Living near the Prague metro makes life convenient, but buying flats located neat the stops can be a bit expensive. The cheapest flats were at at Černý Most, at the east end of the Metro B line, while the most expensive were at Staroměstská.
And while prices are rising, the growth rate has slowed down, according to Valou.cz, a site that tracks real estate prices. But the gap between prices in the center and at the edge has been closing.
“Probably even wealthier people can no longer buy real estate in the center of our metropolis and have to buy in more distant areas, which increases demand, which pushes prices up,” the Valou.cz blog said.
A flat near Černý Most now costs 61,191 CZK per meter, while at Staroměstská it was 169,820 CZK.
Prices at Černý Most rose 11%, while at the Metro B-line’s next-to-last stop, Rajská zahrada, they were up 19% and at Hloubětín up 21%. Flats near Staroměstská on the other hand saw a drop of 9%, near Muzeum they dropped 4%, and at Florenc dropped 2%.
The largest jump was at Dejvická, up 30%. while the biggest drop was at Malostranská, down 11%.
“The highest growth can be seen at the more peripheral metro stations, where prices have been lower recently, for example Chodov, Roztyly, Kačerov, Hloubětín or Letňany. On the other hand, in the center and the surrounding area, where housing had been very expensive before, prices more or less have been stagnating, for example at Křižíkova, Florenc, Staroměstská or Malostranská metro stations,” the blog added.
The previous Valou Metro Index was done in May 2018, and that saw a sharp increase over 2017 with the average price increase exceeding 10%. Flats at a quarter of stations saw an increase of more than 20%.
The new survey registered increases again, but at a slower rate. Although this time the survey compared a longer period, 1.5 years versus 1 year, prices have risen on average by 7%.
In May 2018, an 80 square meter private apartment after a complete renovation cost up to 5 million CZK near seven metro stations. In January 2020, the only metro stop area to have a flat for that price was Černý Most. In the first survey from May 2017 there were 18 metro stations with an average apartment price below 5 million CZK, according to Valou.cz.
The calculation was based on prices of renovated apartments with an area from 70 sqm to 90 sqm offered for sale between October and December 2019 located a maximum of 1 kilometer from the metro station, and in most cases 400 meters.
All apartments that have been offered for more than four months were discarded, as the prices may be unrealistic.
One reason blamed for the increase of apartment prices has been the spread of services such as Airbnb, which take flats out of the long-term housing pool and turn them into short-term suites for tourists. Prague City Hall is currently looking at ways to regulate these flats, such as requiring the owner to actually live there.
Another cause is the long delay due to red tape from the planning stage to the actual start of construction. Large developments are currently being planned or built in the Karlín, Smíchov, Bubeneč, and Nové Butovice areas.