Frequently-asked questionWhat are some examples of properties currently available?
One customer says“What can I say... you've found us the properties, you've introduced us to your excellent contacts (Daniel etc)... hell, you've even found us potential tenants! ... MORE Facts and figures about Prague.
With the Czech economy running red-hot, in fact, at a stunning 6.6% last year (2007 GDP), there is good reason to consider this beautiful capital as a strong investment choice. Czech Republic’s results far outstripped the average EU GDP growth of 2.3% and those of Hungary (1.3%). Poland was close at 6.5%. Slovakia alone surpassed Czech Republic in terms of growth (10.3%).
| Economic Indicator — GDP | |||||||||
| 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 |
| 3.9% | 2.6% | 1.5% | 3.7% | 4.0% | 6.0% | 6.1% | 6.6% | 4.7% (Est.) | 5.0% (Est.) |
Not only was 2005/2006/2007 extraordinary in terms of Czech GDP growth but also with the sheer number of new investment projects and with this, the total foreign investment (FDI). Total FDI in 2005 was more than 263 billion CZK (11 billion USD) which is the highest figure in history in terms of dollars and second highest in terms of CZK.
| Economic Indicator —FDI ($USD in billions) | |||||
| 2000 | 2001 | 2002 | 2003 | 2004 | 2005 |
| 5.0 | 5.5 | 8.4 | 2.6 | 4.0 | 11.0 |
What it means
However, what does all of this mean with regard to the residential property market? Higher GDP usually translates into higher disposable income for the population. Much of this increase is focused on Prague where the average gross monthly wages was close to 30 000 CZK as compared to the national average of 22 531 (Q1 2008).
Also, unemployment is much lower in Prague compared with the rest of Czech Republic. The national average is 4.3% and Prague’s is 1.8% (Q2 2008).
Even the sheer number of tourists in Prague affects property prices as some are purchased for the short-term rental market. Each quarter in 2005 averaged 950 000 tourists. It is rare to find in Prague private accommodation for under 1 400 CZK/night. It only goes up from there. A well-located apartment with a professional marketing and management company can make an excellent return. However, the recent strength of the crown is affecting this and numbers are showing that 2008 has tourists numbers. Still, it was recently ranked 12th on the list of most popular cities n a poll conducted by the international travel Web site TripAdvisor, which named New York, London and Paris as the world’s top three.