13. August 2020
The Latest Market Report Analyzes the Situation in the Prague Premium Real Estate Market During the Coronavirus Crisis
The Svoboda & Williams real estate agency has published its fifth Market Report. The current issue studies the effects of the new type of coronavirus pandemic on the Prague residential and commercial property market.
After the outbreak of the COVID-19 pandemic, a frequently discussed topic was the influence of the global economic crisis on the development of Prague residential property prices, which have increased continuously for the last six years. As Svoboda & Williams’s analysis shows, the coronavirus crisis didn’t affect premium residential real estate prices in Prague during the first half of the year. In fact, the average achieved price per square meter had a year-on-year growth of 7.8%. As expected, the crisis did have an impact on achieved rents, which in the premium segment fell by 7.2% in the year-on-year comparison.
The current Market Report also addresses the following topics:
- The development of residential property prices
- The situation in the short-term and long-term rental housing market
- Possible fallout of the pandemic on the office market
- The growing demands for flexible rental relationships
The analyses published in the Market Report are based on the data on sales and rental transactions generated by the activities of Svoboda & Williams. These figures are supplemented by the real estate data obtained from the Cadaster of Real Estate, whose parameters correspond to the monitored sample. The Market Report relies exclusively on data based on achieved prices, which adds the price for parking and a proportional part of the exterior to the final calculation. To recalculate the exterior area, this methodology uses a specially developed algorithm that progressively reduces the exterior area and takes into account the ratio of the exterior to the interior space. Another useful analytical tool for a more accurate interpretation of the development of the rental market is the Rental Price Index of S&W + VŠE, which Svoboda & Williams developed in cooperation with the Faculty of Informatics and Statistics of the University of Economics in Prague. The source of the data for the Index is the actually achieved rental prices of apartments offered by Svoboda & Williams. It’s therefore a good illustration of how the suspension of the tourism industry affected rental prices in Prague.