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| Demand for new flats in Prague set to keep outstripping supply |
| Prag, 09.01.2020 |
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| Demand for new apartments in Prague is set to rise by 3.4 percent year-on-year in 2020, while the number of available properties will increase by only 1.4 percent, suggests a survey of 40 local developers conducted by CEEC Research and cited by the Czech News Agency.
Next year demand for new flats should climb by 3.1 percent year-on-year but supply will be only 0.8 percent higher, the new report found. The developers say they expect interest in renovating older apartments to climb in future.
The director of Geosan Development, Petr Beneš, told the Czech News Agency that the slow pace of acquiring construction permits meant that developers were unable to respond flexibly to the current high demand on the property market.
The Czech government has pledged to speed up and simplify the permits process with a new construction code that should take effect from next year.
However, the planned legislation is not without its critics, with a common complaint being that it plays into the hands of developers but does not protect the public interest.
Some experts have even dubbed the legislation unconstitutional, highlighting the fact that it is being pushed through at unusually high speed.
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