Prague - Czech developers sold 5,015 new flats in the capital city of Prague last year, 24.9 percent more on the year and the best result since the crisis year of 2008, according to preliminary data of Ekospol made available to CTK.
Ekospol, which has been monitoring sales in Prague, said that 1,551 new flats were sold in the last quarter alone.
Evzen Korec, CEO and board chairman of Ekospol, said interest on mortgage loans that is low and stable in the long run is the reason behind the growth in sales.
Supply of very cheap projects (up to Kc45,000 per square metre including VAT) also contributed to the good result and so did purchases of apartments as sort of an investment, for instance, old age investment.
"Investment purchases account for more than one quarter of our sales," said Korec.
Ekospol sold 653 new flats last year, a rise of 47.7 percent in annual terms.
Unlike the rest of the Czech Republic, the residential market in Prague is showing healthy and rational development. The market has managed to cope with a steep fall of prices relatively fast, Korec said.
No wonder that Prague´s market for new flats is growing for the fourth year in succession, he said. According to him, next year´s development will be similar.
Sales of new flats in Prague in 2007 to 2013