Thursday, May 5, 2011

International Real Estate: House Hunting in ... Prague

$1,056,890 (17,600,000 Czech koruna)

This two-bedroom rooftop apartment in a restored neo-Classical building is close to the center of Prague in the Vinohrady neighborhood, which is named for its 19th-century vineyards. The unit has 1,345 square feet over three levels; it is entered on the sixth floor of the building, which has an elevator. The terrace commands views of Prague’s red-tiled rooftops.

The entry foyer is on the second level, the site of the main living space, which has wood floors, a high ceiling, and walls of concrete and exposed brick, as well as a horizontal gas fireplace recessed in the wall. The kitchen, a contemporary room on a raised platform of old pine, is adjacent to the living space. Countertops and table surface are made of polished black granite; cabinets and table base are of cherry wood. A bath off the kitchen has a radiant-heated floor, copper-tone metallic wall tiles, a glass rain-head shower by the German designer Hansgrohe, and a basin by the Italian designer Ceramica Globo.

The second level has its own terrace, of nearly 100 square feet; it is reached through custom doors framed in dark meranti wood from Southeast Asia, which slide and fold like an accordion.

A curved staircase of cast concrete unwinds like a ribbon to the third level, which has an exposed brick wall and a large skylight that can be opened electronically. This level — which mimics a balcony, looking down onto the living room — houses one of the bedrooms.

The first level has the other bedroom and the bath, which has a heated floor and is equipped with a wall of white cabinets and a ceramic bathtub with chrome claw feet by Roca, a Spanish company. A round mirror with an ornate gilt frame hangs over a pedestal sink by the German designer Keramag.

The apartment has central air-conditioning and is being sold furnished except for the chairs, said Jiri Eyberger, a broker with Home Sweet Home, the Prague brokerage that has the listing. A flat-screen television is also included (satellite TV service costs $35 a month; Internet and telephone fees are $20 a month).

The immediate area is quiet and abuts a large park, Riegrovy Sady, which has a beer garden. The Vinohrady neighborhood is popular with young professionals and international residents for its numerous pubs and cafes, shopping centers and restaurants. The area is within easy walking distance of Wenceslas Square in central Prague and has convenient bus and Metro service. Ruzyne-Prague Airport is about half an hour by car, 40 minutes by public transportation, Mr. Eyberger said.

MARKET OVERVIEW

Home sale transactions in general dropped 40 to 60 percent after the economic downturn in 2008, and the market has been largely stagnant since then, Mr. Eyberger said.

However, the apartment inventory most popular with foreigners — in neighborhoods in the historic center of Prague or close to it — has not been as hard hit. This is because owners of renovated apartments are typically not selling, said Michal Bukovecky, a co-owner of the brokerage iReality.

“They’re trying to keep the prices very high, and that’s why they don’t sell,” Mr. Bukovecky said. “They’re expecting the market will get better, but so far the market is very slow.”

This apartment costs about $786 per square foot and has been on the market since February; it would be more likely to appeal to foreign buyers than Czech natives, Mr. Eyberger said.

“The price is quite high,” he added, “but it’s due to the unique character of the apartment, the materials used and the location in the city center. This is more for expatriates, because Czech buyers would prefer a house and garden for this price.”

From a foreign investor’s point of view, the price would be about right. Mr. Bukovecky says that homes bought by expatriates typically range in price from about $335 to $1,115 a square foot, with some in more expensive areas like the Old Town selling for as much as $1,725 a square foot.

This article has been revised to reflect the following correction:

Correction: April 28, 2011

An earlier version of this article misstated a market statistic. It was home sales transactions in Prague that fell off 40 to 60 percent after the global economic downturn in 2008, not real estate prices.


View the original article here

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