The cost of commercial real estate in the Czech Republic continues to grow

Commercial properties are one of the most sought after and profitable areas in the Czech real estate market. This is due to several economic and social factors. The fact is that the Czech Republic is a country with a vibrant business environment. Many of the world’s leading companies have their representative offices here, so entrepreneurs are interested in opening their offices in the Czech Republic to establish partnerships and scale up their businesses.

Lively demand from entrepreneurs triggered changes in this market. The cost of a commercial real estate in the Czech Republic over the past few years has grown by 3-5%. First of all, this trend is observed in the office space segment. Due to the high demand for these facilities, experts already note an increase in rents. For example, the cost of office space in business centers varies from €25 per square meter. In the suburbs, the cost of renting a room is slightly lower and ranges from €17 to €20 per square meter. 

Why is the cost of a commercial real estate in the Czech Republic increasing?

Experts note that an increase in the price of commercial real estate is observed in most European countries with a well-developed investment market. If we take into account the Czech Republic, some significant changes are already taking place in the country. If earlier the increase in value was typical mainly for the capital, tourist cities, now this trend applies to objects in the suburbs.

Realtors identify several reasons why the cost of a commercial real estate in the Czech Republic continues to grow:

• reduction of vacant sales areas: global brands see great prospects in the Czech Republic and are actively entering the local market with their products. That is why there is fierce competition for the purchase or rental of shopping facilities in large shopping centers. The shortage of premises provokes an increase in the value of the retail real estate. 

• lack of large office space: a large proportion of existing office space is already occupied by business owners. New business centers are being built very slowly amid growing demand. That is why the owners of the premises see an opportunity to lease ready-made offices on favorable terms for themselves, with a higher rent. 

• active tourism development: the Czech Republic is one of the most visited countries in Europe, therefore service facilities are a promising area for investment. Many investors are interested in acquiring cafes or restaurants for business development. Naturally, the owners of these objects are interested in reselling them at a higher cost.

In the real estate market, those entrepreneurs who have managed to purchase real estate on time at a better price are successful. Do you want to be among them? Then contact us for a consultation.