Foreigners are interested in Prague real estate market

Louvre of Prague was bought by the Spaniards

The Spanish company Azora Europa has bought Prague Louvre for 10 million euros. Louvre Museum in Prague is not a museum, as it may seem at first glance, but a modern office building in Prague 5 district. In the spacious hall with total area of 4500 meters today are located offices of several major European companies, including oil giant Lukoil and Czech insurance company VZP.

For the Azora Europa company purchase of the Louvre was the first deal on buying of property in Prague. For Azora Europa such a massive deal was a signal to competitors on the Czech real estate market about appearing of a new player.

Azora Europa is considered as one of the key foreign investors in the property market in CEE countries. For the company the deal to acquire a building in Prague was the first made in the 3rd quarter of 2010.

Azora Europa develops Czech and the CEE region real estate market together with the British company Europa Capital Partners. In 2007 the two companies announced their plans to invest in Eastern European property in total 2 billion euros. Apart from the Czech Republic, among other regions, are Romania, Bulgaria, Ukraine and Montenegro. Nevertheless, the Czech Republic remains one of the most stable regions, where the real estate market is slowly returning to normal functioning after the global financial crisis.

Investments in real estate market in Prague attract many big players of the west. In the capital of the Czech Republic many buildings are in the hands of foreign owners. Thus, according to www.praguemonitor.com more than half of the buildings on the central square of Prague – Ventseslavskaya Sq. – are owned by foreign investors. In general, among the owners of real estate in Prague the greatest number of foreign owners represent Austria.

Date: 30/10/2010