Prague’s sky-high property prices means that now more than ever, securing a good deal is vital when buying a home. Prague is chock-full of stunning properties, but finding your dream home requires knowing where (and how) to look.
Crestyl, a developer of prime residential real estate in Prague, is delivering various exciting projects to the Prague property market. In hot locations like Divoká Šárka, Vinohrady and Radlice, Crestyl is creating modern, attractive apartment projects that combine the best of the city center with settings conducive to happy long-term living.
To find out more about what expats should look for when house hunting in the Czech capital, Expats.cz asked Viktor Peška, Crestyl’s Chief Commercial Officer, about trends shaping the real estate market, typical priorities among expat buyers, and Crestyl’s approach to creating prime living opportunities in Prague.
What do expats look for in a flat in Prague?
Expats often prioritize premium locations such as Prague 6 or 5, close to international schools, universities, and private kindergartens. Proximity to the airport is also crucial for them.
They value a safe environment with beautiful landscapes and extra amenities such as gyms, private gardens, and rooftop terraces. They also tend to look for closed-off projects with reception and security, emphasizing a holistic approach to property value.
Czech buyers, while appreciating these features, tend to focus mostly on the quality of interior finishes. They often look at the property itself, prioritizing the craftsmanship and materials used inside the home. Foreigners, on the other hand, consider many different aspects when choosing their home, from public transport accessibility, landscape and building design to the quality of the apartment itself.
What are your top tips for securing a great deal in an expensive market like Prague?
One of the best strategies is to invest in a property from a developer right at the beginning of the project, often referred to as "buying from paper."
This approach allows buyers to secure a property at a lower price before construction is completed. As the project progresses, the value of the property typically increases, providing a good return on investment by the time the apartment is ready for occupancy.
Many of our clients choose to buy early to secure the best possible deal. For instance, in the Hagibor project – building Kappa – we began presales in May, and 15 percent of the units have already sold before construction has even started. Our clients have the opportunity to select the apartment that best suits their needs, make custom modifications and save money in the process.
What basic checks should expats undertake before buying a home?
Expats should thoroughly research the developer's reputation, including past projects and the quality of their builds. At Crestyl, we offer clients the opportunity for a technical check-up before finalizing the purchase. Clients can bring their own technician to inspect the property and list any issues, ensuring that everything is addressed by the general contractor before the final contract and payment. This thorough inspection process helps maintain high standards and client satisfaction.
Do increasing numbers of expat homeowners change the character of the local area in cities like Prague?
Yes, expats significantly influence the character of local areas. They often take an active role in maintaining and improving public spaces and fostering a sense of community. Expats are prone to organize community gatherings and events, enhancing the social fabric of the neighborhood.
At Crestyl, we recognize the importance of community, as seen in our DOCK project, where we have a community manager dedicated to organizing cultural events and addressing residents' concerns. This focus on community helps create vibrant and inclusive living environments.
Are expat buyers pricing Czechs out of prime locations?
The pricing in Prague is primarily driven by location and the historical significance of the area, rather than the influx of foreign buyers. While expats contribute to the demand, the overall market dynamics are influenced by various factors, including the desirability of the location, the quality of amenities, and the connectivity to key areas of the city.
What benefits do expats get from buying a property through a developer such as Crestyl?
It is highly advantageous for expats to buy through established developers like Crestyl. Our sales team is fluent in English, and we provide translated contracts to ensure clarity and understanding.
Additionally, we offer a client portal with all relevant information in English, from the reservation contract to the end of the warranty period. This comprehensive support system helps expats navigate the buying process smoothly, overcoming language barriers and any procedural challenges.
Have interest rate changes affected your sales, and how do you expect demand to develop in future?
Despite increased interest rates, our projects continue to attract clients who see long-term value. While the market has slowed down, we offer flexible payment options and special interest rates for certain projects, such as a 3.59% interest rate for already finished buildings at the Hagibor development in collaboration with a cooperating bank. This approach helps clients manage their finances while securing their desired property.
We anticipate that interest in our high-quality developments will remain strong, driven by the demand for well-designed living spaces in prime locations.
How do you make sure that your developments are attractive for expats?
We ensure that our projects meet the highest standards in both interiors and exteriors. Each apartment layout is carefully designed with user experience in mind, featuring ample storage space, bathrooms with windows, and technical rooms for utilities. We prioritize large bedrooms and spacious living areas, as well as private outdoor spaces like gardens, balconies, or terraces.
These features, combined with high-quality public spaces and attention to detail, make our developments particularly attractive to expats seeking both comfort and convenience.
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