One Palmovka Residence development in Prague sets the real estate standard

In the past Prague has been tipped as an up and coming central european off plan property hotspot. Numerous articles have been written on the Czech republic real estate including Manchesteronline’s report of Prague, the Czech republic’s capital city. For a good article on travel to Prague go to the Khaleejtimes.

The Prague 8 district borders the vibrant city centre district, so is in close proximity to many bars, restaurants and local amenities. Palmovka, a suburb of this district has its first large scale residential development in the form of the #One Palmovka Residence project.

It’s great location close to metro and bus stations means it targets a prime rental market of young professionals and city business people. Retail therapy is just a stone’s throw away with both commercials on site and the Liben Docks retail centre a short walk away.

The Discovery Group developer has been inspired by many other dual use property developments from around Europe. The development is set to consist of a combination of new homes, retail spaces, leisure facilities and restaurants with airy light filled spaces, a large glass atrium and two landscaped gardens around which the residence is built. The apartments are an inspired design with all conveniences and oversized windows making use of natural light and surroundings. The units have had smart home capabilities, built-in wardrobes and custom designed kitchens all included in their spec. Residents will also have access via security enabled lifts to a designated residents’ car park floor situated on one of the two underground parking levels.

Completing in Quarter 1, of 2008, the #One Palmovka development will be a landmark in the local area and will attract visitors from the city and beyond.

Initial pre-sales have been strong with just a few of the 65 units remaining. Currently still available for investment there are a few studios available at prices less than 2 million CZK excl. VAT (c. 70k EUR / 50k GBP) with optional parking spaces available for all units. These are great buys for first time investors as the initial deposits are only 20% and the rental yields are expected to exceed 7% gross per annum.

Information for the overseas buy-to-let investor:
- a maximum of 25% (70 units) of the development will be sold for buy to let purposes
expected gross rental yields of 6 to 8%
- tailored kitchen & furniture packs included
- full transaction services & legal fees included
- property management arrangement in place

Payment Terms:
- 50,000 CZK (c. 1,250 GBP / 1,700 EUR) reservation fee
- 20% on exchange of contracts (60 days after reservation)
- 80% on completion / hand-over

Czech republic Mortgage Terms:
-tailored buy-to-let mortgage product available specifically for #One interest rate starting from 3.4% (1 year fix)
-expected loan to value of 80%, inclusive of kitchen & fixtures
- term of loan of up to 25 years

The #One Palmovka Residence development is being marketed by the Ceres Group for more investment information email here