I am frequently asked about the Slovakian real estate market by companies considering relocating to Slovakia, or foreign businesses looking to expand into new premises. This new series of articles explains how the market works, and some of the pitfalls to avoid.
If you are unfamiliar with Slovakia you need to be aware that renting or buying an office (or warehouse or factory) here presents some different challenges from western Europe or the USA. Firstly, the market is less transparent than you may be used to, meaning it isn’t easy to get an idea of the market value of a property or the terms and conditions a landlord will usually accept.
Secondly some of the fee arrangements can be opaque – you need to make sure you understand exactly who is being payed for what and by whom.
As real estate is typically the second biggest cost for any business it makes sense to reduce the possibility for expensive mistakes by working with advisors who offer local market knowledge and international ethical and professional standards. Always check who brokers are paid by – it is standard market practice in Slovakia for agents to be paid by the landlord for introducing a tenant – and if so they shouldn’t also ask for fees from the tenant.
Next time we’ll look at how the office rental market works.
By Tom England MRICS
Its interesting to think that anyone could be under the impression that when traveling to another country, the real estate rules would be the same. Its very important for everyone who is traveling to get a clear picture and conect with a trusted source months in advance.
Renting in Slovakia, if not direct with the owner, is just STUPID! Broakers will want fees from everyone! The brokers don’t do anything, expect everything, and it ends up being a scam for anyone investing their money into a property. You may also find multiple brokers involved in a deal over one property???? WHAT??? Yeah, no single representation here… Pay everyone who is paying attention to the property! Paying 17-18 EUROS per sq. meter of space with a minimum of 1000 sq memeters of office space is rediculous in this country. Most of the investment groups involved with the office buildings are from other European Countries (mostly Austria and Germany) and don’t care how the office is utilized, but they want the property back in the same condition it was originally rented in, even if after 5-10 years of occupation and without simple upkeep by the land loard of the common spaces. So expect additional costs for all the repairs and refurbishment after you leave.
If you have to get into an office, think twice about where it is, what parking is avaiable, and what is near for the workers for lunch…. time away for lunch is time spent away from work!