Geosan Development: Interest in new apartments continues to grow. Geopolitical uncertainty may slow it down in the short term, but will not halt the strong demand.

After winter, people wait, monitor the development of interest rates, and only with the arrival of spring and in summer do they return to active housing solutions. The residential market entered the spring season with relatively favourable prospects: 2025 was the second strongest year in history on the mortgage market, sales of new apartments in Prague even reached a record, and in addition, part of the deferred demand from previous years began to be realised.

"Since February, we have been registering growing interest in our current projects Re.Start Petynka in Prague 6 and Benkova Rezidence in Prague 4. This is a gradual and healthy recovery of the market. Currently, we had to put more apartments up for sale, so that clients had something to choose from. Interest is mainly focused on apartments with 2+kk and 3+kk (1- and 2-bedroomed) layouts, which have long represented the main part of demand – whether from buyers for their own residences or from small investors," says Eliška Koderová, Director of the Geosan Development Sales Department. According to her, virtual tours of apartments play an important role in decision-making. At a time when buyers decide to buy before a project is completed, virtual tours by the Sales Centre are a key tool to aid them in getting a realistic idea of ​​their future residences.

Geopolitical Uncertainty as a Short-Term Brake

However, the positive spring signals on the market are disrupted by the current geopolitical situation. The conflict in the Middle East is indirectly reflected in the price of currencies on financial markets and, according to analysts, could lead to higher mortgage prices. Some banks have already raised interest rates by several tenths of a percentage point and analysts expect that the average rate may rise above 5% in the coming months.

"Geopolitical tensions are bringing short-term uncertainty to the market and some buyers are understandably postponing. At the same time, however, the fundamental problem of the Czech residential market – the lack of new apartments – persists, regardless of current world events. And the longer buyers delay making a decision, the greater the risk that they will encounter less choice and higher prices," Eliška Koderová points out.

Other experts in the field share the same view. According to the current Trend Report, a regular annual study mapping the opinions of dozens of experts from the ranks of developers, banks and consulting firms, approximately 90% of respondents agree that more affordable housing will only be achieved through a fundamental change in legislation. The new Building Act, which the government promises will speed up the permit processes, will only become fully operational in 2028, if approved. Until then, the supply of new housing will not increase at a pace that would be able to alleviate the current pressure on price growth. Experts expect that property prices in Prague may increase by another 5-10% this year, and in the regions, by up to 5%.

"Of course, we monitor short-term fluctuations in the market, but we base our strategy on a long-term perspective. Demand for quality housing in Prague consistently exceeds supply and this will not change without legislative changes. Therefore, we believe that quality projects in good locations will find their buyers – regardless of the current turbulence," Eliška Koderová concludes.

 Geosan Development company has been operating on the Czech residential real estate market for more than 25 years. Since its establishment in 1998, it has completed 22 new buildings with almost 2 350 apartments. Its current projects include Re.Start Petynka in Prague 6 and Benkova Rezidence, a smaller project of two apartment buildings in the villa district of Chodov in Prague. At the same time, it plans to implement projects with more than 1 500 apartments in attractive locations in the wider centre of Prague, which are currently in various stages of preparation. In addition, it also operates in the regions – in Choťánky near Poděbrady, it is gradually implementing the networking of more than 160 building plots prepared for the individual construction of family houses. In October 2018, the company expanded its business to include office real estate by acquiring the Nagano Park administrative complex in Prague 3 – Strašnice with a leasable area of ​​26 000 m2.

https://www.geosan-development.cz