The capital of the Czech Republic, Prague, gives home buyers ample opportunities for both recreation and investment. However, if in the early 2000s housing here was considered very affordable by European standards, today prices here are hardly low.
From 1993 to 2010
After Czechoslovakia split into two independent states in 1993, real estate in the Czech Republic began to rise in price, annually adding an average of 15% in price. "In 2006, the cost of 1 sq. m. m increased by 12%, in 2007 - by 20%, – Irina Kuzheleva, real estate sales manager at ABRUPT, cites data. – In 2008, the trend of rising prices and demand for real estate remained. In early 2009, demand fell, but the market did not collapse. Prices have decreased as much as possible in the secondary market – by 35%. At the same time, low-quality apartments in panel houses with an inconvenient location have fallen in price to the greatest extent. The cost of housing in new buildings, on the contrary, has hardly changed."
The main buyers of real estate in Prague are the British, Germans and Dutch. In the early 2000s, according to Anna Zadvil, executive director of the VESSAN Reality company, Italian companies bought buildings in Prague built 30 years ago and earlier, restored and sold apartments separately. "It was an extremely profitable business," the expert notes.
Russians often buy Prague real estate for rent, also bearing in mind that they will be able to use it as a "spare airfield". Some people purchase several properties at once in order to provide themselves with a decent income in retirement. After the purchase of real estate by an individual became possible in May 2009, the interest of Russians in Prague and the Czech Republic as a whole increased markedly.
From Prague-1 to Prague-10
Prague is divided into 10 administrative districts, and depending on the area, not only prices vary, but also types of real estate.
Prague-1 is a beautiful and most prestigious area of Prague, which includes the historical quarters of Josefov and Stare Mesto (Old Town), partly Mala Strana, Hradcany and Nove Mesto (New Town). Most of the city's attractions are located here, which are depicted on postcards and postage stamps dedicated to Prague. At the same time, it is also the business center of the city.
The historic houses in the center are the most attractive for Europeans. There is practically no new construction in the center, and apartments in reconstructed buildings of the XIX century are sold quickly, in a maximum of six months.
"Until recently, the cost of apartments in Prague-1 and Prague-2 was above 6,000 euros per 1 sq. m," says Anna Zadvil. – Now you can buy two-room apartments without renovation on Republic Square for 250,000 euros." According to Irina Kuzheleva, there are 1 apartments in Prague with an area of 60 sq. m. m on the primary market cost an average of 364,000 euros, on the secondary market – 230,150 euros. Due to the limited supply of historical real estate, the price is actually dictated by the seller.
Prague 2 includes part of the historic district of Nove Mesto, as well as the quiet and prestigious Vinohrady district with two large parks. From here, you can walk to the center in 15 minutes. "Prague 2 has a lot of opportunities for shopping and entertainment," says Anna Zadvil. "Renting a house here is more expensive than the average in the city, excluding the banks of the Vltava, Novy Gorod and Visegrad." Many historical buildings of Prague 2 have been reconstructed and are now highly appreciated. "Housing in the New City is cheaper than in Prague Castle,– notes Irina Kuzheleva. – There are many offers of good apartments in beautiful houses. The area has a well-developed infrastructure." In the primary market, according to her, housing costs an average of 228,000 euros in this part of the Czech capital, and 173,734 euros in the secondary market.
The main attraction of the Zizkov district in Prague is the 3–TV tower with sculptures of babies crawling on it. Zizkov looks like Grapes: this is a green area near the city center, but it is far from being so fashionable, and real estate here costs noticeably less. Zizkov is divided into the Upper (with a TV tower) and the Lower. Reconstruction in Nizhny Zhizhkov has been carried out only partially, and therefore this part of the district is less popular among buyers. Renting and buying a house in Zizkov and Prague 3 in general costs about 15% cheaper than in Vinohrady or the New City. Irina Kuzheleva indicates the average price level of 179,340 euros for a new object and 146,835 euros for an object on the secondary market.
It takes quite a long time to get to the center from the remote quarters of Prague 4, although trams, buses and metro in Prague run frequently and according to schedule. This large area is considered one of the most environmentally friendly in the city due to the forested areas. The average price of real estate in Prague-4 is about 2,200 euros per 1 sq. m. "Prague–4 is mainly built up with panel houses and family houses, but there is also the business center Pankrats, which is part of the Nusle district," says Irina Kuzheleva. – Several skyscrapers have already been built, and several more are on the way. Real estate in Prague 4 is amazing in its diversity, and many foreigners choose this area."
Prague 5 is an equally extensive, dynamically changing area. There are several large production facilities here, as well as the main Prague railway Station. There is enough space for construction, and therefore in Prague 5 there are many offers of new housing at relatively affordable prices. In the complex "Nove Stodulki" for 440 apartments in nine buildings, prices range from about 2,200 to 2,900 euros per 1 sq. m. m with VAT and insurance. Nearby there are kindergartens, schools, two shopping and entertainment centers. Some quarters of Prague 5 are built up with private houses and cottages.
The north-west of Prague is divided by Prague-6 and Prague-7. Prague 6 is partly Hradcany and Nowe Mesto with their sights, and partly an almost suburban area. Thus, it is almost as expensive an area as Prague 1. Foreigners in the northwest are interested in several neighborhoods: Bubenech, Orekhovka, Nebushice and Hanspaulka, where embassies and international schools, gardens with English-speaking educators and mansions for several million euros are located. The "embassy" districts also include Deivice and Brzewnov, which also house large parks, university buildings and the Academy of Sciences of the Czech Republic. The districts of Letna and Holesovice in Prague-7 are gradually being pulled up to the level of the neighboring district. According to Anna Zadvil, in Prague-6, middle–class housing costs about 3,500 euros, and in Prague 7 - 3,000 euros per 1 sq. m
. Finally, the east and northeast of the Czech capital belong to the districts of Prague-8, 9 and 10. Prague 8 was severely damaged by floods in 2002, but over the years most of the buildings have been reconstructed and supplemented with modern infrastructure. The most attractive area in Prague is the 8th Karlin district on the banks of the Vltava River with hotels, a musical theater, and a church.
The former industrial district of Prague 9 is being transformed - an English college has been opened here, projects are being implemented to transform non–residential premises into modern private houses and apartments. "In the long term, Prague 3, 7, 9 are very interesting," says Anna Zadvil. "New residential complexes are being built on the site of the former brewing industrial zones, state houses are being resettled, apartments are being sold into private ownership."
In the most expensive part of Prague-10, you can buy luxury villas from the beginning of the XX century at a price of more than 1 million euros. But basically, housing here, as in Prague-9, is inexpensive – about 2,250 euros per 1 sq. m.
