Of all of the countries to join the European Union back in 2004 the Czech Republic has benefited most from its membership; and the country's economy has gone from strength to strength as a direct result.

The increasing wealth of the nation is being distributed among its people because Czech citizens are benefiting from an abundance of better paying employment opportunities as more international companies relocate to the Czech Republic.

All of these facts mean that the real estate market in the Czech Republic is currently buoyant, in demand and potentially very lucrative for overseas investors who seek to directly target the local market with rental accommodation and resale property.

The key to making a successful real estate investment in the Czech Republic is targeting the local market. Outside of the country's capital city of Prague there is very little tourism interest in rental accommodation and very little expatriate interest in purchasing accommodation - so those who wish to profit have to identify exactly the types of property the local citizens' demand and target that particular market segment.

In Prague and the city of Brno for example, quality family apartments are most in demand from the rental sector. In terms of properties people are seeking to purchase these include family homes in city suburbs and well located apartments preferably with access to shared facilities such as a gym.

The Czech people are embracing their new found wealth status and have adopted a very cosmopolitan and 'western' standard of living which means anyone contemplating renovating real estate particularly in Prague should do so with these facts in mind. Properties with high standard finishes and quality fixtures and fittings rent or sell the fastest, and as mortgage products and property based finance become more widely available across the Czech Republic so the consumer demand for larger and more expensive properties to purchase intensifies.

This means that a real estate investor who gets on the property ladder now in the Czech Republic can improve, increase and expand his property portfolio within the country as the Czech people become more able to afford more expensive property.

US, UK and EU citizens are free to own real estate in the Czech Republic and many choose to do so through an SRO which is a Czech limited liability company. These companies act as a taxation and liability shelter for property owners and can be established within a couple of days by any lawyer in the Czech Republic. Anyone contemplating making an investment into real estate in the country should budget for an additional 8% on top of the base property price for taxation and fees associated with buying real estate - and no one should go it alone without the help, advice and assistance of an independent lawyer. This is because the majority of property purchase related documentation will be in the Czech language and the property buying process can be quite complicated and drawn out.

About the author:

Rhiannon Williamson writes about overseas real estate investment and specialises in the analysis of property market trends and opportunities in emerging markets. To read more information about investment property in the Czech Republic click here.