How to Make Money on Investments into Residential Real Estate? No Quick n Easy Solutions

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1 How to Make Money on Investments into Residential Real Estate? No Quick n Easy Solutions AmCham October 14, 2015

2 Contents Czech residential market in European context Prague and other cities Asking price x Transaction Price Price Development Making money on residential RE investment 2015 Deloitte Česká republika 2

3 Czech residential market in European context Transaction Price Average Transaction Price of the New Dwelling (EUR/ sq.m) RU HU PT PL CZ ES DE* BE IT AT IE FR UK Source: National Statistical Authorities, Deloitte data calculations

4 Budapest Székesfehérvár Warsaw Krakow Moscow St.-Petersburg Prague Brno Ostrava Berlin Munich Frankfurt Dublin Vienna Linz Madrid Barcelona Brussels Antwerp Milan Rome London (CBD)*** Outer London Lisbon Porto Paris (CBD) Marseille Czech residential market in European context Transaction Price Average Transaction Price of a New Dwelling EUR/ sq.m HU PL RU CZ DE* IE AT ES BE IT UK PT** FR Source: National Statistical Authorities, Deloitte data calculations * bid price, ** older dwellings

5 Budapest Székesfehérvár Warsaw Krakow Moscow St.-Petersburg Prague Brno Ostrava Berlin Munich Frankfurt Dublin Vienna Linz Madrid Barcelona Brussels Antwerp Milan Rome London (CBD)*** Outer London Lisbon Porto Paris (CBD) Marseille Czech residential market in European context Transaction Price 450% 400% 350% 300% 250% 200% 150% 100% 50% 0% Comparison of the Main Cities to the Country Average (country average = 100%), 2014 HU PL RU CZ DE* IE AT ES BE IT UK PT** FR Source: National Statistical Authorities, Deloitte data calculations * bid price, ** older dwellings 5

6 Czech residential market in European context Transaction Price 12,0 Affordability of Own Housing Gross annual salaries for the standardized new dwelling (70 m2), ,0 8,0 6,0 4,0 2,0 0,0 BE DE* ES IE PT AT IT CZ PL HU FR RU UK Source: National Statistical Authorities, Deloitte data calculations * bid price 6

7 Prague and other cities Newly built apartments transaction prices CZK CZK CZK CZK CZK CZK CZK 0 CZK Praha Brno Ostrava Plzeň 7 Source: cenovamapa.org

8 Asking vs. Transaction Price Prague Price development, all segments, CZK CZK CZK CZK CZK CZK CZK 0 CZK Bid Prices 2014 Transaction Prices 8 Source: cenovamapa.org Transaction prices; Realitymix.cz Bid Prices

9 Asking vs. Transaction Price Brno Price development, all segments, CZK CZK CZK CZK CZK CZK CZK 0 CZK Bid Prices 2014 Transaction Prices 9 Source: cenovamapa.org Transaction prices; Realitymix.cz Bid Prices

10 Asking vs. Transaction Price České Budějovice Price development, all segments, CZK CZK CZK CZK CZK CZK CZK 0 CZK Bid Prices 2014 Transaction Prices 10 Source: cenovamapa.org Transaction prices; Realitymix.cz Bid Prices

11 Asking vs. Transaction Price Newly built apartments, Prague, CZK Prices Comparison according to Prague District CZK CZK CZK 0 CZK Transaction Prices Bid Prices CZK Prices comparison according to Apartment Type CZK CZK 0 CZK 11 Transaction Prices Bid Prices Source: cenovamapa.org

12 Transaction Price Development Newly built apartments selected project 2015 Deloitte Česká republika 12 Source: cenovamapa.org

13 Transaction Price Development Newly built apartments selected project 2015 Deloitte Česká republika 13 Source: cenovamapa.org

14 Making money on RE investment Transaction Price Changes - newly built apartments, Prague 5 Winners Previous market price (CZK) Previous sale date Average annual growth rate of prices for the last three years (%) 1,77 Actual market price (CZK) Actual sale date Change (%) Project BYTOVÝ DŮM BARRANDOV BYTOVÝ DŮM BARRANDOV KASKÁDY BARRANDOV III REZIDENCE U KŘÍŽE III REZIDENCE U KŘÍŽE III and those who have fallen down POD DÍVČÍMI HRADY KASKÁDY BARRANDOV II REZIDENČNÍ ČTVRŤ BOTANICA III KASKÁDY BARRANDOV III ARBOREUM 2015 Deloitte Česká republika 14 Source: cenovamapa.org

15 Contacts Deloitte Michal Melč, MRICS Tel.: Cenová mapa prodejních cen Petr Hána Tel.: Deloitte Česká republika 15

16 Mobile application Deloitte CZ Newsletters l Publications l Seminars l Alerts l Videos Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ( DTTL ), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as Deloitte Global ) does not provide services to clients. Please see for a more detailed description of DTTL and its member firms. Deloitte provides audit, tax, consulting, financial advisory and legal services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte's more than 200,000 professionals are committed to becoming the standard of excellence. Deloitte Central Europe is a regional organization of entities organized under the umbrella of Deloitte Central Europe Holdings Limited, the member firm in Central Europe of Deloitte Touche Tohmatsu Limited. Services are provided by the subsidiaries and affiliates of Deloitte Central Europe Holdings Limited, which are separate and independent legal entities. The subsidiaries and affiliates of Deloitte Central Europe Holdings Limited are among the region s leading professional services firms, providing services through more than 4,700 people in 37 offices in 17 countries Deloitte Czech Republic

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