Property in Czech Republic
Buoyed by EU accession in 2004, investment from international corporations, an influx of workers from the countryside and swelling tourist numbers, the buy-to-let market in capital city Prague is positively booming, and the market in second city Brno isn't doing badly for itself either.
Prices for Czech Republic Properties from £59,420
Key facts
- Population: 10,241,000
- Capital: Prague
- Approx. exchange rate: £1 = 41.5CZK (Czech Koruny); €1 = 28.2CZK
- Visas: No, but must register with Alien and Border Police for stays over 30 days, residence permit required for over 90 days
- Time difference: +1 GMT
- Flight time from UK: 2 hours
- Major airports: Prague, Brno
- Dialling code: 00 420
Property in Czech Republic
The Market: City buy-to-lets
Now a fully-fledged member of the EU, the Czech Republic’s property market is booming. Most overseas investment is focused on capital city and stag-weekend destination Prague, as is most of the country’s business and tourism activity. Fuelled by wealth from an influx of international companies and tourists, Prague’s average wage is now 50 per cent higher than the country as a whole. “Prague is a cheap destination to get to, the buying process is simple, the costs are low and the economy has been booming,” says Victoria Ward, of Aquavista Property.
British buyers are hoping to tap into this wealth by investing in buy-to-let properties in some of the Czech capital’s top locations. “Generally our UK clients are looking for resale apartments of a classical style, but a central location always seems paramount,” says Victoria. “Prices range from around £60,000 for a new-build to millions for executive penthouses, but our typical customer will have a budget of around £150,000 and will be looking to find a long-term rental investment.”
Prague is divided up into clear districts, each of which has its own number. British investors tend to head for the central districts in search of buy-to-let opportunities. “British purchasers will always prefer to buy property in the centre of the capital, usually Prague one, two, three or five,” says Victoria. “This is mainly because of the beautiful architecture, but also most of our clients are businessmen looking for a central base that offers good rental potential.” The Czech Republic’s growing economy has caused a small exodus, with citizens leaving the countryside in search of higher city wages, creating demand for rental properties.
Naturally Prague is registering the most new tenants, but for the buy-to-let investor on a tight budget, Brno is worth a look. Property prices here are about two-thirds of those in Prague. This trend has also created a huge selection of cheap countryside properties ready to be bought up and developed by the right investor.
