The steep rise in real estate prices, the rising cost of mortgages and the deterioration of their availability, inflation, the rise in prices of building materials and the shortage of building materials - this is the current situation on the real estate market. However, even this does not discourage those interested in luxury housing or a profitable investment. The demand for new flats, especially in Prague, still significantly exceeds the supply. The huge interest is also evidenced by the fact that in many development projects from our portfolio the last units remain to be purchased. In order to at least partially satisfy the "hunger" for luxury new buildings, work is in full swing. Let's take a closer look at the current developments!
The factors influencing development construction are the same today as they were a few years ago, but their parameters are changing compared to the past and it is more difficult to predict their future development. The economic situation is changing fundamentally - the price of money is rising and its availability is becoming more limited. Unfortunately, the economic situation as such is worsening, and so we can expect a reduction in future demand for real estate. Selling prices are also likely to be affected by the way the market deals with properties where the owners will not be able to meet their mortgage repayments. The really big nut to crack is the forecast for construction companies' supplier prices, with the Russian invasion of Ukraine having disrupted supply chains for raw materials and construction products. An even bigger unknown is the ability of construction companies to secure labour.
"There is still great interest in new luxury flats in Prague, but the spectrum of those interested is changing. The number of investors is growing, both professional and those who have decided to purchase property as the most feasible option for them to protect their funds at least partially from inflationary depreciation. Each apartment is even more carefully assessed from the point of view of a particular buyer," explains Jiří Kučera, director of our real estate agency Luxent - Exclusive Properties, and adds: "And even if priorities change, one of them will undoubtedly remain the provision of housing - but this is happening in a situation where the existing market has failed to meet demand for a desperately long time. There are no quick and fundamental solutions available - and it is questionable whether we as a country are capable of any at all. This means that, on the demand side, there will still be a huge number of people who would like to buy property but, due to objective problems, will not be able to. On the supply side, many developers will then come under enormous pressure from rising resource prices (including the cost of money), scarcity and the inflexibility of the permitting process. Thus, with the exception of rare cases, they will simply not be able to go down in price. All sellers, without exception, will have to work much harder to get the attention of a solvent client - and try to convince such a client with a quality offer and impeccable service."
Are you tempted to invest in a home or are you looking for a new dream home? Here's a recap of our current projects and hot news from their construction and sales!
The Garden Lofts residential project in the quiet green area of Prague 5 has moved into the next phase, where 22 industrial-style apartments with layouts ranging from 1+kk to 5+kk with terraces, front gardens and balconies are being built. Currently, the rough construction is being finalized and demanding garden landscaping has started.
The concept of this residence goes beyond the conventional view of ordinary luxury and will appeal to even the most demanding. The development project is suitable for individual and family housing as well as for investment projects. With the apartments, the owners get an exceptional property and with it a space for a healthy life in peace and greenery.
The developer's intention was to create an exceptional project in this newly discovered location, based on both the interesting micro-location on the edge of the green zone with excellent accessibility to the city centre and the great advantage of the spacious terraced plot with mature greenery that belongs to the project. Industrial touch, originality and novelty are the calling card of the Garden Lofts project - only about a third of the apartments are available for purchase now!
The last remaining design apartment in the Pod Rybníčkem Residence is a 3+kk apartment with a living area of 92.75 m2 and a spacious terrace of over 68 m2. The above-standard materials used from Czech manufacturers were chosen to represent timeless elegance, while the emphasis was also placed on their high quality. Turn it into your new home in the city while surrounded by nature!
Soon we will also sell out the first phase of the Březový háj project, where the last luxury house remains. The family villa for sale has a total usable area of over 239 m2, of which the terrace area is 23.3 m2 and the loggia 11.7 m2. The house has a carport for two cars and an outdoor one for two more. You will also appreciate the 986 m2 plot, which directly invites to pleasant sitting areas.
Even the supply of holiday properties is far from matching demand, and has been for a long time. "This fact was clearly confirmed with the start of the covid pandemic and continues. There are very few opportunities to buy in the most well-known and sought-after locations. And the trend of spending leisure time in the country is definitely not going to go down," says Jiří Kučera.
A second home in an attractive location surrounded by Šumava nature, right on the shores of Lake Lipno, can be found, for example, in the Molo Lipno Resort project. All 87 exclusive apartments and penthouses are now newly approved! This also applies to roads and utilities, including public lighting. At the same time, the restaurant has been completed and the interiors are now being furnished.
As new residents, you will be able to fully enjoy the services of a five-star hotel with a premium spa and wellness centre, a restaurant with international cuisine, bars, concierge services and a private beach club. If you are an exercise enthusiast, sports equipment can be rented. A promenade with shops and cafes will run between the hotel and the luxury apartments, continuing to the cycle path. The resort will be dominated by a manicured garden and an iconic 150-metre long wooden pier with a heated pool and filtered water.
If you want to enjoy your holiday in the heart of Šumava in all seasons, don't hesitate - the last units are still available here!
Work continues in full swing in the popular Krkonoše resort of Harrachov, where the Harrachov Peaks project is growing. Vertical structures in the first underground floor have been completed, while work has begun on the ceiling reinforcements. These will soon be moved one floor higher - to the construction of the first floor above ground.
The new intimate Harrachov Peaks project comprises 16 luxury apartments, including three penthouse duplexes. The concept of the project will satisfy both those interested in second or permanent family housing in the Krkonoše Mountains, as well as investors with the intention to use the apartment partially and provide it for lucrative short-term rentals in the remaining time. The luxury residence will not only expand the supply, which has long lagged behind demand in the locality, but thanks to its design and high standard of amenities, including a private fitness and wellness area, it will rank among the Krkonoše's top properties - and this will naturally be reflected in the yield dynamics.
Are you interested in any of these luxury properties? Or would you like to see the pearls from our portfolio? Do not hesitate to contact us by phone or e-mail or stop by our luxury office in Prague at Pařížská 28 - we will be happy to show you, for example, exclusive properties in Prague or other locations over a good coffee or tea.
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