After years of growth, the real estate market in the Czech capital has seen a slow but steady decline, with decreasing prices and many more new listings having turned Prague property into a buyer’s market. One factor behind the change is waning interest from foreigners to invest into real estate in the Czech capital. However, some parts of Prague have become more attractive for Czechs and foreigners alike, while others remain popular primarily with foreign clients.
In Business News this week: The Czech Ministry of Finance cuts its growth outlook for the year to almost zero; fresh figures show 7.2 percent of Czechs were jobless in Q4 2012; passenger numbers and flights were down at Prague airport last year; spas report a halving of business in just three months; and experts say luxury flats in Prague have maintained their value.
Hotel Praha in Prague 6 is due to be knocked down to make way for luxury apartments, the news website ihned.cz reported. The company that has bought the five-star facility, Maraflex, said the hotel had been constructed in such a grand style under the Communist regime that it was not economically viable to run it today. Its employees have already been let go. The hotel is where the Czech national soccer team usually stay when they are in Prague.
As Czechs went to the polls at the weekend, some had more choices to make than just choosing the next president. In seven places around the country, people also took part in local referenda, voting mostly on issues concerning public property. In the district of Prague 7 the referendum was meant to decide on how the town hall should go about putting up a new administrative building for the district. With more than 40% participation, an overwhelming majority rejected a plan to build a new administrative building for the district which many consider
In Business News this week: Czech real wages continue to fall; few Czechs plan to join a new pension system; Qatar Airways and Korean Air are interested in acquiring Czech Airlines; apartment prices expected to decrease next year; Czech spas going through hard times, and Czech architects win competition to build monument to victims of slavery in Senegal.
The city of Plzeň is perhaps best known for its iconic beer – the famous gates at the entrance to the brewery are the city’s best-known landmark. But less than a kilometre away work has begun on another, rather more controversial building. Developers want to build a gigantic shopping centre in the city centre, and opponents are campaigning for a local referendum to stop it.
With the fall of communism, it was not long before foreign investors began taking an interest in Czechoslovakia. This ranged from huge industrial multinationals to young college graduates, who arrived in Prague with backpacks in the early 1990s, and happened to spot a business opportunity. Many burned their fingers; some made a quick buck and disappeared, and others settled down and stayed here for good. In 1991, Radio Prague interviewed a few of these pioneering investors.
In this week’s business news: The Czech national debt has risen by almost 10 percent in the first half of 2012; Real estate prices are dropping for the second quarter this year, while land prices are on the rise; Škoda Auto will introduce a new Fabia specifically for the Indian consumer; Fuel prices are breaking record highs again this week; a number of operational programmes in the Czech Republic will not get the EU funds they were counting on.
The market prices of apartments continued to drop in the second quarter of 2012, according to figures by the Czech Statistical Office released on Thursday. The prices of older flats decreased by 5.7 percent while the prices of new apartments in Prague fell by 3.4 percent. Analysts say the continuing decrease in apartment prices is related to the construction of new housing projects.
On Tuesday this week Prague’s Národní třída metro station –one of the busiest in the city centre –closed its doors to the public for two long years. The closure is due to a large developer’s project in the close vicinity of the station where work has already started on a four-storey administrative and shopping centre.