Residential builder Central Group has just completed the largest transaction on the housing market this year. It is buying more than five hectares of land near the Invalidovna metro station in Karlín in Prague 8, including the existing Čechia Hotel.
The developer plans to build more than a thousand new apartments and many commercial spaces for small services, shops, restaurants and cafes in this location. Central Group's total contributions to Prague and the city district for the possibility of construction in this location exceed CZK 325 million (€13 million).
Last week, the Prague council approved a change to the zoning plan. This week, a tripartite agreement on cooperation in the development of this area has been signed between the Central Group, the Capital City of Prague and the Municipal District of Prague 8.
"The planned residential district will be called Nový Karlín. We have been negotiating the acquisition for more than two years. It is our most expensive and most complicated transaction in the entire 30 years of Central Group's existence," says Dušan Kunovský, Founder and CEO at Central Group. Central Group does not comment on the price of the transaction.
The company is obliged to organise an urban design competition for the entire area according to the rules of the Czech Chamber of Architects, and subsequently, a large architectural workshop for the solution of individual buildings to guarantee a high-quality urban and architectural concept of this location.
After that, the project should be fully designed and the building permit processed. According to the permitting procedure, construction could start in 2028. The first stage of construction could then be completed in 2030, and the entire Nový Karlín district in 2033.
