Svoboda & Williams’ Latest Market Report Looks Back on the Half-Year Performance of the Premium Residential Market in Prague

The Market Report analyzes the data on sales and rental transactions that are generated by the activities of the Svoboda & Williams real estate agency. Together with property sales figures from the cadaster of real estate with parameters that fit into the portfolio of Svoboda & Williams, we developed a comprehensive overview of the current sales and rental prices on the Prague premium residential market. The price analysis also includes a summary of the demand and supply of properties in this segment of the market as well as commentary from agents of Svoboda & Williams. The Market Report has a section entitled Focus, which examines various topics associated with the real estate market. This time, its subject is Nusle – a neighborhood that is currently undergoing a major transformation.

Svoboda & Williams noted the following trends in the premium residential segment in the first half-year of 2019:

Sales:

- demand is stagnant and is returning to the level prior to the outbreak of the purchasing euphoria of 2017

- average achieved prices of premium apartments have stayed more or less the same as in 2018

- prolonged approval processes, an insufficient construction workforce, and rising construction prices continue to slow down the completion of new residential projects

- almost half of the monitored projects are reconstructions of older apartment buildings

Rentals:

- demand continues to be strong
- the achieved rents of premium apartments increased slightly, year-on-year growth was 3.8%
- 
in Prague, rental yields are 2-3% and are even higher in Brno and the countryside
- Czech tenants are increasingly moving up into higher price segments and are slowly catching up to foreigners
- 
the number of rental housing projects rose only slightly

A detailed analysis of sales prices and rents on the Prague premium property market based solely on realized and not offered prices is a traditional component of the Market Report. For this purpose, Svoboda & Williams created the analytical tool The Rental Price Index by S&W + VŠE in cooperation with the Faculty of Informatics and Statistics, University of Economics in Prague.

Svoboda & Williams Market Report | H1 2019 download here (pdf)