Development Projects Prague
Property Facts About
Since the fall of Communism there have been innumerable changes made in the region, and whereas before Czechoslovakia was one of the most constricted countries under Communist rule, the Czech Republic has in recent years become far freeer in terms of the market, meaning that investment in the area has become considerably easier than before and foreign investment is both far simpler and increasingly popular, particularly within the real-estate sector..
Property Buying Information
There is a tremendous amount of interest in the Prague real-estate market in recent years and investment in the area has continued to increase at a rapid rate. The still-low prices matched with the overall desirability of this beautiful city and the fact that the prices of property in the area are expected by analysts to continue to increase for many years to come means that now is the perfect time to invest.
Can a foreigner buy real property in Prague?
If you are an EU citizen and hold a valid EU residence permit you are permitted to purchase property in the Czech Republic. Residence permits can be easily obtained by filing an application with the Czech police, and are valid for up to 5 years. The policy also applies to United States citizens. If you are applying from abroad it is possible to do so from the Czech Republic embassy in your country.
If you are a non-EU or United States citizen, it is necessary to form a limited liability company (SRO), which can be done reasonably simply with the help of a legal representative, and costs CZK500000 - CZK70000. Initially the company is required by law to have at least CZK200000 deposited in a Czech bank account.
Which are currently the best districts in which to invest?
Generally speaking, the more central areas of Prague are subject to the highest growth, with up to 20% annual growth in certain locations and with certain properties, although it is true to say that prices in real-estate have been increasing in all areas of the city for the past 15 years or so, with an average of 5-10% growth annually.
City centre apartments are most popular with young couples and singles, whilst larger houses in districts 4, 5 and 6 have proved popular with ex-pat families, with most of the international schools located in this area. There is also a growing demand for properties located on the outskirts of the city, as people seek to escape the pressures of inner-city life whilst still remaining close enough to commute on the excellent public transport, something that can you usually be done in under half an hour.
Is new-build a better prospect than second hand?
The most popular choice for both outside-investors and people choosing to reside in the city is currently newly-renovated apartments, where the classic look and structure of the older buildings is retained but the inside is modernised, leaving the buyer with a property in a charming old-style apartment block but with totally modern facilities. We consider this to be a very worthwhile investment, although of course one must take care to ensure that the original building is of a high quality and that it will continue to receive excellent maintenance when needed.
One of the most popular means of investment in recent years in the Prague area has been with 'Off-Plan' properties, meaning property that is yet to be built. Although this kind of investment requires a lot of research in order to ensure that the companies that you work with are trustworthy and that any development will eventually be successful, we recommend this method of investment as a very good way of getting maximum return on your investment. As long as you invest in the right areas of Prague and in the right kind of property (usually high-end real-estate), you will find that the potential yields from this type of investment are extremely favourable.
If you are interested in investing in the Prague real-estate market, please take the time to browse through our extensive property portfolio online, and do not hesitate to contact us if you have any queries.
