+420220580154Prague, the capital of the Czech Republic, is located right in the center of Europe and serves as a bridge between Eastern and Western Europe both physically and from a business perspective, as it has throughout history. The Vltava river runs through Prague with its population of 2 million. Prague’s unique character integrates the old and the new and its special magic makes it one of the most visited cities in the world.
TRANSPORTATION
Prague has well developed modes of public transport. Its intricate system includes the metro as well as trains, trams, a large airport, and an intercity rail system connecting Prague to all major European cities.
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INVESTING IN PRAGUE
After experiencing an economic crisis stemming from the global financial crisis, the Czech economy resumed its course and is expected to continue growing. This growth is contributing to the progress of the Czech Republic, and the city of Prague, whose revenues constitute a large part of the Czech GPO, has a major part in this momentum. The positive development of the Czech economy can only benefit foreign investors.
Today more than ever, investing in Prague is a smart move, as evidenced by the internet giant Amazon as well as many other international firms that have relocated to the city in recent years. The reasons are: excellent and relatively cheap manpower by Western European standards, a good infrastructure for providing services to foreign markets, and an excellent location. The customary business approach in the Czech Republic is the Czech belief in a free market economy resembling that of the western world.
MAJOR AREAS OF INVESTMENT
Prague’s economy is based mainly on exports and services. Opportunities in almost all areas are available to anyone seeking to invest in Prague. Some of the recommended areas for investment are: real estate, strategic services, financial services, communications, and tourism.
Tourism
Prague’s tourist industry is one of the most flourishing Czech industries, all the more evident when considering that Prague accounts for more than half the national expenditure on tourism. The city offers good accommodation services for all types of visitors.
Real estate
Foreign investors seeking to invest in Prague can in some instances receive tax exemptions for limited periods. Furthermore, Czech banks provide funding of up to 70% of the property’s value to purchasers of Czech real estate. This is almost unprecedented on global standards and it is emblematic of the continuous Czech desire to attract foreign investors to the country.
In light of recent trends of demand and supply, as well as analyses conducted and data received from the Czech National Bank, we estimate that the Czech real estate industry has not yet reached the saturation point and that anyone investing in Prague real estate in the next few years can expect double-digit returns.
If you are considering an investment in Prague, we would be glad to help you – please contact us.
