• Brewery Cassovar is valued at an estimated 20% below market value according to an independent valuation, as well as 4% discount off the developers list price
• We predict 48% capital growth on these apartments before completion in 20 months time
• 70% of the offices in the commercial part of Brewery Cassovar have already been leased to IT company T-Systems (part of Deutsche Telekom)
• A unique, new, luxury development in the heart of Košice, Slovakia’s second largest city, within seven minutes’ walk of the Old Town and 20 minutes by car from Košice airport

Brewery Cassovar is a unique, new, mixed-use commercial and residential development located in the heart of Slovakia’s rapidly developing second city Kosice. The flagship mixed-use development by major East European developer, Global Group, is part of its SKK2 billion investment in the city centre.

Slovakia’s property market is in a phase of exceptionally high growth, with prices rising by between 20–33% in major cities across the country in 2007.

Košice was the top performing city in the country with prices rising 33% in 2007. This figure reflects rises in older Communist-style housing (panelaks) with little in the way of modern developments in the city.

Brewery Cassovar will contain office and retail units, along with a four-star hotel on the site of a former brewery. Such is the demand for office space in Košice’s city centre, 70% of the office units at Brewery Cassovar have already been leased to IT company T-Systems, part of the Deutsche Telekom group.

Location is one of the major advantages of this development, which lies right on the edge of the old town and just seven minutes’ walk to the historic centre. Brewery Cassovar will be easily accessible from all city districts, as well as being close to offices. When complete, the tall brewery chimney will be preserved on the site adding to its unique appeal as a landmark city centre development.

A luxury studio apartment at Brewery Cassovar starts at just £70,676 (SKK3,139,444), including VAT, with an average price of £1,058/sqm (SKK47,020) for all Property Secrets’ units. The units are valued at an estimated 20% below market value, with a 4% discount on the developer’s list price and completion in 20 months.

An investment in Brewery Cassovar could achieve approximately 48% capital growth in this time with a conservative estimate of 20% capital growth per annum.

The payment terms are 30/70, which is good in a market where staged payments remain the norm. Property Secrets has secured 20 units out of a total of 88 units at Brewery Cassovar. 44 units have already been sold to the local market since December providing a clear indication of the appeal of the development to the local market.

High demand in the city centre, not just for residential housing, but also for hotels and commercial buildings in desirable locations, has resulted in a number of new development projects set to arrive in the near future in Košice.

The construction boom triggered by high demand is largely focused on the central areas of Košice, including Namesti Osloboditelov, Stare Mesto and the adjacent Nove Mesto.

Košice has long been established as Slovakia’s second city and also the second most populous city by far after Bratislava, with 240,000 inhabitants. The city is located in Eastern Slovakia, just 20 kilometres from the Hungarian border and 80 kilometres from Ukraine, making it an important hub of both domestic and international transport routes.

Property prices in this city are less than half those in the capital Bratislava, and the recent 33% growth in prices in Košice has come from a very low base. The city has now become the fastest-growing market in Slovakia as the city reaps the benefit of massive investment from US Steel.

The arrival of US Steel has proved to be the catalyst for impressive growth in the regional economy, with companies around the city accounting for 9% of the total GDP of Slovakia. More than 600 foreign companies are now based in and around Košice, including Molex, an electronics company that invested €25 million in the region when it began operating in Košice in 2004.

Other foreign companies attracted to the city include Siemens, IBM, Pepsi, Tesco, Baumax and T-Systems, the business brand of Deutsche Telekom.

The arrival of numerous hi-tech companies has led to the formation of the IT Valley Association, which aims to work closely with Košice Technical University to make Eastern Slovakia an important IT hub. The aim is to keep quality graduates in the area by improving the socio-economic climate and to continue attracting investment to the industry.

The improvement of employment prospects in this city has been dramatic with unemployment falling by nearly half since 2002, and this is now feeding into unprecedented growth in the property market.

Purchasing power has increased, with high-paid jobs in the IT sector, which will drive demand for modern luxury apartments, particularly in the city centre close to offices.

The market in Košice is rising at a faster rate than at anytime in the last six years. The influx of FDI has resulted in rising wages and rising affluence in the city. Affordability and demand is strong and will continue to grow on the back of a booming national economy.

The availability of good mortgage finance – similar to that seen in the neighbouring Czech Republic – is fuelling price growth and will be a key driver through 2008 and 2009.

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