How to invest in foreign property from Czechia and grow your money abroad

In a connected world, there’s no need for investors to limit themselves to opportunities in Czechia.

William Nattrass

Written by William Nattrass Published on 25.07.2023 17:00:00 (updated on 26.07.2023) Reading time: 4 minutes

Real estate is one of the most popular and reliable categories for investment. From traditional investment firms to crowdfunded platforms, taking money out of the bank and putting it into real estate investments is an increasingly popular strategy for savers in Czechia.

Despite ample opportunities abroad, many investors unnecessarily limit their chances of success by only investing in Czech properties. One company giving people in Czechia the chance to grow their money abroad is Urban Developers and Investors (UDI), offering real estate investments in Central Europe and South America.

A wide range of opportunities brings investors gains they won’t find elsewhere, amid an increasingly crowded Czech investment scene.

Investing abroad is easy

In Europe, Urban Developers and Investors own properties in Poland, Serbia, Hungary and the Czech Republic. UDI projects range from urban shopping centers, business centers and logistics parks, to residential apartments in both large cities and more rural areas. The company also has properties in Panama and Costa Rica.

Significantly, investing in foreign opportunities with UDI does not have to mean complex administrative procedures. The company manages investments and provides customer support through its Prague office, although investing in Poland and Serbia will require a one-off visit to see a notary.

“We are a Czech company originally oriented towards the Czech market,” says Zuzana Čižmáriková, Sales Director at Urban Developers and Investors. “The situation with long-winded building permitting processes in Czechia contributed to the development of other possibilities for the company and our search for new markets. Offering international investment opportunities is a way to diversify our portfolio and ensure economic stability in unstable times.”

Why invest in international real estate?

Real estate is a popular investment because it combines potential for high returns with a level of security not typically found in other investment opportunities such as stocks and shares. There is no shortage of choice, and the wider you look for real estate investments, the more opportunities you will find.

“Global real estate is one of the largest asset classes in the world,” says Čižmáriková. “The benefits of real estate investments include earnings through rental income and property value appreciation. Meanwhile, diversifying with international investments protects your assets from changing economic and geopolitical circumstances, as well as changes in interest rates and fluctuations in currency exchange rates.”

This combination of strong earnings and protection against external factors makes real estate an inflation-beater.

“Real estate is considered as protection against inflation, because when the prices of goods and services are rising, home values and rents typically increase as well. If the real estate you invest in increases in value over time, you can sell it for a solid profit.”

Owning foreign property gives investors an even greater choice of options that they don’t tend to experience with domestic property opportunities. “Owning foreign property gives investors the chance to take vacations to exciting places, as well as renting out the property to short- or long-term tenants to generate cash flow which can be used to offset the running costs of the property.”

Greater opportunities

Is investing abroad really more lucrative than putting your money in Czech property? In the current economic circumstances, there are no easy answers to growing your money. But Čižmáriková notes that in such circumstances “hard assets like real estate are the best opportunities for creating and enhancing value.”

Investing abroad is now a particularly attractive prospect for investors in Czechia, because of the relative strength of the local housing market.

“Prices for real estate properties in Czechia are currently at a high level, but in some other countries, the prices are still reasonable. This is in addition to the savings you can make due to foreign exchange rates, resulting from the current strength of the Czech crown. When buying property abroad, you reduce both market risk and exchange rate risk by diversifying your portfolio.”

In addition to the benefits mentioned above, owning property abroad can form part of your retirement plan. “Today’s investment can be tomorrow’s retirement residence, earning you a rental income until you’re ready to move in yourself,” says Čižmáriková.

What are the rules and requirements?

In a world of international opportunities, there are no major obstacles to investing in foreign real estate, especially residential properties. Specific tax requirements will vary depending on the country where you want to invest, and UDI’s experts are here to help.

When it comes to UDI’s minimum investment for participation, it’s simple. “We have a wide range of apartments in our portfolio and the minimum investment is the price of the apartment. Payments always depend on the current phase of the project,” explains Čižmáriková.

This means a true sense of ownership in your foreign investment, opening up various possibilities for growing your investment’s value, generating rental income, and enjoying the property yourself. Full ownership gives control to investors, is more liquid than investments in newer schemes offering partial shares in real estate, and is not subject to stock market fluctuations in the same way as investment in a listed property company. Thanks to this range of benefits, investing with Urban Developers and Investors provides opportunities you won’t find elsewhere.

This article was written in cooperation with Urban Developers. Read more about our partner content policies here.

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