Did the real estate prices in Prague decrease in Q2 2020?
Although banks did report lower amount of mortgages currently provided within last couple months comparing to the previous period, the real estate market did not react to the covid situation so far. Average price per square meter of the residential property in Prague in the second quarter was at the point of CZK 102.519 which is 3.7 % higher comparing to the first quarter of 2020. The most popular request is for smaller apartments 1+kk and 2+kk. Nevertheless the interest for the houses has grown 50%. Many people prefer to buy a house outside of Prague instead of purchasing a smaller apartment for the same money but in the capital.
These are the statistics for the transactions which mostly have started before Coronavirus. It is obvious that people became more cautious about purchasing the properties and taking mortgages within last couple months, although most of the specialists do agree that the very slow approving procedure for the new constructions which is taking up to 7 years is the main reason of lack of the properties to cover the demand. The developer Central Group reports that at there moment there are 116.000 apartments are being prepared in 752 projects all over Prague. Only half of them has entered the approval process. Only 3 apartments per 1000 habitants are approved yearly while in Munich, Bratislava and Vienna they approve 6 to 9 apartments per 1000 habitants.
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