How to buy a hotel in Prague and become a hotelier
With the proper management the hotel in Prague can stably generate profit up to 10%. But do not forget about the pitfalls!
What is attracting foreign tourists to Prague? In the first place it is the rich cultural heritage, safety and affordable vacation. During the year, Prague receives about 6.5 million tourists who stay here for the 16 million nights. Every year these numbers are only increasing, and this is the key point of the hotel business.
When it comes to buying property, it is important to understand that this is not just an investment, but also the tremendous amount of work. You should answer the question: Are you ready to deal with the hotel business? Believe me, even if you hire the highly skilled manager, without your personal involvement that won't work.
Cost of Living in the Czech Republic
Czech Republic is the westernmost of all the countries in the Eastern Europe.
Both geographically and by its spirit. At the same time there are quite Eastern European (it means - democratic) prices here. Partly, it explains why for decades foreigners migrate here from the so called "socialist camp". How much costs the life at the home of Franz Kafka and Alfons Mucha?
Prices for property near metro stations in Prague
Price for the property nearby metro stations is affected not only by view. Buyers are interested in accessibility of international schools and comfortable parkings. The highest price for the square meter is near metro stations close to Prague Castle and Wenceslas Square.
Resource CenovaMapa.cz, which collects and analyzes data about transactions from real estate buy-sell contracts, made an interesting map. Outwardly it looks like the map which Prague townspeople see every day in transit vehicle. But instead of places of interest near the station, average prices for square meter are mapped. Data is fresh – for present and previous years.
No wonder, that the most expensive flats are situated at the Prague’s city center. But there are also some nuances here. For instance, price per square meter at the stations Malostranska and Staromestska exceeds 110 thousands crowns. One square meter at Mustek station costs 20 thousands less. “People, who can afford pay 70 thousands more for square meter, do not really care about metro station situation and public transportation in general”, - says employee at real estate agency Denisa Visnevska. In the first place, buying property in such a place is motivated by prestige of the area and view on sights. Second main argument is proximity to fashionable restaurants and boutiques, for instance on Parizska street.
Remoteness from the city center does not guarantee low price per square meter…
Developers prefer to build majority of their luxurious projects not in the center of Prague. That is why prices for property nearby remote metro stations are quite high. For instance near metro stations Radlicka and Jinonice in Prague 5 district or Krizikova, Palmovka and Ceskomoravska in Prague 8 district. There are new expensive residential neighborhoods, price raises also due to accessibility of public transportation.
People are ready to pay for quietness, magic surrounding with fantastic view, comfortable situation and perfect flats.
Prices per square meter vary depending on building type.
Real estate price strikingly differs depending on building type. Flats in panel houses are usually cheaper than those in brick houses and new buildings. “If near metro station panel houses prevail, then price for flats will be lower, than near other stations”, - mentioned head of the CenovaMapa project, Milan Rocek
According to cadastral in Prague, in the past year price per square meter in new building remained at the level of 56 thousands crowns. Price of square meter in brick houses was lower by three thousands crowns, and in panel houses – by 16 thousands. The cheapest flats in Prague are situated in large dormitory areas nearby terminal metro station, for instance at stations Cerny Most and Luka.