Property value is growing not only in Prague but also in the Czech regions
Every year there is a tendency to increase the volume of foreign real estate investments in the Czech Republic. But, if earlier Prague was the most attractive for entrepreneurs, now the situation has changed dramatically. Financial analysts have noted an increase in demand for residential and commercial properties in the Czech regions.
Firstly, this is due to an excess of demand for real estate in the capital of the country, as well as the emigration of foreigners who come to the country to earn money. Now the question of the shortage of new structures, the construction of which on average takes from two to 5 years, is very acute. This has become a key reason for the sharp jump in value in the Czech real estate market.
According to the International Monetary Fund, in the first quarter of 2019, the price of new housing in Prague rose by a record of 13.3%. Compared with the indicators of 2018, the cost increased by 40%. The secondary housing market has also come under this “price boom”. The cost of a house in this category increased by 6.5%.
Despite such a leap in pricing, international companies are predicting a further increase in the cost per square meter of rented space or acquired property.
Real Estate Investments in the Czech Republic: Overview by Region
The outskirts of the Czech Republic, where sleeping areas, resort, industrial cities are located, which have a trunk connection with other European countries, are also profitable objects of financing. According to the data, the cost of real estate in the regions over the past year has increased by almost 10%.
The most popular are the regions:
- Brno: the second-largest city in the Czech Republic. The estimated cost of housing is $2,300 per square meter.
- Olomouc: for a square meter you will pay a little more than US$ 1,500.
- Ostrava: the cost of housing is from 978 US$ per square meter.
- Usti nad Labem: considered the cheapest region for buying real estate. Price from US$ 674 per square meter.
- Karlovy Vary: in this tourist region, the price varies from 1,116 US$ per square meter.
We presented the average statistics for the regions. Of course, indicators can vary depending on the type of facility, its location, the availability of infrastructure and demand among consumers. For the Czech regions, investment in residential real estate and storage facilities focused on long-term rent is considered the most profitable.
