Central Group Resumes Construction of More Than 2,000 Flats in Prague

Following the temporary postponement of several construction projects, Central Group is resuming the construction of new flats in Prague on a larger scale. More than 2,000 flats are planned across seven districts of the Czech capital.

Central Group postponed the start of several projects at the end of last year. The company attributed the decision to sharply rising prices in the construction sector. According to the developer, proceeding under the conditions at the time would have resulted in higher sale prices for the flats.

Since then, construction costs have moved closer to a more sustainable level. However, given the continuing tensions in the international situation, considerable uncertainty remains in the market, company founder and Chief Executive Dušan Kunovský said.

Following talks with representatives of the ten largest construction companies, a basis has been found for resuming the projects. Central Group estimates the total market value of the planned flats at around CZK 17 billion.

Around 900 Flats in Žižkov

The largest share of the new flats is to be built in Prague’s Žižkov district. In the Parková čtvrť residential development, the company plans to construct three additional blocks with a total of around 900 flats. Two blocks near Basilejské náměstí and Želivského Street have already been completed.

Further projects are planned in Hloubětín, Vysočany, Uhříněves, Černý Most and Hlubočepy. A smaller project in the premium price segment is also planned in Břevnov.

Residential developments in Malešice and Horní Měcholupy are already under construction. The flats being built there are due to go on sale in the autumn of this year.

More Than 40,000 Additional Flats in Preparation

According to its own figures, Central Group has built more than 20,000 flats over the past nearly 33 years. In 2025 and 2026, more than 3,200 units were under construction simultaneously. The company also owns land at around 60 locations in Prague where more than 40,000 additional flats could be built in the long term.

Central Group believes that simpler and faster approval procedures are necessary to increase Prague’s housing supply in the long term. Among other measures, the company is placing its hopes in the comprehensive amendment to the Building Act approved by the Chamber of Deputies and Prague’s new land-use plan.

A larger supply could slow the increase in flat prices, Kunovský said. According to the company, prices are currently rising by around ten per cent per year. With significantly higher levels of construction activity, this increase could potentially be halved. If wages subsequently rise faster than property prices, housing affordability could gradually improve again.