Five Reasons To Invest




Ever since the Czech Republic joined the European Union it is on the path of fast development. Be it in the field of manufacture or trade, real estate trade and development play an important part. Some reasons, why real estate investment in the Czech Republic is a profitable venture, are given below.

1.The Czech Republic is at the center of Europe. That itself make it an important place in Europe for manufacture and trade. Europe has a consumer strength of over 450 million people. Being a member of the European Union the Republic has free access to all the whole European market. The transport costs from CR to all other member states are considerably less when compared to others. Already many European companies have established their office in Prague. Because of its strategic location many of them may even move their headquarters to the city. Demand for developed property is already on the rise in the capital city. There is no chance for it going down.




2.CR has shown a steady economic growth since the 1989 Velvet Revolution. The standard of living of the people is steadily increasing. The GDP of the nation has grown from 1.9% in 2002 to 6.2% in 2006. Of course it has declined to 4.8% in 2008. But it is due to the world wide recession and it is still better than many leading economies. A whopping increase in the per capita GDP has taken place from US$16900 in 2002 to US$24000 in 2007. Trade balance has changed from negative 2.9% of the GDP in 2002 to a +2.2% in 2007. The unemployment rate is steadily decreasing in spite of the recession. Surely CR is in the path of fast development.

3.Old state owned flats and single houses are still there. They are in great demand too, the reason being the low rental. For every 1000 applicants only 350 flats and houses are available at present. For a newly married couple the waiting period goes up to ten years. For the privately owned flats the waiting period is much shorter. But their rents are not affordable to everyone at the moment. With the steady increase in wages and industrial activities spreading to the villages the demand for private housing will only increase.

4.At present real estate properties are very cheap on the countryside. Since the young people are leaving for big cities and towns the property prices are on the decline. A big developer of housing can now buy up such properties very cheaply. Good new housing units can be built there. The labor charges are very low in the villages now. Professional labor costs only about €1.20 per hour now. The newly built housing units can be sold to home buyers from other European countries at very high profits.

5.Mortgage market is now fast developing in the Czech Republic. So finance will not be a big problem. In this fast advancing economy an investment in real estate when the prices are low is a wise move. There is no doubt, new or transplanted industries from other parts of Europe will come to the countryside because of the cheap, educated and skilled labor available here.