The Czech Republic is interesting to investors due to the developed real estate market. The primary housing is popular in the capital — the purchase of properties for a rental is characterized by high liquidity and the ability to receive a steady income all year round. Analysts told how the 2020 real estate market will develop in the Czech Republic, and what trends are currently affecting it.
The Czech Republic is a picturesque country, interesting for tourism and for permanent residence. Prague is considered to be its pearl — a culturally significant city with ancient architecture and developed infrastructure. The population of the capital regularly grows — every year it becomes more by 10 thousand new residents, excluding coming students. This situation increases the supply and demand in the real estate market. In 2017, about 30 thousand new apartments were built in the Czech Republic, 6 thousand of which were built in Prague.
Since 2013, the cost of real estate in the capital has almost doubled: in 2013 the price per square meter was 2130 euros, and this year — 3,875 euros. The increase was due to increased demand, which is not fully able to satisfy the existing supply. Another reason is the restriction of construction by the city authorities. Analysts predict that in the Czech Republic the high cost of real estate in 2020 will continue to grow.
Stable economic indicators in the country improve the standard of living, which leads to higher prices for rental housing. On average, income from an apartment in a new house is about 4-5% per annum, excluding the growth in value during the year. Statistics showed that in 2017 the price increase was at around 16%, and in 2018 it was 9%. The most attractive for investors is one-and-two-bedroom apartments in the segment of primary housing, and apartments in renovated brick houses. 10% of the demand is occupied by properties located behind Prague, about 30 minutes from the city.
The first step for the purchase of housing in the Czech Republic for foreigners — a request to a real estate agency. This can be done on the company’s website, after which the manager will contact you to discuss all the details. When the realtor provides a selection of options, you can come and discuss important points and plan to view the property.
The new buildings are demanded. In this segment, there are offers of economy, comfort, and business class.
For foreign investors, the possibility of an interest-free installment plan, which is provided when buying property at the construction stage, is interesting. There is an option with deferred payment or an individual payment schedule. A mortgage program is popular for Russian speakers, where the average rate is about 3.5 per annum.
When viewing proposals in the new building, it is important to assess the quality of construction. The developer often acts as an investor, and all work is carried out by the general contractor.
The main advantage of cooperation with real estate agencies is the possibility of buying a home through hidden presales. They provide a full range of legal support, verification of the reliability of the developer, expert assessment of the property. After signing of the agreement for the purchase of the real estate, managers will help with the furnishing, repairing the apartment, renting it out.
Prague provides properties for every taste, both in the capital itself and in a small distance from it. Comfortable apartments with original design can be found in the Harfa Design Residence. The apartment building is located within walking distance of the metro in the area with developed infrastructure. The average cost of a one-room apartment is 130 thousand euros.
The project “Villa Grzhebenka” is a low housing apartment in a picturesque area with Klamovka Park. Here you can find apartments with 2-5 bedrooms and a terrace. The average price for a two-room apartment is 280 thousand euros. Real estate is in demand in Prague for students. For them, is built a comfortable complex «Peroutkova» where you can buy housing from 77 thousand euros.
A similar situation in the real estate market will continue in 2020. This country is an excellent option for investment in housing, which will bring high income all year round.