Czechia: Demand for real estate abroad is growing, up by 25 percent year-on-year

by   CIJ News iDesk III
2022-09-29   06:54
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Interest in real estate abroad is increasing among Czechs. According to real estate agencies, the volume of purchases of older and new apartments or houses increased by about 20 to 25 percent year-on-year. Popular destinations include mainly Spain and Croatia, but also Albania.

According to experts, Czechs are investing in real estate abroad, as domestic ones intended for housing or recreation have become significantly more expensive in recent years. In a number of places abroad, you can buy real estate for your own needs or as an appreciation of savings cheaper than in the Czech Republic. A smaller apartment can be found on real estate websites from two million crowns, and on average, interested parties pay around five million crowns.

"Therefore, it is not surprising that some Czechs are looking for interesting real estate beyond our borders. They are looking for, for example, apartments in locations that are still less known to tourists, for which the market price and regular rental income are expected to increase in the future," said Jana Žáčková , online mortgage specialist of the start-up Hyponamíru.cz.

The head of Bezrealitka, Jan Škrabánek, stated that this is not a mass trend. He compared Czechs' interest in real estate abroad to the purchase of Czech cottages by the Dutch in the 1990s. "Czechs are now similarly interested in the Adriatic coast - Croatia or Albania. In the first case, they are attracted by the increasingly better transport accessibility and a region that has been tested for years, and in the second case by the market, which offers a high valuation, especially with the approaching debates on Albania's involvement in the European Union," said Scratchy.

In general, the most attractive markets for real estate investment are those with strong economic fundamentals and political stability. "And such a market is now undoubtedly the European Union," stated Jan Večerka, founder and head of the BrikkApp application. According to him, countries such as Germany, the Netherlands, Spain and Portugal are suitable for buying real estate.

According to experts, the south of Spain is financially interesting, even if it comes up against the distance and the increasing travel costs with regard to the increase in the price of air transport. Nevertheless, Czechs here, for example, buy older houses in Mallorca by the sea outside the main centers and renovate them. "In many cases, the return on such an investment is significantly higher than the purchase of real estate in the Czech Republic. Here, due to the increase in operating costs, recreational facilities are entering a phase where the return on investment ceases to be attractive," said Škrabánek.

For the brave, according to experts, an investment in Asia can be profitable. Večerka reports that real estate prices in China and India, for example, are rising rapidly and the demand for rental properties from foreigners is growing. But before investing here, it's important to do your research, he says, because they can be unstable.

Source: CTK