REAL ESTATE NEWS

The price of old flats in Prague stabilizing

Slowdown in mortgages is reflected in price of old apartments.

The price of established apartments in urban Prague has slowed after heavy growth in a bullish real estate market for the last few years. According to a survey quoted in the May 7th edition of Hospodářské noviny, prices have slowed and there was even a drop of 5 percent in April for older flats. Many believe this is a normal correction of an overheated market.

According to information collected by the Institute of Regional Information, a private company specializing in regional data acquisition, the price of older apartments in Prague rose 21% from January to May of 2007, while only rising 3% in the same period of 2008, and actually fell by 5% in April.

Meanwhile the growth in new housing continues. The number of completed houses in the first quarter of this year was up by almost 10% from a year ago according to the Czech Statistical Office (CSO) while the number of housing starts is up 4.4%.

By SEAN ABBOTT

Published: June 18, 2008