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.


2018 - The minimum wage in the Czech Republic rises again

posted 24 Sep 2017, 06:32 by Conbiz Info Center   [ updated 24 Sep 2017, 06:34 ]

The minimum wage in the Czech Republic rises again


The Czech Republic is taking another step in its attempt to raise the standard of living in the country. Starting on the 1.1.2018, the minimum wage will rise by 1200 Czech Korunas to 12,200 Czech Korunas a month. The minimum hourly wage will rise from 66 Czech Korunas to 73.2 Czech Korunas.

“Work should be remunerative and Czech Workers deserve fair wages,” says Bohuslav Sbotka, Prime Minister of the Czech Republic. The Government of the Czech Republic believes that raising the minimum wage will guarantee a better life for its employees, in other words provide motivation for work as a substitute for taking advantage of social benefits.

The purpose of the current Government of the Czech Republic is to reach a minimum wage of at least 40% of the average market wage. The current raise of the minimum wage will achieve this goal, because it will place the minimum wage at 40.5% of the average wage in the Czech market.

Since the Czech Republic is currently enjoying low unemployment rates and stable economic growth, this step can be seen as a rational and required step to transform the Czech Republic into an economically powerful European State.

More on wages in the Czech Republic


Purchasing real estate in the Czech Republic- this time in Racice (only 50 minutes away from Prague)

posted 24 Sep 2017, 06:25 by Conbiz Info Center   [ updated 24 Sep 2017, 06:28 ]

Purchasing real estate in the Czech Republic- this time in Racice (only 50 minutes away from Prague) 

Racice

A 19th century farmhouse with six bedrooms and five bathrooms is up for sale in Racice- a small town near Prague. The house sprawls over 240 square meters and includes two floors and grounds of nearly a quarter of an acre. The yard of the house contains mature, fruit bearing, nut and cherry trees as well as a pool with waterfowl. How much will you pay for this magnificent property? Pay attention- no more than 484,000 US dollars.

In the early 20th century the property served as a workshop and as a drying shed for beer hops, but it was renovated between 1989- 1993 by its current owners. For example, the old building used to store carriages serves today as a porch with a large fireplace and a minibar. The furnishings of the house, including collectors’ items, is included in the price of the property. The walls, most of which are painted white, are constructed of bricks and stone. The floors, windows and stairs are constructed out of pine.

The first floor includes an office and a bedroom (both with a view of the village), a kitchen, two bathrooms, a service room with a biofuel stove, a dining room for 12, an additional kitchen, a fireplace and doors that open towards the garden. The two kitchens include wooden flooring, storage cabinets and basic implements.

The second floor includes a separate housing unit with two bedrooms and a bathroom. The unit has a magnificent view and is furnished with a sofa and couches from the Biedermeier period. The rest of the second floor has two additional bedrooms (one of them includes an exterior staircase for the garden) and two additional bathrooms. The ceilings of one bedroom and of another bathroom are made of traditional rounded wooden beams.

The village of Racice.

The village of Racice is populated by around 300 residents and contains taverns, stores, restaurants and supermarkets in a radius of 10 minutes’ drive. The area has many castles and many bicycle paths, tennis courts, fishing spots, horseback riding establishments and even a small airport. The village is also a center of rowing and kayaking. The village is only 50 minutes away by car from the center of Prague and about an hour away from the Rozin Airport, the Czech’s Republic international Airport.

A review of the Prague real estate market

The real estate market in Prague is stable and most units are sold quickly (within a matter of weeks) following interest by several buyers. “Due to the limited supply of apartments in Prague and the absence of new development in the city for bureaucratic reasons, the real estate prices in Prague sometimes rise by double digits every year,” says Thomas Belhuthe, a senior real estate consultant in the Svoboda & Williams Company.

“The market is driven by a low unemployment rate, a rise in wages, low interest rates, and a high availability of mortgages which were, until recently, at a level of 100%” says Blanke Wachovia, the research manager of the Czech Real Estate agency JLL and adds that “For foreign investors, the Czech Republic and Prague represent a stable and safe economic environment characterized by a high quality of life”.

According to her “The demand this year in the real estate market is expected to drop do to two changes: the application of strict rules regarding mortgages and changes in the field of the real estate acquisition tax which has hitherto been applied to the buyer”. Nonetheless, Zatpeter Visnovski, the CEO of the real estate agency Lexxus, claims the opposite is true: according to him delays in urban development limit the supply of apartments for sale and maintain a high price level.

Who buys real estate in Prague?

“Foreign investors make up about 15% of the purchasers and their representation rises in upscale apartments” says Visnovski “They tend to seek properties in the historic center of Prague and nearby, for example in the Lesser Castle District Town, and the Vinohrady neighborhood. Most foreign investors come from Russia, the Ukraine, the European Union States, the United Kingdom and the United States but there are also small groups of investors from Israel Vietnam, and China, primarily business men.”

Points to remember regarding the purchase of Real Estate in the Czech Republic

The Czech Republic is a member of the European Union, although it maintains its currency as the Czech Koruna. Since 2011 there are no limitations preventing foreign citizens from purchasing real estate in the country. However, Thomas Belhuthe recommends utilizing the services of a local real estate consultant for a single reason: the entire administrative process of purchasing the real estate property is performed in Czech.

Many foreign purchasers employ a local lawyer and the local professional fee per hour starts at 2000 Czech Korunas. Belhuthe claims that the professional fee can reach as high as 5000 Czech Korunas per hour when an international law firm handles the purchase. To this cost, a purchase tax of 4% that is paid by the purchaser and a real estate tax should be added, but mortgages can finance 70%-80% of the purchase price.

Do you want to her more about purchasing real estate in the Czech Republic straight from the source? Contact us


Why does the Czech Republic have the lowest unemployment rate in all of Europe?

posted 13 Sep 2017, 06:20 by Conbiz Info Center   [ updated 13 Sep 2017, 06:22 ]

Why does the Czech Republic have the lowest unemployment rate in all of Europe?

Germany is considered to be the economic dynamo of Europe and has reputation for efficiency, order and low unemployment. However, since the end of 2015, the labor market of the neighboring Czech Republic is considered to be stronger. From data published this week it turns out that the unemployment rate in the Czech Republic was no more than 2.9% in June 2017. In Germany, the unemployment rate in that month was 3.8% and in the entire European Union, the average rate was 7.7%.

So how does the ex communist state do it?

First, it might not be surprising that the cost of labor in the Czech Republic is so cheap. The average monthly wage in the Czech Republic was 10.2 Euro, much below the average of the European Union States- 25.4 Euro. However, these facts do not explain the low unemployment level in the country. In other East and Central European countries such as Bulgaria, Hungary and Poland the labor costs are even lower. Furthermore, wages in the CzechRepublic have risen sharply. For example, in the first quarter of 2017 they have risen by 5.3% or 2.8% when the calculation is adjusted for inflation.

Furthermore, the Czech Republic owes its success to its factories, which is a significant achievement in this day and age. The manufacturing industries of the country make up the largest part of the Czech economy, nearly of a third, a rate considered high compared to other countries in the European Union. Currently, automobile factories in the Czech Republic such as Toyota, Peugeot, Citroen, Skoda, Hyundai and others make up a central component of the Czech Economy.

Government incentives initiated in the 90s, such as tax exemptions for new companies and financing to creating new work places, attracted many foreign investments and those grew once the Czech Republic joined the European Union in 2004. According to David Marek, the chief economist of the Dlloyd Company in Prague, the unemployment rate in the Czech Republic is low for two reasons:

  1. It was relatively easy to create factory jobs due to government incentives that made the Czech Republic attractive to Global Companies.
  2. The Czech Business cycle is tightly linked to the financial stability of the European Union. In other words: when Europe is economically successful, the Czech Republic is even more economically successful. Currently, the European Union is in excellent condition as can be seen by its economic growth in the second quarter of 2017- 2.2%, much like the United States.

However, the root causes of the recent success of the Czech Republic can be harbingers of future trouble. The rise in salaries is a cause for concern and according to Marek, wages are rising due to the scarcity of labor. This labor shortage is stopping the economy from growing even faster. As in many states, the Czech Republic also faces an aging population base and bureaucratic difficulties that make it hard for companies to employ foreign workers.

Marek claims that the Czech Republic cannot afford to allow itself to raise wages faster than the overall productivity. According to him, the Czech Republic is the assembly line hub of Europe, not its knowledge and innovation hub. What this means is that the Czech Republic has many low wage, low skill jobs, but it is not developing the skills and knowledge required to significantly improve productivity, for example through more sophisticated processes.

He recommends maintaining the low unemployment level through structural changes to the government incentive system and the educational system. It is true that the Czech Republic currently has a large proportion of high school graduates, but few Czechs have a college degree or a professional diploma. He claims that the changes he recommends would encourage the creation of high skill, high wage workplaces.

The obvious risk attached to dependency on assembly line work is already manifesting in the form of increasing automation of industrial manufacturing. According to the OECD study, published last year, the Czech Republic faces the greatest threat to loss of workplaces due to automation. Before we raise the Czech Republic on a pedestal and proclaim it to be a model of industrial success, it is important to consider the long term implications of this success, such as the reliance on workplaces which are projected to be taken over by robots in the near future, and the need to discourage employment by foreign workers who might compete with local Czechs over these low skill, low wage jobs.

Do you want to read more on recent developments in the Czech Republic? Click here


Apartment for investment in Prague

posted 13 Sep 2017, 06:11 by Conbiz Info Center   [ updated 13 Sep 2017, 06:23 ]

Apartment for investment in Prague


Purchasing a real estate property, building, house or apartment for investment in Prague, the capital of the Czech Republic

Do you want to enjoy a logical and remunerative investment? Come purchase houses and apartments for investment in the Czech Republic in general and in its capital of Prague in particular. Prague is the largest city in the Czech Republic and is centrally located. It is considered one of the most beautiful cities in Europe, and the entire world. In terms of the scope of the investment, required, a pre renovation apartment in the center of the city, near the major arteries of transportation, would likely cost no more than 400,000 NIS.

Purchasing an apartment for investment in Prague is considered to be a particularly good and safe investment for a number of reasons

  1. The economy of the Czech Republic is considered to be one of the strongest and most stable in the entire world and enjoys rapid growth.
  2. Real estate prices in Prague are rising non-stop. For example, in the first quarter of 2016 alone they leaped by 8%, and this trend is only accelerating.
  3. The city of Prague attracts foreign investments of industrial companies and high-tech companies and is considered a global employment magnet.
  4. The city of Prague is rapidly improving its infrastructure.
  5. The city of Prague is a transportation hub that includes subways, airports, trains, electric trams and buses that operate both internally and externally. In other words, they connect the various sections of the city, as well as connect Prague to additional cities in the Czech Republic and in Europe. For example, a train ride from Berlin to Prague takes about four hours.

Purchasing an apartment for investment in Prague will yield a return on investment of 3% to 12% per annum, as a function of the type of investment (long or short term lease, the size of the apartment, its location in Prague, and more…). For example, when you purchase an apartment intended for a short term lease on AIRBNB - at a price of 1 million NIS, you can look forward to a yearly rental of 100,000 NIS. Even if you pay about a third of this to a management company and to various other expenses such as a maintenance fund, you will still be left with over 60,000 NIS a year. In other words, more than 6% net annual return. Moreover, of course, you always, of course, have the option of selling the real estate property with a hefty profit deriving from the rise of the real estate prices in Prague.

Are you interested in more information and details? Click here


Investment in real estate in Pilsen

posted 13 Sep 2017, 05:54 by Conbiz Info Center   [ updated 13 Sep 2017, 06:03 ]

Investment in real estate in Pilsen 

Pilsen

Pilsen is the fourth largest city in the Czech Republic. It is located in the west of the country and is the capital of Pilsen Province, as well as the home of some 200,000 residents. The City of Pilsen lies on the highway, only 70 kilometers from the border with Germany and about 90 kilometers away from the Capital of the Czech Republic- Prague.

Transportation in Pilsen

The city of Pilsen contains a public transportation grid of both buses and electric trams. In addition, the city is located on the D5 highway that connects Prague to Nurnberg in Germany. Pilsen is an important rail hub in the Czech Republic and five major train lines pass through it, one of which even reaches Germany.

Investment in Pilsen

In the past, the economy of Pilsen was based on three factories: the automobile factory Skoda (which employs 20% of the urban workforce), the beer factory Pilsen, and the distillery (the largest in the entire Czech Republic). However, since the 90s a significant growth in the foreign investments in the city by, for example, the Daikin and the Panasonic Companies, who have relocated their factories to the city, has taken place. Currently, the City of Pilsen, whose residents make up no more than 30% of the Pilsen Province population, produces 66% of the gross domestic product of the Pilsen Province. This fact makes the City of Pilsen one of the most economically secure cities in the Czech Republic and one of the most worthwhile investing in.

Worthwhile fields of investment in the City of Pilsen

The City of Pilsen is a center of Academic studies, business and vibrant cultural life in the Western part of the Czech Republic.

  • Culture: In 2015, the City of Pilsen was elected the Culture Capital of Europe.
  • Academia: the University of Pilsen is renowned for its legal, engineering and science curriculums. Studies for a degree in this University are offered free of charge for Czech speaking students.
  • Business: Pilsen is a business and transportation hub in the Czech Republic and attracts many foreign investments.

Real estate in Pilsen

In spite of the centrality of the City of Pilsen in a number of fields, the real estate prices in this city are 30% lower than the real estate prices in Prague. It is important to recall that in certain cases foreign investors in Pilsen will be granted tax exemptions for a given period. Furthermore, Czech Republic banks grant funding to those who purchase real estate in the Czech Republic of up to 70% of the value of the property. This fact is unusual for the world and indicates the desire of the Czech Republic for the entrance of foreign investors into the country.

Given the trends over the past year of supply and demand, and given the data of the national Czech Bank and our own analysis- it is quite definitely worthwhile to invest in real estate in Pilsen. The real estate field in Pilsen is not saturated and a return of dozens of percentage points is projected for those who invest in the city’s real estate.

If you are considering investing in Pilsen, we will be delighted to be of assistance- please contact us.


Prague is the most remunerative city to invest in apartments for Airbnb rentals

posted 13 Sep 2017, 05:49 by Conbiz Info Center   [ updated 13 Sep 2017, 05:51 ]

Forbes: Prague is the most remunerative city to invest in apartments for Airbnb rentals


Forbes Magazine carried out a survey to determine which are the best cities to rent our real estate properties in the framework of Airbnb. True, this is not the only company in the field and since it was founded a number of competitors such as BeyondPricing, Guesty and couchsurfer.com have been founded. However, this is the best known company in the field and the one most identified with renting out vacation homes. The flourishing of this field has led guests to become ever more sophisticated and their demands only grow. You must, for example be prepared to go the extra mile to become Superhosts.

The aforementioned Forbes study made use of data collected by the Airdna Company, a company that tracks the performances of Airbnb apartments all over the world. This company investigated the occupancy, price and return on investment of over 4 million rental properties with a single goal – finding out where the best opportunities for investment existed.

The study compared the 25 cities with the highest number of apartment rentals worldwide. The average rental price of a single room was calculated via Numbeo and the return on investment was calculated as follows: comparing the rental price of a single bedroom to its price in the Airbnb framework.

City

Average monthly lease per bed

Average income

Average price of room per night

Average occupancy

1

Barcelona

$787

$24,602

$112

71%

2

Prague

$592

$14,562

$67

68%

3

Montreal

$719

$16,905

$86

66%

4

Osaka

$732

$16,651

$73

70%

5

Los Angeles

$1,482

$34,861

$144

76%

6

Berlin

$762

$17,864

$84

70%

7

Cape Town

$637

$12,885

$72

64%

8

Lisbon

$645

$15,286

$69

70%

9

Paris

$1,185

$23,570

$117

66%

10

Rio De Janeiro

$673

$13,904

$83

58%

11

Madrid

$831

$18,017

$81

71%

12

Rome

$1,055

$20,976

$101

67%

13

Toronto

$1,164

$23,341

$104

74%

As of now, Barcelona leads the charts with a return on investment of 278%. Second, is Prague, with a return on investment of 235% (Tel-Aviv, in contrast, is only 22nd). Airbnb is particularly profitable in cities where it is legal (Prague), and in cities with a shortage of hotel rooms (again, such as Prague). In these cities, renting rooms out Airbnb style enables high incomes, sometimes even better than renting out hotel rooms. By the way, in Prague the highest return on Airbnb investments is Studio Lofts.

Do you want to purchase a high return AIRNBNB real estate property in Prague? You can get up to 80% financing from Czech banks through us for the purpose of this investment. Contact us for the details.


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