The Czech Republic actively encourages direct foreign investment.Businesses based on such investments in the Czech Republic have their own specific features and involve purchase of commercial real estate. The most vivid examples of investments in commercial real estate in the Czech Republic are Prague as the capital and a large transportation hub; Karlovy Vary, a medical tourist center, which was revived by foreign capital; and many other cities.
 

By convention, commercial real estate can be divided into three groups:

Real estate for existing businesses – operating hotels, restaurants, bars, saunas, fitness centers, beauty salons, shops, garages, gas stations, offices etc.These offers are based on specific business, part of which is real estate investment.

Such property can be sold together with a company.In this case, the transaction is simple becausethe company has been already incorporated.The disadvantage can involve existing debts or other contractual obligations; therefore a thorough check of the company's history is required.It is also important to make sure you buy property rather than a right to rent it.

Real estate for development projects – commercial apartment buildings or hotels to be renovated, old industrial facilities or sites for construction etc. In this case, a business is based on the property purchased according to its utilization plan.Disadvantage of such investment can be potential protection of that property as a monument of architecture, or tenants with current leases.Such tenants’ rights are protected by law and you can not evict them unless you provide equivalent housing or financial compensation.

If the property is a protected old monument, all changes (especially exterior) are to be endorsed by appropriate authorities.At the same time, under certain conditions government grants or EU financing can be obtained for restoration.The ideal option in this case would be purchasing uninhabited or uninhabitable property.

Industrial investment projects – production facilities, industrial zones, or technological parks.These projects will require endorsement and cooperation with local/central authorities that provide active assistance and support to industrial investors through infrastructural investment or tax benefits.

In any of these cases, various factors should be taken into consideration.Commercial real estate is purchased both for running a business or lease.In any case, you must evaluate whether potential business specifics are in line with business infrastructure or transport infrastructure, community, district or even street.It is also important that property should be selected taking into account market analysis and a whole set of legal formalities.

        It is worth to note that the today’s Prague, like centuries ago, is still considered a business, transport, and cultural heart of Central Europe.Therefore, purchasing commercial real estate in Prague is a promising prospective and is of particular interest for those who are planning to do business in the Czech Republic.