Looking back on 2020 will forever be associated with a coronavirus pandemic. How did it affect the exclusive real estate market? Not significantly. The supply-demand ratio is balanced in the case of the luxury segment, this situation is stable and persists despite the epidemic. On the other hand, from the investor's point of view, ordinary real estate is often not about specific houses or villas, but rather about a commodity, so it is easier to create an overpressure of demand oversupply. This is confirmed by the real estate agency Luxent – Exclusive Properties, specializing in the sale and purchase of the luxury real estate, which traded many premium properties last year.
„There is naturally less overall supply for luxury real estate and there are also fewer relevant buyers. However, they are absolutely clear in their requirements and have high demands. The probability that their interest will meet with the specific real estate offered under the given business conditions is therefore relatively low. One of the consequences is, for example, a longer sale time,“ explains Jiří Kučera, director of the Luxent – Exclusive Properties real estate agency, adding: „This has not changed in the last year either. The crisis as such has not yet manifested itself and it is only possible to speculate whether and when and to what extent it will also affect the luxury segment. However, we assume that if there are any changes in the premium real estate market, it will not be a fundamental change.“
Last year, interest in rentals grew considerably, as people often could not afford to buy an apartment in Prague due to the high prices of ordinary real estate. According to Jiří Kučera, a similar development can be expected in the coming months: “We have to wait for the situation at the end of spring to the beginning of summer when a substantial part of the concluded short-term annual leases ends. It depends on the expectations of the owners or tenants who sublet the apartment, regarding the return of tourists. Also, if they are burdened by credit, in the event of a negative outlook, it can be assumed that they will have to get rid of real estate or leases.” However, the crisis may affect the middle class. If the owners of luxury apartments or houses decide to sell them, it is usually based on long-term consideration and plan, as they are not so sensitive to changes in the economic situation.
The exclusive real estate segment is hardly affected by the development of the mortgage market, as a mortgage is not usually a condition for purchase. The decline in interest rates, which continues at the beginning of this year and which has a significant impact on the high demand for ordinary real estate, is not very pronounced for the luxury ones.
On the contrary, what is the same for both segments is that, under the influence of a pandemic and limited travel, interest in houses with a garden or recreational real estate is increasing. People now want housing that allows them to work and study for children in the home office mode, comfortable space for long-term spending of the whole family, and the possibility of staying in nature, whether in their garden or nearby. The demand for such real estate is therefore very significant and will not just disappear. Also, people who often went to more expensive exotic foreign destinations on holiday and now cannot, are increasingly buying their own luxury holiday homes in the Czech Republic with the comfort they are used to during their holidays abroad. At the same time, there is a growing interest in streamlining investments in recreational real estate by renting them at a time when the investor does not need them for himself.
There has been a long-term interest in investing in real estate, both in absolute and relative terms concerning purchases for own use. For investors, real estate is usually the first choice (about long-term good experience, appreciation, security, etc.), and so in terms of diversifying the risk of the investment portfolio, they play an irreplaceable role. Of course, the most in-demand are ordinary apartments available 2+kt with excellent transport accessibility (for example, near a metro station). But investment in luxury real estate is also growing. Hand in hand with this interest, the offer of investment instruments is also expanding, for example in the form of real estate funds. The real estate agency Luxent is also preparing to launch the fund soon to enable those interested to invest in high-quality premium real estate.
Naturally, Prague and its immediate surroundings generate the largest movement in the exclusive real estate market, partly due to their relatively larger share compared to the rest of the country and partly due to the concentration of qualified buyers. On the contrary, the demand for luxury second-hand housing is, of course, situated outside the metropolis in attractive recreational areas. The interest in houses outside Prague is also proved by the sales of the company from Luxent in recent months. "Before Christmas, we launched the sale of Residence Nad Černými lesy in the district of Prague-East, and at the end of January, we had 60% of the capacity reserved or sold. Before that, we sold out 90% of family semi-detached houses in the Klecany Houses project near the main one in half a year the city, which we consider to be absolutely above standard. We are also registering huge interest in MOLO Lipno Resort, one of the most exclusive recreational housing projects on the Czech market. Part of our current offer also includes historic real estate, which is exceptional – we have just sold the Jistebnice chateau and the Prčice estate (in the reservation), "says the owner of the Luxent real estate agency – Exclusive Properties Emil Kasarda.
Life & style
4. 7. 2023
One of the evergreen summer holidays of Czechs is definitely Croatia. Not only the beautiful beaches and natural scenery, but also the cultural and linguistic proximity and good driving distance play an important role in this. However, this picturesque country, known for its rich history, has recently attracted visitors not only for holidays but also for real estate investments. Due to the increasing demand, you will also find luxury apartments, houses and houses in Croatia in our portfolio. Plus, we'll add plenty of tips on where to go in your new second home by the sea.
28. 6. 2023
Don't know how to protect your money from ever-high inflation? Invest in real estate! In the world of real estate, a wide range of investment opportunities are open to you - from cosy mountain apartments that come alive with the light of fireplaces in winter, to majestic hotels that are the crown of urban luxury, to castles, silent witnesses of bygone ages that still hold their refinement and charm. You can also venture beyond the borders, where you will discover exclusive properties in exotic destinations that entice with their fresh atmosphere and the prospect of new markets.
1. 11. 2022
In a renovated apartment building in Prague 8, an intimate project consisting of five duplex apartments of up to 233 m2 was created, in which elements of the historic roof were preserved. The units are completed and ready to move in. Their exclusive sale is handled by our real estate agency Luxent - Exclusive Properties.
17. 10. 2022
The chamber project Lofty Anděl includes three exclusive apartments ranging from 104 to 138 m2. They are located on the fifth floor of a renovated corner building in Prague 5 and are in loft style. The original design of each of them reflects a different design - industrial, art deco or minimalist. They can become your new home at the end of this year. The sale of luxury apartments is exclusively handled by our real estate agency Luxent - Exclusive Properties.
6. 10. 2022
The development project Rezidence Nad Černými lesy, located 30 km from Prague in Kostelec nad Černými lesy, offers 32 design apartments for sale. Exclusive sale of apartments with terrace, balcony or front garden is offered by real estate agency Luxent - Exclusive Properties.
30. 6. 2022
The interest in holiday properties in the country is not waning. However, their supply is completely insufficient after almost two years of boom. This, together with the rising price of building materials and labour, is reflected in their high prices. The new project Apartments Albeřice with 11 design units, which is growing in the mountain village of Horní Maršov - Dolní Albeřice in the Krkonoše Mountains, should help to satisfy the enormous demand. The exclusive sale of luxury apartments has now been launched by our real estate agency Luxent - Exclusive Properties! The construction of the low-rise building is expected to start towards the end of this year, with completion planned for the 4th quarter of next year.
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!