find Investing in the Czech Republic - face of Prague - Part 1: Brno property
Imagine if you had bought property in Prague 8 years ago....
Investing in the Czech Republic - face of Prague - Part 1: Brno property
Brno property has been getting a lot of exposure lately. And for good reason. Moving deals in Prague are getting harder to find. Concentration is beginning to turn elsewhere.
Brno is the second largest city in the Czech Republic. Being the company capital of Moravia it boasts some big name clubs such as Ibm, Siemens, Minolta Cr, Honeywell Controls and Fei.
At the end of March 2005, RyanAir began daily direct flights from London to Brno. Flights from Dublin to Brno are rumored to be next on the list of priorities.
In 2008 a major motorway is planned to be completed that will link central-northern Moravia with Poland manufacture the area more Moving for Polish investors and traffic.
Currently, property prices are a third of what is ready in Prague and there is a strong and growing rental interrogate for capability properties.
What are outside sources saying about Brno?
The city of Brno has won the competition for European City of the hereafter 2004/2005 which is organized by the prestigious Fdi magazine, a Financial Times publication, in the kind of Visegrad group cities. It even beat out Prague and Budapest.
"Brno's fast economic growth and high Gdp-per-capita helped to push it ahead of other cities in the region. The judges also gave top marks for its economic inherent and recent Fdi deals Moving Uk-headquartered engineering firm Imi International, Us technology group Honeywell and Us industrialized engineering company Danaher Motion, which between them created 900 jobs. Brno also scored well for its international promotion strategy and incentives."
Swiss company Aguna chose to build their new plant in Brno. The company intends to invest practically 250 million crowns while the first two years. They will be able to hire at least 80 people in yield and development of precision instruments. A large part of the employees will be college-educated specialists.
"The capability level of the work force was the deciding factor for Aguna."
"Their representatives are convinced that they will find engineers in Brno who are just as capable and remarkable as in Switzerland," said Tomás Bohrn, task boss at CzechInvest, and added: "This precision engineering task demonstrates the huge inherent of Brno as well as the South Moravian region to attract technically industrialized engineering R&D investments."
Daikin Industries Ltd. Is a world leader in the yield of modern air-conditioning equipment. After the double-billion venture in Plzen, the Daikin company has decided to build a new facility for the yield of compressors into air-conditioners in Brno. In the first stage, the company intends to invest 1.2 billion crowns and to create more than 500 skilled jobs.
"Our decision to invest at first in Plzen and now also in Brno is strategic and very leading for the future. The Czech Republic should become the leading base for our yield for the fast-growing markets of the European Union," says Jiro Tomita, normal boss of Daikin Europe, and continues: "The facility in Brno will deliver compressors to our subsidiaries in Plzen and in Oostende, Belgium. It is the compressors that are the most leading part and 'heart', which secures the functioning of air-conditioning units."
Symbol Technologies launched operation of their new centre in Brno for shared customer retain and financial services for Europe, the Middle East and Africa (Emea). Stamp Technologies has already invested more than seventy million Czech crowns into technological equipment and within three years plans to set aside another practically half a million crowns for wages, training and operation. The centre will initially hire 200 people and this whole is thinkable, to growth by another 550 employees.
"We chose Brno for some reasons, namely the good offer of remarkable labour, a good site and the good position of Brno in presence to Symbol's existing centres and customers in Europe," said Steve Priestley, Vice President and normal boss of Stamp for Emea. "By concentrating repair, customer call retain and administration of finances, contracts and orders into one European centre we will be able to improve the ample accepted of our services and keep it at a high level for the long-term."
Austrian-German producer of health care and germ-free products Lohmann & Rauscher announced publicly the end of December, 2004 that they will build their new plant in South Moravia. The company is investing more than 41.5 million euros into expansion and modernization of its yield facility here and will create over 160 new job opportunities.
"While the company in Germany concentrates on a excellent part of health care products like plaster casts and bandages, we are gradually transferring yield of healing dressings, operating masks and other surgical products to the Czech plants. yield at the enlarged plant in Slavkov near Brno should be launched within two years and the main customers will be the European subsidiaries of Lohmann & Rauscher," said Rudolf Vonys, procurator of Lohmann & Rauscher s.r.o, and added: "Our final customers are health care facilities all over Europe, for example German, French and Austrian hospitals and Dutch, Swedish and Italian pharmacies."
Japanese company Ohmori Technos Corporation has decided to build a new facility in the area of Brno. At the outset, the company will invest about 15 million euros. Estimations recommend that at least 150 new positions will be provided in the Brno area. yield in the new plant is scheduled to start by the end of 2006.
"Today, the Czech Republic is known as the center of industry in Europe. In fact, a broad range of Japanese clubs have successfully established their plants in the country. Assessing these situations, we have decided to carry out this investment," commented Fumio Ohmori, president of Ohmori Technos Corporation.
The world's largest airline, Lufthansa from Germany, has officially committed, as of the end of February 2005, to opening a new shared services centre in the Moravian side of Czech Republic. The new centre, which will be located in Brno, will aid customers of Central and Eastern Europe. It is thinkable, to hire up to 100 people. This tenth call centre for Lufthansa, named Global Telesales Brno s.r.o., will start operations on June 1st 2005.
"Central and Eastern Europe is a strategic store for us where we plan in the arrival years to double the volume of our activities," commented Stephan Semsch, Lufthansa's Director for Central and Eastern Europe, and added: "We thoroughly assessed 30 inherent localities in total and ultimately chose Brno for its strategically favourable position within the region and its presence to the leading airline hubs of Munich and Frankfurt. Other great advantages of the Czech Republic are its membership in the Eu, capability telecommunications and technical infrastructure and the motivated, remarkable and cost-effective work force."
Daido Metal, producer of bearings for the automobile industry, signed an deal on hereafter deal on the buy of land with the city of Brno today to build a new yield plant. The venture of Daido Metal will whole to nearly 13 million euro and the plant will hire up to 100 persons in the first stage. The yield should be launched at the beginning of next year.
"The Czech Republic has a very strong position in Europe in the automobile sector and even many of our clients have their yield plants here. The yield of our Czech plant will cover the interrogate generated both in the Central European countries and on the entire continent," says Issei Yoshida, Managing Director of Daido Metal Europe.
"Our Czech branch, Daido Metal Czech, will be the first company within the entire group to control fully independently, without a strategic partner from the same field. The only partners in the Czech Republic will be the locals, in particular in the area of technical engineering and development, We also intend to cooperate with the city of Brno," says Tetsuro Nishiyama, Managing Director of Daido Metal Czech s.r.o.
Acer, the major manufacturer in the notebook sector will opened a new assistance center, with a related call-center for customers in Europe, Middle East and Africa (Emea). The Acer shared services centre opened on July 1st in Brno, within the industrial complicated Cernovická Terrace and is thinkable, to provide at least 60 new jobs.
"We have been experiencing great store growth in the last two years in the countries of Europe, Middle East and Africa. The new centre will replace the current solution, where customer assistance is being provided via external assistance providers," stated Stefan Engel, Region boss North + Central Europe and added: "Our goal is to provide even better retain to all countries complicated in their native language and double the staff within one year."
GigaByte Technology, a producer of computer components, is building a high-tech mend centre in Brno - Cernovicka Terasa where customers from all over Europe will send their laptops, graphics cards and motherboards. 25 million Czk is being invested with a projected 50 employees being required.
GigaByte Technology chose the Czech Republic over the other Central European countries, together with Hungary, which was the Czech Republic's main competitor. Brno won generally owing to its capability infrastructure and sufficient, remarkable work force.
The assistance centre will be built in Brno despite the fact that the company will not be receiving government venture incentives. Its executives thereby confirmed that Czech Republic has a lot to offer foreign investors.
Progeon Ltd, a leader in third party outsourcing in India, has completed its first phase of its task in Brno. The company currently employees 80 people in its downtown Brno office and provides process administration services in sixteen European languages. hereafter growth plans will ultimately offer occupation opportunities for hundreds of people from Brno and the surrounding area.
"The Czech Republic is an Moving destination for clubs like ours that hope to reach a wide European market," said Akshaya Bhargava, managing director and Ceo, Progeon Ltd. "Brno has excellent infrastructure and facilities, a supportive government, and people with multiple language skills.
The best capability and most beneficial industrial zones in the Czech Republic were handed awards by the Czech ministers. The fifth annual "Industrial Zone of the Year" awards were presented agreeing to the recommendations of the Ministry of industry & Trade and CzechInvest in cooperation with the relationship for Foreign venture (Afi) and partners in the "Partnership to retain Foreign Direct venture in the Czech Republic".
The award for industrial Zone with the Most Economic Benefits was given to the "Cernovicka terasa" industrial Zone in Brno, while the Zone with the Most group benefit in 2004 was the Ostrava Hrabova industrial Zone - 1st Stage. The industrial Zone with the Best Town Planning clarification is being prepared by a inexpressive developer in Ostrava -- Ctpark Ostrava, and the "Brownfield of the Year" was won by the Skoda Plzen industrial Zone.
Brno is a city that is going places. All indications strongly point that way.
But let's see some numbers. What are flats currently going for in Brno and what could we expect for rental income?
Studio apartment (1 + 1). Seven little walk to main town square. One little walk to trams and biggest park in the downtown Brno area. Newly renovated apartment in a heritage building. Listed price 750 000 Czk. Est. Rent: 8000 to 9000 Czk
Two bedroom (3 + 1) flat on Merhautova St. thoroughly reconstructed. One little walk to the trams. Balcony. 90 m2. Big storage space in the basement. Request price 1 590 000 Czk. Est. Rent: 12000 to 13000 Czk
Three bedroom (4 + 1) flat in heritage building. Eight little walk to downtown square. One little walk to the trams. Window view of the biggest park in the downtown area. Newly renovated. Balcony off the master bedroom. Nearby 140 m2. Est. Price 2 500 000 Czk. Est. Rent: 14000 to 15000 Czk
At Czech Point 101 we are not going to hype you with inflated figures. All prices are based on our determination of living and working right here in the Brno market.
One of the most leading things about buying venture properties is the neighborhood you buy into. We can recommend on the current 'hot' areas and those that will be getting Concentration in the near future. Experience me at any time, for free, to get more information about the Brno real estate store or start progressing on venture properties now.
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