The leading Czech real estate service Bezrealitky has been investing in property for the past three months and returning them to the market after partial reconstructions.
Since March 2o21, the web portal has bought 35 buildings for over CZK 200 million as part of its new “Expres” business model. And it has proved effective – the first properties have since returned to the market and were promptly snatched up by new owners.
The service “Expres” allows owners to sell a house, apartment, or recreational space at any level of disrepair and in record time. The entire transaction can be handled in three days.
Currently, they’ve invested around ⅕ of the planned CZK 1 billion, having bought 7 houses, 26 apartments, and 2 recreational areas around the Czech Republic.
So far, a few reconstructed units have been returned to the real estate market, with some already being bought. “Properties are bought via the Expres service for 95-99% of the market price, depending on the condition of the estate, with partial reconstruction increasing their value by an estimated 5-10%,” said Hendrik Meyer, the CEO of Bezrealitky.
According to Meyer, the new model has proved successful and has clearly shown that this is a possible way to revive the Czech real estate market and return properties that would otherwise remain unused or would be bought or rented at a lower price.
“I’m certain that this model will become one of the standards for the entire real estate market,” added Meyer. “It is beneficial for all parties involved. If we manage to increase the pace of the reconstruction further, we will be able to significantly influence the quality and quantity of market offers in different locations.”
Last February, Bezrealitky has announced it has purchased 50% of Maxima Reality’s shares for an undisclosed amount.
In 2020, Bezrealitky saw revenues spike from CZK 25 million to CZK 50 million year-over-year. Its profit also spiked by a third to almost CZK 20 million.
The portal is visited by more than half a million people interested in housing every month, and every month around 800 people’s properties are sold through it and around 4,000 properties are rented.