Residential developers in Prague are beginning to take steps to block investors from buying up large chunks of their projects. This comes at a time when the city is running out of new apartments for sale, thanks in part to the transformation of residential as an investment vehicle.
Skanska’s Renata Vildomcová says the company has decided to limit sales to just one per person. The company says it’s concerned about problems its customers could encounter in the management of the building, once its Apartment Owners Association is created. “We want to build a good environment for building neighborly relations,” she said. “Of course it could happen that a family comes and the husband with his wife buy two apartments at once,” she told Hospodářské noviny. “But it won’t be that someone buys 10 to 15 flats.” The developer is trying out the idea on its new project in Modřany, but is considering expanding the practice to other projects.
HN reports that Sekyra Group and Finep have introduced similar measures. Finep’s David Jiruška said the concern is that if the building’s owners association is dominated by just a couple of people (who might not even live in the building), the situation could cause tension.
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