International Property News

Housing for seniors attracting developers

11th December 2008

Developers are planning a new housing complex for seniors in Prague. Real Estate Karlín Group (REKG) will build an 11-storey building near the Hotel Olympic in Karlín with the somewhat surprising name Kindergarten. Aside from about 150 flats for seniors, doctor's offices, cafes and libraries, there will also be a children's centre.

"There used to be a kindergarten on the property. When we requested zoning changes, we offered to open a new kindergarten on the ground floor," said REKG partner Milorad Miškovic.

The company, which is the biggest developer in Karlín, is expanding its portfolio thanks to the services offered in the area. "Karlín needs to keep up its development pace. We have offices here, shops, luxury flats, but not this type of housing yet," Miškovic told E15. The company has not decided yet how high the rents in Kindergarten will be. "Depending on the development on the market, we will decide whether to build regular or above-standard flats," he added.

Satpo has similar plans for senior housing as part of its luxury residential project Sacre Coeur II in Smíchov. One of its projects will include 64 flats for seniors. And in Prague 5, near the Nad Kavalírkou high school, the investment company Newton Management plans to build a six-storey house for seniors. It will contain an extensive wellness centre and an indoor pool.

The pioneers in residential housing for seniors in the Czech Republic tend to be companies that focus on high-end projects. The company Acred Group, for example, operates Residence Classic in Pruhonice near Prague, where the rent is CZK 42,000 a month or more. The rent for a penthouse on the top floor, which includes basic services and one meal a day, is CZK 105,000 a month. Gradually, more affordable options are also beginning to appear across the country. Even after energy bills and the cost of services have been factored in, the monthly rent can be around CZK 12,000.

The company Senior Park has the biggest plans. "We opened a residence in Luštenice near Mladá Boleslav in January. Only one of the 22 flats remains unoccupied," said Michaela Kremlová of Senior Park. "We are accepting reservations for other projects in Sokolec u Podebrad and in Hrádek nad Nisou," she added. A company called Promoveo will begin building a complex for 96 seniors in Stráž pod Ralskem at the beginning of next year. "We already have reservations for 85 flats," said the company's agent Karla Kohoutová.

Ledax, a public benefit company geared toward helping seniors, also wants to enter the development market. By 2015 it wants to complete seven high-end residences for seniors, and it is also planning to build flats that would function as something between a residence and a traditional seniors' home.

"Housing for seniors is a sector of the Czech market that began developing late and at a not particularly favourable time. We will have to wait for a golden era because development now has been hampered by falling consumer demand," said Jirí Fajkus, director of the real estate company Real Spektrum.

Source: Prague Monitor