summer 08 report

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SUMMER&FALL 2008PRAGUE MARKET REPORT

A UNIQUE VIEW OF PRAGUE FROM MARATHON CONSULTING GROUP

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CONTENTS1Prague and the Czech Republic

5Taxation6Legal

7The Residential Market

12 Pragues Core Districts Reviewed

16 The Beauty of Bratislava

16 About Marathon Consulting Group

Welcome to Marathon Consulting Groups firstresidential market report covering Pragues seem-

ingly limitless residential real estate sector. It is ourpleasure to invite to you to examine the wealth ofcurrent data and expert analysis we have assembled.In the twelve years we have thrived here in Prague,we cannot remember a more exciting time to considerinvesting in Prague and all it has to offer.

Warm regards,John Breaux

Managing DirectorMarathon Consulting Group, s.r.o.

Milunic and Gehrys world-famous Dancing House. Photo Jan Sokol


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PRAGUE MARKET REPORT 01

PRAGUE AND THE CZECH REPUBLIC

LOCATIONLandlocked in the heart of Europe, the Czech Republic

(pop. 10.4 million) sits between Germany to the west,

Poland to the north, Slovakia to the east, and Austria to

the southeast. The country is composed of the regions of

Bohemia and Moravia, as well as parts of Silesia in the

north. Comprising a total area of about 79,000 squarekilometers, the Czech Republic is considered a mid-size

EU country. Its size is comparable to Austria or Ireland

and it would fit inside France seven times. One third of

the countrys citizens reside in the five largest cities of

Prague, Ostrava, Brno, Plzen, and Oloumoc.

Prague (496 sq. km with a population of 1.9 million) is the capital city and is situatedalong the banks of the Vltava River in the geographic west-central section of the coun-try. Other nearby EU capital cities includes Warsaw (515 km northeast), Vienna (310km southeast), Berlin (340 km due north), and Bratislava (289 km southeast). Prague isby far the largest city in the country, outsizing Brno 4:1 and Ostrava 3:1.

OVERVIEWIn Czechoslovakia in November 1989, the communist re-gime was unseated after a series of student demonstrations

and strikes. As it was a nonviolent affair with no knowndeaths, the events became known as the Velvet Revolution.The country then gained further independence January 1,1993, when it peacefully separated from the Slovak Repub-lic, thus becoming the Czech Republic.

The Czech Republic is a formal member of NATO, theUnited Nations and became a member of European Unionon May 1, 2004, along with nine other former Soviet bloccountries. It is a pluralist multi-party parliamentary rep-resentative democracy.

Prague Castle and Mal Strana in autumn. Photo Stefan Bauer


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INDUSTRIAL ANDECONOMIC INFRASTRUCTUREThe Czech Republic is considered one of the most highly

developed and industrialized economies in the region. Theprincipal industries are machine building, iron and steelproduction, metalworking, chemical production, electron-ics, transportation equipment, textiles, glass, china andceramics production, brewing, and pharmaceutical prod-ucts. Its key agricultural products are sugar beets, pota-toes, wheat, wine grapes, and to the delight of beer loverseverywhere, hops.

Prague and Brno have, over the last decade, experienceda shift from an industrial-based economy towards that ofa service-based model. Smaller regional cities industrialoutput (specifically in the automotive sector) have spiked

FDI and contributed significantly to GDP growth.

ECONOMY: THE CROWN IS KINGAt the onset of summer 2008, the Czech crown set a newrecord of 23 crowns against the Euro and 14.5 against theU.S. dollar. This gave Czechs tremendous buying poweroutside of the country thus bolstering foreign travel andpurchases. The Czech postal service reports much higherthan usual foreign mail order purchases, especially those

originating in the United States.


The colors of money. Photo James Lambert


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The Czech economy has been one of the healthiest in Central and EasternEurope. GDP growth tops 5 percent, the trade balance is well within reasonand inflation, with the exception of the last few months, has been low. Directforeign investment has been healthy, and the EU is injecting the economy with

billions of euros in development aid.

Major threats to the crowns current value, however, include a decline in for-eign investments, continued instability in world markets, and slower growth athome. It should be noted, however, that in an effort to stabilize the crown, theCzech National Bank board, at their August 7th meeting, unanimously votedto lower the key interest rate from 3.75 percent to 3.5 percent. The currencyconsequently weakened to 24.11 to the euro before settling slightly stronger.It is estimated that the crown will settle at around 25 to the euro and theremight be another rate cut.

AVERAGE INCOMEIn 2007 the gross nominal monthly wages were CZK

21,692, or about EUR 870. Over the next two years this

figure is expected to increase by 7,5% per annum, placing

the Czech Republic ahead of the pack when compared to

other bloc countries such as Poland, Slovakia, and Hun-

gary. As impressive as this seems, the Czech Republics

average salary still pales in comparison to other neigh-

boring EU countries such as Austria (49% of the aver-age Austrian salary, approx. CZK 76,000) and Germany

(51%, approx. CZK 73,000).

More money, more shopping, higher GDP. Photo Getty Images and Mike Kemp

Overlooking Star Msto and Mal Strana from Letn Park. Photo James Lambert


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TAXATIONCAPITAL GAINS ON RESIDENTIAL PROPERTY

Dating from the beginning of 2008, capital gains on thesale of property owned by a legal entity are subject to thestandard corporate income tax rate of 21%. This numberis reduced to 15% when concerning foreign property in-vestors who have owned the property for less than fiveyears and who have resided legally in the property forless than two years. Capital gains realized by a foreignowner on sale of shares of a Czech legal entity to anotherforeign entity are generally outside the scope of Czechcorporate income tax. Individuals are then subject to thestandard income tax rate of 15%.

REAL ESTATE TRANSFER TAX

The real estate transfer tax is set at 3% of the selling price

of a property, or its officially assessed value, whicheveris higher. This tax is normally payable by the vendorand the buyer acts as the guarantor. There are exemp-tions to this transfer tax, but they deal mainly with par-ticular types of transfers, such as inkind contributions

to share capital and with company reorganizations.

REAL ESTATE VALUE-ADDED TAX

The transfer of land is exempt from VAT except in the

instance of land with building permits issued on them.In this case the VAT jumps to 19%. A building deed thatis transferred after three years of acquisition (or approv-al of use) is VAT-exempt as well. VAT is levied at thestandard rate of 19%, however, on all properties over

120 m2 that are sold or leased.

Refurbishment of residential buildings and the transferof residential buildings that qualify as social housingis subject to the reduced 9% VAT. Social housing is de-

fined as residential units not exceeding 120 m2 and de-tached houses of up to 350 m2. If the residential projectis sold as whole, the lower VAT rate only applies if therest of the building is also social housing, which meansevery unit must be within 120 m2 of floor space.


Living the modern life above Smichov, Praha. Photo James Lambert


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LEGALBASIC FORMS OF TITLE

Full ownership (or vlastnick prvo) is the most common form ofownership. This freehold title enables the owner to exercise stan-

dard ownership rights on a property. Easements (vcn bemeno)and leases (njemn prvo) are also available. Cooperatively ownedapartment buildings (drutvo) can be owned by the residents wholive there. All titleholders in this instance own a share of the build-

ing but none of the residents owns an individual flat.

FOREIGNERS AND REAL ESTATE

Foreigners from the United States and the EU are allowed to acquirereal estate directly from sellers if they possess a long-term EU resi-dency permit. If not in possession of a long-term residency permit,these people may acquire property through the establishment of a le-gal entity known as an S.R.O. (spolenost s ruenm omezenm). The

foreigner may own 100% of this entity, which in essence is a limitedliability corporation.

REGISTRATION OF PROPERTY

Property is registered through a system known as the Cadastral Reg-istrar (Katastr nemovitost), which details a propertys ownershipand any liens or mortgages on it. Any servitude on a given propertyis entered in the Cadastral Registrar on the date an application isfiled to transfer a title. Conversely, anyone may check for liens on a

property with the Cadastral Registrar before applying for a transferon any property entered into the system after the January 1, 1993,the date of the Czech Republics first date as an independent nationfollowing its split from Slovakia. This database is online, which fa-

cilitates research for prospective buyers.

LEASESLeases on property are subject to certain mandatory provisions ofthe Civil Code and the Act on Lease and Sublease of NonResiden-tial Premises. Recent amendments have increased the contractualfreedom to lease nonresidential premises. Additionally, rent controlwill be abolished in 2010, following two years of regulated 20% in-creases on controlled dwellings, as permitted and encouraged by theCzech government.

PRIVATIZATION CLAIMS

There is a comprehensive reprivatization law in the Czech Republicand all deadlines for claiming ownership have expired. Certain priorproceedings may still be pending. These are to be listed in the Ca-

dastral Register.


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RESIDENTIAL MARKETPRICES HOLD THEIR OWN

The Czech Republic experienced a real estate boom over the last severalyears, and 2007 was no different. This dynamic progress in housing de-velopment has been catalyzed by the improving economic situation of citi-zens and resultant demands for higher standards of living and housing.One key factor for the positive trends in housing development, accordingto our professional experience and supported by the Czech Statistical Of-fice, is the continued favorable mortgage market even with an increasein base mortgage rates, potential buyers continue to look for new housing

opportunities.

Prague continues to be the epicenter of the booming Czech market al-though a shift to other regional cities is being seen. Prices on flats inPrague grew over 15% on a citywide average last year, outpacing 2006salready impressive 12.5% growth. In 2007, the most impressive growth

within Prague was situated outside of the central districts. These tradi-tionally overlooked areas (Prague 9, for example) wowed market watcherswith, in some cases, up to 30% increases while the more established cen-tral districts posted modest increases closer to 10%. It is our opinion thatoverall growth will continue to slow and stabilize in the center of Praguein 2008 and beyond. We do not expect any price declines, however. Year-on-year growth will, more than likely, level off to somewhere between 6%and 8%. Pragues positive market conditions continue to enthuse buyersand developers alike, however, and many new interesting projects (and

opportunities) are underway.

According to government statistics, 47% of flats in the Czech Republic areprivately owned, 17% are owned by building cooperatives, and 29% are for

rent. The remainder is social housing segment or company-owned flats.

RENTAL MARKET

Pragues once robust rental market may be showing signs of softening.The Regional Development Ministry reported recently that the averageadvertised rents in a number of regional cities are stable or slightly de-

creasing. This includes Prague and its environs. Owners of rental proper-ties, including those in the center, have seen stable to slightly decreasedrental prices. There is one exception, apparently. Demand has shiftedmore toward smaller flats in the range of 50 to 70 square meters, and

prices within this sector appear to remain strong with signs of growth.

The ministry, as well as many industry experts, also expects that marketrents will drop further in many parts of the country. After 2010, whenrent control will be abolished, the currently unregulated rents will de-

crease as those flats that are so far rent-stabilized will enter the market,says Hynek Jordn, spokesman for the ministry.


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SUPPLY

According to recent government statistics, a total of 171,383 dwellings wereunder construction as at March 31, 2008, representing a 1% (+1,730 dwell-ings) increase year-on-year. Slight more than half of dwellings under con-struction was family houses (50.2%), only 1.3% were converted non-residen-

tial spaces (1.3%).

In the first quarter of 2008, 9,158 dwellings were completed, i.e., a year-on-year growth of 9.8% (+821 homes). The highest increases were registeredfor flats completed in family houses (by 22.1%, i.e., +813 homes), homescompleted as extensions to multifamily buildings (by 51%, i.e., +157 homes)and homes in converted non-residential spaces (by 37.4%, i.e., +71 homes).Decreases were recorded for homes in multifamily buildings (by 3.0%, i.e. -102 homes) and homes in community care service homes and boarding hous-es (by 57.4%, i.e. -93 homes).

DEMAND

While the delivery of new homes and flats appears to continue almost un-abated, demand for them has become sluggish by as much as 20% from thistime last year. This is particularly evident in the lower price range and inless desirable locations, as buyers have become more demanding in termsof locations (i.e., proximity to public transportation is important) as well asthe finishes and equipment they expect. Demand at the upper-mid level and

luxury markets remains relatively strong.

DWELLING SIZES AND DISPOSITIONS

The table above shows the average size of flats in the Czech Republic accord-

ing to the Czech Statistical Office. Dwelling sizes have increased in recentyears from an average of 60 m2 to 70 m2 as family size increases. The aver-age number of occupants level now rests at 2.75 people per dwelling.

Open floor plans are more common in todays f lats. Source: Marathon Consulting archives


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PRAGUE MARKET REPOR10

PANELAKS

A full one-third of the Czech Republics housing supply is in the

form of Panelaks, high-rise communist-era block apartments. Un-less they have been renovated, they are often unsightly and out-dated and are increasingly viewed with disdain by younger Czechs.Insufficient maintainance repairs and construction deficiencies

have accumulated to the point that an estimate for repairs onthe nations panelaks approaches CZK 500 billion (approximately

EUR 18 billion).

In 2007, the EU provided to the Czech government a grant to im-prove conditions in especially hard-hit areas. CZK 3 billion in aidfrom the EU and the Czech government will not halt the migrationof young buyers away from the panelaks of their youth. This mi-gration, however, does bode well for developers and investors.

REGULATED RENTSSince before the fall of communism, regulated rents in the CzechRepublic have been a necessary blessing and burden. One aspectis not in dispute, however; regulated rents have hindered therental markets economic efficiency. Twenty percent of all rent-als (760,000 units) fall under pricing regulation and beginninglast January 1st, effective changes made to regulated rental law.Since then, these long-static prices have increased sharply (29%)and will continue to do so as time marches forward towards 2010,

when parity is achieved.

An awe-inspiriing example of panelk living in Prosek, Praha. Photo Packa


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MORTGAGE FINANCING

2007 was a banner year for the nations mortgage lenders, regis-tering almost 78,000 loans totalling nearly CZK 148,000 million,up 28% from 2006. The standard real estate practice is to trans-fer the majority (85% or more) of the purchase price to the sellerupon the signing of the final purchase agreement. This benefitsboth parties, thanks to the typically high LTV ratios, although

this practice is meeting increasing opposition in other markets.

The Czech Republic currently has the lowest interest rates inthe Eurozone. In the longer term, however, rates will approachthose within the Eurozone. As a result, this has encouraged manyCzechs, especially young people (65% of current applicants), withlittle or no savings to purchase their first home. Four out of everyfive buyers purchase their home with at least partial assistance

from a mortgage.

Because of the current US credit and housing crisis, Czech banksare taking a cautious approach and imposing stricter loan approv-al conditions. This is in an effort by the banks to stem any futurelosses. Any applicant who, with limited income, may have qualifiedjust a year ago might find it more difficult today under the tighterguidelines. Many believe, however, that Czech salaries are stillgrowing and that the new rules will not have such an impact.

And while getting a mortgage seems to be more difficult, the market

for home-building savings has been growing steadily since the be-ginning of the year. Building societies are reporting a 20% growthin the business since the beginning of 2008, while mortgage lend-ers report the same percentage decline. It should be noted, how-ever, that the average loan from building societies is about CZK500,000. Proceeds are generally used toward home reconstructionand not necessarily for the purchase of a new home or flat.

FUTURE PRICING

The recent boom in the nations real estate market cannot and will

not last forever, but a bubble does not exist and there should notbe any backslide in current values. The market, however, is un-able to support continued growth given the current pace.

Since its entry into the EU, the Czech Republic has experiencedphenomenal gains, peaking in 2007 at a national average of 16%.Look for this figure to begin to fall in 2008 but rise again as weapproach 2012, the proposed (though unlikely) date of adoption of

the Euro.


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Pragues neighborhoods are numerous, unique and varied. Luckily,all of them fall into one of the four concentric residential zonesthat emanate outward from the center of the town. First there isthe city center itself, downtown Prague, comprised mainly of the

popular commerce and tourist districts of Star Msto (Old Town)and Mal Strana (Lesser Town). Circling the center is a populouscentral ring of residential neighborhoods, which includes Vino-

hrady, ikov, Letn, Holeovice, Smichov and Karln.

Further still from the city center are the less affluent (but some-times equally desirable) areas that comprise the spacious remain-der of the city limits and beyond that are the city outskirts and

newly-popular satellite suburbs such as Libe and Vysocany in

Prague 9.

Along with an overview of these areas is information on averagesale and rental prices. These are estimated using 68 square me-ters as the average size. Sale price averages includes both existingand new build sales.

THE CENTRE OF IT ALL:

STARE MSTO AND MALA STRANA

The picture-postcard heart of the city is reflected in its hefty realestate prices across the board. Heritage Preservation laws almost

exclusively protect Prague 1 and as such redevelopment and newconstruction is rigorously constrained. This, in turn, drives pricesup even higher. Foreign buyers dominate the market here, andtypically local Czechs are unable or unwilling to match the highmarket demands. The stunning architecture and cosmopolitanlifestyle, however, often prove irresistible to many buyers once

they hit the pavement.

Average Sales Price : 8.2 million CZK (about 120,000 CZK/m2)

Average Rental Price per Month : 27,200 CZK (400,- CZK/m2)

PRAGUES CORE DISTRICTS REVIEWED

The panorama to Prague and the Vltava River is nothing if not spectacular. Photo Luk Hron


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LORDS OF THE RING:

VINOHRADY, IKOV, KARLN, LIBE

DEJVICE, SMICHOV, HOLEOVICE

The vast majority of todays buyers will purchase flats in one ofthese attractive districts. All of these neighborhoods border (inone way or another) the city center and are considered the silver

standard for modern Prague living. The neighborhoods are typi-cally quiet (ikov has proven to be a bit of an exception here)and are well serviced with plenty of shopping, entertainment, and

public transportation.

While posting lower average prices than Prague 1, these neighbor-hoods are very strong performers and are often considered first bypotential buyers thanks to the high quality of life and conveniencethey can provide.

VINOHRADY

Vinohrady (Prague 2) is by far the cream of the crop of all ofPragues neighborhoods. The district is quiet, beautiful, and af-fluent. Shady sidewalks and bustling bars, cafes and restaurantscombine to form an unforgettable living experience. Vinohradyalso boasts two of the citys most beloved parks: the sprawling

Riegrovy Sdy and the Havlikovy Sdy, which overlooks the vastNusle Valley. Vinohradys treasures dont come cheaply. Prices arehigher than other ring neighborhoods, but perhaps not surpris-ingly the districts continued growth (an impressive 15% over thelast year) is a testament to its allure.

Average Sales Price: 5.4 million CZK (about 79,000 CZK/m2)

Average Rental Price per Month: 20,400 CZK (300,- CZK/m2)


The Vinohrady Water Works on Korunni Street in posh Vinohrady. Photo J


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IKOV

ikov (Prague 3) is a bit of an anomaly. Part of thedistrict is every bit as posh as its neighbor, Vinohrady,while other less-fortunate pockets remain stuck in up

and coming mode. ikov is one of Pragues most vi-

brant places to live and its values will continue to climbno matter the location. The district saw 16% growth lastyear. This trend looks to continue into 2009 as buyerssnap up more of the affordable existing housing stockand as several new developments begin to come online.A bit of research goes a long way in this neighborhood, as

there are deals to be had almost everywhere in ikov.

Average Sales Price:

4.6 million CZK (about 68,000 CZK/m2)

Average Rental Price per Month:

18,360 CZK (270,- CZK/m2)


KARLN and LIBE

Karln and Libe (Prague 8) experienced widespreaddevastation during the floods of 2002 and are stillrecovering, albeit with gusto. The flooding affordedthe districts an opportunity to re-brand themselves,and these areas have taken full advantage over thepast six years. Walking through Karln is now amore pleasant experience and is an excellent wayto get a feel for this neighborhood. Broad, uncrowd-ed streets, a burgeoning nightlife scene, abundantparks and many new shops and businesses are sev-eral reasons to consider Karln. The best reason of

all may be Karln and Libes riverfront location,

just a few short tram stops from the city center.Values jumped almost 8% last year and will contin-ue as more people discover all that these districts

have to offer. It is our belief that Karln and Libemay be the best bets for those seeking a long-termresidential investment.




17,950 CZK (264,- CZK/m2)

A beautiful study in architectural contrasts in ikov. Photo Tismey

The Danube House reflects Karlns new look. Photo Hynek Moravec


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SMICHOV

Just south of Mal Strana on the western side of the Vltava lies the Smichov district of Prague 5, a beauti-ful, busy district as varied as Prague itself. Rising upfrom the riverfront into the hills high above the city,locals can experience both urban and truly suburban lifein one neighborhood. The focus of a huge redevelopmentpush earlier in the decade, Smichovs local economy hasbenefited greatly from these efforts. Property valueshave jumped over 20% annually since 2006, the highest

increase of any ring district. The area is flush withexcellent shopping and services and an impressive clus-ter of entertainment and transportation options. Thedistrict is not without a few trouble spots due to heavycommerce. Nevertheless, Smichov remains an oft-over-looked gem in Pragues crown worthy of every prospec-

tive buyers consideration.




18,500 CZK (272,- CZK/m2)

HOLEOVICE

Holeovice (Prague 7) is a large district located acrossthe Vltava River to the north of the center of Prague.Its topography varies greatly and there is much to offerpotential buyers. Its legacy as an industrial city centerremains visible, but increasingly these parcels are ripefor redevelopment as modern loft-style on water front

residences. Closer to the center, residents of Holeoviceare afforded stunning views of the Prague skyline fromthe cliffs above the Vltava. Park Letna may be the mostbreathtaking overlook in all of Prague. The beer gardenthere is a living landmark for locals and tourists alike.In many ways, Holeovice is the antithesis of posh Vino-hrady and benefits greatly because of it.


4.6 million CZK (about 68,000 CZK/m2)Average Rental Price per Month:

17,000 CZK (250,- CZK/m2)

The grounds of Troja Castle offer a serene view to Holeovice. Photo Packa

Smichovs bustling shopping mall draws thousands daily. Photo Honza Groh


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DEJVICE

Dejvice (Prague 6) is an affluent neighborhood located diametri-cally across the city from its sister district Vinohrady. Often con-sidered an older, quiet area, Dejvice is home to some truly impres-sive manors and most of the capital citys national embassies. Thequality of life here is high, and it comes at a price. Several notableforeigners schools and easy access to Pragues airport make De-

jvice the district of choice for wealthy businesspeople and diplo-mats. Dejvice is also home to the spectacular open space knownas Divoka arka (Wild Sarka). This vast natural playground findsmany Praguers visiting year-round and remains a treasured pre-serve amidst the urban development. The good news for the aver-age buyer is that Dejvice has a share of increasingly renovatedpanelaks that offer good value in a truly excellent location. Prop-

erty value increases were in line with much of the city at 15%.

Average Sales Price: 5.23 million CZK (about 77,000 CZK/m2)Average Rental Price per Month: 17,000 CZK (250,- CZK/m2)

PRAGUE 9 - VYSOCANY

The Vysoany district of Prague 9 served as a manufacturing sitefor locomotive producer CKD, the Praga car factory, a Kolben fac-tory and Avia Aero among others. It reached its peak during WorldWar II and continued well into the 1950s. A restructuring of thecitys industrial zones since the early 90s has driven a number of

factories out of business and literally cleared the air. The facto-ries were slowly replaced with office parks, and new residentialdevelopments began filling the vacant parcels. The main boule-vard, Sokolovska, has been restored, adding to the gradual gen-

trification of the entire neighborhood. Vysoany is home to the O2 Arena (originally Sazka Arena), a world-class indoor sports andentertainment stadium, as well as a new indoor ice-skating rinkcurrently under construction that will be opening shortly. Thereare many local shops, including the new Fenix Hotel and Shopping

Center (with one of the largest congress facilities in the city) andrestaurants, affording a true neighborhood experience. A Metro(subway) line as well as several tram lines will help the districtgrow, as many budget-conscience buyers look specifically for loca-tions in close proximity to public transportation. These service getlocal residents into the city in well under 30 minutes.

Average Sales Price: 3.4 million CZK or about 50,000 CZK/m2)

Average Rental Price per Month: 15,000 CZK (220,- CZK/m2)



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Bratislava, the beauty on the Danube, as she was once called, is on its way

to regain that title as the real estate market in Slovakia is literally goingthrough the roof.

Bratislavas recently renovated old town is complete with baroque palac-es, thriving squares and a youthful exuberance combined with big ideasand possible large investments. Investors are increasingly attracted to thisonce-noble capital and are convinced it will be revived in the next ten years.As such, they are willing to put their money to the test, with all segments ofproperty facing development by local companies and world-renowned compa-nies such as Ballymore. Properties in every segment are being identified all

over the city, from shopping centers with new and interesting restaurantsand pubs to offices. Following the commercial boom which is aimed at ac-commodating companies moving into the city, new residential constructioncomes in a very close second. Plans to revitalize the banks of the Danube toits original grand style, together with the arrival of major companies suchas Heitman and Axa in the city only make Bratislava a more sought-afterreal estate player on a global scale. Moreover, investors also have plans toexpand the lively old town, renovating more historical buildings and extend-ing the quarter toward, and perhaps along, the river. The old Communist-era factories will disappear and be replaced by attractive, modern, commer-

cial and residential loft developments that will bring life to the center.

The construction boom in Slovakia is the result of the thoughtful econom-ic reforms of the government from 2002 to 2006. The impressive economicgrowth will be most evident in Bratislava, with other regional cities takingup the slack. In the not-too-distant past, mentioning Bratislava wouldnteven raise the interest of investors or developers. Today, however, this ro-

bust capital is one of the most rewarding investment locations in Europe.


THE BEAUTY OF BRATISLAVAThe Blue Danube flows gently through red-hot real estate in Bratislava. Photo Stano Novak


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Marathon Consulting Group is a real estate sales and marketing companythat teams up with new homebuilders to assist them in product development,marketing management and sales. The creative efforts of Marathon providesits builder clients with up-to-date market research data and a cohesive teamof top-quality sales associates and managers. Marathon believes in developinga strong relationship with clients a relationship that consists of a seamlesstransition between all phases of development and sales. Know that when you

work with Marathon you are working with a team of experts with extensiveexperience in sales, marketing, and market research.

Our team is at your disposal to provide you with constant support, up-to-datecompetition reports, market analyses, innovative marketing ideas and creativesolutions. We customize our service to suit each builders individual needs and

challenges.

OUR APPROACH

We are very goal oriented at Marathon and our experts who know what to fo-cus on. You want your project sold out as quickly as possible and at the highestprices possible. So do we! This requires specialists who know the secrets andnuances of successful project sales and marketing because this is what they do

every day.

Finding the key features and benefits of your project and using them as incredibly powerful sales tools;

Identifying who your buyers are so you can design your project for maximum

appeal;

Locating your buyers quickly and cost effectively.

Everything associated with your marketing and sales program must be linkedtogether with the goal of making sales; otherwise it is a waste of your time andmoney. The sale centers design, advertising, direct mailings, signage, staffing,and systems are not stand-alone items but integral parts of a larger picturethat come together into one package that says Buy Here!

THE MARATHON ADVANTAGE

Experts who specialize only in project sales and marketing to minimize risks and maximize results;

Integrated sales and marketing efforts to produce the quickest, most cost-effective sales;

Clearly defined and managed plans so you are always in control;

Customized programs capturing unique features and benefits to maximize sales appeal;

Faster sales to reduce carrying costs and risk.

For more information feel free to contact us at [email protected]

ABOUT MARATHON CONSULTING

summer 08 report

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