Ostrava Property
One of the Czech Republic's third tier cities, Ostrava actually enjoyed the highest property price growth in 2007, with rises of 40%.
There is an extremely high demand for apartments in the city centre and mostly all are being sold even before they are built. New apartments in Ostrava are proving attractive for locals, foreigners and also Prague residents.
Affordability is likely to be high on the domestic market, where many of the city's inhabitants benefit from significant equity in their homes. Combine this with increasing affluence resulting from high employment levels and the current 20% difference between the price of a good panelak and a newly built property, and the gap can easily be bridged.
The emerging middle class can now afford to live in modern new-build apartments in Ostrava. The city's inhabitants want the same lifestyle currently enjoyed in Prague and Brno where panelaks are being swapped for the comparitively high specification found in new-builds.
The recent 40% growth in the housing market in Ostrava started from such a low entry point of between CZK25,000-35,000/sqm; there is huge growth potential in 2008 and beyond.
Ostrava can be compared to Brno, also in the Czech Republic. Both cities have undergone a period of regeneration following the decline of traditional industries.
The market is only just taking off in Ostrava and for anyone who missed out on the excellent and sustained capital growth seen in Brno, now is the time to invest in this city.