Falling prices attract foreign investors in Czech spa town, Karlovy Vary
April 27, 2016 - Czech Republic
Courting Chinese real estate investors is paying off for a leading Czech Republic spa town, where prices are so volatile that one apartment can be on sale for half of an identical neighbour.
Falling prices and large discrepancies in Karlovy Vary is also helping to attract more overseas property investors, says the Russian overseas property website, Tranio.com.
There has traditionally been high demand for real estate in the Czech Republic from Russian buyers as property is still undervalued and less expensive than in neighbouring countries such as Austria and Germany, says Leigh Stewart.
“However, real estate agents now report that demand is currently higher from Ukrainian buyers than Russians and the Czechs are also returning now that prices have fallen. At the same time, Chinese interest in large Czech real estate projects has been growing."
“Prices in Karlovy Vary have fallen and pricing is volatile. Owners have not yet adapted to the new pricing situation and it’s possible to find two identical apartments in the same building for very different prices — sometimes even double the price next door.”
There are cheap options available for apartments with prices of €49,000-€56,000 for 70-80 square metres (about €700/square metre) properties that require renovation, particularly for buy-to-let investors who aim to rent it out. New flats start at €1,300 per square metre and luxury property from €3,000 per square metre.
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