Owen Czechs out a housing winner
Property developer Owen O'Callaghan's prescience in diversifying into the Czech housing market looks to have been a good bet as the central European republic -- is one of the very few European countries to ride out the current property collapse virtually unscathed so far.
Czech residential prices registered a 19.6pc increase last year although the pace of growth fell back to some 6pc in the final quarter, according to agents Knight Frank which expects Czech values to continue to slow over the coming months, possibly dipping into negative territory as the global recession persists. But there are no structural problems, like Dubai's hefty oversupply, overhanging the market there.
The Cork-based Owen O'Callaghan is building 230 houses at a recently acquired 23 acre site off the motorway just six miles outside Prague. The scheme will comprise three bedroom terraced or town houses -- referred to locally as "row" houses and selling at around €180,000 apiece.
"The Czech Republic is quite unique," Mr O'Callaghan commented. "The Czechs are a very solid people. There has never been a property boom there and consequently there has been no bust.
"We purchased development land in the Czech Republic for just €100,000 an acre. In this country, similar land would cost around €1.5m an acre.
"Prices have come back a little recently, but people are still purchasing. During the Communist era, everyone rented their homes, but now around 45pc of Czechs prefer to purchase rather than rent.
"So, for the foreseeable future, prices can be expected to stabilise and hold current levels there."
