The Czech real estate market becomes more and more attractive for investors from all over the world. The country has rapidly developing economing and the market brings up to 10% of annual net profit.
Real estate was always regarded among the most profitable and safe investments but having enough funds investors face to the problem: where to invest and what to select. The contemporary market offers numerous variants but more and more experts nowadays regard Czech Republic as the most attractive country for investing in real estate. That may be explained by the following reasons:
- Czech Republic is highly developed from touristic and business point of view. The amount of tourists constantly grows and in 2017 it reached 10 million per year. Consequently the demand of apartments, guest houses, hotels, etc. also increases.
- Czech Republic has convenient location in the European center, developed infrastructure and reasonable prices that attracts tourists all over the world (leading countries are Germany, Slovakia, Poland and Russia).
- There offered numerous variants in different regions and for any budget.
Real estate is divided into residential and commercial. We regard commercial one as possibility to get maximal profits. According to calculations commercial objects may bring from 4% to 10% of annual net profit. Increasing amount of tourists makes Czech commercial real estate more and more attractive.
As to the regions Prague is the most popular destination of tourists hosting more than 7 million tourists annually. About 57% of all investors’ funds are oriented to purchasing commercial real estate in the Czech capital. Other cities with high investing potential are Brno, Plzen and Karlovy Vary. Average profit of commercial real estate is about 4-5% while in Prague this index reaches even 10% depending on the area.
Analyzing different types of commercial real estate we may make a conclusion that hotels are the most profitable variants. Prices for one night staying in luxe class hotels is about 300 dollars while pensions or guest houses offer one night staying from 10 to 70 dollars approximately. Moreover large hotels bring profits from inbuilt bars or restaurants.
Purchasing hotels of 3-5 stars in Prague annual net profit reaches 7-10% of the investments amount. SP Estate offers becoming an investor of profitable project that lies in purchasing a hotel in the Czech capital and get from 7 to 10% of expected annual profit. Taking into account that the Czech economy continues growing and average bed occupancy in hotels reaches 80% profits may potentially increase in the nearest future.