Czechs are increasingly combining travel with investment. They have been buying apartments or houses not only for their recreation, but also as a long-term investment of capital. Interest in foreign real estate has been growing for a long time, reports the real estate agency Philip & Frank.
According to available data, for example, the demand for Spanish apartments has increased by more than 60% year-on-year, and other destinations, especially Portugal, Italy and the UAE, are also recording a similar trend.
The reason is not only high inflation and expensive real estate in the Czech Republic, but also the possibility of renting out the property for a short period of time and thus partially covering the investment. The choice of destination often depends on personal preferences, the availability of direct flights and a favourable tax or legal environment.
Philip & Frank observes a similar wave of investments, for example, in Slovakia and Poland. Slovaks most often buy apartments in Croatia, Dubai, Italy or Spain, and Poles purchased a record 4,300 properties in Spain last year, which is 36% more year-on-year. According to data from Spanish registers, after 2022, interest in housing there also increased among other nations of Central and Eastern Europe.
Interest in foreign real estate is also related to the availability of financing. Relatively low interest rates in some European countries, the possibility of choosing financing in different currencies and professional remote management make these investments increasingly accessible. While the price per sqm in the Czech capital today exceeds CZK 130,000 (€5,300), in some Mediterranean locations it is possible to buy a new apartment with a sea view for less than half of this amount.
“We are also seeing increased interest in more distant destinations, such as Mauritius. The stable environment there and the possibility of obtaining permanent residence for 20 years with an investment of over $375,000 make the island a very attractive destination,” adds Filip Šejvl, managing partner at Philip & Frank. Mauritius has earned the nickname “Singapore of Africa” thanks to its rapid economic growth, efficient legal environment and minimal taxation. This is precisely why many interested parties from all over the world, including the Czech Republic, are starting to turn their attention here.
The summer season is often crucial in terms of decision-making. Clients often combine tours of foreign properties with a vacation and want to try out the chosen location in person. It is in June and July that real estate agencies record the highest number of inquiries, especially in the residential and recreational segments.
