Last year, we sold apartment buildings worth a total of CZK 2 billion, according to Lukáš Křenek, a team leader in commercial real estate sales. Today we bring you an exclusive interview with the 4 most successful sellers of residential buildings in 2021. Read the opinions of Dominik Šesták, Robert Kraus, Petr Peřina and Dušan Kniha.
Dominik, what is important for sales?
For me, the most important thing for sales is that the parties involved are as satisfied as possible. After all, our business is based on long-term relationships.
How do you evaluate the year 2021 and how do you perceive the trend of 2022?
In 2021 was the significant rise in real estate prices, which was reflected, for example, in the following case. We were able to sell one and the same house in the same business manner after a year again. For the second time, of course, at a higher price. No wonder. You can verify in from some serious public sources, in 2021 there was a year-on-year increase in property prices of up to 15%. At present, it is difficult to assess the development in 2022. Certainly the market is still affected by the covid and now also the war in Ukraine, and how the situation will develop is difficult to predict. If I want to be optimistic, I think that real estate prices will not fall significantly and will be rather constant.
What houses are you interested in?
There is a steady interest in classic apartment buildings, where there are housing units and commercial premises on the ground floor, which is also our classic product, in the sale of which we are the strongest. However, interest in real estate is currently so great that investors are looking for other opportunities - office and warehouse space, parts of apartment buildings (ideal shares), etc.
Robert, what do you see as the meaning of your work? Why do people sell houses and others buy?
I was born in Prague and thanks to my work I get to know Prague even better. Some homeowners no longer want to invest in house repairs, while others are looking for investment. New owners usually improve houses - we give residential houses new owners and thus give them “new life”, I see the meaning of my work in that. Our mission is very discreet, so we become part of some people's lives for a moment. Often our work also brings solutions to disagreements in families, especially older restitutors. Thanks to the sale of the house, sometime the relationships are getting better.
How do you assess the impact of the pandemic and what is your vision for 2022?
Previously, buyers waited for prices to fall, while sellers expected them to rise. With the outbreak of the covid pandemic, there was a slight stagnation. In 2021, we saw a renewed increase in sales and thus a rise in prices. As the demand from investors grew, so the interest in selling grew as well. People reevaluated their estates. Prague 1 is still stagnant due to the loss of tourists. Residential buildings in top historical locations such as the Old Town Square, Nerudova or Mostecká Street, which had revenues mainly from shops in ground floors and short-term rentals of tourists, still do not achieve the yields as before the pandemic. On the other hand, houses located further from the center with a reasonably set amount of rent and stable tenants, the situation hardly affected at all, prices in this case grew faster. In the tourist zones, a lot will depend on the disintegration, not only in the Czech Republic, but at the European level, it will determine whether and how quickly tourists will want to return.
Which houses are the most popular today?
Although we are a real estate agency focused on the luxury segment, in the commercial segment there is great interest in houses before total reconstruction with the possibility of development, resp. increase of usable area. At the same time, there is an interest in houses, which are stably and completely leased without the need for investment with an annual yield of 3-4%. Also today, due to a change in legislation, there is a growing interest in the sale of share ownership. The abolition of the pre-emption right of co-owners has simplified the whole process.
Petr, how do you assess the impact of the pandemic?
Covid helped those, who couldn’t decide whether to buy or sell. During the developing pandemic, people feared a loss in the value of the house, however, the covid did not move prices down and prices continued to rise. According to public meaning, the security in money is significantly lower than security in real estate. I also think that Prague 1 has lost the popularity for buyers, beacause it has benefited mainly from tourism and the situation has not yet returned to the state we were used to. Of course, it is still attractive in terms of demand for houses, the value of which is determined by their historical value. From the point of view of buyers, I feel a greater demand in a popular neighborhood further from the center, for example in Vinohrady.
What houses are you interested in today?
The main difference from the previous period are the different prices. If you buy a house before reconstruction, you have a very vague vision. Thanks to the covid, the materials have become very expensive, they are insufficient and, thanks to current events in the world, the workers have also disappeared. Planning a project and calculating investments is much more difficult today, so today people prefer houses, which are renovated, have a certain yield and are ideally rented. The offer of such houses is definitely lower, because there is a clear need on the part of buyers to save money and thus buy real estate. Thanks to our "Custom-Bouight Property" project, everyone can easily and quickly define their wishes and requirements for commercial real estate.
Dušan, how do you evaluate the year 2021 and what is your vision in 2022?
The whole business is always a combination of several factors, I can not evaluate the year 2021 separately. It is a teamwork and at the same time systematic work of an individual agents, which results in long-term relationships with clients. The third criterion is the system of work determined by the company. These are all factors that I enjoy at work, the reasons why I came to Prague and left my family in Slovakia. When the pandemic began in 2020, some work in progress crashed. At that time, I was selling a house in Vysočany, the first client interested in the purchase was afraid of the lockdown in March 2020, which occurred just before the signing of the purchase contract. Other bidders canceled the deal due to a change in interest rates, and when I found a third bidder, the owner changed his mind about selling the house due to market uncertainty. On the other hand, last year our business was not affected by the covid. All the trades I carried out in 2021 were with clients with whom I have long-term relationships, which was a difference compared to the past, when I carried out some trades thanks to references or support activities of the company. I expect the year 2022 to be not difficult in terms of time, because I am dealing with a record number of unfinished deals.
Získal jsi v 2021 zajímavou obchodní zkušenost, která stojí za zmínku?
Paralelně jsem vedl jednání o prodeji 2 činžovních domů, jeden se nachází na Žižkově a druhý na Vinohradech. Obě jednání probíhaly 3 měsíce a oba klienti předložili vážnou nabídku ke koupi, avšak z obchodů nakonec sešlo, protože domy nesplňovaly přesné požadavky. Vtipně však došlo k „výměně“ domů, oba klienti se totiž dozvěděli o tom druhém domě a velmi rychle došlo k dohodě. Uplynuly asi 2 měsíce od první prohlídky ke koupi a nakonec díky rychlým a konstruktivním jednáním dostali oba klienti přesně to, co chtěli.
Read the opinion of Lukáš Křenek, a team leader in commercial real estate sales.
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