Advantages and disadvantages of Czech real estate
The Czech real estate market has been experiencing price growth for seven years now. At the same time, demand far outstrips supply. There is an obvious shortage of housing. To meet the needs of the population, 6 thousand new apartments should be rented out annually. If the situation does not change, 50 thousand apartments will not be enough by 2030. That is why we should now consider the Czech real estate market from the investment point of view.
Following the growing demand, the cost of housing is also increasing. Since 2012, square meters in the country rose in price by 35%, and in the capital, Prague – by 75%. Only last year, the price of housing increased by 8.5%. The same trend will continue in the current period – the price has already increased by 5%.
The problem of the real estate market in the Czech Republic is a complicated procedure for obtaining a construction permit. On the one hand, it creates a restriction on supply, but on the other hand it guarantees that the object will be high-quality and safe for living.
The general economic situation in the region is also a reason to increase the cost of housing. Europe is developing at a rapid pace, the level of comfort and social security is increasing, and with them – the prices. In addition, a stable rate of the Czech crown also contributes to this situation. The average monthly salary in the Czech Republic is 30 thousand crowns or 1.2 thousand euros. The country has a low unemployment rate and regularly needs staff. This ensures an influx of labor migrants from Western and Eastern Europe, which is responsible for population growth.
Every year the flow of tourists to the country increases by 9%, which in combination with these factors has created a deficit in the segment of rented housing and contributed to its increase in price. In the Czech Republic, this type of investment is highly profitable and brings a stable income. It is profitable to invest not only in residential but also in the commercial segment.
Purchasing Czech real estate for foreign citizens is not a problem, but knowledge of some local features will not hurt. Therefore, it is important to use the services of a specialist. He will conduct a comprehensive market analysis that will show the potential and profitability of a project. A local expert will acquaint you with all the nuances of investing in the country, will help you organize the business process and collect the necessary documents.
Another advantage of cooperation with Czech specialists is that they will give you suggestions on the options that are not widely represented on the market, but are nevertheless promising and profitable.
For cooperation it is better to choose large companies that have already proved themselves on the Czech real estate market. Small agencies do not always bring the expected result.