Prague //Photo by Dmitry Onishchuk
The British consulting company Mercer Human Resource Consulting counted 39 such positions and derived an aggregate quality of life index for national capitals and simply large cities of the world. As a result, they all lined up on a long scale showing a huge distance between Swiss Zurich (best city) and Iraqi Baghdad in its current state (respectively, worst city). For a person wishing to change residence, or buy a second home abroad, or even just hesitating, such a hit parade could serve as a good guideline.
In terms of a combination of dozens of factors, Moscow was deemed the least favorable large city for living in Eastern Europe. Meanwhile, the best quality of life in the region was recorded in the Czech capital. Among all cities of the world, Prague took 79th place and became the #1 capital in the post-socialist space. The city could have risen higher, but medical care (meaning the entire system, not individual institutions) there is still only striving toward American and German standards.
Recently, in the highest-quality Eastern European city, preparations were in full swing for the country's official entry into the EU, which took place on the eve of May Day. Taking advantage of the last opportunity, people at the end of April swept away the remnants of duty-free alcohol and cigarettes at the borders with Austria and Germany. It is expected that closing duty-free shops here (and significantly restricting trade at international airports) will bring the Czech budget an additional 30 million euros in taxes. But for German-speaking tourists, it will not be a disappointment. Prices in the Czech Republic for basic consumer goods are still significantly lower, so residents of border regions of Germany and Austria often go on one-day shopping tours to their new EU neighbors.
Fear of price increases is the main factor that makes Czech citizens wary of joining the EU. According to opinion polls, 43% of Czechs are confident that living by European standards will be harder, and therefore they are rather pessimistic. However, this is not surprising. Over the past two or three years, newspapers have done nothing but scare ordinary people with the prospect of price surges - and above all, on housing. Foreigners were blamed. Not the 230 thousand people who already live permanently in the Czech Republic. But Americans, Britons, Dutch, Israelis, individuals and corporations who sought to capitalize on the EU factor and came here not to live, but exclusively to invest money.
As a result, real estate really rose significantly in price. In some popular places in Prague, growth over the past year alone was 20%. But the reason is not only speculation and the availability of mortgage loans, but also a real improvement in the quality of the housing stock. Apartments and cottages are actively being built by both local and well-known Western developers who set high standards. At the end of 2003, the local specialized press recognized the Americka Park complex as the best residential project in Prague in the most prestigious central district of Vinohrady. It was handed over in August, and now one can admire three small apartment buildings while strolling along the street of the same name, Americka. The complex occupied one of the greenest places in the district, provided residents with an extreme level of security by Prague standards, and was originally intended for rent to highly paid employees of Western firms.
If you do not consider such options at exorbitant rates, then a square meter in a new building in Prague will now cost from 800 euros. The price includes finishing, excluding only kitchen equipment. These are very nice low-rise houses in the outlying districts of Prague 9 and Prague 10. Inexpensive but high-quality apartments in them are aimed mainly at young families able to buy housing on credit. Developers stimulate demand by offering their compatriots interesting financial schemes. For example, if you invest in housing with a completion date by the end of 2005 - beginning of 2006, you can secure your right in the contract to 'withdraw' your money at any time with interest. Small co-investors are promised 6% per annum.
A new building can also be a detached cottage: both in the city itself (Prague 4, 5, 10) and at its edge. Taking into account the cost of the plot, a modern mansion can be bought from 70 thousand euros. To build the same one to order on your own plot - from 400 euros per square meter. Construction of a typical house takes six to eight months.
Unfortunately, foreign individuals cannot simply purchase real estate in the Czech Republic - to do this, they need to register a company. Right before April 1, a legal incident, discovered by local lawyers, caused a lot of noise. As is known, pan-European norms require the free movement of capital, but the Czechs negotiated for themselves a delay in lifting the moratorium until 2009-2011 for housing and land, respectively. However, the text of the agreement specified for some reason that this applies to buyers from EU countries (apparently because it is their invasion that the Czechs fear most). All others as if automatically fell out from under this special note. And so, from May 1, they supposedly should be covered by general EU legislation allowing any purchases.
"Lawyers' inattention will destroy us" - under this headline, Radio Prague and the local weekly magazine Euro managed to publish this sensation. However, the authorities hastened to disappoint foreigners, saying that citizens of non-EU countries are covered in the new version of the currency law. Our compatriots wishing to purchase housing in the Czech Republic so far still need to register a company. However, even by the admission of the local Ministry of Economic Development, this is not a barrier for anyone. For a purchase, it is enough to have the simplest form of enterprise - an LLC (or s.r.o in Czech). The required authorized capital and services for its registration are minimal - several thousand euros.