130,000 new apartments to be built in Prague
129,440 new apartments are under construction in the capital. However, less than 50,000 entered the approval process.
More than half of the apartments will be built in Prague 9, 5 and 4, where there are a large number of brownfields. In Prague 9, prices are the lowest thanks to a larger offer and competition.
Compared to the previous half of the year, the number of new apartments in preparation increased by more than six thousand and more than 50 percent compared to five years ago.
In the past 10 years, only 2,900 apartments in apartment buildings have passed through the licensing network each year. This year, authorities approved a record 5,952 apartments, the highest since 2007. However, in order to improve the supply of housing, it is necessary to authorize at least 10,000 apartments per year.
“Currently, the total value of all prepared projects is almost 1.2 million crowns. If they got the green light, the state would have at least CZK 155 billion in VAT alone. Speeding up the permit would therefore not only help resolve the current housing crisis, but it is also in the great economic interest of the state, ”said Dušan Kunovský, founder and director of the Central Group.
The projects planned on brownfields represent two thirds of the apartments in preparation.
“Construction on these mostly neglected areas generally does not require high costs for new infrastructure. Therefore, it is significantly more advantageous for the city than new construction on undeveloped areas on the outskirts, ”explains Kunovský.
During the years 2011-2020, the authorities in Prague 9 approved more than 8,000 apartments. The average price of the offer remains below 130,000 CZK per square meter. The average selling price of an apartment is around 115,000 CZK per square meter, while the average in Prague is over 126,000 CZK per square meter.
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