A potential tax change in the Czech Republic could help further boost the country’s strengthening real estate market, sector experts believe.
Much of international investor interest in Czech real estate is centred on the capital, Prague, with prime property values expected to grow until at least 2018, report the Tranio international property website.
If the Senate of the Czech Republic approves the bill submitted by the country’s Ministry of Finance, buyers will soon have to pay the real estate purchase tax that was previously the responsibility of sellers, which is likely to activate the country’s already growing market.
Last year, buyers and investors injected €2.7billion into the property market, 43% of which went into commercial property says, the Getberg Czech real estate agency.
In 2015, there was high demand for Czech residential property thanks to good economic news, with high tax revenue and European Union transfers, which has led to an all-time record budget surplus of CZK 44billion in the first three months of 2016, and all-time low interest rates on mortgages.
Last year, more than 7,000 new homes were sold (18% higher than in 2014), led by apartments and detached houses and residential sales are expected to carry on growing in 2016, says Getberg.
Affordable flats (under €1,200/square metre) have almost completely disappeared from the existing property market, mostly due to foreign investors who bought a significant number of such flats during the global financial crisis.
Russians are among leading international buyers, Anna Kurianovich, Tranio Commercial Investment Expert for overseas property broker, tells OPP.Today.
“Retail property in the Czech Republic is traditionally popular with buyers from Russia and other CIS countries. However, more recently we have seen them switch their attention to buy-to-let residential, especially flats for short-term (e.g., holiday) rentals. In 2016, we expect these buyers to reconnect with residential property in the centre of Prague for three main reasons: low market entry threshold, modest interest rates and cap rate potential.″
Ekaterina Chipera, Sales Manager at Getberg, adds, “Residential property in the capital’s centre was particularly popular with Russian and CIS buyers but now fewer of them are trying to find residential property for their own use. Most of them buy properties that they can rent out, both flats and homes alike. The average budget of clients from Russia and other CIS buying flats in Prague ranges from €100,000 to €300,000. The budget for homes starts at €350,000 and can reach €1.5million or more for prime property.”
The average price for a flat in Prague is about €2,000 per square metre and the average price for listed apartments rose by 7% year-on-year in 2015, says Sergey Akinfiev, of Tranio. One-bedroom flats made up about 40% of the total sales.
The main residential districts targeted by Prague property buyers are Prague 5 (Městská čast Praha 5), Prague 9 (Městská čast Praha 9) and Prague 10 (Městská čast Praha 10).
With demand for prime apartments exceeding supply, price are set to continue to grow consistently up to 2018 and eventually exceed the current levels by 12–15%, say analysts.
But the fact that small flats in the centre of Prague within walking distance of the main streets and big shopping centres are popular with medium budget buyers, has not been lost on developers.
This year, 6,700 new flats are due to be commissioned in Prague, a 34% rise on 2015 (5,000 units) and the highest figure since 2009, says Blanka Vačkova, Head of Research at JLL in Prague.
Resource: http://www.opp.today/
Much of international investor interest in Czech real estate is centred on the capital, Prague, with prime property values expected to grow until at least 2018, report the Tranio international property website.
If the Senate of the Czech Republic approves the bill submitted by the country’s Ministry of Finance, buyers will soon have to pay the real estate purchase tax that was previously the responsibility of sellers, which is likely to activate the country’s already growing market.
Last year, buyers and investors injected €2.7billion into the property market, 43% of which went into commercial property says, the Getberg Czech real estate agency.
In 2015, there was high demand for Czech residential property thanks to good economic news, with high tax revenue and European Union transfers, which has led to an all-time record budget surplus of CZK 44billion in the first three months of 2016, and all-time low interest rates on mortgages.
Last year, more than 7,000 new homes were sold (18% higher than in 2014), led by apartments and detached houses and residential sales are expected to carry on growing in 2016, says Getberg.
Affordable flats (under €1,200/square metre) have almost completely disappeared from the existing property market, mostly due to foreign investors who bought a significant number of such flats during the global financial crisis.
Russians are among leading international buyers, Anna Kurianovich, Tranio Commercial Investment Expert for overseas property broker, tells OPP.Today.
“Retail property in the Czech Republic is traditionally popular with buyers from Russia and other CIS countries. However, more recently we have seen them switch their attention to buy-to-let residential, especially flats for short-term (e.g., holiday) rentals. In 2016, we expect these buyers to reconnect with residential property in the centre of Prague for three main reasons: low market entry threshold, modest interest rates and cap rate potential.″
Ekaterina Chipera, Sales Manager at Getberg, adds, “Residential property in the capital’s centre was particularly popular with Russian and CIS buyers but now fewer of them are trying to find residential property for their own use. Most of them buy properties that they can rent out, both flats and homes alike. The average budget of clients from Russia and other CIS buying flats in Prague ranges from €100,000 to €300,000. The budget for homes starts at €350,000 and can reach €1.5million or more for prime property.”
The average price for a flat in Prague is about €2,000 per square metre and the average price for listed apartments rose by 7% year-on-year in 2015, says Sergey Akinfiev, of Tranio. One-bedroom flats made up about 40% of the total sales.
The main residential districts targeted by Prague property buyers are Prague 5 (Městská čast Praha 5), Prague 9 (Městská čast Praha 9) and Prague 10 (Městská čast Praha 10).
With demand for prime apartments exceeding supply, price are set to continue to grow consistently up to 2018 and eventually exceed the current levels by 12–15%, say analysts.
But the fact that small flats in the centre of Prague within walking distance of the main streets and big shopping centres are popular with medium budget buyers, has not been lost on developers.
This year, 6,700 new flats are due to be commissioned in Prague, a 34% rise on 2015 (5,000 units) and the highest figure since 2009, says Blanka Vačkova, Head of Research at JLL in Prague.
Resource: http://www.opp.today/
No comments:
Post a Comment