Skanska Invests CZK 2.2 Billion in Fourth Phase of Prague's Emil Kolben District

Skanska is investing CZK 2.2 billion, about SEK 1 billion, in the fourth phase of the Emil Kolben District residential project in Prague, the firm announced Nov. 2. The phase will include 272 low-energy apartments and five non-residential units, with construction starting in November 2026 and completion expected in spring 2029.

The construction contract is worth CZK 1.3 billion, about SEK 590 million, and will be included in Skanska's order bookings for Europe for the fourth quarter of 2026.

Emil Kolben District Fourth Phase Details

Emil Kolben District is a five-phase residential development named after the 20th-century Czech industrialist Emil Kolben. Across all phases, the project comprises 1,069 residential units and a total area of 51,000 square meters. It is located in Prague's Vysočany district, Prague 9.

The fourth phase architecture draws inspiration from the site's industrial heritage and will be complemented by new public spaces. The Skanska investment equates to roughly CZK 8.1 million per apartment in the phase, a development investment metric rather than an apartment sale price.

More than 30 percent of the phase had been pre-sold at the time of the announcement.

"The Emil Kolben project is well positioned in this market with an attractive customer offering, reflected in a pre-sales rate of above 30 percent for this relatively large phase. Once completed, the development will provide more than 1,000 homes," said Björn Mattsson, Business Unit President, Skanska Residential Development Europe.

Sustainability and Public Space Features

The project follows a low-impact living concept focused on energy efficiency, the use of sustainable technologies and accessibility to the city center, which is intended to reduce the need for car travel. It uses certified materials and manages drinking water efficiently. The building meets the requirements for BREEAM sustainability certification at the Very Good level.

The public spaces were developed in collaboration with local district representatives and a landscape architect. They will include recreational areas as well as features designed to support biodiversity.

Prague Housing Market Context

The phase enters a market where new-apartment sales volumes have softened while prices have risen. Developers sold approximately 5,350 new apartments in Prague during the first nine months of 2026, down 11 percent year over year, while third-quarter purchases fell about 6 percent from the prior-year period.

Advertised new-home prices reached approximately CZK 193,814 per square meter, up 12 percent year over year, and completed-transaction prices averaged CZK 186,408 per square meter, up 10 percent. Supply is expanding: about 7,200 new homes were being marketed across Prague at the end of September 2026, up 26 percent from a year earlier and 12 percent from the preceding quarter.

Prague 5, 8, 9 and 10 accounted for approximately 75 percent of apartment purchases during the first nine months of 2026. The Emil Kolben District's location in Prague 9 places it within one of the city's principal development areas.

Skanska Residential Development Performance

Skanska's Residential Development business reported SEK 1.7 billion in revenue in the second quarter of 2026, compared with SEK 2.0 billion a year earlier. It sold 352 homes and started 225 homes during the quarter, and rolling 12-month home sales totaled 1,474. The company said its Central European operations delivered solid sales and profitability, in contrast with weaker performance in the Nordic region.

In the first quarter, Residential Development generated SEK 92 million in operating income, up from SEK 63 million a year earlier, with Skanska noting strong sales and profits in Central Europe.

Outlook

The fourth phase proceeds as transaction volumes in Prague's new-apartment market decline and available inventory grows, while pricing remains higher than a year ago. Construction of the phase is scheduled to start in November 2026.

Sources

• Skanska press release via PR Newswire