Wednesday, 3 December 2025
Central Group, the largest residential developer in the Czech Republic, will postpone the start of all new construction projects that are not yet on sale by one year. Founder and CEO Dušan Kunovský said the decision reflects what he describes as an overheated construction market and disproportionate increases in the prices of construction work and materials.
“This hysterical increase in the prices of construction work and materials has recently significantly increased the prices of new apartments for buyers. But we don’t want that. It is an overheating of the entire construction market, which needs to be cooled down with a ‘wet rag on the head’ and brought back to normal. That is why we are now postponing the start of all our new construction projects that are not yet on sale by one year,” Kunovský said in a statement reported by Seznam Zprávy.
The company’s ongoing construction projects will continue as planned. Central Group currently has around 3,200 apartments under construction across Prague, the highest volume in its history, with a total value of approximately CZK 25 billion. The company has previously said it finances major activities primarily from its own resources rather than bank loans, though this cannot be independently verified across all of its development work.
Central Group links its decision to broader conditions in the construction sector. According to the company, the market has remained unstable since the pandemic, with added strain from the energy crisis and the economic effects of the war in Ukraine. The firm argues that labour shortages, supply-chain disruptions and fluctuating material prices have created an environment in which beginning new projects is currently uneconomical.
The company made a similar move in 2022 when it postponed the launch of two large projects due to rising construction costs. It says other developers followed months later, although this cannot be independently confirmed.
The Czech National Bank has recently taken steps aimed at reducing risks in the housing market. It has issued a recommendation tightening lending conditions for investment mortgages by lowering the maximum loan-to-value ratio and limiting borrowers’ debt-to-income levels. These measures take effect in April 2026. The DSTI ratio remains inactive.
Central Group will review tenders already underway and expects to decide within three months whether these projects will also be delayed. The company reports that it has completed more than 18,000 homes over its history and holds a substantial land portfolio in Prague for future residential development.
