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  • The Prague real estate market

The market in luxury properties in the Czech Republic is firmly established, but its closed nature and the discreteness of the ongoing transactions leaves room for a number of questions. There is only a limited quantity of genuinely luxury buildings in this country. Most of them are concentrated in the historical centre of Prague and several areas of the capital’s wider centre.

The highest segment has many forms. From historical buildings with a unique history to new, exceptional projects designed by leading architects. But they have one thing in common. Emphasis on top quality in all respects. The location, space, fittings and services have to reach the highest global standard.

Location without Compromises

A luxury location must offer clients an exceptional experience. An ideal property has a view of Prague Castle, the Vltava and also green space. A place’s history has a marked value. If an address became well-known thanks to a famous person or historical event, its attractiveness rises. The most prestigious addresses include Malá Strana, Staré Město, Josefov, Nerudova ulice, Ke Hradu and other well-known locations. Outside the historical centre, Bubeneč, part of Vinohrady, Janáčkovo nábřeží and now also related parts of the wider centre. For some clients houses on the edge of the city or close to it are attractive.

Space and Absolute Comfort

The most important thing after location is space. Whereas the internal layout is subject to an individual client’s taste, emphasis on the generosity of design is very common. In the most valuable properties a two-room apartment with an area of 250 m2 fully adapted to the lifestyle of an unmarried couple is no exception. The internal layout can then fully reflect the owner’s lifestyle.

Graceful, Made-to-Measure Fittings

Quality and nobility have to go through a whole interior and exterior of a building. In the Czech environment opulent palaces may not be the first choice. Attention is attracted by inventive new projects or tastefully modernised burgher’s and historical houses. Whereas a building’s exterior can intentionally have an unobtrusive appearance, at first glance an interior should attract attention through offering the best possible and transform everyday living into an experience. The trend is to use high-grade natural materials, such as stone, wood, glass or aluminium. Materials from all parts of the world find their way to Prague and it’s no exception that architects work on an interior project for more than a year. The aim is the best available..

In the position of a developer it is ideal to tune to perfection the exterior of a building and the common space, the actual units in some cases should be left incomplete in shell & core state or completed in accordance with a specific client’s instructions. It is not possible to create an interior that will suit both a family with children, clients using housing only seasonally or a diplomat used to holding regular social events. Apartments’ attractiveness is increased by the presence of underground parking and a number of developers therefore adapt buildings in historical neighbourhoods. On the contrary, smart homes can be an overestimated element. Men, in particular, appreciate smart gadgets. A significant number of clients, however, are not crazy about these services as a priority and regard them as surplus, because comfort is provided by their own staff.

Services and Privacy

Services of the highest available standard are included in other necessary attributes. The requirements are various, a number of properties provide space for staff. A concierge could be an important service in a building and do everything a client needs, including complete care for his cars. Whereas not many luxury units are being added, one very valuable thing is more and more under threat. Privacy. And privacy must guard not only a property itself, but also all other people linked to a transaction or management. Protection from the curious can never be too strong, the same as individual requirements for security. CCTV systems and reception desks ensuring the premises are not visited by anyone unauthorised are a matter of course.

High Demands on Estate Agents

The role of a successful estate agent is primarily the successful completion of a transaction and bilateral satisfaction. What is fundamental is obtaining and maintaining extraordinary trust, because an intended transaction often runs into the tens of millions of koruna. It also applies that, the same as the properties on offer are exceptional, both their owners and buyers are exceptional. The necessary abilities of an estate agent include excellent knowledge of the market linked to high legal awareness and an ability to engage in diplomatic activities. The positions are often more complicated when both parties act through middlemen.

Clients and the Market

The price is individual, the same as the properties on offer. Whereas for the medium and premium segment price maps work relatively reliably, luxury is hard to put into tables. The typical purchase price touches the limit of CZK 200,000/m2, for exceptional buildings CZK 300,000/m2. It is hard to look for precise rules. The only solid measure is the seller’s opinion and the buyer’s opinion. The motivations and interests of buyers are different. A number of them see a purchase as an investment opportunity, storing free money. For many, however, a purchase is a lifestyle boost, fulfilling a wish. The overall course of a transaction is also influenced by the current situation of the interested parties, in particular pressure on the speed of concluding a transaction.

An overview of the market and prices depends on the experience of estate agent teams. Public offers are very limited and exceptional properties look for their buyers through personal links and recommendations. Letting a luxury home be seen by dozens of potential buyers could mean falling a class lower, to the markedly wider premium segment. And the lay public often confuses these two segments. The competition for luxury Czech properties is not the Czech market, but locations of the same standard in global metropolises. Any comparison with the rest of the local market could lead to incorrect conclusions.

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