Czech Republic blue collar mining town Ostrava is set to be the next property hot spot in Eastern Eu...
Czech Republic blue collar mining town Ostrava is set to be the next property hot spot in Eastern Europe, with analysts forecasting rental returns to fetch up to 8%.
Louis Mann, sales director of property company Validus, said: "Traditionally a blue collar mining town, Ostrava is attracting global corporations such as Hyundai, which is setting up assembly plants in the city. There is an acute shortage of rentable luxury accommodation for the middle managers required to run these new offices and factories, as most come from outside the area or country.
A buy-to-let investment here can easily yield returns of up to 8%. And the Czech government needs 50,000 properties a year to be built just to meet local demand. There is also no capital gains tax after three years for a private individual or after five years for a company investing. Capital growth is also forecast at 9.5% per year on average over the next 10 years."
Alan Goss, director for Eastern Europe at IFA firm Conti Financial Services also believes Ostrava could yield an 8% return. He said: "Land is inexpensive, transport is good and labour is cheap, so companies have begun to set up in the region. A new middle class is forming in the area, which needs houses."
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