The commercial property in Europe

To begin with, the commercial real estate market in the Czech proposes investors a diversity of chances and privileges which can’t be offered by other investment strategies. When the advantages of commercial real estate investing are confessed, the next move will be to explore it in details.

While some entrepreneurs can`t decide on whether to invest in one country or another, the most beneficial commercial real estate is concentrated in the Czech Republic.

The commercial property in Europe showed a growth of 0.2% for the year. Earlier, it was developing slowlier. However, in 2018, a positive shift was due to the region of Central and Eastern Europe, in particular, the Czech Republic.

One should emphasize the fact that by the beginning of 2019, the profitability of the commercial real estate in the most popular locations of the Czech Republic was 3.5% and in shopping centres it was 4.5%. Monthly revenue from the rental of commercial real estate in Prague – from € 170 to € 230. Cost of 1 sq.m. ranges from € 700 to € 6 thousand, depending on the region of the Czech Republic, the
class of the object and its location.

Cash Flow: It’s necessary to understand that commercial real estate in the Czech Republic and especially its capital suggests one pretty recognisable benefit: a comparatively stable amount of revenue owing to durable tenancy periods.

Furthermore, commercial real estate in the Czech frequently has more premises and square meters than residential properties. This means the entrepreneur has an opportunity to reach economies of scale and increase his income streams much faster.

Less Competition: Another privilege associated with commercial real estate in the Czech Republic is reasonably less competition. Because of the suspected intractability of commercial investing, the commercial space tends to be less saturated with other investors.

Longer Leases: It is likely to be considered one of the greatest advantages of commercial real estate. It is the tempting leasing contracts. One cannot deny that commercial buildings commonly have longer lease contracts with tenants in comparison with residential properties, which, as previously stated, suggests investors magnificent returns and considerable monthly cash flow.