In Prague, there are thousands of newly built apartments that are empty
Prague - Currently, thousands of newly built apartments in Prague stand empty. However, estimates of the exact number of apartments that are still looking for buyers vary. Similarly, data on current demand for housing differ since there are no official statistics. This is derived from findings by ČTK among real estate companies and experts.
"According to our qualified estimates, there are currently about 3,000 unsold apartments in completed projects in Prague and around 800 to 1,000 apartments in projects that are currently being built and are near completion," said analyst Ondřej Novotný from the consulting company to ČTK.
The development company Ekospol published results of its analysis, according to which there are more than 2,300 empty apartments in the capital city. The company based its findings on an analysis of price lists of Prague's development projects with 50 or more apartments. According to King Sturge's analyst, however, the share of unsold apartments in their total number cannot be precisely determined, as it is not possible to define a basis that constitutes 100 percent.
Opinions on the level of current demand are also unclear. While some believe that demand will grow because people will prefer to choose already built apartments over living only "on paper," the general director of Ekospol, Evžen Korec, thinks otherwise. "Looking at the price lists of completed apartments, potential buyers quickly lose interest," stated the company chief. Many developers, according to him, simply cannot afford to lower prices, as the credit financing of these projects and price determination for construction work occurred during the real estate boom. "They are thus only making cosmetic price adjustments of a few percentage points, which definitely does not reflect the current market situation," added Korec.
King Sturge's analyst, however, believes that while the number of built apartments will continue to decrease, the number of unsold apartments will likely also decrease. "The depth of the decline can only be speculated upon, but we believe that the pace of decline for unsold units should be faster in line with the gradually recovering demand," opines Novotný.
According to the Czech Statistical Office, offering prices for apartments in Prague fell by 0.7 percent in the first quarter compared to the previous period. "In Prague, due to the decreasing rate of decline in offering prices, the recovery and gradual stabilization of the residential market are perhaps most evident," Novotný noted. Experts, however, also indicate that offering prices differ from final prices that buyers actually pay. In terms of realized prices, statisticians have the latest figures from the second quarter of 2009, when prices fell by 6.3 percent.
"According to our qualified estimates, there are currently about 3,000 unsold apartments in completed projects in Prague and around 800 to 1,000 apartments in projects that are currently being built and are near completion," said analyst Ondřej Novotný from the consulting company to ČTK.
The development company Ekospol published results of its analysis, according to which there are more than 2,300 empty apartments in the capital city. The company based its findings on an analysis of price lists of Prague's development projects with 50 or more apartments. According to King Sturge's analyst, however, the share of unsold apartments in their total number cannot be precisely determined, as it is not possible to define a basis that constitutes 100 percent.
Opinions on the level of current demand are also unclear. While some believe that demand will grow because people will prefer to choose already built apartments over living only "on paper," the general director of Ekospol, Evžen Korec, thinks otherwise. "Looking at the price lists of completed apartments, potential buyers quickly lose interest," stated the company chief. Many developers, according to him, simply cannot afford to lower prices, as the credit financing of these projects and price determination for construction work occurred during the real estate boom. "They are thus only making cosmetic price adjustments of a few percentage points, which definitely does not reflect the current market situation," added Korec.
King Sturge's analyst, however, believes that while the number of built apartments will continue to decrease, the number of unsold apartments will likely also decrease. "The depth of the decline can only be speculated upon, but we believe that the pace of decline for unsold units should be faster in line with the gradually recovering demand," opines Novotný.
According to the Czech Statistical Office, offering prices for apartments in Prague fell by 0.7 percent in the first quarter compared to the previous period. "In Prague, due to the decreasing rate of decline in offering prices, the recovery and gradual stabilization of the residential market are perhaps most evident," Novotný noted. Experts, however, also indicate that offering prices differ from final prices that buyers actually pay. In terms of realized prices, statisticians have the latest figures from the second quarter of 2009, when prices fell by 6.3 percent.
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27.04.10 09:18
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