Property In The Czech Republic
News Posted On: 28 April 2009
Since the famous Velvet Divorce in 1993 that climaxed into the division of Czechoslovakia and the formation of two separate nations of Czech and Slovak Republics, the fortunes of the two countries have taken slightly different routes. While Slovakia relies heavily on its tourism potential, the Czech Republic depends a lot on its historically significant towns and places, and a growing economy for development.
The Czech Republic has evolved into a modern nation with the accession to the European Union and the stated policy of overall development of the country. This landlocked country shares its borders with Poland, Germany, Slovak Republic, and Austria, and it’s this proximity that’s contributing the most to the real estate development of the Czech Republic.
Czech Republic Attractions
The Czech Republic is a land of composers like Dvorak and writers like Kafka. Its rich cultural heritage is aptly depicted by the capital city of Prague, which has some excellent museums, galleries, and concert locations that are always buzzing with performances from the local and international artists.
The UNESCO World Heritage Sites like Cesky Krumlov, Litomysl Castle and the Pilgrimage Church of St. John of Nepomuk at Zelena Hora top the visitors’ wish list in the Czech Republic. The great western spa towns of Karlovy Vary and Marianske Lazne, along with the early settlements, like Kutna Hora, and castles, like Karlstejn, are some of the other famous spots in the country.
The Czech Republic is a beautiful country with the river valley areas of Vltava (Moldau) and Labe (Elbe), and the hilly landscape and rocky mountains dotting the landscape of the country.
The Bohemian Paradise in the northeast is a favourite among the hiking and climbing enthusiasts with several opportunities to enjoy the thrills associated with the adventure sports. The Agricultural eastern region of the country depicts a typical European countryside with historical castles, wooden highlands, and vineyards presenting a picture-perfect view.
The capital Prague is one of the most modern cities of Europe with several international fashion houses setting up their shops in this upscale city. The city has lots of nightclubs, lap dancing bars, casinos, theatres, opera houses, cafes and bars to make the life hip and happening.
The ever-improving Czech economy is the icing on the cake for the real estate investors. All the above-mentioned factors, when combined with a rosy economic condition of the country translate into a robust real estate market promising handsome rewards and a flurry of activities all around the year. And lower inflation and unemployment rates are just about perfect incentives for a large number of property investors in the country.
Property Investment in Czech Republic
Undoubtedly, with limited tourism potential, the capital city becomes the hub of all major real estate investments in the country. Prague can be safely considered as the centre of the country’s business and tourism activities. As a result, big MNCs are flocking the city with extra cash in their coffers to maximize their profitability by heavily investing in a vibrant city.
Prague is also lucrative in terms of low cost of living. Though the capital city is the costliest to live in the Czech Republic, but if you compare the costs with other major European capital, it’s just a fraction. Resultantly, the rental income is always a prime factor and consequently, there’s a heavy demand for the buy-to-let properties from the investors. Swanky 2-bedroom buy-to-let apartments can be bought for as low as £119K. However, basic buy-to-let apartments come at an extremely cheaper rate of £20K onwards.
The government is working towards reducing the tax liability of property owners and simplifying the rigorous procedures and laws governing property transaction in the country. This has led to a large-scale investors’ interest in other parts of the country as well, like Brno. Some excellent buy-to-let apartments in Brno are priced competitively at £35K onwards.
Exploring the off-plan properties in Czech Republic is also worth the effort particularly due to the fact that the property prices are on an upswing, and it makes sense to buy it off-plan to save extra pounds and make a decent killing from future dealings.
Since the cities are developing at a fast pace, an astute investor will do well to explore the commercial property segment as well in order to reap rich dividends in terms of rental and/or resell profits. The spending capacity of consumers is on an upswing and the obvious impact is being felt in the commercial real estate. If finance is your problem, there are several mortgage options available in the country at low interest rates.
Most foreign investment in the country is via SRO (a Czech limited liability company). The setting up of SRO is not a tedious process, and if a good local lawyer assists you ably, the company can be formed within a week’s time. The company formation not only eases the property ownership process, but also saves extra pounds from taxation and other benefits.
Properties for sale in the Czech Republic >>
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