Acquiring property presents a challenge in itself both for commercial and private parties, especially considering the current state of the property market. The challenge multiplies if we consider the case of an international property investment. Wallace s.r.o, a company operating in Prague, Czechia, focused on exactly this problem: to provide international investors with all the necessary tools and services to ensure the seamless process of property investment, from seeking out the best options on the market to finalizing the deal. To achieve this goal, Wallace s.r.o, led by its founder and CEO Jekaterina Beljankova, developed a unique approach, utilizing innovative digital tools for the benefit of investors.
The Slow Recovery
In 2022, the Czechian property market will still be suffering the after-effects of the COVID-19 pandemic. While some experts argue that things are slowly coming back to normal, the consequences of the pandemic are still clearly felt. The first half of the year was marked by a lower level of developer activity, which was further exacerbated by rising construction costs. The Property Index for 2022 predicts the continuing increase of the residential dwellings cost and of the mortgage interest rates. Towards the end of 2021, the average transaction price of a house purchase demonstrated a close to 20% increase in comparison to the previous year. The most significant increase was recorded in Prague and Brno.
The availability of new housing deteriorates, making finding an optimal deal even more difficult for international investors. However, Wallace s.r.o offered a solution: a unique and innovative method of collaborating with investors, which allows the company to streamline the process of seeking out a lucrative property offering, conducting negotiations, preparing the necessary documentation, and concluding the deal. Furthermore, the approach has already been adopted by several other companies and is currently in use in other countries, such as the Russian Federation and Israel.
The Essence of the Innovation
The approach currently implemented by Wallace s.r.o. and outlined in Jekaterina Beljankova’s book Perfect Investment combines the best strategies for achieving an optimal result. The core values of the company are safety, comfort, and savings for the benefit of the clients. And those words are not just a slogan: a company consistently puts them into practice, providing their clients with support at all stages of conducting a purchase and taking over the most complicated and time-consuming parts of the process, such as negotiating with banks and other participating parties.
The well-established partnerships with major Czech banks allow Wallace to offer their clients significantly more favorable conditions in comparison to competitors. Recently, while other realtors were offering mortgage loans with rates of 4-5%, they were able to provide much more beneficial rates up to 2-2,5%, which allowed more investors to enter the property market.
As a result, Wallace became one of the leading companies in the segment of international property investment. Its positive impact on the industry is recognized by the professional community, with Jekaterina Beljankova being a member of the Executive Board of the National Czech Association of Realtors.
The Solid Foundation for Success
The innovations of that scale do not come out of nowhere. It is important to note that the ability to implement the new approach is rooted in the company’s history. Since being founded by Jekaterina Beljankova in 2014, Wallace constantly strives to provide the best service for its clients. Operating on the Czech property market, the company established partnerships with major banks of the country, such as Česká Spořitelna and ČSOB, as well as the most prominent developers and investment groups. As a result, Wallace was able to offer their clients more favorable conditions for mortgage loans, surpassing the competitors.
The performance of the company during the COVID-19 pandemic proved its ability to get ahead of competitors. While other realty businesses were scrambling to adapt and find usable solutions to continue their operations despite lockdowns and other restrictions, Wallace had 3D representations of the properties, as well as video tours, already introduced on the website in 2018. Consequently, the company was able to gracefully adopt new modes of operation and interaction with clients. The adaptation to the new circumstances demanded far fewer resources, allowing the company to continuously thrive and remain profitable. Moreover, the solutions developed and implemented during the pandemic continue to function and generate income after its end, for example, by making comprehensive information about properties available online in an illustrative form.
The current state of the realty market demands companies to face new challenges. However, there is no doubt that Wallace s.r.o. will continue to bring positive impact and develop new approaches that are beneficial both for the company itself, its clients, and the market as a whole.