Investment Property in Prague

Invest in Real Estate in Prague

Investment Property in Prague
Investment Property in Prague

Prague property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Prague .

Search Map of Prague Investment Real Estate

Prague ( PRAHG; Czech: Praha [ˈpraɦa] (listen); German: Prag, pronounced [pʁaːk] (listen); Latin: Praga) is the capital and largest city in the Czech Republic, and the historical capital of Bohemia. On the Vltava river, Prague is home to about 1.3 million people. The city has a temperate oceanic climate, with relatively warm summers and chilly winters.

Prague is a political, cultural, and economic hub of central Europe, with a rich history and Romanesque, Gothic, Renaissance and Baroque architectures. It was the capital of the Kingdom of Bohemia and residence of several Holy Roman Emperors, most notably Charles IV (r. 1346–1378).

It was an important city to the Habsburg monarchy and Austro-Hungarian Empire. The city played major roles in the Bohemian and the Protestant Reformations, the Thirty Years’ War and in 20th-century history as the capital of Czechoslovakia between the World Wars and the post-war Communist era.

Prague is home to a number of well-known cultural attractions, many of which survived the violence and destruction of 20th-century Europe. Main attractions include Prague Castle, Charles Bridge, Old Town Square with the Prague astronomical clock, the Jewish Quarter, Petřín hill and Vyšehrad. Since 1992, the historic center of Prague has been included in the UNESCO list of World Heritage Sites.

The city has more than ten major museums, along with numerous theaters, galleries, cinemas, and other historical exhibits. An extensive modern public transportation system connects the city. It is home to a wide range of public and private schools, including Charles University in Prague, the oldest university in Central Europe.

Prague is classified as an “Alpha-” global city according to GaWC studies. In 2019, the city was ranked as 69th most livable city in the world by Mercer. In the same year, the PICSA Index ranked the city as 13th most livable city in the world. Its rich history makes it a popular tourist destination and as of 2017, the city receives more than 8.5 million international visitors annually. In 2017, Prague was listed as the fifth most visited European city after London, Paris, Rome, and Istanbul.

The financial stability of Prague has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Prague

 

Renting out your Prague buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Prague are – preparation is key.

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Prague and be prepared to change your initial outlook.
  • Thoroughly research the Prague location with a special emphasis on fringe areas outside the main Prague metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Prague.
  • Ensure that your target investment property in Prague appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

 

With our expert guidance, investing in Prague provides the secure knowledge that your money is working harder than it would in a local Prague bank and that future generations of your family will be left with substantial capital growth assets.

 

We are always happy to advise on buying investment property in Prague, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Prague property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Prague

Flipping property in Prague

 

Flipping property is when we advise clients to buy a Prague property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Prague market has a time to react to the renovation.

 

The Flipping Strategy in Prague

 

Investment property flipping in Prague is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Prague real estate investments are sometimes referred to by professionals as ‘distressed’ Prague real estate.

 

What is distressed Prague property:

 

  • Prague property in need of renovation
  • Prague real estate with a change of purpose and use
  • Oversold Prague property
  • Bank repossessions in Prague

Put simply, long term investors in Prague purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Prague investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Prague property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Prague use a minimum profit value of 22% when looking at potential Prague projects.

 

The reason for this is because there are lots that can go wrong in Prague property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Invest through a Fund in Prague

 

Property Secured Investments is a Private Equity fund that invests in Prague and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

Luxury Property in Prague

For luxury property investors hoping to add a superb property in Prague to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

 

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Prague, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Prague should be entrusted to only the highest-quality agency.

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