NORDIC CHAMBER Press Archive
CG: State can collect CZK 200bn on VAT from new flats
(CIANEWS) - The number of new flats in preparation in Prague grew by 6,000 year on year and totalled 140,000. They could provide new housing for approximately 300,000 persons. The total value of all Prague flats in preparation exceeded CZK 1.5tn in current prices. The state could get almost CZK 200bn from them only on VAT. Additional tens of billions could come to the city coffers through newly introduced contributions. According to an analysis by the developer Central Group (CG), the main problem is still the slow process of permitting new construction projects. In 2021, a record number of 8,000 flats received a permit in Prague, while their number dropped to 5,000 in 2022. According to the current Housing Affordability Index (CG-Index), one needed 16.6 annual wages for a new flat (70 m2) in Prague; at the beginning of 2015, one needed ten annual wages.