Investment in real estate in Pilsen

Post date: Sep 13, 2017 12:54:22 PM

Investment in real estate in 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 machinery factory Skoda (which employs 20% of the urban workforce), the  Pilsen Breweres, 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.

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.