Finn-ished flats

While much of the country's real estate market is feeling the pinch of the lowest sales figures since 2008, newcomers YIT Group have beaten the odds and nearly sold out at their new KOTI Hostivař luxury apartment complex and have already sold many units in their other buildings where construction has just begun.

Offering views of the Hostivař reservoir, the five-story, 28-apartment building is in line with the YIT Group's Finnish style of living: an emphasis on the environment with clean, natural, low-energy design throughout.

Tom Sandvik, YIT's senior vice president and head of the company's Central and Eastern Europe division, told The Prague Post he feels the unique design of the KOTI (Finnish for "home") projects is a big reason the company is thriving in such a difficult sales market.

"What we are trying to bring to the Prague market is something like Finnish flat design and architecture: simple, straightforward and quite functional," he said. "I think the problem [with sales in Prague] has more to do with the flats that were designed in the boom period, when flats were much too big."

YIT's roots in the Czech Republic reach back to 2008, when it acquired the company Euro Stavokonsult and since then the company has operated under the name YIT Stavo in Central and Eastern Europe.

Its latest project in Hostivař features one- to four-room apartments (42.3 to 110.1 square meters); the other two KOTI projects in the pipeline for 2012 currently under way, Hájek and Troja, will have some larger spaces, but will still feature the same Finnish style, including built-in infra-saunas. The total investment of the three KOTI projects is valued at about 500 million Kč.

Dana Bartoňová, sales and marketing manager for YIT, said while the Finnish style - which uses all-natural materials and features heated floors and infra-saunas - has been a draw for many people who have looked at or purchased a unit, the services that YIT offers also prove attractive. YIT uses its own in-house architects and engineers, which allows the company to build apartments to suit individual buyers.

"People in the Czech Republic buy apartments for the long term, meaning at least 15 to 20 years," she said. "We're able to offer apartments that are tailor-made free of charge. It's this flexibility that keeps us ahead of the competition."

Josef Miškovský, who bought one of Hostivář flats with his wife, is one tenant who was not initially interested in the original design, but came around once he found YIT was willing to work with him to custom-design one of the units.

"The fact that there was no apartment in the offer that satisfied us turned out to not be important," he said. "YIT was able to change the shape and size of two apartments and created a completely new apartment."  

In addition to design, Bartoňová said YIT is able to be flexible with financing since the group uses its own equity to cover project costs without seeking outside financing.

"We are not dependent on financing from banks, so we are flexible with payment schedules, and it doesn't affect the prices," she said. "We are also working with banks to create special mortgage packages for our clients that will be a better deal than what they can get on their own."

The prices for the Hostivař units range from 51,000 to 60,000 Kč per square meter. Financial experts at the YIT Point office at Hradčanská work with clients to figure out options for payment plans, according to Bartoňová. In addition, each building's low energy consumption - certified with a building energy certification "B" - is expected to save clients money. YIT Group figures show owners will pay 10,000 to 12,000 Kč a year for operating expenses, while people living in a standardized building pay more than 16,000 Kč year on average, and those living in a building built before 1980 pay more than 25,000 Kč.

"It's important that flats are priced at an affordable level [and that the flats] function well and are of good quality," Sandvik said. "We also differ in our service, which is a different attitude than what people are used to on the Prague market, such as value-added services like helping with mortgage loans and insurances and helping moving into the flat. We sell the apartments, and after, we sell the services."

In addition, those who purchase an apartment will receive YIT 4U member services like interior design, free moving services, mortgage and insurance assistance and online and phone support for everyday problems. Once a member of the YIT 4U, apartment owners will also be invited to an array of different events and offers.

"Our aim is to create a family feeling between us and our customers for the long term," Bartoňová said. "This service is not just a way to contact us for help by calling or online, but also to host events to create warmth in between. We want to prove to them, even after they have made the decision to purchase with us, that it was the right decision."

Megan Battista can be reached at
features@praguepost.com