Growing popularity of foreign real estate among Czechs
Czechs actively buy real estate abroad due to lower prices Every year, more Czechs prefer to purchase real estate abroad, especially in coastal areas. The most popular destinations are Spain, Croatia, and Italy. Real estate in these countries, as well as in Austria, is often cheaper than in the Czech Republic. According to banks, the average mortgage amount for such properties is around 3.5 million CZK.
Unaffordable housing prices in the Czech Republic drive many Czechs to look for property abroad, where the costs are often significantly lower. Czechs can take advantage of local bank products to buy their dream house or apartment.
For example, a 70-square-meter apartment in Prague's Žižkov costs around 12 million CZK, while a similar apartment in Croatia near the beach with access to a pool costs only 1.8 million CZK.
One such buyer, Mr. Polak, bought an apartment in Sardinia. He and his family go there every year for a vacation. "My wife and I always wanted to travel for vacations. When we had some spare money, we decided to buy a property abroad," he explains.
Banks offer various loan options, such as consumer loans, American mortgages, and classic mortgage loans. "The only condition is having a property that can be used as collateral. This suits people who have partially paid off their mortgage or own a property suitable for collateral," explains Miroslav Zetek, a member of the ČSOB board for trade management.
Czech society is becoming wealthier, and more people can afford a second or third property, either for personal use or for rent. Datarun economist Petr Barton adds, "Czech properties are expensive due to limited construction, making foreign properties relatively cheaper. Czechs take mortgages in the Czech Republic for foreign properties due to difficulties proving income in other countries, which makes them riskier for foreign banks."
Komerční banka spokesperson Šárka Nevorlová confirms the trend: "We are seeing increased interest in American mortgages and consumer loans."
Česká spořitelna spokesperson Filip Hrubý adds: "The most popular destinations for buying real estate among Czechs remain Spain, Croatia, and Austria. These are mostly apartments, and less frequently, family houses."
Banks warn about the need for caution when buying property abroad, familiarizing oneself with the legislation and local land registry systems. As reported by TN.cz, it is crucial to carefully study all legal nuances before purchasing.