office-rent-czech

posted 18 Dec 2017, 00:53 by Conbiz Info Center   [ updated 18 Dec 2017, 00:56 ]

Lease rates of office space in the Czech Republic are amongst the lowest in the world. 

Analysis of the results of the annual poll of the Cushman & Wakefield’s Company, which inspected 215 cities in 58 states results in the conclusion that Prague offers a relatively inexpensive work environment for businesses. Office space in Prague is roughly 90% cheaper than that of Hong Kong, considered to be the most expensive city in the world – a yearly cost of 3200$ in Prague, compared to 27,432$ in Hong Kong for every workstation. The annual poll of the company made use of a new system this year and so the results cannot be compared to earlier years. The new system calculates the lease rates, the service fees, and the number of square meters of office space allocated to every employee.

Prague was ranked the second most inexpensive city for business in Europe after Bratislava (the capital of neighboring Slovakia) due to the following fact – the monthly rent in the highest quality offices in Prague is no higher than 21 Euro per square meter. The expectation is that no more than 400,000 square meters of new office space will be added in the next two years so that no significant price rises are expected. Nonetheless, Prague has only reached second place due to another fact- employees in Prague enjoy less average work space than in other cities (10 square meters in Prague compared to a worldwide average of 11.8 square meters). 

New office space areas in Prague. 

At the moment, many new projects in Prague are being constructed that will include offices. These include Smichov City in Prague 5, the Flower House in Vaclav Square, the Rosetta Palace on Jungmannova street, the Drn project at the corner of Národní třída and Mikulandsk – a number of projects near the metro stations Pankrác and Pražského, and also spaces in historical buildings in Prague 1 that will be refurbished and become offices. The area around Masarykovo nádraží is also expected to develop and include a shopping center and offices. 

Below is a list of the cities where it is most expensive to rent out office space. The stated price is the rounded rental fee per year for every work station. 

  1. Hong Kong – 27,400$ 
  2. London – 22,600$ 
  3. Tokyo – 18,000$ 
  4. Fairfield county Conneticut, United States – 17,400$ 
  5. San Francisco – 16,000$ 
  6. New York – 15,900$ 
  7. Silicon Valley – 15,000$ 
  8. Geneva – 13,400$ 
  9. Sidney – 12,000$ 
  10. Paris – 11,700$ 

For additional information regarding the Czech Republic, real estate and investments – click here



The highest lease rates in the Czech Republic are in Prague and Pilsen

posted 12 Nov 2017, 11:07 by Conbiz Info Center   [ updated 12 Nov 2017, 11:08 ]

The highest lease rates in the Czech Republic are in Prague and Pilsen 

According to the poll of the Trigema company, the areas with the highest rents in the Czech Republic are in Prague. The lower rental fees are in the Usti and Labem region and the districts of Moravia and Silesia. In the second quarter of 2017, the rental rates in Prague were double that of the rental fees in other locations in the Czech Republic. For example: a 2+kk apartment in Prague was being rented, on the average, at 14,000 Czech Korunas per month. In contrast, apartments in the Moravia and Silesia regions were being rented out for only 7000 Czech Korunas. Below are the findings of the poll, by Czech province:

  • South Moravia – an average lease for an apartment of 11,916 Czech Korunas. 
  • Central Bohemia – an average lease for an apartment of 9,875 Czech Korunas. 
  • Pilsen – an average lease for an apartment of 9,762 Czech Korunas. 
  • Liberec – an average lease for an apartment of 7,805 Czech Korunas. 
  • Moravia and Silesia – an average lease for an apartment of 7,355 Czech Korunas. 
  • Ústí and Labem – an average lease for an apartment of 7,037 Czech Korunas. 

“The residential market and the rent are closely bound,” says Mark Soral, the CEO of the Trigema company, and adds: “In places that are considered attractive residential areas, the prices of new and old apartments are higher and the apartment rental fee accordingly rises”. The data of the Trigerma company proves this. In the first quarter of 2017 the average rent of apartments in Prague was: 

  • For a 1 kk+ size apartment the rent was around 11,294 Czech Korunas. 
  • For a 2 kk+ size apartment the rent was around 14,223 Czech Korunas. 
  • For a 3 kk+ size apartment the rent was around 18,134 Czech Korunas. 

The most expensive areas to rent were in the center of the city, for example in Prague 1 the average rent was 41,611 Czech Korunas whereas in Prague 2 they were around 29,579. It must, of course, be recalled that these are average prices. On one extreme, an apartment in Prague 9 had been leased out for 4200 Czech Korunas, whereas on the other extreme another apartment in Prague 2 had been leased out for 130,000 Czech Korunas. 

If you too are considering investing in Prague, talk to us. We have specialized in the city and we have hundreds of satisfied customers.


New apartment prices in Prague continue to rise (2017)…

posted 12 Nov 2017, 11:00 by Conbiz Info Center   [ updated 12 Nov 2017, 11:02 ]

New apartment prices in Prague continue to rise (2017)… 

The prices of new apartments in Prague are not projected to drop in the upcoming years and as of the second half of 2017, the average price per square meter is around 75,791 Czech Korunas. A rise of 15% in comparison to the previous year has in fact taken place, according to the data of the real estate companies Trigema, Sanska and Central-Group. In fact, over the past two years, the prices of new apartments in Prague have grown by over 33% and with them the average rental rates – they have risen over the first months of 2017 at an even higher rate than the prices of the apartments. 

According to the Czech Central Bureau of Statistics, over the past year 1342 new apartments have been built in Prague, representing a drop of 25% over the past six months in the supply of new apartments, to a level of 3600 apartments. Contractors in Prague claim that the reason for this is the long process that is currently required before one receives a building permit. According to them, in Denmark the process includes 5 stages, whereas in the Czech Republic it is made up of 33 different stages, which causes a construction project in Prague to last, on the average, 8 years. Of these 8 years, 2 years are spent on construction in practice, and 6 years are spent getting permits of various types. 

However, the short supply is not the only cause for the price rises- additional reasons must also be considered. Chief among them is a high demand that is being driven by continuous economic growth and a rise in the real salary. Another reason is the attractiveness of the city, considered to be one of the employment hubs of Europe. Nonetheless, analysts project that the rises in real estate prices will slow down, but that the trend will not change. According to them, only an unexpected economic or political crisis might lead to a decline in apartment prices. 

Do you want to hear more interesting offers about apartments in new projects in Prague? 

Contact us here


The city council of Prague has launched new information sites for short term apartment renters and tourist oriented apartment owners.

posted 26 Oct 2017, 02:47 by Conbiz Info Center   [ updated 26 Oct 2017, 02:48 ]

The city council of Prague has launched new information sites for short term apartment renters and tourist oriented apartment owners. 

The city council of Prague has launched two new online sites (shared-accommodation.praha.eu and sdileneubytovani.praha.eu) for investors renting out apartments for tourists in Prague who utilize online services such as Airbnb, Roomorama, Trivago, VRBO and iBooking. The sites are intended for both apartment owners and renters, and currently provide information in English, Czech, German and French.

The Mayor of Prague claims that the sites benefits both parties: “The tourists in Prague can find recommendations on those sites, and important rules, such as regarding the leasing laws, the requirement to maintain quiet during the night hours between 06:00 and 22:00 and additional useful information”. “Furthermore, these sites provide apartment owners with vital information regarding their due taxes, their business liability, and the need to inform the tourist police regarding guests in their apartment and so forth.” 

The Prague Municipal Government claims that most apartment owners who rent out their apartments via internet sites do not pay what the law requires them to pay, namely 15 Czech Korunas a day for every guest, which has resulted in the loss of millions of Koruna’s to the municipal revenues. The new sites detail when and how they must pay this sum to the municipality as well as additional information, such as the need to maintain a business license and the need to register guests. 

The sites remind those renting out their apartments that at the end of each month they must report to the relevant quarter data of various sorts, such as the number of days guests have spent in their apartment, from which the total toll is derived. The sites further remind those renting out their apartments that nonpayment of the fee may result in a fine. Furthermore, the tourist police must be notified within 3 business days of the tourist lease regarding the hosting of a tourist. 

The advantages of the new information sites 

These demands from apartment owners who rent out their apartments to tourists are to their benefit for one primary reason – in the event of an inspection they are covered by presenting the registration of the current guests, a registration which includes their personal details. The sites claim that lack of knowledge of the law does is no protection from being penalized by it, and that each individual renting out his apartment is obligated to perform his duties. 

It is true that as of now many of the homeowners seem to rely on the fact that it is difficult to supervise tourist hosting. The Prague Council Member Jan Wolf makes two claims: on the one hand, many apartment owners are not aware of their legal obligations, and on the other hand, the information is not always accessible. He claims that making the information accessible is a first step in ensuring that the apartment owners fulfill their obligations. 

One thing that the internet sites remind their readers is that even though they are providing short term hosting services, they must not forget that the apartment is located in an area where local residents live. The intent is to direct the apartment owner’s attention towards the fact that not all apartments are suitable for being rented out, for example, in terms of safety and security and neighbors complaint.

There are already frequent complaints by neighbors to short term rented apartments, primarily regarding noise, but not only. Some of the complaints claim that short term rentals change the character of the neighborhoods, and raise rent and apartment prices, making residence in the neighborhoods where short term tourist rentals takes place more economically difficult, even impossible, for long time residents. 

The results 

Various cities around the world have limited the possibilities of performing short term tourist rentals. For example, in Berlin only those living in the apartment are permitted to rent it out and high fines are levied on violators of this prohibition. In New York and Amsterdam the number of days an apartment can be rented out during the year is limited and in Vienna there is mandatory registration of short term tourist rental apartment owners, which increased the amount of taxes collected by 50%. 

What about Prague? 

We believe that the regulation of the issue is indicative of the intention of the Prague Municipal Government to regulate affairs, not prohibit short term tourist oriented apartment rentals. Accordingly, the future of the short term tourist apartment rentals looks bright. In any event, a management company specializing in the management of tourist apartments in Prague will be aware of the local laws and usually uphold them. So accept a heartfelt recommendation from us- utilize the services of an experienced management company and do not settle for a recently established company or one which is not considered 100% reliable. 

Should you require any assistance in purchasing or managing tourist oriented apartments we will be happy to assist you or direct you. Just contact us.


Update: funds can be transferred to the Czech Republic without any need for an application to the Israeli Tax Authorities

posted 23 Oct 2017, 06:23 by Conbiz Info Center   [ updated 23 Oct 2017, 06:32 ]

Update: funds can be transferred to the Czech Republic without any need for an application to the Israeli Tax Authorities

The green route, which the Israeli Tax Authorities announced on the 26.09.2017, makes investment in the Czech Republic easier and more remunerative than ever!

One of the primary barriers Israelis who invest abroad (such as individuals who purchase shares in local corporations or who purchase local assets overseas) have encountered up to now is the obligation to deduct the tax at the source while making payments (an obligation based on clauses 164 and 170 of the Israeli Income Tax Ordinances). This obligation made no distinction between types of monetary transfers, regardless of whether they were considered to be a taxable income or not. As a result, those transferring finds were required to provide the banks with tax deduction at source certificates, which extended and complicated these transactions, and sometimes made them non-remunerative or hurt payment obligations (when the transactions were finalized).

The streamlined route to transfer funds to the Czech Republic 

On September 26 2017, the Israeli Tax authorities published a statement according to which, in certain cases, transfer of funds abroad would be permitted on a green route, without any need to apply to the Israeli Tax Authority Offices to receive a permit. Rather, all that would be required would be the signing of an appropriate statement (included in form 2513/2). This form is to be filled by the person transferring the funds, and handed over to the bank, where it would be kept and presented to the tax authorities, upon its request. In the framework of this statement, the signature of the person transferring the funds is required to affirm that he is aware of the authority of the Israeli Tax Authorities to determine a tax deduction at source rate, in the event that any discrepancy should be discovered between the details of the application and the transfer actually committed. 

The streamlined Green route is applicable in the following cases: 

1. The transferred funds are intended for a resident of a treaty member country and to a bank account present in a treaty member country. 

The list of the 53 treaty countries is present in clause 6 of the form, and includes the Czech Republic. The bank account and the foreign resident are not required to be present in the same treaty member state. 

2. The transfer is being performed in order to make one of the following types of payments: 

  • Investment in stock
  • Investment in real estate or other tangible assets
  • Providing a loan to an overseas resident
  • Providing an owner’s loan
That is it! Everything is going to be easier, take less time and be much more remunerative from now on! 

We the professionals working in Conbiz can help you receive the best decision for your business. For additional details and setting up a consultation meeting-, you can contact us here today.


To review the full statement of the Israeli Tax Authority to the Israeli Accountants Bar see here

This article was written by CPA Mr. Avi Babai.

It is important to note that this article was written solely in order to provide a general overview of the taxation issue to Israeli investors in the Czech Republic and is not a substitute for professional consultation by a qualified accountant or tax advisor.


Property values in the Czech Republic have registered this year (2017) the highest rise in values in the European Union

posted 23 Oct 2017, 05:13 by Conbiz Info Center   [ updated 23 Oct 2017, 05:16 ]

Property values in the Czech Republic have registered this year the highest rise in values in the European Union


In the second Quarter of the year 2017, the apartment prices in the Czech Republic have risen by 13.3% - the highest rise in the countries of the European Union, where prices have risen by no more than 3.8% (in the Euro block) and by 4.4% (In all states that are members of the European Union).

Eurostat published these numbers on Wednesday. According to them, Ireland is second (a rise of 10.6%) and Lithuania is third (a rise of 10.2%). The company spokesperson has stated that the accelerating growth in the apartment prices in the Czech Republic is related to the policy of the Czech Republic’s Central Bank, and to a low availability in the apartment market in the Czech Republic.

The number of apartments sold in the Czech Republic in 2015 was considerably higher than the demand prior to the world financial crisis in 2008, according to local Czech experts in the field of real estate. Furthermore, since the end of 2012, the rate of sales has risen considerably.

Before you is the full list of the real estate price rises in the countries of the European Union: 

  • The Czech Republic - 13.3% 
  • Ireland - 10.6% 
  • Lithuania - 10.2% 
  • Latvia - 9.6% 
  • Bulgaria - 8.6% 
  • Sweden - 8.6% 
  • Slovenia - 8.3% 
  • Portugal - 8.0% 
  • Hungary - 7.7% 
  • The Netherlands - 7.3% 
  • Romania - 7.2% 
  • Slovakia - 6.6% 
  • Luxembourg - 6.2% 
  • Denmark - 5.8% 
  • Spain - 5.6% 
  • Malta - 5.5% 
  • The United kingdom - 5.0% 
  • Austria - 4.9% 
  • Estonia - 4.8% 
  • Poland - 4.6% 
  • Croatia - 4.3% 
  • Germany - 3.7% 
  • Cyprus - 3.6% 
  • Belgium - 3.5% 
  • France - 3.5% 
  • Finland - 1.5% 
  • Italy - 0.2%

Are you interested about hearing more about investments in real estate in Prague? Please Contact us.


The economy of the Czech Economy is very successful in the second quarter of 2017 as well

posted 27 Sep 2017, 01:58 by Conbiz Info Center   [ updated 27 Sep 2017, 01:58 ]

The economy of the Czech Economy is very successful in the second quarter of 2017 as well 


The numbers prove that the economy of the Czech Republic is amongst the strongest in Europe. The GNP in the second quarter of 2017 was higher by 2.5% than the previous quarter. This is a rise of 4.7% compared to the matching quarter last year. According to the Central Statistics Office of the Czech Republic (CSU), these figures are higher than the forecast that projected a 2.3% rise in this quarter, and a 4.5% rise compared to the previous year. The figures prove that the rapid growth measured in the first quarter of 2017 was continuing. In fact, they are proof that the economy of the Czech Republic is one the fastest growing economies in the European Union. The positive developments of the Czech economy derived from a rise in demand, both locally and globally.

While the data pleasantly surprised the projections of the economists, they are disadvantageous in one respect. These positive figures may increase the probability that the Czech National Bank (CNB) might raise interest rates. The rapidly growing economy, the overly calculated labor market, and high inflation, will likely cause the central bank to raise the interest rates this year, probably in November, but perhaps in September,” stated the chief Economist of the Czech Banking Union.

Demand

In terms of demand, the growth of the GDP in the second quarter of 2017 derived from both local and global demand. Together with the continually growing domestic demand, there is a new activity that integrates all of the growth factors in the field of domestic demand. According to the CSU data, the growth in the Gross Domestic Product this year contributed to growth in expenses of 1.7%, a growth in domestic consumption of 1.5% and a growth of 2.1% in external trade.

Expenses

In terms of expenses, the expenses of the households (in all types of consumption) grew by 1.8% during that quarter and by 4.4% compared to that quarter in the previous year. The government expenditures also grew by o.4% during that quarter and by 1.9% in comparison to the same quarter in the previous year. The expenditures on assets also grew in the second quarter of 2017, both relatively to the first quarter and compared to the matching period in 2016.

Investments

Insofar as investments are concerned, investment has grown not merely in the fields of transportation and real estate, but also in the fields of equipment and machinery as well as in the fields of investments in structures. In comparison to the first quarter, the investment in assets in the second quarter was similar (6.3%), but in comparison to the second quarter of the previous year, the rise in investments in assets was 7.7%.

Foreign trade

Stable results in the field of foreign trade has also resulted in the growth of the economy of the Czech Republic. The foreign trade balance in services and goods in the second quarter of 2017 reached 92,000,000 Czech Korunas. Exports grew realistically by 7.3% in comparison to the parallel period in the previous year, as a result of growth in transportation equipment as well as trade in machinery and electrical equipment. Imports grew during this period by 6.2%, significantly contributing to various fields in the auto industry, the manufacture of electrical equipment and trade in basic metals.

Employment

The growth of the Czech economy is accompanied with a rise in employment, and the total number of employed has risen by 0.4% in this quarter. In comparison to the previous year, this is a rise of 1.3% and it is parallel to rises in the economic field in all of the Czech Republic. This is the picture that arises from the analysis of the data performed by the CSU- the Czech Republic Central Statistics Office.

For additional information regarding the economy of the Czech Republic, look here.


Prague, because 100,000 Chinese can’t be wrong!

posted 26 Sep 2017, 00:02 by Conbiz Info Center   [ updated 26 Sep 2017, 00:04 ]

100,000 Chinese can’t be wrong!

South Korean and Chinese tourists are the top visitors to Prague in 2017. 100,000 Chinese tourists and 140,000 South Korean tourists have graced the streets of Prague in the past year. In fact, the number of East Asian tourists visiting Prague has consistently grown every year (with the exception of Japan, which we will discuss later on). One reason for this is, among other things, is the direct flights from Prague to various East Asian cities, but this is far from the only cause.

The demand for tourism in Prague began following movies and series filmed in Prague, for example a popular romantic Chinese drama series that was filmed on the staircase of a Prague concert hall, the Rudolfium. A South Korean TV series resulted in a similar outcome, and Prague has since become a popular site for marriage for East Asian couples, which has resulted in a steady stream of East Asian tourists in the Karl Bridge and the Old City area.

Prague was also the site in which a popular Indian film was filmed, as well as the scene of several Bollywood films, which brings to the city tens of thousands of Indian tourists every year. In the first half of 2017, 40,000 Indian cities reached Prague, in comparison to 60,000 in all of 2016. Indian tourism is considered particularly surprising since to this day no direct flight exists from cities in India to Prague. There is also no direct flight from Japan to Prague, but the Japanese still throng Prague in massive numbers- around 80,000 in 2016.

However, television is not the main “culprit” for the situation and focused advertisements in South Korea and China have begun to bear fruit. Projections in Prague is that the trend is not going to change an time soon and they are already producing maps, tourist guidebooks and tourist information in Chinese, Korean and Japanese as well as an internet portal in these languages.

Excellent news for investors!

This may come as a surprise but you too can turn a profit from the East Asian tourist traffic in Prague, particularly in the tourism areas in Prague 1. Purchasing an apartment for an investment and short-term rentals (through, for example, Airbnb) can derive an annual double-digit return on your investment. Now all you have to do is learn a bit more about investing in tourism oriented apartments in Prague.


A general background regarding Pilsen and real estate investments in Pilsen

posted 25 Sep 2017, 06:07 by Conbiz Info Center   [ updated 25 Sep 2017, 06:11 ]

A general background regarding Pilsen and real estate investments in the city 


Pilsen in the fourth largest city in the Czech Republic and is the Capital of the eponymous province. The city is located at the junction of 4 rivers, about 90 kilometers west of Prague, and around 200,000 people live there. The City was founded in 976 and rapidly became a central trading city thanks to two factors: its geographical position on a trade crossroads and the natural resources its location is endowed with. The city has been subjected to several sieges since it was founded. None of them, however, ever breached its walls and that is why, perhaps, Rudolf the Second, Emperor of the Holy Roman Empire , selected it as his capital.

A city with something of everything

Architecturally, the city is heavily affected by the Baroque period and as of 1989, many of its historic structures are undergoing renovation. Academically, the city has three universities and economically and culturally speaking it is the center of Western Bohemia. Since the 1990s investments in the city has risen, particularly foreign investments such as those by the Daikin Company and Panasonic who also maintain factories in the city. Moreover, if that is not enough- Pilsen was also selected as the Culture Capital of Europe for 2015, which attracted more attention and investments its way.

Pilsen is one of the more economically affluent cities in the Czech Republic and its residents enjoy a high gross domestic product - 44,000 dollars per capita. The presence of the Skoda automobile factory, the Pilsner Beer factories, the presence of many pampering spas and the largest distillery in the Czech Republic. Moreover, of course, we cannot neglect the Jewish angle, can we? You will no doubt be happy to hear that Pilsen contains some of the largest Synagogues in the world, such as the old synagogue of Pilsen, which is the second largest in the entire world that holds many concerts.


And that is only the beginning…

Pilsen today continues to enjoy the economic benefits of its geographic position. The city is connected to both Prague and Germany by major highways. Furthermore, the city is proximate to the International Airport of the Czech Republic and attracting foreign investments is a top priority of the municipal government’s agenda. The proof of this is that Pilsen is the only city in the Czech Republic that is a member of the International Trade Center Network. The city thereby joins 330 cities in the world and shares valuable business information with foreign investors (both companies and individuals).

Real estate in Pilsen

From a real estate point of view, Pilsen is second onlyto Prague as a real investment target in the Czech Republic, in spite of only being the fourth largest city in the country. Rent prices in Pilsen range between 3.75- 4.2 Euro for square meter a month, nearly as much as Prague (3.8- 4.25 Euro per month for square meter). In fact, a 12% rise in residential unit process was registered in Pilsen as early as 2013, while rises in Praguewere more moderate. Nonetheless, the Czech Television reported that in 2017 the prices in the Pilsen region dropped by 6.1%.

Nonetheless, Pilsen is an excellent city for real estate investment for a single reason: it is a college town and construction of residences for students is a trend in the Czech Republic. An additional site claims that investment in Pilsen is worthwhile for two reasons: the initial investment price is amongst the lowest in Europe, and the return on investment is amongst the highest in Europe.

Here you can read and broaden your knowledge on investment in real estate in Pilsen.

If you wish to receive information from us regarding opportunities for investment in the city, contact us and we will be delighted to offer you interesting opportunities for investment in the city.


Extensive renovations of the Wenceslas Square in Prague approved

posted 24 Sep 2017, 06:38 by Conbiz Info Center   [ updated 24 Sep 2017, 06:41 ]

Extensive renovations of the Wenceslas Square in Prague approved 

vaclavske-namesti

After twelve years of delays, approval has finally been granted for the renovation of the Wenceslas square by the Jacob Sigler Architect Firm. The bid of this office won the square design competition organized by the city of Prague as early as 2005, but the roots of the renovation run deeper, originating in the days that Václav Havel served as president of the Czech Republic (1998- 2002). This is, of course, excellent news, for those seeking to invest in real estate in the area.

The Wenceslas square was constructed in the mid-14th century and originally served as a horse market. This square witnessed many historical events, such as the declaration of Czech Independence in 1918, the Soviet invasion of 1968, the key shaking during the velvet revolution of 1989, and so on. 

The city hall Facebook announcement stated “Finally! The debate over the shape of the square is over. The sidewalks on the square will be expanded and it will be greener, with no trams and less cars”. Jacob Singler also blessed the approval in an interview to the Mladá fronta Dnes newspaper: “The approval of the plan proves that something is happening and changing in Prague.” 

The issues delaying the approval included concerns regarding the preservation of the appearance of the square, concern regarding the types of trees and security concern, such as whether the security cameras in the site would be blocked by the renovations. A yet unresolved issue is the hotdog stands in the square and their fate has yet to be decided- redesign or expulsion. 

In the framework of the renovation, the sidewalk in the square will be expanded by 25% to 17 meters at the expense of 70 parking spaces, which will leave only 20 parking spaces at the square. Furthermore, by the Koruna palace, an additional row of trees will be planted and plane trees will be added to the current lime trees. 

The approved plan does not include a tram, in spite of the ongoing discussions regarding the reconstruction of the tramlines in the square. These tramlines passed through the square until the movement of trams through the square was brought to a halt in 1980. 

The mayor of Prague, Adriana Krnáčová, wrote in Facebook, that the approval is good news indeed: “This is a significant step and the renovation of the Wenceslas square is closer than ever. The square requires renovation and its delay by 12 years was due to unwillingness to follow through. Now we are at a point where this is an absolute necessity. We still need to wait for a building permit but we can theoretically begin to perform a number of preparatory operations right now.” 

She further says that a building permit can be granted rapidly and her hope is that the renovations will begin next year. She added that she thought that the square does not currently fulfill its intended role as the center of Prague’s life. Oldřich Lomecký , the chief of Prague District 1, also blessed the decision. In an interview to the Mladá fronta Dnes newspaper, he expressed his hopes that the renovation of the square will bring back to life its past greatness. 

The date of the initiation of the renovation work remains unknown but as a result of the renovation real estate prices in the area are expected to rise. If you considered making an investment in the historic center of the City of Prague, this is the time and this is the place. Contact us.


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