The Prague Development Company (PDS) has submitted a regular market valuation of its real estate portfolio in Prague of 757,000 sqm of urban land intended primarily for residential construction.
The market value of the appraised real estate as of August 1, 2024, was determined by Knight Frank at CZK 8.84 billion (€349 million). Regular market valuations serve as a basis for strategic decisions of the city of Prague, how to deal with its property and how to further enhance it.
Historically, the first market valuation of the portfolio of land was carried out by the city developer in 2021. The market value was then set at CZK 2.939 billion (€116 million) by the consulting company Knight Frank. In 2022, the market value of the real estate portfolio of PDS increased to CZK 4.298 billion (€170 million), and in 2023, the market value of the real estate that was handed over to PDS for management was CZK 7.123 billion (€281 million).
The valuation last year in 2023 was affected by the inclusion of real estate and the building of the former Nová Palmovka Center in Prague 8, which is no longer part of the land handed over to PDS for management. The total value of the comparable land portfolio in 2023 was CZK 5.590 billion (€220 million), compared to 2023 there was a total increase in the value of land by almost CZK 3 billion (€11.8 million).
In addition to the investor-developer activity, PDS is behind the positive shift in the value of land due to the approval of key changes to the city master plan in Nové Dvory and Palmovce quarters, which took place in the middle of this year. The development potential of urban land, and thus its value, was thus significantly increased.
