Prague - The prices of land in Prague are 15 percent higher than a year ago, according to the price map of building land for 2009 for 2009 which was approved by the Prague City Hall assembly.
The most expensive land plots are traditionally located in downtown Prague, where the top prices hover around CZK 50,000 per square metre. There has been no price increase, however, in the area between Wenceslas Square, Pařížská street and Náměstí republiky.
The situation is different for locations farther from the city centre. While last year the average price of land just outside the city core (Vinohrady, Karlín, Smíchov) reached CZK 5,344/sq m, this year it is already CZK 6,132.
In locations on Prague's periphery, such as Malešice, Vysočany, Bohnice and Modřany, average land prices have now reached CZK 4,018/sq m. Last year it was only CZK 3,238.
This year, lots for the construction of detached houses in Prague are going for anywhere between CZK 3,000 and CZK 12,000/sq m. The most expensive lots are traditionally found in Hanspaulka, Ořechovka, Šárka, Břevnov, Barrandov, Bráník and Trója.
But the places that have experienced the biggest price growth are those experiencing a building boom. This includes the areas between Pitkovice and Koloděje on the eastern side of Prague and between Lipence and Zličín to the west.
Apartment prices to fall, land price growth to slow
While land prices in Prague continue growing, prices of flats are beginning to stagnate, and in some cases they even drop. According to experts, this trend will continue into next year.
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There are now very few high-quality building lots left in Prague, so their prices will continue to increase even at a time when real estate companies have trouble selling apartments.
Despite this lack of suitable building locations, we can expect the growth of land prices to slow down in the long run. This is, after all, what the land price map shows, which Aktuálně.cz has available.
While in the last few years, year-on-year price increases hovered around 20 percent, this year it is just 15 percent. Real estate experts predict that the average price growth could slow to as little as 5-10 percent in 2009.
Plan approved
The price map quotes prices of land plots in a given location that have been sold over the past year. The prices of other land plots is derived from the price of these transactions according to a number of criteria. But since this method cannot be applied to all cases, some land plots are left without a price tag.
Since the Prague City Hall assembly approved the 2009 property price map, the prices will be incorporated into a municipal regulation that will come into effect starting 1 January 2009.
The property price maps are used as the basis for calculating the tax on property transfers. If the market value of the property in question is lower than the price quoted in the map, the taxation is based on the map price. In the opposite case, the tax is calculated based on the transaction price.
Adapted and republished by Prague Daily Monitor.
