• 40% growth in property prices expected in 2008
• Our prices are an average 14% below market value, according to an independent valuation by Colliers International
• Average rents have risen by 36% in Ostrava in 2007
• Excellent payment terms of 10% (including reservation on exchange), 90% on signing of final contract

River Park offers a fantastic opportunity to invest in a Ostrava, one of the fastest growing cities in the Czech Republic in one of the first luxury new-build developments, next to the city park, in an exclusive area of the city centre. The city has a burgeoning economy, massive regeneration projects are underway and we anticipate huge capital growth in 2008.

Capital growth in Ostrava reached 40% in 2007. This was just the start of a growth curve which we forecast is set to register a further 40% in 2008. The current scarcity of quality, new residential developments in the city should ensure that this growth trend will continue.

The River Park development is located in one of the most exclusive residential districts in the city. The design of the exterior is cutting edge and will set the standard for future residential developments to follow in Ostrava. The average price per square metre at River Park is CZK47,741 (£1,358), with prices starting at £83,989, including parking, for a studio. An independent valuation by Colliers International has valued the units at an average CZK53,000/sqm (£1,508). This means we are able to offer the units in River Park at an average 14% below market value.

We anticipate that prices in Ostrava will soon approach a similar level to those currently seen in Brno in 2007, as the city follows a similar pattern of development. Like Brno, Ostrava’s growth has come from a low base, yet Ostrava’s growth has exceeded levels in Brno by 10%, with a 40% rise in property prices in 2007.

The gap in price between old Communist-style panelaks in Ostrava and new-build is currently 20%. This means that the city’s high percentage of homeowners will find it easy to bridge the gap and trade up to new-build properties.

Ostrava is the third largest city in the Czech Republic and the largest city in North Moravia, for which it is an administrative centre. The city is currently emerging from the shadow of Brno and Prague after undergoing major regeneration in recent years following the decline of the traditional coal mining industries.

A total of 170 foreign investors from 28 countries have set up, or are already doing business in the Moravian–Silesian region with the car industry topping the rankings of investors by sector. The main reason for this has been the arrival of South-Korean car makers Hyundai. The company decided to build their main production facility in the Ostrava–Mošnov Industrial Park last year.

Ostrava is also the Czech Republic’s third city in terms of population and the second largest in area. It is an important transport centre with a highly developed public transport network, which includes five railway stations and an international airport at Mošnov. The city has two universities with a combined total of 15,000 students.

Ostrava has remained under the radar of property investors, but this is set to change. We believe that now is the time to gain a foothold in this market. The location of this development in the diplomatic area of the city, next to the Polish consulate and the city hall, make this a prime rental spot and we predict that average net yields should be 5% at a conservative estimate. According to a recent Czech press report in January, rents in Ostrava had risen by 36% in 2007.

We also expect to see capital growth of 40% in the next 12 months, particularly in the new-build sector. River Park is a flagship luxury development – the design and build quality are first class and we believe the prices represent very good value for money. This development will have high demand from the local population wishing to live in one of the best and most exclusive developments in the city.

River Park is the first deal we have offered in Ostrava. The development is in an unbeatable location in the city centre, in an area that we predict is about to take off. If you want high capital growth in a low risk market, with 85% LTV finance available, then this investment should definitely be part of your property portfolio.

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