Czech Mountain Properties See Sustained Investment Despite Pandemic Boom Slowdown
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Demand for recreational properties in the Czech mountains remains strong, driven by long-term investment strategies and a desire for personal retreats, even as market growth moderates.
The Czech Republic’s mountain real estate market experienced a significant surge in interest during the COVID-19 pandemic, a trend that has proven surprisingly resilient. Unlike recreational properties in other parts of the country, demand has not waned as pandemic restrictions eased. For many, these properties represent a strategic financial move alongside a valuable lifestyle asset.
A Diversified Investment Strategy
“For many buyers, this is a way to save capital in the long term, diversify the portfolio and at the same time have a place where they can go with family or friends at any time,” stated a senior official at Knight Frank consulting company. This dual appeal – financial security and personal enjoyment – is fueling continued investment. The market caters to a range of buyers, with particular interest in smaller apartments within established resorts and traditional cottages or guesthouses in smaller villages. A notable trend involves purchasing properties in need of renovation, with buyers anticipating increased value through improvements.
Affordability Fuels Demand
Acquiring a mountain property remains a more accessible investment compared to purchasing an apartment in Prague. Data from RE/MAX indicates that the average cost of a recreational object in the mountains during the first nine months of the current year was approximately three million Czech crowns – a 15% increase year-over-year. This price point, coupled with the potential for appreciation, is attracting a diverse pool of investors.
The attractiveness of this investment is underscored by recent price trends. A real estate broker specializing in the north of Bohemia noted that the price per square meter has more than doubled since 2020, rising from roughly 50,000 crowns to over 100,000 crowns. In Boží Dar, the average price of apartments reached 130,000 crowns per square meter this year.
Špindlerův Mlýn, located in the Krkonoše mountains, consistently ranks as the most expensive resort. Knight Frank reports current prices ranging from 250,000 to 260,000 crowns per square meter, with some premium projects exceeding 300,000 crowns per square meter. “Špindlerův Mlýn confirms its role as a premium location,” a Knight Frank representative confirmed. Other popular locations include the Beskydy, Jeseníky, Ore Mountains, and Šumava regions.
Market Slowdown and Buyer Caution
However, prospective investors should anticipate a period of slower price growth in the coming years. Brokers are already observing a market slowdown, with opportunities for negotiation emerging in some areas. This is partially attributed to sellers initially overestimating property values.
The limited supply, particularly in sought-after locations, is also influencing buyer behavior. Potential purchasers are exercising increased caution, carefully evaluating the technical condition of buildings and associated operating costs.
Future Growth and Investment
Despite the cooling trend, the long-term outlook for the Czech mountain real estate market remains positive. New development projects are underway in numerous locations, promising to attract increased tourism and further enhance the appeal of these regions.
Significant investment is also coming from major players in the real estate sector. Investment group Penta is preparing a large-scale project in Špindlerův Mlýn, while developer Trigema is investing in the modernization of the Rokytnice ski resort and the Samoty resort in Šumava. These developments signal continued confidence in the potential of the Czech mountains as both a recreational destination and a sound investment opportunity.
