Due to the sharp rise in domestic real estate prices and the effort to avoid the devaluation of money due to inflation, more and more Czechs prefer to invest in real estate abroad. An apartment by the sea is no longer just the prerogative of millionaires, says Jiří Šedivý, secretary of the Association of Czech Building Societies.
“Demand has increased significantly since last spring. There are several reasons – a pandemic, but also high real estate prices in the Czech Republic, “says Jiří Zeman from Re / Max Reality, noting that in the pandemic period, owning real estate abroad was an advantage. The owners of houses or flats could travel to the countries earlier than other foreigners.
According to Eurostat data, the largest year-on-year increase in real estate prices in the EU was recorded in the Czech Republic at the end of the third quarter, by 22.0 percent. The Czech Republic is followed by Lithuania with an increase of almost 19 percent. By contrast, real estate prices rose the slowest in Cyprus (plus 2.2 percent), Italy and Spain (4.2 percent each).
An apartment by the sea is no longer just the prerogative of Czech millionaires
As follows from the research of the Association of Czech Building Societies (AČSS) Almost 30 percent of Czechs aged 18–65 with a net household income of more than 60,000 crowns are currently considering buying a foreign property..
At the same time, Czechs no longer perceive foreign property ownership as a question of social prestige. “Almost 60 percent of respondents consider the purchase of foreign real estate as an alternative to a ‘Czech cottage’,” notes Jiří Šedivý, AČSS secretary. Half of the participants consider this purchase as evaluation of invested funds.
Interest in buying locks in the Czech Republic is growing. Although it costs tens to hundreds of millions
Rising inflation in recent months also wishes to sell castles and historic buildings in the Czech Republic as a good investment against the devaluation of savings, even though the price of often listed buildings is up to tens of millions of crowns before costly reconstruction. And in the Czech Republic, there are still several dozen to buy and repair, according to the offers of domestic real estate agencies.
“Buyers are ordinary families. It is not just a matter of rich entrepreneurs. They already have such properties, they buy villas, not apartments, their interest is focused on other, less touristy destinations or more luxurious destinations, such as the Canary Islands, “confirms Jiří Zeman from Re / Max Reality.
The greatest interest is in Spain, Croatia and Italy
Among those considering this purchase is the greatest interest in Spain, followed by Croatia and Italy. “Since 2004, the interest of Czech clients has been focused on three countries: Austria, Spain and Croatia,” confirms Monika Cochová from Rellox.
Malta is experiencing a construction boom. It is also pulled by the Czech bank
Sunny island country is building new hotel, residential and apartment houses with more than 50,000 beds. “The country started a construction boom during the pandemic,” says the Czech head of the Maltese bank.
Most often, Czech clients demand apartments from 1.5 to three million crowns, and houses from four to seven million. The vast majority of sales are made in cash.
“If I had to choose between investing in real estate in Spain or Croatia, I would choose the second option. Prices are still relatively low there, they will definitely rise in the future, ”concludes Trinity Bank analyst Lukáš Kovanda.
We will transform the Gabriel Loci Monastery into a hotel. It would be nice if it didn’t cost us two billion, says the investor
The owner of the dilapidated monastery of St. Gabriela in Smíchov, Prague, the Cimex group, is already clear about his future. The complex will be converted into a five-star hotel. Extensive reconstruction should begin in two to three years. These are the plans. And how much will it all cost? “Initially, we said with exaggeration that we were going into a billion-dollar project and now we will try not to exceed billions of two,” says Miroslav Kosnar, head of Cimex.
Dubai real estate agent: Europeans are taking the market by storm
Higher yields, but also the possibility of escape from the European winter and lockdowns. These are the reasons why Dubai real estate has come under the search of Europeans. “We saw the biggest increase among the French,” says Mohab Samak, head of the Dubai office of the real estate agency Engel & Völkers. Real estate prices have risen by as much as 45 percent in two years.
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