Crisis of overproduction. Number of empty apartments in Prague exceeds a yearly demand

Crisis of overproduction. Number of empty apartments in Prague exceeds a yearly demand

1,350 new homes and apartments were sold in Prague in Q1 2014, that is by 35 properties more than in Q1 2013. At the same time, 6,450 apartments remain unsold in the primary market, reports ee24.com citing trigema.cz.

At the Prague market there are 6,000 new residential properties for sale, and if we add reserved or temporarily unavailable offers, the number of empty flats will increase to 6,450.

Apartments in Prague continue to go up in price, despite the foregoing. Now apartments in the Czech capital are offered for €2,239 per sq.m. At the same time, the real deals are closer to a price of €2,000-2,100 per sq.m. Cheap apartments in Prague with a cost of meter below €1,640 (which is 45 thousand Czech crowns) in Q1 2014 became by 12% less popular: 60% of sold apartments belonged to the middle segment.