One hundred twenty million crowns. That’s how much a villa sold for a few months ago—a villa that sculptor Bohumil Kafka had built in the 1920s in Prague’s Ořechovka neighborhood based on a design by architect Pavel Janák. The new owner, a Czech businessman, plans to renovate the villa and preserve it as a historical and architectural legacy for future generations.
This is an example of one of the trends that has recently become apparent in the domestic market for the most expensive real estate. A number of historically significant villas are passing into the hands of Czech business owners, who are purchasing such properties with the aim of preserving a certain tradition and providing for their own families.
“With the crisis in the Middle East, the investment sentiment of wealthy clients—who previously diversified heavily and invested abroad—has changed. Now they tend to return and invest in Prague’s Ořechovka or Hanspaulka neighborhoods in Dejvice. And they’re purchasing valuable real estate as a security for the next generation,” says Denisa Višňovská, co-owner of the CoreStone real estate agency, summarizing the current state of the market. She previously served for many years as sales director and partner at Lexxus.
According to her, this has also changed the clientele of real estate agencies that focus on the high-end market. While foreign clients used to predominate, today the overwhelming majority of them are from the Czech Republic.
However, there are more current trends associated with the most luxurious segment of the real estate market. And they also pertain to new construction, its amenities, and architecture. “A major trend, for example, is the desire to have everything hidden away as much as possible so that nothing disturbs the interior,” explains architect Romana Vokálová of Tempus Design. She focuses on the luxury segment and designs custom villas, apartments, and interiors for the wealthiest clients.
The demand for a clean interior also applies to everyday appliances. Concealed cooktops, for example, are a common feature in interiors. But there is also demand for fully functional surfaces on kitchen countertops. No matter where you place an appliance—such as a blender—on such a surface, you can power it using induction without the need for any wires.
However, in the most luxurious real estate segment, hidden interior features also serve a security purpose. For example, customers want hidden safes or an entrance to a “panic room” that is invisible at first glance. This is a specially modified, secure, and equipped room where the owner of a house or apartment can lock themselves in—for example, in the event of a robbery—and wait there safely until help arrives.
“When you invite a guest into your home and show them around, you don’t want them to know where the safe room is, so everything is designed to be as hidden as possible,” explains Vokálová. High-quality materials remain a constant in clients’ requests. “Wood, stone, and natural materials are always popular. That’s not likely to change anytime soon,” adds the architect.
On the other hand, prices have shifted quite significantly over the past few years. This is despite the fact that the ultra-luxury real estate segment is not as dependent on the economic situation and other factors that influence prices in the general market.
“About fifteen years ago, a luxury apartment cost around thirty million crowns. Today, that’s an upper-middle-class price tag. Currently, luxury apartments tend to range from fifty to one hundred million, and when it comes to penthouses, the price can even reach 250 million,” explains Višňovská.
However, it is difficult to compile accurate statistics for this segment. This is because most sales are conducted “off-market”—that is, privately—often with just one specific buyer. As a result, the most expensive properties do not appear in the statistics, and real estate agencies do not discuss these sales to protect their clients’ privacy. “Discretion is important in our segment,” explains Renata Hervertová, acquisitions manager at CoreStone.
According to Višňovská, the COVID-19 pandemic has also influenced what clients are looking for in luxury real estate. “The pandemic has made space more appealing and heightened the desire for large terraces and gardens, as well as a greater number of rooms. Homes now have to offer even more comfort, and we routinely encounter requests for additional buildings for security personnel and staff, or for large wellness areas and the like,” she says.
Her words are also confirmed by Petr Míka of Boutiq Real Estate, a real estate agency specializing in luxury properties in Prague. “This type of client expects space and is willing to pay for it. For apartments, a common requirement is over 250 square meters of floor space. Emphasis is also placed on views, natural light, and, for example, ample parking,” he explains.
According to architect Vokálová, clients are also often interested in special rooms for their hobbies, for example—such as a collection of handbags or luxury cars. “One client, whose house we were renovating, wanted a separate villa on the adjacent lot, built in a style similar to the main house, which was to serve purely as a garage for his car collection,” she explains.