Most often, apartments in the center of Prague are now bought by foreigners
As statistical data show, most often it is about living space of 60 square meters, located as close to the center as possible, or in areas with good accessibility. As is known, in the Czech Republic apartments are sold already with full interior finishing, and foreigners are more willing than locals to pay for higher-class apartments.
"Foreigners usually buy higher-quality housing, and it is not uncommon for them to come with their own specialist and inspect the apartment in detail, looking for even the most minor flaws. Usually they buy two-room apartments within walking distance of a metro station, or two or three bus stops away," says Evžen Korec, director of Ekospol.
Most foreign owners of Prague real estate do not live in it, but purchase it as an investment. Prices per square meter in the Czech capital are still relatively cheaper than in Western European countries.
As Radio Prague notes, this phenomenon causes little pleasure among Praguers themselves, as it contributes to rising prices. Most apartments in Prague are bought by them.
"As a native of Prague, I don't really like this trend. If it continues, with wealthier foreigners buying real estate, then prices for apartments, which are already in short supply in Prague, will continue to rise in the future. And that means young families and families with small children, who are already struggling to find housing, will be unable to buy any apartment and live separately from their parents," believes Ivana Svobodová.
"The situation on the Prague real estate market is such that it is increasingly difficult for Praguers to find suitable housing. Many apartments bought by foreigners are then rented out on Airbnb, which means that no one actually lives in them on a permanent basis," notes 25-year-old Eliška. In her opinion, the center of Prague is turning exclusively into a commercial zone where Praguers no longer live.
"Recently, foreigners have become accustomed to investing in yet-unfinished housing, while strictly monitoring the layout. Nowadays, when three square meters of hallway cost the same as a car, even they have started to approach the issue more actively and demand efficient use of living space," shares experience Marcela Fialková, press secretary of the construction company Central Group.
Looking by country, in recent years the share of buyers from Russians is decreasing; on the contrary, Israeli and French surnames are more often found in the real estate cadastre. As experts say, thanks to cheap air tickets and the widespread practice of working from home (home office), some Europeans prefer to live in Prague and regularly fly back home.
Moreover, prices for Prague real estate can hardly be called low even within Europe. While in Warsaw a square meter costs on average 66 thousand crowns, in Prague it costs about 100 thousand. Bratislava is also cheaper than Prague in this regard, where a square meter costs about 71 thousand crowns. Significantly more expensive remains, for example, the Austrian capital – Vienna.