A general background regarding Pilsen and real estate investments in Pilsen

Post date: Sep 25, 2017 1:7:42 PM

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 machinery group (trains, turbines and other heavy machinery producer), the Pilsner Breweries (including Pilsner Urquell, the first brewed beer of Pilsner type), 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.