15. August 2019
The Svoboda & Williams real estate agency has published its third Market Report. The recent developments in the premium segment of the Prague residential property market are once again summarized in a practical overview, together with key trends in the first half of 2019.
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:
- 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
- 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)
12. August 2019
Construction of the Na Petřinách 7 apartment building is continuing successfully. Svoboda & Williams has been exclusively retained to mediate the sale of the apartments, the interiors of which are currently where work is proceeding in full force.
In each unit, underfloor heating is being installed and the floors are getting ready for laying down BOEN wooden floors. Now that the walls and ceilings are newly plastered, the generous clear height of the interior spaces is even more noticeable.
Please contact our office to schedule a viewing.
More information on the Na Petřinách 7 residential project.
09. August 2019
A team of agents from Svoboda & Williams participated in the fifth annual beach volleyball charity cup, which took place on August 7th, 2019. The event was organized by the JLL consultancy company and was held at Žluté lázně. A total of 29 teams made up of professionals from the Czech real estate market competed in the tournament.
A grand total of CZK 270,000 was raised by the Czech Real Estate Charity Beach Volleyball Tournament 2019. The proceeds will go to the Sun for Everyone Endowment Fund, which offers a wide range of educational and social services for children and adults with special needs. The fund organizes psychiatric rehabilitation stays, purchases special equipment, and provides nursing care, therapeutic workshops, and many other activities.
30. July 2019
The Celínka residential project, located on Elišky Krásnohorské Street in an area with a rich history, has successfully received final approval. Two commercial premises on the ground floor have already been sold, as well as 50% of the generously apportioned apartments designed in an authentic 1930s style. The Svoboda & Williams real estate agency has been exclusively appointed to mediate the sale of these units.
The seven-story Celínka building has been completely reconstructed under the guidance of the Mimolimit architectural studio. There are two apartments on the first floor, but each floor above it features only one approx. 240 sq. m. unit. With truly spacious interiors and carefully configured layouts, they satisfy contemporary demands for high-end urban living.
Potential buyers can now come and experience the unique atmosphere of Josefov and imagine what living in this exceptional residence could be like. All of the apartments have balconies that face a peaceful courtyard and are sold in a state of white & walls. If desired by their new owners, the interiors can be completed, for example by architect Barbora Škorpilová.
Please contact us to schedule a viewing.
More information about the Celínka residential project.
12. July 2019
In terms of personnel, this summer was a time of growth for the real estate agency, both in Prague and in Brno. Svoboda & Williams welcomed new members to the Residential Sales, Residential Rentals, and Commercial Leasing departments, and the Marketing and Investment Management departments have also expanded their staff. The Brno branch now has a new Business Development Manager.
Kateřina Kubíčková joined the Residential Sales Department in June as a Junior Agent. She has an engineering degree and previously worked for 18 years in human resources and office management. Kateřina speaks English fluently. David Čermák is the latest member of the Residential Rentals team. He studied photography in college in České Budějovice, and until recently was the Deputy Manager of the Bibloo Concept Store. The Commercial Leasing Department welcomed Monika Dixová, who has experience in journalism and was also in charge of several of her own projects. She is currently training for her first marathon.
Tereza Šimerdová, who has been working for Svoboda & Williams since 2017 as an assistant in the Commercial and Analytics team, joined the Marketing Department as a Project Manager in July. Klára Zemanová began working in the Investment Management Department. She has a degree in economics and management from the Czech University of Life Sciences and worked for two years as a financial accountant.
David Kočařík is the newest member of the Brno team and has been in charge of the branch’s business development since June. He is a graduate of the Faculty of Business Management at the Brno University of Technology, with a degree in economics and management. David also has 13 years of experience in construction; he first worked as a technician, then as a building site manager, project manager, and finally as the chief executive officer of a construction company. Besides his native Czech, David is also an advanced speaker of German.
The Prague branch of Svoboda & Williams also acquired a new assistant in July. Božena Maršíková is currently studying creative marketing at the University of Creative Communication. She also enjoys skiing, which she occasionally teaches.
11. July 2019
The Riveroff Office House administrative center is currently being reconstructed. Together with several other buildings, it will be part of the multifunctional Rivera and Port7 projects, which are significantly contributing to the transformation of one of the banks of the Vltava River. The Svoboda & Williams real estate agency has received an exclusive instruction to mediate the lease office space in the Riveroff building.
The Riveroff complex will offer office space with a variety of different features that consists of two studios, a showroom, a five-story tower, and non-residential space in the basement. The tower will be completed in the final quarter of 2020, and the rest of the space will be ready by the end of 2019. The studios and showroom already have a new roof, the plastering is finished, and soon the floors will be laid and Schüco aluminum windows will be installed.
GEONE Real Estate, the developer of the Rivera complex, acquired permission to construct a port, and so besides offices, a hotel, and apartments, there will also be a unique “floating house” on the river. Moreover, the construction of the modern Port7 multifunctional campus, a project realized by Skanska Property, will soon begin.
More information, including about the Riveroff Office House project.
28. June 2019
Agents of Svoboda & Williams have increasingly been coming across the claim that the average price of an apartment in Prague is currently almost CZK 110,000/sq. m. When real estate owners then sell their properties, they set astronomical starting prices that don’t seem to correspond to reality. Newspaper headlines proclaim these high numbers, but don’t explain the difference between the asking price and the actual achieved price.
According to the current data collected by Deloitte, the average asking price of a new apartment in Prague is CZK 107,100/sq. m. However, this figure only includes newly built residential projects and starting prices, which don’t include any reductions or subsequent special offers. In reality, the asking price is often quite different from the actually achieved price. This is doubly true in today’s decline in demand for real estate and the increasing rate of discounts offered by developers. Deloitte’s regularly published so-called Prague Real Index factors in the average price of a realized real estate transaction, which it acquires from the cadastre of real estate, and includes prices of older resale properties as well. In fact, the average actually achieved sales price is currently CZK 77,400/sq. m. This is the number that Prague apartment owners should consider when they are thinking about how much to sell their property for. Or even rent it out for, since this misunderstanding of the market also influences how property owners establish adequate rental prices.
The Svoboda & Williams real estate agency maps the premium property segment, which has a higher average achieved price – currently around CZK 112,000/sq. m., with a median value of CZK 103,000/sq. m. Properties at the very top of the real estate pyramid are significantly pushing average prices upward.
23. June 2019
Construction of the U Hájenky residential project has commenced on a plot of land near the Lipno Reservoir. On this previously empty meadow, 15 modern houses inspired by typical Šumava cottages that will consist of two separate apartment units with a terrace and garden will gradually be built. The exclusive seller of the apartments is the Svoboda & Williams real estate agency.
The U Hájenky apartments will allow new owners the chance to live amid the beautiful South Bohemian countryside right next to the popular Lipno Reservoir and only 100 meters away from the new Loučovice ski slope. These apartments can be used and enjoyed year-round, and are therefore an excellent investment opportunity. The U Hájenky project also offers property management services that include taking care of any rental responsibilities as well as grass cutting and snow clearing.
The individual eco-friendly passive semi-detached houses are built according the Austrian STEICO construction system with a maximum emphasis on a healthy environment for future residents. Each house will feature superior insulation properties. The units are sold in a finished state, which can be upgraded to a premium standard.
More information about the U Hájenky project.
12. June 2019
The Svoboda & Williams real estate agency has been exclusively retained to broker the sale of apartments in the U Hvězdy Residence, a new project emerging in a peaceful part of Prague 6, only a few steps from Hvězda, Prague’s largest forest park. The building, equipped to a high standard, boasts a timeless architectural design and an excellent location. Construction began in March 2019.
The newly emerging residence offers housing in close proximity to the Hvězda game reserve in an area with excellent civic amenities and easy access to the center of Prague. Spread out over three floors, it will consist of 15 units with one-bedroom to three-bedroom layouts and floor areas ranging from 44 sq. m. to 140 sq. m. All of the apartments will have a terrace or front yard, and residents will have access to an attractively landscaped common garden. Large-format windows flood the interiors with plenty of natural light and views of the surrounding greenery can be seen from every room. Each apartment will come with a cellar unit and the building includes 25 parking spaces in an underground garage.
The low-energy project features modern building materials and technologies, such as heat recovery in the apartments, high quality aluminum windows, and premium thermal insulation, all of which significantly decrease energy costs. The third level, in the attic, is under a reinforced concrete roof, which helps maintain the same stable temperature as the lower floors.
The U Hvězdy Residence is exceptional for its closeness to the Hvězda game reserve as well as to the expansive Divoká Šárka Park. Residents will be able to enjoy an urban lifestyle within easy reach of nature and the countryside. The surrounding area offers many sports and relaxation activities, and green spaces ideal for peaceful walks. Families with children will appreciate the residence’s proximity to several parks as well as to kindergartens and elementary schools. Shops, a post office, a pharmacy, and a library are all within walking distance. Tram and bus stops can be reached on foot in ten minutes, and the Petřiny metro station in 13 minutes, guaranteeing quick access to the center of Prague.
Final approval is planned for October 2020. The units will be sold in complete state.
11. June 2019
The first year of the professional conference entitled Real Estate Forum Brno 2019 took place on June 10th at the Hotel International. Its central themes were current real estate market trends, transactions, how the Brno Zoning plan will transform the city, and up-and-coming residential projects. Representatives of Svoboda & Williams, one of the main partners of the conference, delivered a presentation in the “Real Estate Market Status and Trends” block and participated in all panel discussions. The entire conference was moderated by Jiří Václavek.
The first to speak in the opening block of the conference was Svoboda & Williams’ main analyst Jana Volavková. Her presentation, “A Perspective on the Premium Residential Property Segment in Brno,” included, among other difficult issues that the market in Brno is presently experiencing, the current trends in the premium segment. She summarized Svoboda & Williams’ findings and statistics about the premium real estate market in Brno, which has enormous potential for growth.
Just like in Prague, the interest in luxury properties is also very high in the second largest city in the Czech Republic. According to the agents of Svoboda & Williams, the supply of this level of housing in Brno is insufficient. If a developer could manage to realize a high-end residential project, the units and space within it would all be successfully sold. In order to guarantee this outcome, however, the right marketing strategy is key, as Prokop Svoboda, owner of Svoboda & Williams, emphasized in his concluding presentation. Clients in Brno are motivated to purchase properties in Brno by their interesting rental revenues, which are currently around 4-5%.
In the remaining blocks and presentations, representatives of other companies focused on questions concerning the current situation in the Brno residential and commercial property market. Ludvík Juřička from the Havel & Partners law firm touched on the amendment of the Building Act, and Milan Dembowski discussed different ways to finance properties from the perspective of Komerční banka. Lukáš Netolický of Cushman & Wakefield spoke about the office market in Brno, and his colleague Radka Novak’s presentation was on the workplace environment and how to improve it.
The conference concluded with a segment on what the future will bring in terms of the new zoning plan as Filip Chvátal, a Brno city council member, elucidated, as well as in terms of the possible transformations of dilapidated buildings and brownfields. Omar Koleilat from the Crestyl real estate development company focused on the Tesco building in Dornych and presented his vision of how this area could be changed into an architecturally unique multifunctional complex. Finally, Milan Kratina from the Accolade group revealed their plans for the Brno airport.