Minimum Risk Investment

Property expert explains why the Czech Republic offers minimum risk investment

"The Czech Republic currently represents one of the most exciting property investment markets in Central and Eastern Europe," explains Gal Peleg, the director of CERES Group, specialists in the sale of property in the Czech Republic. “This is because the country is no longer the next hot area, which means minimum risk investment with above average returns."

The company’s brief on the Czech Republic showed a Gross Domestic Product (GDP) (real economic growth rate) of 6.2% (2006 est.) and a strong increase in Foreign Direct Investment (FDI) in 2005, fuelling the growth of the housing construction sector together with the demand for new-build property as Czechs turn their backs on old-style communist housing.

The report also showed a steady rise in the wages of young professionals, together with an ongoing increase in living standards and in the amount of attractive jobs offered by international companies, all of which support rental demand not only in Prague, but also in other cities, such as Brno and Ostrava, which have a strong influx of foreign investment.

"The VAT in the Czech Republic will rise from the current level of 5% to 9% on the 1st of January 2008," says Mr. Peleg. "This is a huge incentive for investors currently interested in buying property in the Czech Republic to act soon to avoid the hefty tax increase."

Of course, one of the Czech Republic’s world-famous treasures is the historical capital of Prague, arguably one of Europe’s most beautiful locations, with nicknames including 'the city of a hundred spires' and 'the golden city'.

The capital attracts considerable international interest with its multitude of fascinating sights including the Astronomical Clock, Charles Bridge, Prague Castle, St. Vitus Cathedral, Wenceslas Square and the National Museum. Indeed, Prague also offers benefits for those working in the capital.

"Young professionals are driven to Prague as it offers the best working opportunities and, on average, the monthly wages in the capital are one and a half times the national average," explains Mr. Peleg. "The cost of living in the city is also around 50% cheaper than in Vienna or other western European cities. In terms of investment in Prague, we’ve found that the districts favoured by investors are in close proximity to the city centre, Zizkov, Smichov, Karlin, Letna, Holesovice and Vrsovice."

Since its formation in May 2004 following the accession of the Central European countries to the European Union, CERES Group has grown considerably so that a team of eighty professional, highly trained personnel are now operating under its umbrella group.

"We are proud to have evolved into one of the most rapidly growing real estate firms in the Czech Republic," says Mr. Peleg. "We’ve created additional alliances with numerous companies worldwide and are subsequently able to promise clients a wealth of expertise, excellence of service and an astute knowledge of the Central European market."

CERES Group was formed as a response to the growing need for a centralised platform able to offer a high quality approach, which would cater for foreign investors and provide them with all the services required to facilitate their investment.

"Basically we make the process of purchasing property simple and ensure our clients are offered the best properties and the highest level of service in the Czech Republic, and in Slovakia, where we also operate," explains Mr. Peleg.

"That being said, CERES Group won the 2007 Best Real Estate Agency award and the 2007 Best Real Estate Marketing award in the International Property Awards 2007 held recently in London. We are proud of our achievements, but more than anything, we are pleased to see that the standards which we introduced into the market are paying off; and that our clients are taking full advantage of the benefits of working with us."

Since CERES Group first launched, the company has offered a one-stop service specifically geared toward the needs of the non-resident investor.

"Our unique position, as a full-service provider paired with local real estate agencies, property owners, developers and mortgage providers, makes us stand apart from any other real estate firm," says Mr. Peleg.

"We are able to provide clients with objective advice on the purchase of property and the associated investment potential, while at the same time bringing together all the necessary service firms required to complete a real estate transaction. In this way, we ensure our clients obtain the best mortgages and services to meet their individual requirements."

CERES Group advises foreign investors looking to purchase individual or business property in Central Europe.

Browse the company's range of properties for sale now.

© PropertyIndex.com 2007 | Last updated: 09 October 2007