“The first estimates show us that acquisition costs could increase by up to twenty percent,” said Dušan Kunovský, owner of the largest Czech developer Central Group. The company already presented its prediction in the second half of the summer. Nothing has changed about her since then.
Similarly to Kunovský, another developer, the head of Trigema, Marcel Soural, also spoke. He argues that his company is already incorporating technologies into projects that will be necessary from 2030, such as better shielding or photovoltaics. “That’s why our apartments are more expensive. We are moving away from the average by ten to fifteen percent,” stated Soural.
If the developers’ words were true, the price of an average 60-meter apartment in Prague and Brno would rise by about a million crowns. In addition, the Chamber of Commerce warned of an even more drastic increase in construction costs, up to 30 percent. At the same time, builders will try to reflect any increase in expenses in prices for buyers.
New apartments are the most expensive in history. Prices will continue to rise
Economic
Rules aimed at slowing down climate change were approved by the European Union in the spring. Construction is one of the sectors with the greatest ecological burden. According to estimates, it is responsible for almost two fifths of global emissions. The subsequent operation of the buildings is also demanding.
New apartments will thus have to be built as climate neutral from 2030. Developers should prefer heat from a heating plant or a heat pump. If it is technically and economically suitable, the houses will also have to have a small photovoltaic power plant.
Expert: the price increase will be lower
However, according to Michal Čejka, a consultant in the field of energy performance of buildings from the Passive House Center, there is no reason for the price increase of tens of percent.
“The often reported increase in the price of new apartments by thirty percent in connection with the future rules for the construction of emission-free buildings is greatly exaggerated and is based more on the wishes of developers than on practical knowledge of the issue,” Čejka told Novinky Čejka.
Developers are already building ecologically to a large extent. Čejka calculated that to meet the requirements, it would be enough to ensure a reduction in consumption by ten percent compared to today. In the case of heat from a heating plant, this can be achieved, for example, by increasing the power of photovoltaics.
According to him, the increase in costs should be about 0.5 to 3.5 percent for the aforementioned ordinary 60-meter apartments. “Even if we included in the additional costs the equipping of apartments with controlled ventilation with recuperation, which is already standard in most new projects today, we would reach a maximum increase of three to six percent,” he stated.
However, Ondřej Šťastný, an analyst at Central Group, points out that the cost of acquiring and installing technology is not the only factor that will affect the final price of apartments. The developers will also take into account the requirements for the space that the necessary equipment will take up and which the owner of the apartment will not be able to use for living. Developers will have to build even more areas, which will then be reflected in prices for buyers.
High prices drive Czechs into smaller apartments
Economic
Brace Yourself for New Apartment Prices
Alright, folks! So here’s the juicy nugget of news from the Czech Republic that’s less ‘home sweet home’ and more ‘how sweet it is to totally break the bank!’ Dušan Kunovský, the big cheese over at Central Group, has let slip that acquisition costs could balloon by an eye-watering twenty percent. That’s right – just when you thought your wallet couldn’t possibly feel any lighter!
But hold your horses! It’s not just Kunovský throwing shade on your future home budget. Marcel Soural from Trigema is joining the party, showing off their shiny tech that isn’t even needed until 2030. We’re talking about snazzy little things like better shielding and photovoltaic systems. This fancy gear comes with a price tag too. Soural’s flexing that his apartments are strutting around ten to fifteen percent more expensive than your average bear!
Are New Apartments the Most Expensive in History?
So, if we take a moment to blow our minds, the average 60-meter apartment in Prague and Brno could spike in price by a whopping million crowns! That’s like winning the lottery – only instead of cash, you just get a box with four walls that you can’t afford to live in! Let’s not even start about the Chamber of Commerce threatening us with yet another fourteen percent spike in construction costs. It’s starting to feel more like an episode of a reality series titled “Survivor: Apartment Edition.”
Catch Up with Climate Rules
Now, why all the fuss? Blame it on our lovely EU folks who decided that the construction sector has to step up its game. They’ve hit the “climate emergency” button, and like a bad Tinder date, construction isn’t just a little problematic – it’s responsible for nearly two-fifths of global emissions! From 2030, any new apartments need to be built as climate neutral. So yes, developers, time to loosen those purse strings for the environment.
Expert Opinions: Not So Fast!
But before we all start clutching our pearls, an expert has stepped up to throw a cheeky shadow on these alarming claims. Michal Čejka from the Passive House Center thinks the sky isn’t actually falling. Čejka boldly claims that the fearmongering around a thirty percent price increase is largely an exaggeration – more a devilish dream than reality!
According to Čejka, we only need to shave a mere ten percent off current energy use to meet those fancy rules. And even with improvements like controlled ventilation, we’re still looking at a price bump of just three to six percent maximum. So, put down your pitchforks, folks – it might not be Armageddon after all!
Developers Have Their Reasons
But don’t let these optimistic faces fool you! Ondřej Šťastný from Central Group has warned us that the costs for implementing this shiny new technology aren’t the only pieces of the puzzle. We also need to consider the space these gadgets will hog. Yes, that’s right! Your new eco-friendly heating system might just steal the cozy corner where you planned to put your beloved man-eating plant. All these space needs will jack up the prices once again!
The Real Cost of High Prices
With all this kitchen sink drama, high prices are pushing Czechs into smaller apartments. It’s like a game of ‘how small can you go?’ You’ll soon be sharing your new flat with your own shadow – and no, I’m not talking about the cute roommate you hoped for!
So, as we all process this caffeine-fueled rollercoaster of developer dreams, eco-regulations, and wallet-wrenching inflation, one thing is clear: housing might not just be the roof over your head anymore; it’s probably about to become your side hustle!
Final Thoughts
When life hands you high prices, you’ve got to negotiate! Whether it’s scaling down on square meters or entering the fast lane towards eco-friendly living, the truth is—our homes might just look a tad different moving forward. They might even have solar panels, who knows? Just remember, I’m not here to rain on your parade; I’m just handing out umbrellas before the storm hits!
So, prepare those checkbooks, folks! The Czech apartment market is about to get a hell of a lot more interesting!
Dušan Kunovský, the owner of Czech Republic’s largest developer Central Group, expressed concerns that initial estimates indicate acquisition costs for new housing could surge by as much as twenty percent. This forecast was initially shared during the latter half of summer, and since then, no new information has emerged to alter that outlook.
Marcel Soural, head of the development company Trigema, aligned with Kunovský’s assessment, stating that his firm is already integrating cutting-edge technologies into its projects, which are mandated to meet standards set for 2030. These include improved thermal insulation and solar photovoltaic systems. “As a result, the prices of our apartments are climbing. We are straying from the norm by about ten to fifteen percent,” Soural asserted.
If these developers’ statements hold true, the cost of an average 60-square-meter apartment in Prague and Brno could escalate by approximately one million crowns. Additionally, the Chamber of Commerce has issued a warning about a potential construction cost spike, with figures possibly soaring by up to 30 percent. Builders are expected to translate any rise in expenses directly into increased prices for prospective buyers.
New apartments are the most expensive in history. Prices will continue to rise
Construction is a significant contributor to environmental degradation, responsible for nearly two-fifths of global CO2 emissions. The European Union recently approved regulations aimed at combatting climate change, which directly affect the construction industry.
From 2030 onwards, the construction of new apartments will need to comply with climate neutrality regulations. Developers will be required to utilize heating systems from plants or heat pumps, and where it’s feasible from both a technical and economic standpoint, to incorporate small-scale photovoltaic systems in residential buildings.
Expert: the price increase will be lower
In contrast to the prevailing sentiment among developers, Michal Čejka, a consultant specializing in energy-efficient buildings at the Passive House Center, believes that the anticipated price hike of several tens of percent is unwarranted.
He argues that the projected thirty percent increase in new apartment prices related to forthcoming emissions-free building regulations is largely inflated and stems more from developers’ aspirations than from solid factual analysis of the situation, as stated in an interview with Novinky.
According to Čejka, developers have already made significant progress towards eco-friendly construction practices, suggesting that it may only require a ten percent reduction in current energy consumption to meet the new standards. Achieving this with heat sourced from heating plants could involve, for instance, boosting the output of photovoltaic installations.
He estimates the overall increase in costs for an average 60-square-meter apartment to be around 0.5 to 3.5 percent. “Even factoring in the installation of controlled ventilation systems with heat recovery—now standard in many new projects—the total increase would likely cap at three to six percent,” he detailed.
However, Ondřej Šťastný, an analyst with Central Group, warns that the costs associated with acquiring and installing the necessary technology are not the sole factors influencing the final pricing of apartments. Developers must also consider the spatial requirements for this essential equipment, which will take up areas that residents cannot utilize for living purposes. This necessity to allocate additional space will ultimately translate into higher costs for buyers.
High prices drive Czechs into smaller apartments
Economic
What are the main factors contributing to the anticipated price hikes in apartment costs, according to experts?
Gy efficiency, argues that the anticipated price hikes in apartment costs are exaggerated. According to Čejka, meeting new environmental regulations only requires a ten percent reduction in energy consumption, which is a feasible goal. He noted that recent projects already incorporate eco-friendly advancements like controlled ventilation systems, and even taking these factors into account, the total price increase for a standard 60-square-meter apartment would be between three and six percent—a far cry from the staggering twenty to thirty percent figures being circulated.
While developers like Dušan Kunovský and Marcel Soural express concerns over rising acquisition costs due to new technologies and materials, Čejka remains optimistic that the changes necessary to comply with climate regulations will not significantly burden prospective homeowners. His analysis suggests that current investments into eco-friendly technology are already paving the way for a smoother transition.
However, Ondřej Šťastný from Central Group points out that the costs of new technology aren’t just monetary—space accommodations for this technology could also impact the amount of livable area in new apartments, thus leading to higher prices for buyers.
As future housing regulations take shape, the discussion surrounding the potential rise in apartment prices continues to evolve. Czechs may find themselves navigating a more competitive and possibly more constricted housing market, with trends leaning towards smaller living spaces. It appears the quest for sustainability in housing will demand a balance between eco-conscious practices and financial viability, making it a significant talking point for developers, analysts, and potential homeowners alike.
while there’s considerable apprehension about how new construction rules will reshape the apartment market in the Czech Republic, expert opinions suggest a more moderate price increase. Ultimately, the situation calls for a nuanced understanding of market factors as the country moves towards greener living solutions.
