Prague market in detail: trends, segments and prices

How to Make Money on Investments
into Residential Real Estate ?
…No „Quick´n´Easy“ Solutions
AmCham
October 14, 2015
Contents
Czech residential market in European context
Prague and other cities
Asking price x Transaction Price
Price Development
Making money on residential RE investment
© 2015 Deloitte Česká republika
2
Czech residential market in European context
Transaction Price
Average Transaction Price of the New Dwelling
(EUR/ sq.m)
6 000
5 000
4 000
3 000
2 000
1 000
0
RU
HU
PT
PL
CZ
Source: National Statistical Authorities, Deloitte data calculations
3
ES
DE*
BE
IT
AT
2013
IE
FR
2014
UK
Czech residential market in European context
Transaction Price
Average Transaction Price of a New Dwelling
EUR/ sq.m
16 000
14 000
12 000
10 000
8 000
6 000
4 000
HU
PL
RU
CZ
Source: National Statistical Authorities, Deloitte data calculations
* bid price, ** older dwellings
4
DE*
IE
AT
ES
BE
IT
UK
PT**
2013
Marseille
Paris (CBD)
Porto
Lisbon
Outer London
London (CBD)***
Rome
Milan
Antwerp
Brussels
Barcelona
Madrid
Linz
Vienna
Dublin
Frankfurt
Munich
Berlin
Ostrava
Brno
Prague
St.-Petersburg
Moscow
Krakow
Warsaw
Székesfehérvár
0
Budapest
2 000
FR
2014
Czech residential market in European context
Transaction Price
Comparison of the Main Cities to the Country Average
(country average = 100%), 2014
450%
400%
350%
300%
250%
200%
150%
100%
HU
PL
RU
CZ
Source: National Statistical Authorities, Deloitte data calculations
* bid price, ** older dwellings
5
DE*
IE
AT
ES
BE
IT
UK
PT**
Marseille
Paris (CBD)
Porto
Lisbon
Outer London
London (CBD)***
Rome
Milan
Antwerp
Brussels
Barcelona
Madrid
Linz
Vienna
Dublin
Frankfurt
Munich
Berlin
Ostrava
Brno
Prague
St.-Petersburg
Moscow
Krakow
Warsaw
Székesfehérvár
0%
Budapest
50%
FR
Czech residential market in European context
Transaction Price
Affordability of Own Housing
Gross annual salaries for the standardized new dwelling (70 m2), 2014
12,0
10,0
8,0
6,0
4,0
2,0
0,0
BE
DE*
ES
IE
PT
Source: National Statistical Authorities, Deloitte data calculations
* bid price
6
AT
IT
CZ
PL
HU
FR
RU
UK
Prague and other cities
Newly built apartments – transaction prices
70 000 CZK
60 000 CZK
50 000 CZK
40 000 CZK
30 000 CZK
20 000 CZK
10 000 CZK
0 CZK
Praha
7
Brno
Ostrava
Plzeň
Source: cenovamapa.org
Asking vs. Transaction Price
Prague – Price development, all segments, 2014
70 000 CZK
60 000 CZK
50 000 CZK
40 000 CZK
30 000 CZK
20 000 CZK
10 000 CZK
0 CZK
2014
Bid Prices
8
Transaction Prices
Source: cenovamapa.org – Transaction prices; Realitymix.cz – Bid Prices
Asking vs. Transaction Price
Brno – Price development, all segments, 2014
70 000 CZK
60 000 CZK
50 000 CZK
40 000 CZK
30 000 CZK
20 000 CZK
10 000 CZK
0 CZK
2014
Bid Prices
9
Transaction Prices
Source: cenovamapa.org – Transaction prices; Realitymix.cz – Bid Prices
Asking vs. Transaction Price
České Budějovice – Price development, all segments, 2014
70 000 CZK
60 000 CZK
50 000 CZK
40 000 CZK
30 000 CZK
20 000 CZK
10 000 CZK
0 CZK
2014
Bid Prices
10
Transaction Prices
Source: cenovamapa.org – Transaction prices; Realitymix.cz – Bid Prices
Asking vs. Transaction Price
Newly built apartments, Prague, 2014
Prices Comparison according to Prague District
160 000 CZK
120 000 CZK
80 000 CZK
40 000 CZK
0 CZK
Transaction Prices
Bid Prices
Prices comparison according to Apartment Type
120 000 CZK
80 000 CZK
40 000 CZK
0 CZK
11
Transaction Prices
Bid Prices
Source: cenovamapa.org
Transaction Price Development
Newly built apartments – selected project
© 2015 Deloitte Česká republika
12
Source: cenovamapa.org
Transaction Price Development
Newly built apartments – selected project
© 2015 Deloitte Česká republika
13
Source: cenovamapa.org
Making money on RE investment…
Transaction Price Changes - newly built apartments, Prague 5
Average annual growth rate of prices for the last three years (%)
1,77
Winners…
Previous
market price
(CZK)
3 150 258
2 066 730
2 034 973
2 158 072
3 160 198
Previous sale Actual market
date
price (CZK)
12.1995
12.1995
07.2005
12.1999
12.1999
13 820 000
8 500 000
7 700 000
7 500 000
10 000 000
Actual sale
date
Change (%)
06.2010
05.2011
01.2013
09.2007
12.2009
339
311
278
248
216
BYTOVÝ DŮM BARRANDOV
BYTOVÝ DŮM BARRANDOV
KASKÁDY BARRANDOV III
REZIDENCE U KŘÍŽE III
REZIDENCE U KŘÍŽE III
07.2012
04.2007
06.2010
07.2010
04.2014
-65
-58
-53
-45
-39
POD DÍVČÍMI HRADY
KASKÁDY BARRANDOV II
REZIDENČNÍ ČTVRŤ BOTANICA III
KASKÁDY BARRANDOV III
ARBOREUM
Project
…and those who have fallen down
4 414 069
3 284 736
3 173 751
8 587 509
13 200 000
01.2008
12.2003
12.2008
11.2008
06.2010
© 2015 Deloitte Česká republika
1 530 000
1 376 000
1 479 136
4 731 800
8 000 000
14
Source: cenovamapa.org
Contacts
Deloitte
Michal Melč, MRICS
Tel.: +420 730 181 794
E-mail: [email protected]
Cenová mapa prodejních cen
Petr Hána
Tel.: +420 731 638 268
E-mail: [email protected]
© 2015 Deloitte Česká republika
15
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