18. August 2021
The New Market Report Looks Back at the Record-Breaking First Half of 2021
The Svoboda & Williams real estate agency has published its 7th Market Report, which summarizes the developments in the Prague premium property market in the first half of the year.
The first half of 2021 at Svoboda & Williams was marked by record-breaking demand for properties and real estate transaction speed. The availability of mortgages, whose total volume reached 224 billion crowns in June, was a major accelerator, as were expectations of the further growth of property prices and the need to secure funds. The total number of inquiries for properties from the portfolio of Svoboda & Williams in the monitored period increased by 27% in the year-on-year comparison. The incredibly strong first quarter of the year, which was the strongest in terms of demand in the last five years, had a major impact.
Along with the rising demand, the average achieved price of premium properties also increased: on average, clients of Svoboda & Williams paid CZK 134,200 per square meter for new builds and CZK 128,800 per square meter for resales. There was also a slight turnaround in the premium rental housing segment in Prague. According to the Rental Price Index by S&W + VŠE, it grew by 0.3% up to an average of CZK 32,600 per month.
Market Report H1 2021 focuses, among other things, on:
- the development of premium residential property prices in Prague;
- unprecedented interest in mortgages and its possible impacts;
- developments in the Prague residential rental market;
- the situation in Prague’s office market;
- recreational properties in the past and present.
The analyses in the Market Report are based on sales and rental transactions generated by Svoboda & Williams’ activities, to which are added data on real estate sales obtained from the Land Registry that correspond to the parameters of the monitored sample. The Market Report works exclusively with data based on actually achieved prices, the calculation of which includes the price for parking spaces and a proportion of the exterior. To recalculate the exterior area, this methodology uses a specially developed algorithm that progressively reduces the exterior area while also taking into account its ratio to the interior area.
Another useful tool for a more accurate interpretation of the development of the rental market is the Rental Price Index by S&W + VŠE, an analytical instrument developed by Svoboda & Williams in cooperation with the Faculty of Informatics and Statistics of the University of Economics in Prague. The data used in this index are the actually achieved rents of apartments listed by Svoboda & Williams and so it illustrates the impact that the absence of tourism had on rental prices in Prague.