Investments in Czech real estate: why prices will continue to rise?
Over the past few years, in the Czech Republic, there has been a trend towards a quarterly increase in property values. If before in the country real estate was one of the most affordable among other European countries, now the situation has changed fundamentally. At the end of 2019, the price of apartments in Prague increased by 8.5%, while in the EU the average price increase does not exceed 4%. Despite this, investments in the Czech Republic continue to grow and remain one of the most popular destinations among foreign businessmen.
Financial analysts predict an increase in the cost of residential and commercial real estate both in central and tourist cities and in the suburbs of the Czech Republic. There are two interrelated trends in this issue. On the one hand, the value of real estate increases due to the rapid return on investment. On the other hand, this situation is caused by a decrease in the number of free rooms. Thus, demand exceeds the supply that exists in the market.
Investments in the Czech Republic: why is the value of property increasing?
We can highlight several factors why Czech real estate investments pay off within a few years and bring high returns, for example:
- stable economic environment: in the Czech Republic in the last decade there has been a recovery in the economy. This is due to many factors, such as the development of international trade, low inflation, and unemployment. Foreigners are interested in moving to the country for a long period, which in turn creates favorable conditions for the sale or rental of an apartment, contribute to increase in demand for rental or purchase of the real estate.
- tourism development: the Czech Republic is one of the most visited countries in Central Europe. Due to a large number of tourists, the short-term rental of housing and hostels remains in demand. According to experts, the profitability of renting an apartment is 7.5%, which is 2 times higher than in other European countries.
- increase in the number of emigrants: Many foreigners come to the Czech Republic in search of work. The average salary here is several times higher than in other EU countries. Buying a home with a further sale or lease is one of the fastest ways to make a profit.
- communication with other European countries: in the big cities of the country, such as Prague, Brno, the headquarters of many international companies are located. Thus, acquiring an office in the Czech Republic, you can lease premises for long-term lease to large organizations.
Thus, if you want to start a business related to real estate, investments in the Czech Republic is a winning decision. If you have any questions, you can always contact us for help.
