Bordeaux and Prague seem somewhat similar to us. These are wonderful cities, the historical appearance of which has not been destroyed by ubiquitous modern architecture with its strict forms and soulless materials with a metallic sheen. Although they look similar externally, they are quite different in the eyes of investors. Where is real estate more affordable and promising? It's not for us to judge, but we will judge.
The Prague cake tastes better in Prague
These tiled roofs and sharp spires of St. Vitus Cathedral are hard to confuse with anything else. Prague is not only the center of the country, but also of the Central Bohemian region. This ancient capital is located in the historical region of Bohemia, so the lifestyle here is bohemian. The artistic intelligentsia fills the already colorful streets with its modest galleries, noisy performances, and inner balance, which is transmitted to tourists in a few days and makes them slow down to look at Prague through the eyes of its inhabitants.
Like in any capital city, prices for buying and renting real estate here are some of the highest in the country. To get acquainted with the city at first, a one-bedroom apartment will be enough, so let's start analyzing the market with it.
- In the center - €1,000 per month;
- In other districts - 700 €/month.
If you are planning to visit Prague with your family, choose a more suitable option. A three-room apartment will be more than enough.
- In the center - 1,700 €/month;
- In the other districts - 1,300 € per month.
It is worth noting right away that with an average salary of €1,620, even a one-room apartment seems unaffordable luxury for the wallet. If locals consider buying property, they will face even greater disappointment. The cost of 1 m² in not the most presentable areas starts from €4,700. A similar one-bedroom apartment in the center is capable of bankrupting - the average price does not drop below €6,800 per m². Even a mortgage does not help much in realizing the dream of own housing. Although it is granted for 20 years, 5.91% scare off many. In comparison with Amsterdam and Hong Kong this is just robbery. If you want to take a risk and try to recoup the investment by renting out the apartment, you will have to wait about 32 years to get your capital back, because the yield is only 3.13%.
In Bordeaux, you should buy wines and apartments
Bordeaux possesses no less beauty than Prague. Instead of houses with brightly colored red roofs, there are more restrained buildings from the 18th-19th centuries, and instead of St. Vitus Cathedral, there is Saint-André. This city does not have the status of a national capital, but is rightfully considered the world capital of wine. The similarities with Prague end there, because in terms of real estate, Bordeaux is much more accessible for its residents and guests.
The rent for a one-bedroom apartment is noticeably more pleasant:
- In the center - 780 €/month;
- In the other districts - 590 €/month.
Three-room apartments are not much inferior to the Czech capital:
- In the center - 1,600 €/month;
- In the other districts - €1,040/month.
And yet Bordeaux cares more about its residents, because here their average salary after taxes is €2,297. The difference of almost €700 allows for comfortable living rent an apartment even alone. When it comes to buying real estate, things are always much more complicated, but it did not go without a pleasant-unpleasant surprise - the cost per square meter in the city center and in other parts of it is almost the same, but it remains equally high. For example, 1 m² in the center of Bordeaux costs €5,215, and in other areas - €5,166. At least mortgage for housing. More affordable, so buying your own apartment is quite realistic. The fixed mortgage rate for 20 years is 3.65%. However, the rental yield of 2.46% is a bit disappointing because you will only start earning money after 40 years.