Demand for house construction in the Czech Republic is growing

The construction of houses in the Czech Republic is at the peak of its development. This is primarily due to the stable development of the economy, low inflation, and the huge interest of investors in local real estate. Cooperation on the basis of a development project in the Czech Republic allows you to quickly return your investment and get the desired profit.

The situation was also influenced by an increase in the number of foreigners, since attractive conditions for work were created in the Czech Republic, and high salary rates, in contrast to other European countries.

Together, these circumstances provoked the emergence of a significant housing shortage. A house in the Czech Republic has become a profitable investment target for both local and foreign entrepreneurs. This trend is characteristic not only for Prague and large cities. The need for the construction of primary housing is growing in the regions of the country, especially in resort towns and residential areas.

According to the data of the Czech Statistical Office in June 2019, apartments were built 68% more than for the same period in the previous year. By the end of the year, it is planned to commission up to 1700 new buildings. The construction of more than 5,000 apartments has also begun, which will be put up for sale in early 2020.

Development project in the Czech Republic: what are the advantages for the investor?

In 2019, the highest indicator for the last 5 years of applications was submitted, which are submitted to obtain a permit for the construction of the residential real estate. This is due to the EU policy, which plans to tighten construction standards, thereby limiting permission for construction work.

Building a house in the Czech Republic is most beneficial on the terms of a developer – a format that provides for group investment in a future project. What benefits can you get:

• time-saving: the developer company fully takes on the implementation of the project, from technical documentation to the search for a contractor. You do not need to delve into the details of the project; the development company takes on the whole headache.
• high profitability: after the implementation of the project, investors receive up to 6-7% of the profit. These indicators exceed the profitability of other areas of investment.
• reliability: The Czech Republic is the country with the most stable economy, therefore inflation risks and falling property prices are excluded.

As a rule, building a house takes from 1 to 3 years. In 2019-2020, financial analysts recommend paying attention to projects planned in the Czech suburbs. Now, these areas are the most attractive from a financial point of view, as local residents massively move from large cities to the “remote place”.