The Czech Republic, which also has attempted to be known as Czechia since a few years, is a country with a growing economy, stable political situation, a tourist powerhouse, among other attractive features. For these reasons, many people and companies have attempted to make investments in this part of the world which has unique history and traditions.
The kind of real estate which has attracted the most attention during these last years has been apartments with a surface area of 25-30 m², as well as those of 45-50 m². The main factor behind the popularity of these investments is their liquidity, which means that they can be sold or leased relatively quickly and for reasonable prices.
On the other side of the popularity spectrum is the non-residential real estate, which usually is considerably more expensive and risky than housing units, and fewer buyers could be willing to purchase it from an investor once he decides to get rid of it. In other words, these investments have much less liquidity.
In other words, an investor who gets involved in trading this kind of goods may face higher risks overall, which can diminish potential profits, or even make him or her incur in losses in the worst cases. Either because the real state can not be liquidated fast enough, or because the prices at which it is sold is not as high as anticipated. These same potential issues exist when the owner intends to lease the property rather than selling it.
In conclusion, after examining the pros and cons of investing in residential and non-residential real estate in the Czech Republic, it is suggested that people or companies interested in this activity should go for the housing market, as its liquidity is high due to the far bigger amount of potential buyers or lessors that may be interested in it.
Industrial or other types of non-residential real estate have higher entry costs and involve a higher risk overall. Therefore, these types of investments are advised only for entities capable of withstanding possible losses consequential of this activity. However, it should also be taken into account that all these facts involved in real estate trading are not exclusive to the Czech Republic. Instead, they are a characteristic feature of most cities and countries with a thriving real estate market.
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