Czech Republic

Increased purchasing power and the interest of foreigners in property investments has been gradually pushing up demand for high-standard housing in the Czech Republic. While the development of above-standard apartments has picked up in the past few years and is expected to grow further, the availability of true luxury apartments in Prague is insufficient, according to real estate experts. Some luxury projects in Prague’s Old Town  that are expected to be completed next year include residential and commercial projects with prices starting at Kè 140,000 (€ 4,900) per sqm, and penthouses at Kè 220,000 per sqm.

Most local experts in Prague agree that demand for luxury property is outstripping supply, but the definition of luxury property development is relative. Some real estate experts are agreed that it’s determined first of all by location in combination with the furnishings, architecture, high-quality materials and services, and to some extent the property size.

Some projects presented on the Czech market as luxury are more of upper-mid level, according to Jarrod Epps, the head of the residential division at property consultant King Sturge. He expects that this segment will grow by 12 to 15 percent in prices this year. Epps also expects further capital growth in the upper-level market over the next three years.

According to Ilona Klátiková, of real estate broker Bonus Praha, the most expensive apartment sold last year in Prague was a Kè 100 million (Euro 3,575,000) apartment at Kings’s Court in Prague 1 – Malá Strana. In addition, Klátiková expects that city locations moving up-market include Karlín and, in the future, Prague 9.