Demand is rising in the Czech historic property market, with castles, fortresses and historic estates increasingly becoming prestigious locations not only for living but also for business, according to Luxent – Exclusive Properties.
Unlike the regular property market, the historic property segment develops differently. "Sales are highly individual, slower and follow different rules. In the last two years we've seen renewed demand and price growth for certain types of buildings," says Lenka Munter from Luxent – Exclusive Properties. Clients, mostly Czechs, seek attractive locations and architectural authenticity. "Buyers see purchases as a safe haven for capital during uncertain times and as portfolio diversification. Buying heritage properties is also attractive due to new regional subsidy programmes," Munter adds.
Looking ahead, Munter doesn't expect significant price fluctuations or fundamental changes in demand. "The greatest interest continues to focus on quality buildings in attractive locations where demand exceeds supply." New properties are also entering the market from owners who can no longer afford to finance operations and reconstruction. Uncertainty in financial markets this year will also play a role, leading some investors to shift capital to Czech properties.
While prices for regular flats and houses rise quickly and dynamically, historic buildings depend primarily on their technical condition and usability. Buildings in poor condition are slightly cheaper because they require high investment and urgent care. Well-maintained or sensitively reconstructed properties hold their value. "The price of a historic property depends mainly on location, technical condition, level of heritage protection, land size and commercial potential. The closer to Prague or tourist-attractive places, the higher the price. Given rising construction costs, I expect increasing prices for already reconstructed heritage buildings because new owners save considerable financial resources, effort and time they would need to spend on renovation," explains the expert.
Dilapidated buildings can be purchased for approximately €4-8 million, while reconstructed castles range from tens to hundreds of millions of euros. Smaller estates before renovation can be bought for lower millions. "For townhouses and historic palaces in cities, prices depend on location and this property type most closely follows regular market price development," Munter explains, adding that historic properties after reconstruction have higher prices but often work out very rationally when compared to complete renovation costs.
