Prague, Aug 16 (CTK) – Central Group, one of the biggest housing developers on the Czech market, saw its net profit drop annually by 17 percent to Kc934m last year, its revenues falling by 3 percent to Kc5.3bn, the company told CTK today.
The decrease was caused mainly by the completion of a large project of 700 flats in Prague’s Zizkov district, which contributed to an above-average profit for 2016.
In comparison with 2015, last year’s profit is more than 40 percent higher, the company said.
“We made record-high acquisitions last year. We invested Kc2.5bn and managed to acquire several very promising localities on the residential market in Prague,” CEO Dusan Kunovsky said.
This year, the company continues making intensive acquisitions, and it has completed nearly 900 flats in 11 localities in Prague.
Last year’s sales were influenced by the lack of flats on the market, which has driven the prices of flats in Prague by more than 40 percent over the past two years.
“The high prices thus regulated demand, and sales on the Prague market decreased. A total of 5,500 flats were sold in Prague, which was an annual drop of 20 percent. Central Group, the biggest player on the market, accounted for one fifth, selling 1,012 flats, houses and land plots for more than Kc5bn,” the company said.
Central Group comprises over 70 companies. It has been operating on the market for 24 years.
It has completed 155 residential projects and sold more than 14,000 new flats, houses and land plots so far. It focuses almost exclusively on Prague and its vicinity.