News » Strong economic growth

The Prague property market has and continues to see overwhelming demand from both foreign and local investors. And who wouldn't like to own a property in this fairytale city that pulls at your heart strings and attracts major foreign investors on the basis of economics.


With the Czech economy running red-hot wholesale nike shox gravity , in fact, at a stunning 6% last year (2005 GDP), there is good reason to consider this beautiful capital as a strong investment choice. Czech Republic's results far outstripped the average EU GDP growth of 1.6% and those of Hungary (4.1%) and Poland (3.2%). Slovakia alone equaled Czech Republic in terms of growth.


Economic Indicator - GDP
20003.9%
20012.6%
20021.5%
20033.7%
20044.0%
20056.0%



Not only was 2005 extraordinary in terms of Czech GDP growth but also with the sheer number of new investment projects and with this wholesale nike shox nz , the total foreign investment (FDI). Total FDI in 2005 was more than 263 billion CZK (11 billion USD) which is the highest figure in history in terms of dollars and second highest in terms of CZK.


Economic Indicator - FDI (USD billion)
20005.0
20015.5
20028.4
20032.6
20044.0
200511.0



However, what does all of this mean with regard to the residential property market?


Higher GDP usually translates into higher disposable income for the population. Much of this increase is focused on Prague where the average gross monthly wages was 23 000 CZK as compared to the national average of 18 900 (Q3 2005).


Also, unemployment is much lower in Prague compared with the rest of Czech Republic. The national average is 9% and Prague's is 3.25% (Q3 2005).


Even the sheer number of tourists in Prague affects property prices as some are purchased for the short-term rental market. Each quarter in 2005 averaged 950 000 tourists. It is rare to find in Prague private accommodation for under 1 400 CZKnight. It only goes up from there. A well-located apartment with a professional marketing and management company can make an excellent return.


What other major investment news is there that affects your decision as an investor? Here is a selection from 2005 and newer.


Other Investment News (from CzechInvest and other news sources)


March 2005: Czech airlines (CSA) is establishing a new repair center in Prague. It will eventually employ up 400 specialized aviation mechanics and other technicians. 1.35 billion CZK will be invested into setting up the facility.


"The project for this new repair center is based upon CSA's long-term strategic plans for developing its technological base camp for airplane and aircraft component maintenance and repair in close proximity to the international Prague - Ruzyne airport wholesale nike shox retro ," says CSA president Jaroslav Tvrdik


April 2005: Scottish company Incline opened its high-tech centre in Prague-Letnany which services flat LCD notebooks, LCD televisions and plasma screens. 165 new jobs will be created at its new center.


"The growing demand of our customers in the European region induced us to increase our capacity and build a repair centre right in Central Europe," said David McKinney wholesale nike shox china , Executive Director of Incline Global Technology Services, and added: "The Czech Republic was chosen because of its excellent infrastructure and its experienced labour pool. I trust that we will succeed in building a world-class centre here."


April 2005: Toyota Peugeot Citro?n Automobile (TPCA) launches production in the Czech Republic. Total investment into their new plant in Kolin amounted to 1.3 billion EURO. An estimated staff of 3 000 will eventually be employed here.


"The TPCA launch will be one of the factors behind this year's national GDP surpassing the four percent mark," said Martin Jahn wholesale nike shox free shipping , Deputy Prime Minister for Economic Affairs. "However, there are also other aspects of this investment with material importance for our economy, among them the import of modern technology and the transfer of the unique manufacturing know-how that the entire world has tried to copy from Toyota. TPCA has already made contact with the Technical College CVUT in Prague wholesale nike shox cheap , planning to tap its pool of top-class experts in order to fill key positions in the firm. TPCA is also planning to cooperate with other technical universities."


June 2005: Computer Associates International, Inc. (NYSE: CA) declared its intended creation of the first worldwide Mainframe Centre of Excellence in Prague. The new Centre will focus on software development, maintenance wholesale nike shox shoes , validation and quality assurance for the mainframe computing environment. This is estimated to be a 36 million EURO investment. More than 200 are expected to be hired and trained for this facility.


Guy Harrison, senior vice president, Development Operations at CA said "This Centre of Excellence will provide mainframe users worldwide with a host of innovations wholesale nike shox , and will help strengthen the Czech Republic's position as a hub of IT activity."


June 2005: Accenture, a global management consulting held the official grand opening of its new facility in its shared services centre in Prague-Chodov. Accenture, who fourteen years ago entered the Czech market wholesale nike shox shoes r4 , is expanding rapidly here - employing more than 1,300 people and continues to expand.


August 2005: International rating agency Fitch upgraded all its ratings of credit reliability for the Czech Republic. It gave the Czech Republic an A for its long-term foreign currency obligations compared to the previous A-. The short-term currency rating jumped to F1 from F2 and the state's rating ceiling reached AA- from A+. The rating for long-term debts in Czech crowns was also raised from A to A+.


"Strong economic growth, continued real convergence with Western Europe and moderate external financing risks support the upgrade of the Czech Republic's sovereign ratings wholesale nike shox shoes gravity ," says David Heslam, Associate Director in Fitch's Sovereig Levin鈥檚 passion for sports start. Cheap Jerseys Wholesale Cheap Custom Jerseys Cheap NHL Jerseys China Cheap NFL Jerseys From China Cheap Jerseys Online Cheap Throwback Jerseys Cheap NFL Jerseys From China Cheap Soccer Jerseys Cheap Adidas NHL Jerseys Wholesale Jerseys From China