One of the fastest-growing lucrative and in-demand sectors of the Czech property market is commercial real estate. Numerous economic and societal variables are to account for this. The reality is that the Czech Republic has a thriving business community. Enterprises are willing to set headquarters in the Czech Republic to form alliances and expand their operations because many of the largest corporations in the world have branch offices here.
Developments in this sector were driven by brisk demand from business owners. Over the past several years, the price of commercial property in the Czech Republic has increased by 3-5%. First off, this trend is seen in the market for office space. Experts have already observed a rise in rents as a result of the increased demand for these amenities. You can also profit from this expanding market by establishing your own local business in the commercial real estate sector. Although it seems difficult, beginning this business is very simple. To make things simpler, this article outlines all the processes needed to launch a commercial real estate.
Seek a mentor
Never be afraid to ask for assistance, even if you are a proven leader and ready to become your boss. Keep in touch with important individuals, and you can even ask one of them to serve as your mentor. Attend meetings and events and consider forming partnerships with other realty entrepreneurs if you don’t already have a sizable list of contacts in your field. Having this kind of assistance from colleagues in your field might also save you from feeling alone.
Make a license application
The state demands a real estate broker’s license to handle the deal, regardless of whether you’re selling a residential complex or arranging a warehouse leasing. Without it, you might not be able to start your own business. The process for getting a license involves an age restriction, particular classes, and working in real estate for a predetermined period.
Additionally, the Czech Republic’s new brokerage law took effect in 2020. The Act introduces additional safety for clients of brokerage companies as well as stricter regulations for a realtor.
This implies that the real estate agent must demonstrate both professional qualifications and experience.
It costs money to launch a commercial real estate company. Once you’ve found your dream place, you’ll need the money on hand to pay your rent or mortgage. Additionally, you’ll need to have enough cash to cover additional early costs like office supplies and insurance. You can either use your own money or obtain bank credit for this purpose. Ceska spritely, Komercni Banka, Hupotecni banka, and UniCredit Bank are some of the top banks in the Czech Republic for business loans.
It can feel great to have a great facility and eventually hire staff, but bear in mind that you will be held vicariously liable for the decisions made by those who work for you. To safeguard your real estate company if a client ever sues your agency, make sure to purchase errors and omissions insurance. To safeguard the employees and assets of your business, you could also want additional types of insurance.
Bring in agents
You may have to employ brokers, based on how big your business will be. This step is not always necessary but employing experienced brokers can be beneficial for you as they already have long-standing client relationships.
Build a clientele
Advertising is a tried-and-true strategy to draw in new customers. Virtual advertising is essential in light of the development of the digital world, but don’t ignore traditional platforms like flyers, television, direct mail, and newspapers. Hosting a workplace open house will help you gain more publicity in addition to conventional marketing.
The rising cost of commercial real estate in the Czech Republic
According to experts, commercial property prices are rising in the majority of European nations with a thriving investment market. The Czech Republic is one country where there have already been some big changes. Earlier, the capital cities and popular tourist destinations tended to experience a boost in value more frequently than suburban areas.
The following factors, according to realtors, are driving up the price of commercial real estate in the Czech Republic:
- Reduction of empty spaces
- Absence of major offices
- Growth of tourism