The coronavirus pandemic brought the real estate market practically to a stop for several weeks, and real estate prices saw a stagnation or decline after a long period as a result. When looking at the medium-term horizon for the 2020–2021 period, however, we should not expect the value of real estate to decrease; in fact, we’re likely to witness an opposite effect. Emil Kasarda, the owner of the Luxent real estate agency which specializes in exclusive properties, explains why there a number of rational reasons for this.
This very segment of real estate is relatively specific, and it’s not being affected as severely by the crisis. “With exclusive real estate, the demand has long exceeded the supply. The best properties, the truly high-quality ones, will always find their buyers,” explains Emil Kasarda. Clients’ expectations, however, are becoming more complex. “Their attention is no longer focused exclusively on the property as such. They are becoming more concerned, for example, about the quality of the common areas, who their neighbors are, the quality of services in the area and how they are developing, and how stable the location is. And, of course, they place high demands on the brokers; not only do they ensure the purchase, but they also take care of possible property rentals and other additional services,” adds Luxent’s owner. His company offers a comprehensive system of services for purchases, sales, and even subsequent facility management.
Location, of course, is the decisive factor; to a large degree, it works as a guarantee against real estate decline, because the offer of high-quality real estate is limited. The stock market situation, which is now less stable, also plays a role in protecting the value of such properties from decline. Moreover, National Banks are trying to respond to the economic crisis by lowering key interest rates – reducing mortgages on the one hand, but at the same time causing lower bond yields, which are already reaching 1.25% for government bonds at a fixed yield. Real estate, on the other hand, offers a very stable interest rate on invested funds; for residential real estate it can be around 4% per year, and for commercial buildings around 6–9% depending on the type of real estate and their location. In terms of value for money, therefore, properties represent the surest choice.
Emil Kasarda, founder and owner of the company Luxent – Exclusive Properties
Not even in the middle real estate segment can prices be expected to decline. “Purchasing power may have decreased due to banks’ stricter demands on client creditworthiness, but in the Czech Republic, and especially in Prague, complicated construction proceedings are to blame for the long-term shortage of residential real estate,” describes Kasarda. In this segment, it is even more true that owners want to invest their money into a stable environment. Moreover, the government has recently approved the abolition of real estate acquisition tax, but tax deductions for mortgages will still be possible for all contracts closed before the end of 2021; this is a relatively crucial aspect for the middle segment.
It is likely that the extreme rise in property prices will actually halt, but the market will rather stabilize as a result, turning into gradual long-term growth. Prices are likely to fall in less attractive locations and worse-situated real estate, given that their value is already actually overvalued by 10 to 20%. This, though, is a phenomenon that was already well-known and predictable even previously; the coronavirus crisis will only speed up this entire process.
We have been observing increasing demands and caution among clients who are looking for a solid and strong partner to lead them through the entire transaction process when buying and selling real estate. “We have many years of experience and a deep knowledge of the real estate market as it relates to developers, commercial real estate, and the private residential property sector. Thanks to this, we’re very well aware of where the potential is and where it simply isn’t; or perhaps what the potential is and how to really develop it. We share this know-how when taking our clients’ interests into consideration. This is our strength and our sovereignty. At Luxent, we first listen, using the qualified knowledge of our team to solve your requirements. We read between the lines and respond to your real needs. The objective of our work is to bring you success, pleasure, and value in the long run. And real estate is one of the basic pillars of long-term investment,” concludes the owner of Luxent – an established company that guarantees your successful investment in real estate.
Life & style
16. 5. 2022
Are you dreaming of a new exclusive property near Prague, but at the same time close to nature? Now we have launched the sale of luxury houses in the second phase of the development project Březový háj, which is growing in the village of Předboj. It includes 4 original family villas of 6+kk and 7+kk with gardens, terraces and swimming pools - and their construction has already started! Despite the situation on the real estate market, where, among other things, prices are rising due to a shortage of building materials, interest in the project is huge. Of the sixteen houses in the first phase, only the last one is currently available for purchase. Their implementation will be completed at the turn of this spring and summer, and the entire project with the second phase should be completed in the summer of 2023.
9. 5. 2022
The steep rise in real estate prices, the rising cost of mortgages and the deterioration of their availability, inflation, the rise in prices of building materials and the shortage of building materials - this is the current situation on the real estate market. However, even this does not discourage those interested in luxury housing or a profitable investment. The demand for new flats, especially in Prague, still significantly exceeds the supply. The huge interest is also evidenced by the fact that in many development projects from our portfolio the last units remain to be purchased. In order to at least partially satisfy the "hunger" for luxury new buildings, work is in full swing. Let's take a closer look at the current developments!
15. 3. 2022
The interest in real estate, especially recreational ones, is still enormous. However, since the domestic supply is not able to cover it, Czechs are now turning their attention more and more abroad, for example to Slovakia. A development project called Marina Liptov, which comprises 33 modern apartments in layouts from 2+kk to 4+kk, is growing right next to the Slovak dam Liptovská Mara on the Váh River under the Tatra Mountains. They offer the possibility of active relaxation in their own facilities in a popular Slovak recreational location as well as the opportunity for a promising investment in an apartment. The project should be completed by the end of next year. Our Luxent - Exclusive Properties office has become the exclusive partner for their sale in the Czech Republic - let's take a closer look now!
19. 1. 2022
Winters are relatively mild in our area, but if you have a warm heart, you may miss the sunshine during the cold months. And if you experience these feelings every winter, you might want to consider investing in an apartment in a warm climate. Find out what's trending right now and which luxury properties abroad you can choose from in this article!
12. 1. 2022
Do you want to go skiing or cross-country skiing? Wondering where to spend your spring break with family or friends? Get yourself a holiday property in the mountains! You will see that you can choose from our range of exclusive properties in renowned domestic resorts in no time.
3. 1. 2022
It can already be said with certainty that 2021 will go down in mortgage history as a record year - whether in terms of the volume of mortgages arranged due to huge interest or above-standard interest rate increases. We will now take a closer look at the various factors that have shaped the mortgage market in recent months and will also be reflected in the period ahead.
28. 12. 2021
The luxury segment, comprising unusual properties in prestigious locations, forms a distinctive part of the residential market. And it has its own special requirements. Properties that are the focus of our real estate agency Luxent - Exclusive Properties require professional brokers with perfect knowledge of the specifics of this market. They will now take you on an excursion into the world of exclusive real estate with a few selected, untouched gems!
2. 12. 2021
The jewel of our real estate agency Luxent - Exclusive Properties' portfolio are two building plots with building permits for luxury house development projects - Nad Šáreckým údolím in Prague 6 and Zahrada snů in Prague 8. The common feature of the buildings is the emphasis on the highest quality materials and equipment, the pursuit of maximum energy efficiency and also a sensitive setting in the space that honours the genius loci. You can start building your home as soon as you purchase the land. You'll also appreciate the fact that both have now seen a significant price adjustment!
10. 11. 2021
In the popular Krkonoše resort of Harrachov, an intimate project Harrachov Peaks is growing, which includes 16 unique units, including three exclusive penthouse duplexes. Our real estate agency Luxent - Exclusive Properties has launched an exclusive sale of luxury apartments with layouts from 1+kk to 4+kk. But don't hesitate for long, the huge demand for holiday properties is definitely not going to subside! Mountain residential house offers the possibility of a second home in nature and at the same time an investment opportunity. The project is scheduled for completion in December next year, and you can look forward to the handover of the units in January 2023.
8. 9. 2021
In an attractive location of Prague 5, on the border of Smíchov and Radlice, directly below Dívčí hrady, construction of an original and timeless development project - the Garden Lofts residence in industrial style has started. The building includes 22 luxury apartments with terraces, balconies or front gardens. They are now exclusively for sale by our real estate agency Luxent - Exclusive Properties. The project will be completed in the spring of 2023. The construction is being carried out by the renowned construction company Swietelsky.