INVESTMENT IN LAND IN CZECH REPUBLIC
Updated: Jun 25, 2020
One very important parameter of an investment product is its reproducibility, means whether it can be reproduced or whether this product is limited. Plots of land is a non-reproducible asset. Hence the price will never go down, but only up. This is evident if we look at the graph with plots price growth in Czech Republic published by Hypotecni banka.
Nowadays prices for plots in Prague and its suburbs can be astronomical reaching several dozens thousands of Czech crowns per square meter. This makes it very hard for ordinary people to purchase land for the construction of their houses. Hence many of them choose to go further from Prague in order to be able to buy the land for the house without necessity of getting into a huge debt for the rest of their lives. It’s a big difference to pay 1500 czk per sq. m. or 7000 czk per sq. m., isn’t it?
So what if you have only couple million Czech crowns but still want to make an investment in a real estate? Plot of the land would be the winning option. It doesn’t require any maintenance comparing to an apartment. And you can resell it with a profit in several years.
But are there interesting offers for such money? Yes! For example, a plot of almost 1500 m2 for only 2.29 mln Czech crowns. This plot is located in a quiet village 30 mins drive from Prague and offers an amazing view to the neighbourhood (see photos attached). Ask me for more details about this one!
Investment in land has its specifics. The most expensive and most demanded are the plots meant for the house construction. So to my mind those are the best option to purchase. It’s critical though to make a thorough check before you buy any plot: among the crucial things to check would be to understand where the water and energy pipes are, if the zone is ecologically clean and what the plans of the local land authorities are for this part of the area.
The last one can become an issue if in several years the authorities decide to change the usage of the area where you have your land for the house construction to, for example, green field and your investment will lose 70% of its value.
So if you consider buying a plot of land – feel free to contact me and I’ll help you to make the right choice.
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