17. February 2020
The Real Estate Market Through the Eyes of Svoboda & Williams for the Fourth Time
The Svoboda & Williams real estate agency has published its fourth Market Report, which analyzes the situation in the premium segment of the Prague residential real estate market in the second half of 2019. The most significant event of the previous year was Svoboda & Williams’ expansion to the Slovak market, and so this issue has a Czecho-Slovak theme and is published for the first time in Slovak.
The analysis contained in the Market Report is based on data from the sales and rental transactions conducted by Svoboda & Williams. Complemented by sales data obtained from the Cadastre of Real Estate with parameters that correspond to the portfolio of Svoboda & Williams, a comprehensive overview of sales and rental prices on the Prague premium residential market has been created. The Market Report also summarizes the events on the Prague real estate market, placing it within the context of the domestic and international economy. On the occasion of Svoboda & Williams’ entry on the Slovak market, the topic of the report’s Focus section this time is Bratislava.
In the second half of 2019, Svoboda & Williams recorded the following trends in the premium property segment:
- Rising demand from investors is putting pressure on property prices, causing them to increase
- Rising construction costs and premium standards of completion lead to an increase in prices in the premium real estate segment
- The average achieved price per sq. m. of the properties monitored by Svoboda & Williams had a year-on-year increase of 3%
- The number of projects whose construction began in 2019 rose by 102%
- The supply in the premium segment remains stable, it only decreased in the segment of more affordable apartments
- Demand weakened slightly due to tenants’ lack of motivation to move
- Increase of the short-term rental offer
An integral part of the Market Report is also a detailed analysis of sales and rental prices on the Prague premium residential market. It is based solely on data from realized, not asking, prices. Svoboda & Williams therefore created the Rental Price Index of S&W + VŠE analytical tool in cooperation with the Faculty of Informatics and Statistics of the University of Economics in Prague.