How To Start Investing In Real Estate In Prague
Are you considering buying a commercial property, or do you want to buy an apartment or a house as a source of rental income? The situation on the real estate market is very favorable nowadays: apartment prices in Prague have risen by 40 percent in the last 3 years alone. What localities are especially appealing to investors in the metropolitan area? How do you buy property in the capital of the Czech Republic and is that a good idea? Learn more about our review here.
Prague real estate investment is extremely lucrative, because it provides options for all forms of investors. For example, individuals can find good properties in Prague with nice returns for just a few hundred thousand shekels, while more experienced investors can buy buildings, complexes, a block of flats, or high-yielding commercial properties. Since Czech residents take out few loans and mortgages, Czech banks have large cash reserves on hand and thus tend to grant mortgages fairly easily to foreign investors. This does not mean that professional counseling is unnecessary, but that mortgage plans are more convenient and reasonable, and funding options are good.
Real Estate Market Review
House prices in Prague are rising rapidly, as demand continues to outstrip supply. The strong growth was guided mainly by favorable lending conditions in the region, a growing economy and real wages. This was backed by estimates from Deloitte consultancy, showing selling prices of flats in the regional capitals of the Czech Republic, like Prague, increased by 10.1 percent in Q3 2018 from a year earlier, to an average of CZK 56,800 (US$ 2,500) per square meter (sq. m.). In Prague, the average flat price increased to CZK76,500 (US$ 3,366) per square in Q3 2018 by 6.5 percent y-o -y. Prague accounts for about two-thirds of the total volume of real estate sales in the region. Demand remains strong. About 2,817 apartments have been sold in new buildings and fully refurbished projects in Prague in the first half of 2018, up from sales of just under 2,500 units in H2 2017.
Where to buy property in Prague to invest
The most expensive flats in the capital city were located in Prague 1 and Prague 2, with average prices of CZK 150,300 (US$ 6,614) and CZK 107,000 (US$ 4,708) per square. m. The cheapest housing in the capital, on the other hand, was in Prague 9, with an average price of CZK 69,600 (US$ 3,063) per sq. m. And the average price of Prague 10 is CZK 71,200 (US$ 3,133) per sq. m.
Foreign property investments in Prague
Under EU law, anyone in the Czech Republic can buy a home, apartment, buildable property, agricultural land or forests, irrespective of their citizenship or residence. So, if you would like to buy an investment property in Prague, there will be no issues.