Sale and Rental Price Trends in Prague's Residential Property Market

The prices listed by Prague real estate agencies are the asking prices given by the property owners and developers. There is a wide difference in the flexibility of negotiations on price depending on whether you are negotiating with a developer (particularly large ones) or private individuals.

Developers are generally more steadfast in their pricing and rarely negotiate on individual flat purchases. If a developer has achieved enough pre-sales to get construction financing, one is very unlikely to get much discount at all; especially if the buyer is not willing to put up adequate equity down-payments. If discounting is of paramount interest to you, but you are not buying 20-200 flats, you might want to try getting in on a syndicated purchase. "Syndications" as we refer to them arrange many buyers together in order to achieve bargaining power.

Syndicates have recently become popular in the UK and we have seen a lot of activity from them in Prague's property market. We have gradually witnessed their bargaining effectiveness with developers diminish due to generally high, unrealistic and unfavourable expectations of buyers from the UK. No matter how early in the development phase, there is usually no advantage to a developer to sell at any discount to a person or group offering only 15% down, 85% upon completion with insistence that even the down payment must be held in escrow (effectively making the equity inaccessible and hence meaningless to the developer).  

Though not in every case, prices are more often negotiable with private individuals. When acting on your behalf, we generally shop for flats costing as much as 20% more and houses or villas as much as 10% than we plan to pay. When we find the right property for you, we advise you on making an offer.

Detailed and up-to-date research is also available to our clients. The following reports are generated on a routine basis from our proprietary database and analysis systems.

• Market Prices by Neighbourhood and District
• Market Trends
• Ongoing personal consultation and support regarding investment opportunities