Cottage prices rising as investor demand grows

Czechs have had such an enormous appetite for residential real estate in recent years that the price of flats in the biggest cities no longer match the wages of its average citizens. This trend was driven to a great extent by investors looking for a safe destination for extra cash. One of the results of the coronavirus crisis and the uncertainties about planning vacations abroad has been increased demand for cottages. In the last few months, Czechs have been buying them at a far greater pace than usual, which has resulted in rapidly increasing prices. Some are doing this to ensure they have a place to take vacations if it's impossible to travel. Others see a business opportunity, since many Czechs who don't want all the hassle of buying another piece of real estate are looking for cottages to rent for a week or two. Hospodarske noviny reports that a project called the Atlas of Price that tracks land registry data found that the number of cottages sold this year is up by 50 percent. It also found that rental levels are increasing, which is driving up the return their owners make. "The main requirement is now for it to have its own land, beautiful nature in the area and ideally as few buildings nearby as possible," says Jan Kratochvil of Re/Max. He adds that until recently, there was little interest in cottages that need reconstruction, but that's no longer a problem for many investors.