Prokop Svoboda: Premium rents soared in H2 2022

Robert McLean

#cee, #proptech, #development a #architecture

The residential market may be hitting the skids, but the premium portion of the market is displaying a fair degree of immunity to the downturn. In its report on premium residential properties for the second-half of 2022, Svoboda & Williams claims that despite a 32% y-o-y drop in demand from July to December, sale prices are relatively stable.

One reason for this is likely that rental levels for premium flats spread across Prague 1 – Prague 10 soared higher. The smaller and the closer to center the better. One- and two-room units in the wider center saw rents jump 40% y-o-y, according to the units in S&W’s index. The average monthly payment reached CZK 31,030 in H2 2022. The ratio of Czech to foreigner renters in H1 was even, but foreigners were responsible for 59% of the leases concluded in H2. The impact of the Ukraine war has clearly been a factor on the city’s rental market.

“We’re not worried by opportunistic voices from the market warning of double-digit falls in price that are likely motivated by an attempt to get the stagnating business moving again,” writes S&W’s owner Prokop Svoboda in the report’s introduction. “While in certain areas and segments, such falls may be realistic, the premium properties that Svoboda & Williams has tracked long-term is not impacted by a dramatic fall in price. We can only expect a more substantial correction in buildings that exceeded their realistic valuations during the real estate boom.”

Also in ThePrime

Iain Fanthorpe (Bluehouse): Rent indexation can’t be up for negotiation

Crestyl threatens legal action against Mucha Plocková over Slav Epic

Luxent targets Croatian market for its Czech clientele

Support ThePrime. Get access to the entire archive. Only €8/month!

You May Also Like…