15. August 2019
Svoboda & Williams’ Latest Market Report Looks Back on the Half-Year Performance of the Premium Residential Market in Prague
The Svoboda & Williams real estate agency has published its third Market Report. The recent developments in the premium segment of the Prague residential property market are once again summarized in a practical overview, together with key trends in the first half of 2019.
The Market Report analyzes the data on sales and rental transactions that are generated by the activities of the Svoboda & Williams real estate agency. Together with property sales figures from the cadaster of real estate with parameters that fit into the portfolio of Svoboda & Williams, we developed a comprehensive overview of the current sales and rental prices on the Prague premium residential market. The price analysis also includes a summary of the demand and supply of properties in this segment of the market as well as commentary from agents of Svoboda & Williams. The Market Report has a section entitled Focus, which examines various topics associated with the real estate market. This time, its subject is Nusle – a neighborhood that is currently undergoing a major transformation.
Svoboda & Williams noted the following trends in the premium residential segment in the first half-year of 2019:
- demand is stagnant and is returning to the level prior to the outbreak of the purchasing euphoria of 2017
- average achieved prices of premium apartments have stayed more or less the same as in 2018
- prolonged approval processes, an insufficient construction workforce, and rising construction prices continue to slow down the completion of new residential projects
- almost half of the monitored projects are reconstructions of older apartment buildings
- demand continues to be strong
- the achieved rents of premium apartments increased slightly, year-on-year growth was 3.8%
- in Prague, rental yields are 2-3% and are even higher in Brno and the countryside
- Czech tenants are increasingly moving up into higher price segments and are slowly catching up to foreigners
- the number of rental housing projects rose only slightly
A detailed analysis of sales prices and rents on the Prague premium property market based solely on realized and not offered prices is a traditional component of the Market Report. For this purpose, Svoboda & Williams created the analytical tool The Rental Price Index by S&W + VŠE in cooperation with the Faculty of Informatics and Statistics, University of Economics in Prague.
09. August 2019
A team of agents from Svoboda & Williams participated in the fifth annual beach volleyball charity cup, which took place on August 7th, 2019. The event was organized by the JLL consultancy company and was held at Žluté lázně. A total of 29 teams made up of professionals from the Czech real estate market competed in the tournament.
A grand total of CZK 270,000 was raised by the Czech Real Estate Charity Beach Volleyball Tournament 2019. The proceeds will go to the Sun for Everyone Endowment Fund, which offers a wide range of educational and social services for children and adults with special needs. The fund organizes psychiatric rehabilitation stays, purchases special equipment, and provides nursing care, therapeutic workshops, and many other activities.
12. July 2019
In terms of personnel, this summer was a time of growth for the real estate agency, both in Prague and in Brno. Svoboda & Williams welcomed new members to the Residential Sales, Residential Rentals, and Commercial Leasing departments, and the Marketing and Investment Management departments have also expanded their staff. The Brno branch now has a new Business Development Manager.
Kateřina Kubíčková joined the Residential Sales Department in June as a Junior Agent. She has an engineering degree and previously worked for 18 years in human resources and office management. Kateřina speaks English fluently. David Čermák is the latest member of the Residential Rentals team. He studied photography in college in České Budějovice, and until recently was the Deputy Manager of the Bibloo Concept Store. The Commercial Leasing Department welcomed Monika Dixová, who has experience in journalism and was also in charge of several of her own projects. She is currently training for her first marathon.
Tereza Šimerdová, who has been working for Svoboda & Williams since 2017 as an assistant in the Commercial and Analytics team, joined the Marketing Department as a Project Manager in July. Klára Zemanová began working in the Investment Management Department. She has a degree in economics and management from the Czech University of Life Sciences and worked for two years as a financial accountant.
David Kočařík is the newest member of the Brno team and has been in charge of the branch’s business development since June. He is a graduate of the Faculty of Business Management at the Brno University of Technology, with a degree in economics and management. David also has 13 years of experience in construction; he first worked as a technician, then as a building site manager, project manager, and finally as the chief executive officer of a construction company. Besides his native Czech, David is also an advanced speaker of German.
The Prague branch of Svoboda & Williams also acquired a new assistant in July. Božena Maršíková is currently studying creative marketing at the University of Creative Communication. She also enjoys skiing, which she occasionally teaches.
28. June 2019
Agents of Svoboda & Williams have increasingly been coming across the claim that the average price of an apartment in Prague is currently almost CZK 110,000/sq. m. When real estate owners then sell their properties, they set astronomical starting prices that don’t seem to correspond to reality. Newspaper headlines proclaim these high numbers, but don’t explain the difference between the asking price and the actual achieved price.
According to the current data collected by Deloitte, the average asking price of a new apartment in Prague is CZK 107,100/sq. m. However, this figure only includes newly built residential projects and starting prices, which don’t include any reductions or subsequent special offers. In reality, the asking price is often quite different from the actually achieved price. This is doubly true in today’s decline in demand for real estate and the increasing rate of discounts offered by developers. Deloitte’s regularly published so-called Prague Real Index factors in the average price of a realized real estate transaction, which it acquires from the cadastre of real estate, and includes prices of older resale properties as well. In fact, the average actually achieved sales price is currently CZK 77,400/sq. m. This is the number that Prague apartment owners should consider when they are thinking about how much to sell their property for. Or even rent it out for, since this misunderstanding of the market also influences how property owners establish adequate rental prices.
The Svoboda & Williams real estate agency maps the premium property segment, which has a higher average achieved price – currently around CZK 112,000/sq. m., with a median value of CZK 103,000/sq. m. Properties at the very top of the real estate pyramid are significantly pushing average prices upward.
23. June 2019
Construction of the U Hájenky residential project has commenced on a plot of land near the Lipno Reservoir. On this previously empty meadow, 15 modern houses inspired by typical Šumava cottages that will consist of two separate apartment units with a terrace and garden will gradually be built. The exclusive seller of the apartments is the Svoboda & Williams real estate agency.
The U Hájenky apartments will allow new owners the chance to live amid the beautiful South Bohemian countryside right next to the popular Lipno Reservoir and only 100 meters away from the new Loučovice ski slope. These apartments can be used and enjoyed year-round, and are therefore an excellent investment opportunity. The U Hájenky project also offers property management services that include taking care of any rental responsibilities as well as grass cutting and snow clearing.
The individual eco-friendly passive semi-detached houses are built according the Austrian STEICO construction system with a maximum emphasis on a healthy environment for future residents. Each house will feature superior insulation properties. The units are sold in a finished state, which can be upgraded to a premium standard.
More information about the U Hájenky project.
13. May 2019
Earlier this spring, Svoboda & Williams added several new faces to its team. The Marketing, Property Management, and Residential Rentals departments all welcomed new members, and the Prague office has a new receptionist.
Sára Goldbergerová, a graduate of the Faculty of Humanities at the Charles University, is the newest member of the Marketing team. She has been a copywriter for Svoboda & Williams since the end of 2018, and became its PR Manager in March 2019.
The Property Management Division hired Jana Rýznarová and Ilona Fanfrdlová, both to the position of Senior Property Manager. Jana studied English and Applied Economics at the Palacký University in Olomouc, and she speaks French and Italian. She has been working in real estate for more than 3 years. Ilona acquired a Master’s Degree in Public Policy and Human Resources from the Masaryk University. For 9 years, she was in charge of Facility Management for the British Embassy.
The new Letting Representative in the Residential Rentals team is Andrea Hladíková. She is a graduate of the University of Economics in Prague and she holds a diploma in the Principle of Interior Design and Decoration from the London Inchbald School of Design. She helped found the VIP Photo Booth company, based in South Africa, where she worked as Business and Marketing Director.
In April, Barbora Šudomová became the main receptionist in our Prague office. She studied Hotel Management and Tourism, and lived for a time in Italy, where she learned to speak Italian fluently.
08. April 2019
The Svoboda & Williams real estate agency has been exclusively retained to broker the sale of 21 apartments in the newly emerging U Hájenky project, which is situated in the immediate vicinity of the Lipno Reservoir close to Český Krumlov. It will offer 15 passive Šumava cottages built in a modern style. Each will consist of two separate units with a terrace and a garden. The construction will be divided into three stages, the first of which will be completed before the end of 2019.
The U Hájenky project offers modern living in the heart of the South Bohemian countryside, a popular destination for outdoor activities and sports. The separate duplex houses with gardens and terraces inspired by traditional Czech country covered entrances will be arranged in a symmetrical pattern. Each house will include 2 three-bedroom, 130 sq. m. apartment units. Their efficient layouts will be spread out over two floors and an attic, which can be used as an additional bedroom or storage space.
The houses will conform to passive housing standards and be built to respect the pristine nature that surrounds them. They will be offered in a basic standard that includes top-class ventilation, heating, and cooling systems. The premium option will offer air recuperation, a fireplace insert, outdoor window blinds, and photovoltaic panels. It will also be possible to add a space for hypoxic therapy, which simulates a high-altitude environment, in one of the bedrooms. There is also the possibility of property management services, which include cutting the grass, cleaning, clearing away snow, as well as rental management services.
The project is located between the mountains and the reservoir, allowing future owners to use the houses all year round, instead of only seasonally. Besides the famous Lipno Reservoir, they can also look forward to a ski slope and a cable car, which will be placed only one hundred meters from the houses. The surrounding area offers many hiking trails and bike paths. There are only a handful of places like it in the Czech Republic, which are more reminiscent of what can be found in Alpine countries. The U Hájenky project houses are a wonderful opportunity for lovers of outdoor activities, winter sports, and relaxation in nature.
The project will be constructed in three stages, the first of which will be completed before the end of the year. The individual units will be sold in a finished state.
25. February 2019
Svoboda & Williams published its second Market Report, which biannually analyzes the situation in the premium sector of Prague’s residential real estate market. The new issue focuses on key trends in the second half of 2018.
The Market Report analyzes data on sales and rental transactions realized by Svoboda & Williams. It also includes information that was acquired from the Cadaster of Real Estate about the sale of properties with similar parameters to ones in the portfolio of Svoboda & Williams. The monitored sample therefore covers a significant portion of Prague’s premium residential market.
We noted the following trends in the premium residential property market in the second half of 2018:
- cooling of demand
- a year-on-year decrease in the average achieved price per sq. m. for apartments in S&W’s sample; exceptional properties at the tip of the real estate iceberg continue to break records
- prices of apartments in Prague reached the limits of people’s purchasing power, but construction costs are still rising – developers are in a difficult situation
- a persistent strong interest in rental housing, developers gradually increased their activities in this sector
- a wider offer of quality rental apartments, the supply was catching up with the increased demand
- lowering the pressure on the growth of rents
- gradual change from a landlord’s to a tenant’s market
The Market Report also includes a detailed analysis of sales and rental prices in Prague’s premium residential property market. In order to interpret the development of the rental market more accurately, Svoboda & Williams utilized the The Rental Price Index by S&W+VŠE, an analytical tool, developed in cooperation with the Faculty of Informatics and Statistics of the University of Economics in Prague. The Market Report works exclusively with data that is based on achieved rather than listed prices.
13. February 2019
At the beginning of the year, basic construction of the first of the three residences in the Trio Harrachov project was completed. The complex, set in a peaceful valley of the Kamenice River, offers stylish, alpine-style apartments close to ski slopes, cross-country trails, bike paths, and other services. Svoboda & Williams is the project’s exclusive agent.
Currently, the roof of the first of the three residences is being installed and work on its interiors is continuing. Thanks to their ideal location, the Trio Harrachov apartments are the perfect second home for outdoorsy types and nature lovers. They are also a comfortable alternative to a cabin or chalet in the renowned resort in the Krkonoše Mountains with a wide spectrum of services and year-round sports activities for the whole family (a golf course, tennis courts, or a rope park). The project was designed by the ArchiSPACE studio, which artfully combined contemporary design elements with the typical architecture of the Krkonoše region. The trio of houses thus boasts a freshly modern yet traditional look.
The date of completion depends on the weather conditions in the mountains. Ideally, the units in the first residence will be handed over before Christmas 2019, or no later than in the summer of the following year. The remaining two residences will be completed in the fall of 2021.
Official website of the Trio Harrachov project.
13. February 2019
The Art in Conversation event took place on February 7th, 2019, at Galerie Cermak Eisenkraft in Prague. Participants had the opportunity to meet the art world’s leading appraisers and art collection experts. Galerie Cermak Eisenkraft organized the event together with Christie’s Auction House and the Svoboda & Williams real estate agency.
The founders of Galerie Cermak Eisenkraft, Tomáš Zapletal and David Železný, have been tirelessly working to cultivate the Czech art market and, in order to achieve this goal, communicating with their potential and current clients and having conversations about various aspects of the art world is essential. Thanks to this approach, the organizers elegantly connected the concept behind the gallery with the main topic of the event – Art in Conversation: art and collecting artworks in a wider context, with individual presentations devoted to various facets of this topic.
Lord Snowdon, the honorary chairman of Christie’s for Europe, the Middle East, Russia, and India, spoke at the event. Important speakers included other Christie’s members, such as Jason Carey, the Head of the Impressionist & Modern Art Department, and Anna Povejšilová, who is an Associate Specialist in the same department. In order to appraise a work of art, it is necessary to have deep expert knowledge, and professional experience can greatly speed up the process of selection. Christie’s offers the helping hand of an agent who can help you select the right investment, which the purchase of a valuable work of art undoubtedly is.
A highlight of the event was the viewing of František Kupka’s painting La cathédrale, which will be included in the coming auction, the Impressionist and Modern Art Day Sale, which will take place on February 28th, 2019, in London. Kupka’s painting will be auctioned off together with works by Pierre-Auguste Renoir, Pablo Picasso, or Alberto Giacometti.
Christie’s global business includes the Christie’s International Real Estate network. Svoboda & Williams is an exclusive affiliate for the Czech Republic and Slovakia.