It doesn’t happen very often that our Advisor FLAT SERVICE blog deals with topics related to politics. This time, however, we have to make an exception. This year has seen one interesting trend deepen, namely the gradual movement of certain social groups from Slovakia to Czechia. According to many, this is directly linked to the current political situation in our neighbouring country, specifically to Robert Fico’s election victory. Attacks on selected political and media institutions and efforts to redraw the map of power in Slovakia are driving the departure of educated and well-off people in particular. Last weekend, for example, there was much discussion of a controversial law aimed at doctors planning to leave Slovak hospitals, whom the government is even threatening with criminal prosecution. All of this is summed up as the so-called Fico factor.
Big cities above all
The result is another wave of rising flat prices, mainly in the two largest Czech cities – Prague and Brno. Estate agents confirm that interest from Slovak citizens covers both rental housing and the outright purchase of flats for personal use.
In the coming years, Slovakia may follow the example of Romania and become another “country of lonely mothers” whose children have left for better opportunities abroad
Among the people looking for housing in Czechia, there is a noticeable degree of nervousness about further political developments. Many of them need housing above all quickly, with the option of flexible termination and the possibility of returning to Slovakia or moving on elsewhere. It is hard not to notice a certain similarity with Ukrainian citizens fleeing the consequences of the war in their own country. The arrival of several hundred thousand Ukrainians also triggered an inflationary wave on the Czech market, especially the rental one.
A comfortable life in Czechia
Slovak citizens generally enjoy very good opportunities in Czechia, both professionally and personally. A major role is of course played by the close cultural and linguistic ties and the fact that many of those who come still experienced the days of the common Czechoslovak state during their childhood or adolescence. In general, however, it is mainly younger generations who head for Czechia. While the average citizen of the Czech Republic is currently around 41 years old, the average Slovak living in the Czech Republic is 8 years younger.
Some stay in South Moravia on their journey towards a better life, while others prefer to start afresh in the capital
Slovaks in Czechia are of course covered by standard European legislation, which opens up the labour market to them, for example. They also benefit from a number of older bilateral agreements. As a result, they can not only study at Czech universities free of charge, but also write their bachelor’s and master’s theses directly in their native language. Some critics are calling for the abolition of these (and many other) concessions for citizens of the neighbouring country, pointing out that the current situation is effectively disadvantageous for Czechia. The number of Czech citizens who would reciprocally go to study in Slovakia is, after all, significantly smaller.
An attractive investment
Czechia has so far been regarded as a safe and economically very stable country, which attracts property investors. That includes capital coming from Slovakia, whether the investment is institutional (companies, funds) or retail (individuals). In the 2021 census of people, houses and flats, 162,578 people officially declared Slovak nationality, although filling in this box was not compulsory. According to expert estimates, however, the number of Slovaks in Czechia is roughly twice as high. Together with Ukrainians and Vietnamese, they are among the three largest national minorities in the country. They are certainly not to be overlooked in any economic considerations. And the same applies to data on the Czech property market. Are you one of the Slovak citizens who have bought a property in the Czech Republic? Would you like to offer it for rent, but have no time to deal with complicated administration, maintenance or repairs – often from a distance? We would be glad to lend you a helping hand in the form of comprehensive property management services. We also offer guaranteed rent regardless of whether the property is occupied. Write to us at sales@flatservice.cz or call +420 277 000 330 and we will be happy to tell you more.
