Prague development market in January and February 2017
The development market entered 2017 with unknown experience: significant excess of demand over supply along with the inability of development companies to balance this increasing gap. The existing situation started suddenly in October 2015 with a sharp decrease in new apartments supplied to the market. This meant, in average figures, that whilst 604 apartments per month were placed on the market in the first 10 months of 2015, the average monthly supply from October 2015 to December 2016 was only 439 apartments. The balance between supply and demand was last seen on the market at the beginning of 2016 with annual sales and new supplies accounting for 6,500 units. Throughout 2016, the gap between supply and demand gradually increased, with demand of approximately 7,400 units and an annual supply of approximately 5,750 units at year-end. The annual deficit between supply and demand thus reached 1,650 apartments.