More and more Czechs are investing in prefabricated flats in Prague as second apartments to let, financial daily Hospodářské noviny reports. According to the daily, the price of pre-fab apartments, once the apple of the eye of the former communist regime, is roughly half that of apartments in brick-and-mortar buildings, while rent in the cheaper apartments are around 75 percent of the monthly average.
Interest in panelák or pre-fab apartments is growing according to financial daily Hospodářské noviny, not as a first home but for owners to rent, promising fairly quick return of investment. Unlike apartments in older brick-and-mortar buildings, paneláky in Prague are far cheaper as an initial investment, costing roughly half. The rent in panelák apartments in the city, the daily says citing a manager from the sreality real estate website, is more than two-thirds of the monthly average, meaning a relatively quick return on the initial investment. Real estate, traditionally regarded as a safer market, is remains attractive although it needs to be said that panelák buildings carry a certain risk: it is preferable, if possible, to invest in sites which have already undergone renovation, to limit the chances of unexpected surprises.
Which pre-fab apartments are among the most sought? Not surprisingly, apartments situated close to public transport – above all metro lines – and near green areas are among the most attractive. The daily quotes a real estate agent for Re/Max naming parts of the Stodůlky area and areas near Krč forest. Buyers most often invest in so-called garsonky, small, single-room apartments. Interest in investing in small apartments to let, also goes beyond Prague, but has also proven high in cities like Plzeň. Renting out an apartment in a university town is a fairly sure deal. According to daily, interest in momentarily highest in the Karlovy Vary region.
Will the interest in paneláks on the side of buyers last? According to the financial daily, the interest in recent months has already led to a slight rise in asking prices; if the trend continues, investment opportunities over time will be less attractive; what’s more, the number of pre-fab apartments on offer will drop. It already has dropped, by two percent since 2015 the daily writes, meaning some of the more attractive options will eventually dry up.