Developer Central Group signed a contract with construction company Skanska for the construction of another city block in the Park Quarter in Nový Žižkov in Prague 3. Over 370 new luxury flats will be built during this stage and the amount of the construction contract reaches almost CZK 1.5 billion. In addition to this current contract, Central Group has awarded three other large projects with more than 730 apartments for about CZK 2.3 billion in recent months. The construction of another city block in the Tesla Hloubětín project was awarded to the construction company Metrostav, and the construction of two large apartment buildings in the Harfa Living project was divided between the construction companies Průmstav and PP 53. In total, Central Group, as the largest domestic residential developer, has commissioned the construction of approximately 1,100 new flats for approximately CZK 3.8 billion in recent months. This amount does not include the costs of demolition and decontamination works, related technical and transport infrastructure, public space and public greenery, or the costs of preparing the construction pits. The park district is being built on the site of the original Žižkov Freight Station. In addition to new apartments, a number of commercial spaces, a new large kindergarten with a large garden, a promenade with greenery and water areas for relaxation, and a park of approximately 1.5 hectares will be built here. Another 2,100 apartments in 13 projects to be built this year. Although the construction industry is in a deep slump and the housing market is just beginning to recover from a two-year downturn, Central Group is optimistic about the future. Corporate apartment sales have been rising since the second half of last year. This is thanks to cheaper and more affordable mortgages and also because demand that has been pent-up for two years is gradually returning to the market. The January reduction of VAT on new flats from 15% to 12% also played a positive role in boosting demand, which will save buyers around CZK 4 million on the average Prague flat. Therefore, in addition to the already concluded contracts for new construction, Central Group plans to award more than 2,100 new flats in 13 different projects in Prague this year. These apartments will then be included in the sales offer during this year and next year. Central Group plans to sell about 1,000 apartments this year, then 1,500 next year and from 2026 onwards it plans to sell at least 2,000 new apartments annually. In total, the company is preparing more than 35,000 new flats across Prague and is continuously buying more land for new construction. The author of the unique urban and architectural concept is renowned architect Jakub Cigler. The actual architecture of the individual buildings was designed by 9 leading studios, which created 21 different architectural concepts Lower prices for building supplies to make it worthwhile for investors to build. "The situation in the construction and development market is not easy. But while other developers, who have to take out expensive commercial loans, keep postponing their projects, we, on the other hand, have decided to invest massively in construction now. Our major advantage is that we work without loans. However, we now expect lower prices from construction companies than they used to charge. Without this, it would not have been worthwhile for us to start new constructions. I am very much looking forward to the new cooperation with Skanska and I have no doubt that it will be a successful one," says Dušan Kunovský, founder and chairman of the board of Central Group. "We are looking forward to the cooperation and we are convinced that thanks to the extensive experience of our project teams from internal and external projects, the result will lead to the satisfaction of both parties," adds Michal Jurka, President of Skanska Central Europe. The apartments in the first phase of the Park Quarter, which have become the best-selling luxury apartments with air conditioning in Prague due to huge demand, will be completed this July. Construction of the second phase will begin this May and is scheduled for completion in autumn 2026 Source: Central Group