Investment Property - Berounske Strane

Original Investment Summary - 17/07/2008 Investment Property Berounske Strane

Exchange deposits from only £8,087 (CZK244,937) – including basic parking and VAT
10/90 payment terms with completion estimated Q1 2010
Price includes white finish AND kitchens
Average price is 7% BELOW market value
Developer to increase prices between 5–10% once 30% of Phase 1 sold
New tunnel construction to reduce train commuting time to Prague by 50% to just 18 minutes. This is the trigger for explosive property price growth

Berounské stráně is located in the centre of one of the Czech Republic's most exciting property markets and has the potential for exceptional capital growth.

Beroun is a 'super suburb' of Prague, 30 kilometres or just 20 minutes by car from the capital's city centre and just 20 kilometres from Prague 5, the city's second largest business district, which includes rapidly expanding business parks such as Avenir and Zličín among others.

Companies with a major presence include Mitsubishi Electric, Adobe and Siemens. These companies have helped bring 17,000 skilled, well-paid jobs to the area, extending Prague's sphere of influence into Central Bohemia in the process.

The key to this deal - and what makes it so special - is the approval of a massive upgrading programme of the rail link from Beroun to Prague.

This vast project - the biggest of its kind in the Czech Republic - will slash the journey time from Beroun into the centre of the capital from 38 to 18 minutes.

But, right now, property prices in quiet, unspoiled and picturesque Beroun are around 30% less than those in Prague.

Here then lies Beroun's obvious appeal for those who want to combine the benefits of working in the capital along with a different, more rural, peaceful and tranquil choice of lifestyle away from busy Prague.

The rail link - which will carry trains at up to 300 km/h - is the trigger for explosive property price growth in this town.

Property prices rose by 20% in 2007 from a low base. The units at Berounské stráně are available from just CZK2,133,000 / £70,582 - this also includes both white finish and kitchens.

Prices average CZK43,615/sqm - this compares to an average valuation of CZK47,000/sqm according to an independent valuation of the units by Colliers International.

These prices are based on the first phase of the development and the developer will increase them by between 5% and 10% to the local market when the first 30% of the units are sold.