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:
Sales:
- 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
Rentals:
- 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.
Svoboda & Williams Market Report | H2 2018 to download (pdf)
