Having missed out on the old brewery I was wondering, does anyone have any opinions on Avenium residence. Not seeing any discussion, do people think this is an also-ran compared to the previous prague developments. Obviously it is a lot cheaper and also on the plus side the apartment sizes are more suitable than the other developments. However has the market moved on, and higher spec apartments are what there is a shortage of supply for. Can this development compete with others in the popular and perhaps over supplied holesovice marina area My other fear is the fact that this offering through property secrets accounts for approx 35% of the development. If this then gets offered to other foreign investors there is likely to over 50% foreign ownership, and hence potential issues at resale. Any thoughts simon

Im buying an apartment on the other end of Libensky most, Palmovka development. I think these two locations are very good IMHO. Im not buying for resale however. Taking a long term view Im sure these areas will see a lot of growth especially with proximity to commercial districts and the main city centre. An out of the box question I ask myself is how much can be cramed into the inner bank of the river. But on the other hand, space may become premium and demand higher value. Given that mortgages are growing 40%, I dont think resale will be a problem (unless the apartment is very expensive). 2+kk are being snapped up at a phenomenal speed. I did wonder though about the advertised growth prospects in the material - £250k eq in 2013 (not to say it may not be acheiveable).

Hi Simon and Andrew, Thanks for the post Simon. To be honest this development has been popular and although nothing has been posted on the forum, I have been inundated with questions. I would agree with Andrew in saying that this area of Prague is at a premium and resale should not be a problem for that reason alone. There are a number of commercial towers being built here which is always going to help the rental side but this area is close to the city centre anyway. 2013 is 5 years away and with comfortable growth I can see the advertised figures being hit. Prague is expecting 25% capital growth this year and like we say, space is at a premium. If anyone would like to speak to me about this development next week please contact me on 07920 468490 or email martin.grainger@propertysecrets.net

I have made my first purchase through PS. I have been helped because twice in the last 2-3 years I have stayed in Delnicka St. Traditionally a workaday sort of area, but the area is transforming rapidly and is very close to the centre and lot's of new developments. It's 3 tram stops to Sparta Ice Hockey stadium too. Also it's close to the centre of Prague, much more so than Palmovka (Prague 8)and the price per sqm is highly competitive for being so close to the centre of a city as unique as Prague. I admire the openess and transparency of PS, and I might well go for another deal, although I still mostly prefer Germany and Berlin for value. I hope I have tuned into some of the turbo charged growth currently absent in the German market

I have just been sent investment deal details for apartments at the Avenium development by Martin Grainger as if it was a freshly launched project. I am completely confused as I bought a unit at this development last May. The new units on offer even appear to feature a flat like the one I bought in every respect. Comparing these new offers with the developer's own website I cannot begin to work out what this is all about. Have I just entered a parallel universe in which I didn't really buy a flat in the Avenium development and the last 10 months have been a dream? Can anybody shed some light on this?

Dear David,

The email you received from myself, was an exclusive offer I made available to a number of clients who have expressed interest in this area previously. The units I have at my disposal are phase 2, therefore are launched later than your phase 1 units. They are also similar in design and layout as it is the exact same development.

We have offered phase 2 projects many times in the past if we believe it to be a strong offer, which Avenium is. You will struggle to find better prices with this location in Prague right now.

If you, or anyone else wishes to speak to me about this development, please feel free to call me on 01270 539576 or Kim on 01270 539575 tomorrow.

Kind regards,

Martin Grainger
Head of Portfolio Development
PDM@propertysecrets.net

Thanks for clarification Martin. I was completely thrown for a while, especially as the email didn't make any reference to the earlier development or indicate it was a phase II. That said, I appreciate the personal approach and hope it doesn't stop you forwarding other offers in future.

Hi David,

Its ok. I dont like to flood my emails with too much information as it puts people off reading them; I take your point on board though, there should of been a mention of phase 2 in there.

I will answer the email you sent me on Friday this morning.

Kind regards,

Martin

Hi all

I was hoping to get some feedback/views on a mortgage offer for my studio in Avenium. I have been offered a 85%LTV deal at 5.84% fixed for three years, meaning the monthly loan repayments are just over Kc17,000, about £600 at the present exchange rate. I don't think there is any way that rents will get near covering this figure and believe the offer is too costly. Do others think this deal sounds OK? has anybody got better terms? Also, has anyone got on-the-ground experience of rents in prague 7?

Cheers

David B

Interesting article from today's Prague Daily Monitor re Czech rents - worth registering for free as you'll receive some info each day. There's a paid for service which allows greater access to info.
Regards
Dom


Landlords in some cities go down with rents
By Hana Vorlíčková / AKTUÁLNĚ.CZ / Published 22 July 2008
Translated and adapted with permission by the Prague Daily Monitor
ČTK

The rent for luxury flats around Prague's Old Town Square are the highest in country, but landlords ask about as much as last year.

The average advertised rents in a number of regional capitals are stable or slightly decreasing, according to figures supplied to Aktuálně.cz by the Regional Development Ministry. The ministry's analysis is based on advertisements and figures from real estate agencies.

According to the report, agencies have reported the largest price decrease in Plzeň and Pardubice for flats with more than 60 square metres of floor space. While a year ago landlords there asked for, respectively, CZK 155 and 150 per sq m, now the price is CZK 15 lower in both cities.

Prague centre for same price as last year
Rents in larger flats are also declining in Liberec and Brno. Average market rents in Olomouc and inner Prague are the same as last year. Landlords in inner Prague, which includes districts 1 to 7 in the ministry report, set the highest rents in the whole country, with the average monthly price for flats over 60 sq m currently at CZK 230/sq m.

In the very centre of the capital, the most expensive flats are in Přížská, Mostecká, Na Příkopech, around the Old Town Square and in Malá Strana. For large, newly refurbished luxury flats, the monthly charge may go as high as CZK 350/sq m. But even in these extreme cases the advertised rents remain flat right now.

The demand for smaller flats, with up to 60 sq m of floor space, is still very high in inner Prague, and the advertised rents are growing as a result. While last year one square metre cost an average CZK 255 per month, now the price is CZK 270. Rents for smaller flats in Prague outskirts have also increased, from CZK 215/sq m last year to CZK 225 now.

The ministry has reported that, among regional capitals, the rents for small flats have only decreased in Ústí nad Labem and have remained flat in Brno. Other cities have seen a moderate increase. One city completely defying the trend is České Budějovice, where the average monthly rent for larger flats has increased by CZK 75 to CZK 190/sq m.

Will rents further decrease?
The ministry expects that market rents will further drop in many parts of the country. "After 2010, when rent control will be abolished, the currently unregulated rents will decrease as those flats that are so far rent-stabilised will enter the market," says Hynek Jordán, spokesman for the ministry.

Time will show whether the decrease will really happen. Even today landlords point out that, especially in smaller municipalities, rents are often not high enough to cover the basic costs of building maintenance.

Around 47% of flats in the Czech Republic are privately owned, 17% are owned by cooperatives, and 29% are for rent. The rest is the social housing segment or company flats.