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Residence Prokopova, Prague, Czech Republic
Summary
Update: now with 10/90 payment terms
Residence Prokopova is a very high quality development in a great growth location - Zizkov,
Prague 3 - just five minutes from the city centre.
The area is right next door to the highly desirable Vinohrady - and yet is the same distance from the city centre and
has similar quality housing stock - hence has natural growth potential - the area is primed to take off.
• Excellent value (v.high quality design at an affordable price)
• Prague market showing 20% per annum growth
• Very high standard development in a growth area
• Designed by award winning architects
• Great transport links (next to bus and tram)
• Metro station to be built in the future - just across the road!
• 15/85 payment terms (compared to 30/30/20/20 as standard)
• Best mortgage finance in Central & Eastern Europe
“I fully believe in the potential of this area of Prague. In fact, just six months ago I purchased an apartment just 200m from Residence Prokopova. It’s a great growth area not far from the city centre which is only going to get better as the future metro gets built.” Simon Tweddle.
This development has outstanding design and quality situated in a great growth location with excellent terms and prices.
It is a great investment opportunity.
Download:
Investment Report
and
Price Spreadsheet.
Market Analysis
The Prague property market is increasing on average at 20% per annum currently and the continued strong fundamentals of the economy mean that good growth is expected to continue for the foreseeable future.
It is our opinion that high end properties are currently undervalued compared to the rest of the market (esp when compared to other mature property markets). This end of the market has not grown as much as the lower end recently and is now well positioned (undervalued) for substantial growth. Hence we see this as a safe low risk bet for strong future growth.
The Czech Republic has one of the high growth rates of millionaires in the world currently and a number of Swiss and Austrian private banks have set up branches in Prague to cater for their needs.
Furthermore, expected changes to the income tax rate (down to 15% flat rate) will see the more wealthy in the society have an even high disposable income than currently, inevitably some of this money will find its way into the property market.
Some quick facts/reasons why investing in Prague really adds up:
- continued economic success is pumping huge amounts of money into people’s pockets
- low risk blue chip location
- very low property buying costs
- great mortgage finance
- lowest base rates in Europe (along with Switzerland)
- 90-100% LTV available
- best and most established rental market in CEE
- healthy capital growth rates of 20% per annum
Rents:
Given the high quality design & build and the great location we expect this development to rent very well. Furthermore, deregulation of regulated tenancies and area regeneration are currently pushing up rents substantially in the area.
The development has been designed with rental in mind with good efficient use of space and sizing. In the future, once the new metro station is completed, such a location will undoubtedly rent at a premium.
Looking at current comparable rental prices in the area we predict that a typical unit will rent at between 300-350 CZK/sqm/mth, with parking spaces renting at 3,000 – 3,500 CZK/mth.
This gives typical yields of around 4.5-6.0% (unit dependent).
Property Investment International has a full rental program in place to take care of the
Letting & Management aspects of your property.
Prices
| Prices |
3,500,000 – 18,000,000 CZK
£134,000 - £540,000
|
| Payment terms |
100,000 CZK reservation fee
10% deposit (minus reservation fee)
90% completion
NB: developers standard terms are 30/30/20/20
|
| Discount | Contact us for details |
| Finders Fee | nil |
| Legal Fees | 30,940 CZK (inc VAT) per unit |
Please down the price spreadsheet for full price details.
Price Comparisons:
Prices range from 70-90,000 CZK/sqm, which is a typical price for the area, but not a typical price for this kind of high standard that will be built in Residence Prokopova.
Perhaps the nearest comparison in terms of quality is Central Park Praha – prices here range from 75-130,000 CZK/sqm. Although Central Park Praha is situated on a park the overall location is inferior to Residence Prokopova. Furthermore, the quality and design of Residence Prokopova will be that bit more special.
We have further negotiated a special discount off the list price.
Furthermore, the payment terms we have agreed for our investors are 10/90 – this compares extremely well with the developer’s standard terms (that everyone else pays) which are 30/30/20/20.
The payment terms and discount saves investors a considerable amount of money
Development
Residence Prokopova will be comprised of 1 seven storey building split into 3 wings, each wing having its own entrance.
There will be 74 apartments built in total – hence the risk of rental & resale market oversupply is naturally minimized.
All apartments will have balconies or private gardens.
Apartments on the top floor will have huge roof terraces with amazing views to Prague castle and the city sky line.
The main entrance is located on the street side and the other 2 in the internal court, surrounded by a green area mostly consisting of private gardens.
There will be a uniquely designed reception area for all the buildings – that demonstrates the standard of the building as soon as you walk in.
This will be a gated development and have 24 hour security.
In the ground floor will be 2 commercial spaces that are designed for a bar – restaurant and a laundry.
There will be an underground garage on 2 floors with a capacity for 89 cars with special places for disabled people included.
Purchase of parking is compulsory on this development and is very important both from a rental and resale perspective with the ever increasing number of Czech’s owning a car.
Kitchens are not included and can be arranged nearer the time of completion, current estimates indicate that one should budget 6,000 – 10,000 euros for a good quality kitchen. Property Investment International has a full program available for the sourcing, design and installation of kitchens at a very competitive price.
The developer is of Italian origin and has done many successful projects in Prague.
The developer takes great care and attention in order to deliver a building of a superior standard to what is common on the market.
Project philosophy
The concept for Residence Prokopova is to design a modern residential building at a higher standard than available on the market and to sell the apartments at a very competitive price.
In designing the project the developer hired architectural firm called “MIMOLIMIT“ owned by the Arch. Barbora Škorpilová, famous in Prague for her modern design and author of the most distinguished hotel, restaurants and bars of the Czech capital.
With the help of the designers the developer has managed to create a project of a standard seldom found in Prague. The standard of finish in the apartments and common spaces will be impressive to say the least.
Some finer points of the design include:
- floor to ceiling glass in the windows of the apartments, giving great views and light to the apartments
- specially designed door handles – called “Prokopova”
- reinforced basement – able to withstand the requirements of the future metro station
- unique material used on the outside of the building to give it the “wow factor” look (and makes it looks like there a 4 separate buildings, to fit in with the surrounding 19th century buildings)
- a range of high quality materials from floors, to tiles, to bathrooms have been used throughout
As is common in unique projects in order to achieve 20% above a standard high quality design the developer has had to spend twice the amount money.
The Italian developer puts his name proudly on his projects and as such you can be sure the quality will be first class.
Mortgages
The Czech Republic has the best (and easiest to obtain) finance available in the whole of Central and Eastern Europe, as well as the lowest base rates in Europe (alongside Switzerland).
| Term | Rate |
| LTV | 100% max
80-90% typical |
| Interest Rate | 5 – 5.5% |
| Term | Up to 30 years |
Refinance and non-status mortgages are also available (subject to status) in the Czech Republic.
Interest only mortgages are not currently available in the Czech Republic.
The finance market for foreigners in the Czech Republic is developing all the time and thus refinancing at a high price in the future should be relatively straight forward.
Please contact us for a quick and easy mortgage quote.
Rentals
Given the high quality design & build and the great location we expect this development to rent very well. Furthermore, deregulation of regulated tenancies and area regeneration are currently pushing up rents substantially in the area.
The development has been designed with rental in mind with good efficient use of space and sizing. In the future, once the new metro station is completed, such a location will undoubtedly rent at a premium.
Looking at current comparable rental prices in the area we predict that a typical unit will rent at between 300-350 CZK/sqm/mth, with parking spaces renting at 3,000 – 3,500 CZK/mth.
This gives typical yields of around 4.5-6.0% (unit dependent).
Property Investment International has a full rental program in place to take care of the
Letting & Management aspects of your property.
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