Published on 09 May 2006 at 11:35 am
Filed in Property News for Czech Republic » Investors Seek Property for Sale in Prague
International property investors are well aware of the fact that the majority of real estate investment potential in the Czech Republic exists in and around the capital city of Prague and that it is driven mainly by local demand.
Recent economic developments in the Czech Republic have brought significant amounts of investment and witnessed long term financial commitment from a number of large international businesses which has increased the number of jobs available and pushed up earnings - now more investors than ever are seeking property for sale in Prague as local demand and spending power is increasing.
Prague remains one of the most in demand cities as far as property investors are concerned despite the fact that the gains it has achieved in terms of underlying property price growth in recent years have been outstripped by other Eastern European cities such as Warsaw. The reason for Prague’s continuing attraction is that rental yields are strong and have been increasing quite dramatically.
The rise in rental yields in Prague for both residential and commercial property has come about as more businesses establish and expand operations in the city and Prague has welcomed more professional migrants – these factors have resulted in an increase in demand for both commercial and residential space. Furthermore the city has become a far more prosperous place capable of absorbing sustained rental increases and property price rises.
Recently there has been a small explosion in terms of the numbers of international players opening or developing business interests in and around Prague that has led to professional property investors such as Louis Mann from the Validus property investment company branding Prague as a hot market to watch in Eastern Europe with the best returning property types likely to be city based apartments which are constantly in demand from local professionals either to purchase or rent.
In terms of the companies investing heavily in the Czech Republic they include the Belgian retail chain Delvita who has committed to expanding to the tune of twenty two million US dollars, the CTS Corporation which has begun manufacturing automotive products at its new multi million dollar plant in the Czech Republic this month and Hyundai who, when they manage to sort out their current legal issues in Korea, are poised to sign a deal worth a billion euros which will represent the single largest foreign investment in the Czech Republic to date….all positive factors contributing to a rise in the number of investors seeking property for sale in Prague and in the overall prosperity of property in the Czech Republic.
