Features of the Czech market for new buildings
The Czech Republic today is one of the most interesting countries in terms of real estate investment: the tendency to purchase primary housing in Prague for leasing is now the most promising and reliable due to its stable and strong economy and high demand in the rental market.
About 10,000 new residents move to Prague annually, not counting students. Therefore, it is not surprising that in 2017 about 30,000 new apartments were built in the Czech Republic, of which about 6,000 objects were built in Prague. Real estate prices have almost doubled since 2013: if in 2013 the average price per square meter in Prague was about 55 thousand crowns (2130 euros), then in 2019 it rose to 100,000 crowns per square meter (3875 euros ) The growth was affected, first of all, by high demand that exceeded supply – in many respects, it arose due to the fact that the city authorities today severely limit the number of building permits.
The standard of living in the Czech Republic is also growing, and accordingly, the cost of rent, the average income from an apartment in a new building is about 4-5% per annum, plus annual price increases. According to the National Bank of the Czech Republic, in 2017, the annual price increase was 16%, and in 2018 – about 9%. The biggest demand among investors is for one-room and two-room apartments in new buildings, as well as apartments in brick houses after reconstruction. About 10% of demand is made up of houses within a 30-minute drive from Prague.
How do realtors work when buying new buildings
The process of buying property in the Czech Republic for foreign citizens begins with a request. A potential buyer leaves a request for selection (most often, directly on the website of a real estate agency, then the sales manager contacts the potential buyer, the search criteria are discussed, the realtor explains all the nuances associated with the acquisition of real estate in the Czech Republic. Then, the specialist prepares an individual selection and plans a plan for further Most often, the main work begins upon the client’s arrival in Prague: a meeting takes place at the company’s office, all details are discussed and a plan for viewing the objects of real estate is outlined pressure ratio.
The main demand in the Czech real estate market is now focused on new buildings. In order to fully determine the choice, usually a few days are enough. The choice is always made according to the parameters that the buyer chooses among a wide selection of new buildings, both economy class, and “comfort” and “business”. Foreign customers generally appreciate the possibility of Czech interest-free installments at the construction stage, as well as the possibility of deferred payment or an individual payment schedule. The mortgage program for Russian-speaking citizens is also popular, the average rate is about 3.5% per annum.
In choosing a new building in the Czech Republic, as in any other country, it is very important to understand the quality of the builder’s work. Moreover, he himself, in most cases, acts as an investor, and the construction contractor is already the general contractor.
The main advantage of working with Czech real estate agencies is that, in fact, such companies are independent consultants in the Czech real estate market. Turning to them, a potential buyer receives expert opinion and understanding about the areas of Prague, the pros and cons of all new buildings, the quality of construction, legal and accounting advice are analyzed, additional discounts can be negotiated and, importantly, the opportunity to purchase new buildings in hidden pre-sales.
The company’s lawyer must check all contracts and any project that is put up for sale, undergoing a thorough review. The sales department of a real estate company in the Czech Republic works with the buyer, starting from the application, and then at all stages of the transaction, including choosing the finish and assistance with financing, until the keys are received. Then the buyer goes to the management department, where managers already solve the problems with furniture and further renting out the apartment if it is purchased for investment.
New Prague projects
Today, Prague is also rich in designer new buildings located either within the city or nearby. Customers who are interested in original design and life within the city with all its amenities will be interested in the Harfa Design Residence project – a designer apartment building within walking distance of the metro. One bedroom apartments are in great demand among tenants. The cost of each is about 130,000 euros.
A great advantage of the complex is its entrance group – with a 24-hour reception desk, which provides apartment owners with security and order monitoring, as well as maximum comfort due to the possibility of using various services. The area in which the facility is located has a well-developed infrastructure: within walking distance from the house there are banks, schools, a theater, restaurants.