There are 236 active development projects in Prague

Prague - At the end of May, there were a total of 236 active development projects in Prague with at least one available apartment, 55 percent of which (129 projects) are large projects with 50 or more apartments.
    "In terms of the supply of available apartments, small projects account for a market share of 16 percent, while the remaining 84 percent of apartments are offered in projects with 50 or more apartments. In terms of sold apartments during the given period, the market share of small projects reached only eight percent," stated Evžen Korec, adding that smaller projects tend to be significantly more expensive.
    Currently, price is the main concern for buyers in the market. The dominant share of demand consists of so-called super-cheap apartments priced around 30 thousand crowns per square meter.
    A recent trend is also the reduction of development projects and apartment layouts. "Most developers cannot afford to have a large portion of apartments unsold after the completion of a project, commonly referred to as dead inventory. Therefore, they prefer not to risk large one-time phases with a hundred or more apartments," warned Korec.
    On the other hand, the reduction of individual apartments has been caused by the current market demand. Buyers prefer smaller and more efficiently designed apartments. "The reduction mostly affects various hallways and vestibules, atypical layouts, bathrooms, and other spaces that clients aren't willing to pay extra for when optimizing the final price of the apartment," noted Korec.
    The Prague real estate market is experiencing growth this year. In the first quarter, a total of 1,122 new apartments were sold in new constructions, marking a year-on-year increase of 49 percent. According to Trigema, which also monitors the Prague apartment market, the sales growth in the first three months of this year reached 80 percent, with 1,315 new apartments sold. In contrast, analyses by Skanska Reality report a 25 percent increase and 1,279 sold apartments. The differing numbers are due to the different research methodologies used by the respective companies.