Luxent - Exclusive Properties offers comprehensive services in the field of luxury real estate. To work in such a specific market, our real estate brokers require, in addition to years of experience, excellent knowledge of the real estate segment, top know-how in marketing and sales support, as well as professionalism and superior client care. An exceptional example is Zdeněk Jemelík, who specialises primarily in the sale of residential properties and development projects and also provides advice on investment acquisitions and leases.
My thesis focused on real estate investment as a passive income option. Among other things, I compared long-term and short-term rentals in Prague through the Airbnb platform in terms of profitability and the intended location. There were several comparative criteria, and in retrospect, I neglected to include one important external factor that can and has influenced everything - the pandemic we are fighting here today. Back then, the situation was completely different, Airbnb was booming, it was in its infancy, and the revenue from short-term rentals became a big attraction for owners. Moreover, Prague was one of the most visited cities in Europe.
While studying at university, I worked in a corporation. However, I found that working all day at a desk in an office just wasn't quite for me. I prefer to spend the day "in the field" if possible, where the work is more varied in terms of meetings, viewings and recruitment. Every day is different and you meet interesting people. Truthfully, I never thought I would be a real estate agent. I didn't go to college for that (laughs). Moreover, historically the profession has not had a completely ideal name in our country, and I have encountered prejudice. However, I enjoy the phenomenon of real estate and towards the end of my studies I became more and more interested in working in this segment. In addition, during this period we realized a complete renovation of an apartment on our own. When I subsequently met the owner of Luxent, Emil Kasarda, I decided to take up this job almost immediately. We really hit it off, and we have a great team in the company.
I still see a great demand for exclusive properties. In general, people have a lot of spare cash (nowadays they have the most money in their bank accounts in the last few years) and real estate is one of the ways to protect their savings from inflation and diversify their investment portfolio.
When it comes to exclusive properties, they must first and foremost be located in a perfect and sought-after location that will maintain the price level in the future in the event of various economic fluctuations and increase in value in the longer term. Another factor is, of course, the high standard of the property in question, but you can influence and adjust it according to your needs. You cannot change the location.
Overall, I consider the real estate market to be a segment that has not been significantly affected by the pandemic, especially in terms of prices. Demand still highly exceeds supply. At the beginning of the pandemic, there was uncertainty on the market, which may have been reflected in longer sales times for premium, or more expensive, properties, which is not unusual for this type of property. Buyers were waiting, making big investments and waiting to see if someone would run into economic problems and have to sell quickly and at a lower price. However, this did not happen in the vast majority of cases; on the contrary, sellers did not panic and kept prices high.
Currently, our most frequent clients are Czechs. Overall, we have seen a decreasing share of foreign buyers over the last few years, mainly due to economic and geopolitical reasons. In recent years, we can see an outflow of foreign capital in residential transactions, especially from Eastern countries (or former Soviet bloc countries). At the same time, Czechs are becoming more "rich" and their share on the buyer side is increasing.
As far as houses with gardens and flats with terraces or balconies are concerned, they are clearly the most popular. However, it must be assessed whether the buyer is addressing his own housing needs or whether he is buying the property as an investment. When buying for one's own home, we place more emphasis on comfort and a garden or terrace is one of the main requirements.
If we talk about the increased demand for the outskirts of the city, then one important factor needs to be taken into account, and that is the affordability of housing at current prices. If, for example, a young family wants to live in a comfortable apartment with a terrace or a house with a garden, the peripheral part of the city or the surrounding villages often become the only way to reach this type of property. In terms of housing affordability, we are in a very poor position in the Czech Republic.
I am currently in charge of the sale of the MOLO Lipno Resort project and we are preparing a new Garden Lofts project. MOLO Lipno is a unique building on the banks of the largest body of water in the Czech Republic. I think this location has great potential and will attract many buyers in the future. It has practically year-round use, during the summer it attracts water, and in the winter it attracts cross-country skiers and ice skating on the ice highway. If the local ski area is not enough for the more demanding skiers, they can go to nearby Austria. Spring or autumn can be cycled. A 150-metre-long pier with a swimming pool and restaurant will form a dominant feature, which will connect to the new promenade between the residential area and the hotel. There is nothing like it in the Czech Republic.
Garden Lofts is a more intimate industrial-style project in Prague 5. All apartments will offer practical layouts with balconies, front gardens or terraces with beautiful views. All in natural design materials and equipped with superior furnishing elements. A spacious communal garden for all residents, with pergolas with seating, a sports or relaxation zone, facilities for children and especially a water biotope for swimming, will also offer a unique opportunity for leisure.
Yes, the interest is enormous. In the vast majority of cases, these are clients who already own a property and are only expanding their portfolio, and they are counting on these costs. Over the last few years, the demand for holiday properties has increased extremely, and with it, of course, the price level. And it doesn't just have to be a luxury apartment in the mountains.
Loft living is still not so widespread in our country, although it is a modern and original style where you can customize the interior. Although the Garden Lofts project is not a typical representative of loft living, it combines these elements together with industrial details. And these stylish projects always find their buyers.
The architecture takes inspiration from the character of industrial buildings typically found in the Prague 5 area. The already mentioned private communal garden with a water feature will bring a huge added value. This will be built on a sloping hillside on several levels, which will connect to each other.
Buying property is still one of the safest and most desirable forms of investment. In addition to good protection against inflation, it is a tangible element in a portfolio. Of course, it is also possible to invest in luxury ones, however, it is not so advantageous in terms of return. In this case, it is more about saving spare funds. At the same time, in the exclusive segment, those interested often put their emotions into the transactions, which is not entirely ideal for an investment plan.
An investment apartment should meet the desirable location attribute. These are usually smaller apartments that can be rented out quickly and easily. It will also sell much more quickly than a large unit if necessary. Unfortunately, the concept of an investment apartment in Prague is not what it used to be.
If we talk about Prague, the current situation in terms of profitability is not ideal or as interesting as in previous years. I have to say that rental yields here are currently falling. Prices have been rising year on year, but rents have not risen significantly now thanks to the pandemic. For example, in the city centre, where we could find a lot of investment flats for short-term rentals and they generated high yields in the past years, the situation is now much worse than for investment flats in locations that hold their rent levels. So at current prices, it's hard to get a yield over 3% for an apartment in Prague.
Unfortunately, the unaffordability of owning your own home is resonating strongly in the market right now. As there is no chance to meet the huge demand and the supply is very small due to the lengthy building permits, I do not see a better option than renting in the coming years in terms of the availability of own housing. I expect that we will be moving closer to the "western" trend in the sense that an increasing proportion of the population will move to renting than has been the case to date.
For example, rental prices in the centre of Prague have fallen slightly. The full centre, in the sense of Prague 1, has been affected the most because of the aforementioned impact of the coronavirus on the short-term rental market. I believe that some landlords who switched from short-term to long-term rentals because of the pandemic will not return to their original intention. It is mainly the big players that will "survive". However, in the long term, I expect a gradually increasing trend in rental prices.
As I mentioned before, what I enjoy most is the variety, time flexibility and organization of work according to the current needs of the client or myself. I like working "in the field", meeting interesting people and last but not least negotiating. Of course, this work also includes less pleasant things and the associated administration. But the positives always prevail for me, and that is important. If you combine all that with good remuneration and the virtually unlimited (financial) opportunities you have in this field, it drives you forward.
Life & style
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!
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.