Brief summary of the situation in the real estate market
Dear clients and business partners,
the effects of the Covid-19 pandemic are being felt to a greater or lesser extent by all of us. Everyone is trying to deal with this situation as best they can. This is no different in the real estate market, whether in residential or commercial real estate.
Looking to the future, real estate investments are being reassessed more than ever before. In recent weeks, a large number of flats have been launched on the market, which were used by the owners for airbnb before the pandemic. Due to the acute need to rent these flats, flats in the center of Prague have become more affordable at the moment. The sale of residential real estate has not slowed down significantly and developers are not yet considering reducing prices. We recommend that you do not delay if you are considering buying a property.
We assume that after the overall situation calms down (and is already happening), the real estate market will start to gain momentum.
In the area of commercial leases, everything is based on long-term leases, so short-term fluctuations would not have to significantly affect the market. The most sensitive to current restrictions is, of course, the market for the lease of retail space, where a significant part of the premises is closed and some are already terminating leases.
In the office rental segment, it is still early for forecasts. Over time, changes can be expected in the way tenants will use office space in the future and whether the now widespread use of work from home with the support of modern technologies will have a more significant effect.
In the area of the investment market, the market remains active, although it may seem that some investors have chosen a wait-and-see strategy. We are convinced that this situation is only current and we can expect increased activity soon.
One of the positive news on the real estate market recently is that from 1.7. the pre-emption right to real estate is being adjusted. This change should facilitate the sale of real estate, especially housing units.
We asked the lawyer Mr. Mgr. Michal Bedrna from the law firm Bedrna and partners, with whom we have been cooperating for a long time, on a summary of important information in the residential and commercial sector:
On April 8, 2020, the Chamber of Deputies adopted several government bills, including laws that regulate the deferral of rent payments for apartments and commercial premises.
For the lease of flats and houses for living, the landlord may not prematurely terminate the lease due to the rent debt for the period from 12.3.2020 to 31.7.2020 until 31.12.2020, if the tenant did not pay due to restrictions arising from extraordinary measures in connection with epidemics. However, tenants will have to provide proof of this from the employment office. It is not yet clear how this will take place. The tenant will then have to pay the due rent by 31.12.2020.
The same applies to the lease of commercial space, only with different terms. The landlord may not prematurely terminate the lease due to the rent debt for the period from 12.3.2020 to 30.6.2020 until 30.6.2021, unless the tenant has not paid due to the restrictions resulting from extraordinary measures in connection with the epidemic. The tenant will then have to pay the due rent by 31.12.2020.
The reliefs certainly do not apply to service and energy charges.
It follows from the above that tenants in both categories are not entitled to rent rebates or rent waivers, but only to defer payment if they are able to prove that they have been affected by government measures. They are then also protected in terms of early termination of the lease. These laws have yet to be approved by the Senate and signed by the president.
Professionals, a real estate and consulting company, is of course ready to provide our services to both owners, landlords and buyers, tenants and investors. It is now important to take advantage of effective information sharing and to support the matching of supply and demand through professional firms such as Professionals and its long-term business partners.
We believe that currently positive information about the development of the pandemic will continue to come and we will all return to normal life soon.
Project Villas Břežany sold out!
In the unique development project, which grew up in the attractive location of Dolní Břežany, Prague-West, was sold the last house. Strategic location near the metropolis and at the same time in a quiet area, provides an excellent place for a relaxing family life with excellent transport links.
Plenty of privacy, nature, security and easy transport connections not only to the center of Prague are among the main benefits of this popular area.
The project offered a total of 40 low-energy family houses with a sophisticated interior design and modern appearance with total layout of 5 + KK and 7 + KK with double garage will satisfy even the most demanding clients with its originality.
Architecturally complex of semi-detached houses with sizes from 162 m ^ 2 to 240 m ^ 2, emphasizes the absolute privacy of the inhabitants and energy savings.
For the comfort of the inhabitants there is a kindergarten, elementary school built in Břežany and of course there are also medical facilities, sports facilities, stylish restaurants and cafes.
Thank you for your support in the past year and wishing you all the best for 2020.
Please note that our office will be closed from 23 December 2018– 27 December 2019.
Looking forward to cooperating with you in 2020!
Project Zelené Modřany starts to welcome its owners!
Sold houses of the Project Zelené Modřany, which offer nineteen new town houses, was hand over. Houses 4 + kk with garden situated in an attractive location right next to Modřanská rokle are ready to welcome their owners.
At present, the last modifications of the roads in the area of the houses are still in progress, but they do not prevent new owners from settling in their new homes.
Residential project u Rokytky launched its sale!
The Residence U Rokytky is a set of three residential townhouses, which will go up in Hrdlořezy - a quiet part of Prague. The project will fulfill all the ideas of modern living with respect for nature, which is dominated by the Rokytka River. Rezidence U Rokytky will also provide space for relaxation and countless possibilities for active spending of time.
Hrdlořezy is one of Prague districts, which is still keeping its rural character highlighted by romantic meanders of the Rokytka River. Nevertheless, its complex amenities are only a few meters from the project counting several shopping centers, schools and kindergartens, or metropolitan university.
The project will offer 68 apartments with a variety of layouts ranging from studio flat to a generous three-bedroom apartment, that everyone can choose from. All apartments on the first floor have spacious front gardens, all apartments on the upper floors are equipped with a terrace or balcony. In the southwest part of the property is a private playground.
Residence U Rokytky consists of three residential townhouses, all of them having shared underground floor with a sufficient number of parking spaces for their residents. The individual sections are then made up of two slants facing each other, the result of which is good insolation of all apartments. The apartments layouts are designed with the utmost care and respects all comfortable living requirements.
Prague residential market H1 2019 - overview
Real Estate and Consulting Company Professionals Ltd. informs about the state of the Prague residential market in H1 2019.
The total number of issued building permits in Prague reached 1,667 in the first half of 2019. According to the Hypoindex.cz the average mortgage interest rate was mostly decreasing in the first half of 2019 reaching 2.76 % in June 2019. Find more information in our report below.