Czech Republic Property Investment News

Czech Republic expects influx of foreign workers

A recent study has predicted that the need of the Czech Republic for skilled workers will mean that by 2050, 30% of the country’s population will be foreign, and by 2020 a 7.4% foreign proportion of the population will be needed to meet the demand for workers. The Czech Republic has a strong economy - one of the strongest of any of the former-Communist countries in Central Eastern Europe - but it is feared that economic growth will be curtailed by the shortage of skilled resident workers.

In the Czech property market, the domestic demand for property represents the bulk of demand, and this has been seen to grow over recent years driven by rising employment and higher average salaries. Now left without enough resident workers to fill the available jobs, some of the largest employers with bases in the country are turning to other countries in their recruitment drives, intending to bring workers in.

With such a high number of workers expected to be moving into the country, these predictions represent an opportunity for many potential investors in Czech property, as an influx of qualified workers into the country will mean a boost in the demand for quality accommodation, particularly in and around the country’s cities.

The Czech government is considering a scheme whereby qualified workers from other countries are issued with a green card, which together with the apparent trend for recruiting foreign workers, means that the increase to the population will comprise young, qualified people who have employment before setting foot in the country, therefore representing a considerable source of demand for property to rent or buy. Added to this, the Czech government is currently phasing out rent-controlled apartments – of which there are an estimated 750,000 – by raising rent levels gradually until 2012 after which tenant and landlord will agree future rent levels.