The Czech Republic is one most stable countries in the world. One of the reasons behind this fact is its vibrant, diverse and growing economy. This is one of the explanations behind the explosive growth in real estate investments which the territory has been experiencing recently.
Investments of this kind come in all sizes. Small and massive properties are constantly being sold, bought and leased in numbers that grow more and more each year. As an example, recently a property called the Brno Business Park, which a surface area of approximately 35.000 m² was sold by an Austrian investor to a Czech company called IF INFOND.
Knight Frank is a Czech company which connects sellers, buyers and lessors of commercial real estate. They were the broker involved in the aforementioned transaction, which also works in thousands of similar operations every year.
According to the information stated by Zdenka Klapalova, who is the executive director of this broker, the ratio between Czech and foreign investors has increased constantly, which is a reflection of a growing economy, where more and more local entities are capable to get involved in this kind of transactions.
The fact that there is still a large amount of foreign investors in the country is explained by the overall lower cost of living there. Which is considerably lower than in other countries of the EU such as Germany or France.
However, it should also be noted that the growth in the Czech economy has attracted a lot of banking institutions, who have seen an enormous opportunity to provide loans and other kinds of services intended to facilitate this type of investments.
Elementary economy dictates that an increase in the demand of a certain good, will bring an increase in its price. Considering this, it is easy to see why the Czech Republic has been the fourth country in terms of increases in real estate prices in the EU during 2019. This is also reinforced by the fact that the supply is not able to cope with the demand. The phenomenon of increase in real estate investments has been present not only in Prague, the capital and financial core of the country but in the rest of the country with the same intensity as well. For that reason, both local and foreign investors are performing transactions in all corners of the Czech Republic.
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