerns the capital city of Prague, as construction in attractive locations is already limited. Expensive apartments are being constructed in Žižkov and Holešovice, where some of them already have reservations before construction is completed," noted Marek Makový, director of the development department at Mexx Reality.
    Luxury apartments are considered those priced from ten million crowns with a minimum area of 100 square meters, which must have a terrace or larger balcony, a view of greenery, or alternatively a panorama, and parking space. The local amenities and good transportation accessibility are also considered important, according to real estate firms.
    While interest in luxury housing is increasing, the highest demand is generally for smaller, standard-equipped apartments with an area of around 60 m². The greatest interest is in apartments in Žižkov, Smíchov, in Troja, and locations in Prague 4 and 6. The rising demand is apparent according to real estate agencies in the seventh and eighth districts of Prague, where prices are also increasing.
    Apartments are most often bought by young individuals and families with small children, with another significant group being couples aged between 30 and 40 years. Their choice is mainly influenced by location, apartment size, and layout, with price often being a secondary consideration.
    "There are increasing cases where price is not the top consideration when evaluating possible options; Czechs closely monitor other factors. Location, accessibility, and the overall housing concept are starting to weigh more heavily," listed Makový.
    The demand for apartments is experiencing significant growth in the Czech Republic. This is accompanied by rising prices and increasing debt levels among Czechs. The excess of demand over supply also has other consequences, such as disadvantageous purchase contracts.
    "The current apartment market has expanded to unprecedented proportions. Apartments are offered by both reputable companies and, unfortunately, sometimes less trustworthy business partners," warned Radek Polák, director of PR at Sekyra Group.
    According to him, clients of real estate companies must primarily check the terms of the payment schedule and the possibilities of changes in the project's characteristics before signing the contract. "It is also important to state the expected completion date of the construction," Polák emphasized.
    "Developers' contracts are strict towards buyers but leave more leeway for the construction company. However, the developer also bears many risks that can be difficult to mitigate. Currently, there is a fundamental shortage of capacity among construction firms," explained Sedmihradský.