OffPlan Property in Prague

Buying an off plan property means that you choose your property from a plan. Your purchase is based on the drawings of an architect, and when you decide to buy it, the development may not even have started, although all the necessary permissions to do the work will have been obtained.

Prague has now become an exciting opportunity for property investors. With the Czech Republic having embraced a western life style to a large extent, and with Prague easily reachable by budget airlines with a flight time of less than an hour and a half, the city has become a popular property hotspot for Brits in recent years.

Now the city enjoys one of the most active residential housing markets on the continent. There is a high and increasing demand for quality Off Plan Property in Prague ; the cost of residential Prague property is around a third that of other major European capital cities. Prices of property in Prague have been increasing by between 10-15% each year for a number of years and this trend is predicted to continue. Mortgage financing is freely available to both Czech nationals and foreign investors. Mortgage rates can be cheaper than the UK, with up to 85% loan to value. The position of Prague in the centre of Europe make it a great communications and business hub, so there is a healthy rental market offering attractive yields.

There have been a number of developments for offplan property in Prague. Garry Pierrepont of International Property Purchases said: ‘Offplan property in Prague has been very popular in recent years, and shows no sign of abating. The city is beautiful and the rental market is strong. Czech culture supports the rental market and it should hold no fears for the UK investor. The look and feel of the city is actually being improved by the new developments as they are replacing old communist housing and industrial sites. Offplan property in Prague would be a great addition to anyone’s property portfolio.’

There have been Recent developments in offplan property in Prague that have sold well. One example is River Diamond, the first riverside development in fifty years. This is an up-market development very close to the financial heart of the city, which would be targeted at expatriates who are seconded to a job in Prague. The apartments range from studios to penthouse suites, many with views overlooking the river. Some units remain.

Another example is Nova Harfa, a large development on a brownfield site ten minutes from the city centre by tram, and close to the Saska Arena in Prague, home to ice hockey and venue for top level concerts. This would appeal to the local rental market with more affordable accommodation ranging from studios to three-bedroom apartments.

Buying offplan property in Prague has the same basic features as buying in the UK, with the main difference being the distance to your development, but as we have said, travel to Prague is straightforward. Another issue when considering off plan property in Prague is the local legal system. You really need to understand how it works, and it is useful to find a Czech UK-based solicitor (one example is Breckova & Co of Enfield). Another point to consider is the financing. If you’re paying in cash perhaps by releasing equity at home, then fine, but if not you will need a mortgage in the country of purchase. Mortgages are available in Prague and the system is stringent but similar to that in the UK.

What you will need to buy offplan property in Prague is an EU card, which gives you the right to buy in the country. You must travel to Prague to acquire this, and it is best to be accompanied by a Czech speaker. Trojans International of Enfield deal in offplan property in Prague and offer a full service to buy there easily.