They criticized me, but the market proved me right. Prices will still rise, says the founder of the real estate office.
Elena Jakubovič, founder and successful entrepreneur in the real estate field, shared her perspective on the transformations of the Czech real estate market, which has undergone a series of fundamental changes. The experienced expert explains how rising interest rates and new regulations have influenced the property market, and how real estate offices must adapt to new challenges. In the interview, she also touched on her personal life and future prospects, including trends that, according to her, will shape the market in the coming years.
A year ago, you had an interview for Forbes, where you guys talked about real estate prices. You mentioned that property prices would rise this year, and you received a great deal of criticism for it. How did you cope with that and did your prediction about property prices come true?
I expected criticism. Some people said I was deliberately saying it to make as much money as possible, but I saw that trend. After the change, now that prices have been rising for four consecutive quarters, it shows that I was right.
I believe that in today's time, it is extremely important to own something, because when those prices go up, you can sell the property and buy something bigger. Therefore, it is essential not to wait until prices fall, not to wait for a decrease in interest rates, and to acquire something as soon as possible.
How do foreign clients view the economic situation? Are they afraid to invest?
The foreign clientele has changed a bit due to the war in Ukraine. Russians are selling more than buying, but Ukrainian clients have also appeared here, for whom the Czech Republic is an interesting compromise. It's a European country that has more of an Eastern mentality and the Czech Republic is attractive to them. As for Asians, they might come back. This depends on the situation in the market. There are a lot of English-speaking clients and mixed marriages. When the wife is Czech or the husband is Czech, they try to buy property here as well. A lot of Czechs are returning from abroad, where they work, earn money and would like to buy an apartment in Prague.
In one interview, you said, "touching real estate is like touching tangible certainty." It was meant in connection with virtual currencies. How do you perceive this boom of virtual currencies? Is it a threat to the real estate market?
I don't think that cryptocurrencies are a threat. The trend is diversification, where people invest in various commodities and real estate will always be that certainty and will be something they can touch, look at. I think that will always stay in trend.
So, real estate sales are not moving online? Do people still like the idea of coming to look at a flat, to get a feel for it?
We can beautifully shoot a video, take fantastic photos, but the feeling you experience when you enter the property, no photos or video can replace that. Feel the energy, see if the property resonates with you.
Buying property is an emotional matter.
Did you have such a feeling in your new apartment in Prague 1? That you came there and said "yeah, this is it"? How did you perceive the new space?
I did. But my apartment didn't look that attractive, it was a big renovation.
You grew up in a Czech family, but in Ukraine. How did these two different cultures influence your life experience? Do you feel more Czech or Ukrainian?
When I lived in Kiev, I told at school that I have Czech origin and everyone told me that I'm Czech. Then I came to Prague, where everyone told me that I'm Ukrainian. I feel more like a Czech. I even have the documents, but Ukraine definitely influenced me a lot. I'm sorry for what's happening there now.
Do you remember any specific moment from your childhood that shaped you into who you are today?
I definitely didn't want to go into real estate. I wanted to be a president, but now I wouldn't go into politics in any way. There is more freedom in business than in politics. I didn't have an easy childhood. I worked a lot in the garden and on the weekends we would go to my grandmother's house, which was forty kilometers from Kiev. There we had a huge potato plantation where we all worked.
Did you say to yourself after this experience that you want something better?
I have always believed that something better is waiting for me and I still believe it. Since I was little, I honestly thought I would come back here.
You came to Prague as a young student and you had a few thousand crowns in your pocket. What motivated you to overcome the financial challenge and build a strong position in the real estate market?
I didn't see it as sad. I went to Czechia with a positive attitude, telling myself that great things, love, business successes, and studies are waiting for me. The reality, of course, was different, when you have to live with six thousand and pay three thousand for a dormitory, there is not much money left for fulfilling dreams.
I have always been determined to keep going and I never gave up. I recommend this to everyone, if you are facing any challenges.
Building a company is different in Ukraine and different in the Czech Republic. In Ukraine, a woman is placed more in the role of a housewife than in the role of a businesswoman. What influence did this have on you when building your company?
It's true, everyone used to tell me in my childhood, that getting married is the main goal. However, I was drawn to building a company and I am very happy that it worked out. I think every woman has to handle this individually. Someone can be a great wife and mother, and someone can be great in business. There are exceptions who manage both things and that is great.
How do you manage to balance your personal life with your work life?
I am trying. When I moved to the Czech Republic, one of my first jobs was working in a very famous Korean company and that company taught me time management.
Time management is important if you want to balance your personal life with your career. It is the foundation of success.
When you came to Prague, you lived in a small apartment in Troja, subletting in a panel house, and now you live in the center, in Pařížská Street. Was it your dream to live here?
It wasn't my dream, but for me even that small apartment I rented was a big upgrade, because I had lived my whole life with my parents in an apartment that was 38 m2. Therefore, when I had my own apartment in a panel house, I was absolutely happy.
As for Parisian, it is a very renowned location. I had a hunch that I would live here someday.
When I was on a walk with a friend, I stopped right in front of the house where I now live and said: "I will live here." We laughed at it and I forgot about it. I met her in 2018, when she moved here from Kyiv due to the war and she reminded me of that story.
You have pointed out in several interviews that Prague is a "limited edition" in terms of premium locations. So do you think Prague will ever run out of offers?
There are several limited editions in Prague. Villas are also a limited edition. I think there will always be something on offer. The question is, how much will it cost. The fewer free apartments remain in this popular location, the higher the prices.
Tell me, do you think every property has its buyer?
I think so. When I moved to that apartment in Prague 8 in Troja, it was a certain upgrade for me, because I had privacy.
People have different tastes and everyone grew up differently and they have their own ideas about living. Therefore, brokers should not convince clients about what they need and the client should say themselves what they want.
Is there any room for price reduction nowadays?
It is another advantage. I'm not saying that these discounts are big today, but some discounts are going. A few years ago no one even wanted to hear about a price reduction.
How are you managing to balance the equilibrium between the client's demand, who certainly wants the biggest discount, and at the same time maintain the balance of the real estate market? Is it possible?
We strive for both sides to be satisfied. Discounts were not too high and prices were reasonable.
However, we believe in the Czech market and I think that these prices will grow even more. The evidence is low unemployment and that Czech companies are expanding further. Across expectations, the economic situation is developing quite positively.
You once said that the term "real estate bubble" is not quite the correct term. So let's say when this term is used and what is the correct term?
The real estate bubble means that the prices are higher than they should be. I believe that Prague has been undervalued for a long time. For example, x years ago, when an apartment building cost twenty million, a lot of people said it was overprized and that it was a real estate bubble.
Now for twenty million in Prague 1 you buy an apartment of one hundred and twenty square meters.
Everything is relevant.
Aside from selling real estate, has any other field ever appealed to you?
I've always been attracted to development and since the company's inception, we've been working on smaller projects. We were renovating individual apartments, which we then sold exclusively. It was such that an investor bought it and we did project management and then exclusive sale. This project, in which we are located, we renovated in 2019.
I must say that development is a bit slower for me. Real estate trading is a more dynamic business, because in development you have to wait a long time for a permit and everything takes a long time.
We are in a renovated apartment, you said it was an attic. What did the apartment look like before renovation, what will we find here?
It's a completely newly built apartment. There was no apartment here before, when we talk about feng shui it is ideal, because nobody lived here before us. We have interesting elements here, like this chandelier from a well-known Czech brand. The apartment is ready to move in immediately. The interiors are finished and you can move in with a suitcase. You just need to buy a sofa and a few more pieces of furniture.
Where have you taken us this time?
In Prague, you can find completely renovated apartments and you can find apartments in which you can create your own home, completely tailor-made. This is an example. This fantastic project allows it. You can choose your own design, create an apartment according to your ideas. It's shell and core, there are supplies and you finish the rest yourself, for example with a designer or if someone feels like it, they can do it themselves according to themselves with a construction company.
Now we are in a fully furnished apartment. So where are we, come tell us what's here.
Yes. This is how an apartment can look like after you renovate it. We saw what the apartment looked like before and this is what it can look like after. Beautiful, isn't it? Magic.
You are a successful woman who cares about her career, education, what would you say to your past self? Would you say that you've done something wrong? How would you evaluate it?
If I had to go back in the past, I would try less to convince people to do things differently. If I knew they didn't want to do it at all, I wouldn't spend so much time on it and would go in a different direction.
In connection with new projects, I wanted to ask about Dubai, where you wanted to expand. So how did it impact you there?
I was surprised that the market is not as digitalized as us. The situation has changed a bit in recent months. At the end of spring, I was surprised when various companies from Dubai began to contact me regarding cooperation. I thought that either Czechs buy a lot or on the contrary, that market is experiencing some stagnation.
Now the numbers have confirmed it. In 2023, economic indicators were falling and a potential sign of confrontation with Iran does not contribute.
The Russians left Dubai, most of them returned to Russia and they mainly rented apartments in Dubai. Although they are bought by the Chinese or Indians, these properties are rented by the Russians. So I think that also slightly influenced the market policy.
Can you relax and be calm in the world of real estate? What is the competition like?
When you run a business, there is never constant success. Success is temporary and you can't stop, you can't rest on your laurels. You have to keep going, make changes, be progressive. We digitalize because we see the future of reality in it and that is the goal of our business.
You are known for having a purely female company, it was created as an experiment. Have you ever encountered any prejudices? How did you deal with them?
Sometimes someone criticized me for discriminating against men, but on the contrary. I am trying to balance the imbalance in business, because there are always more men than women there.
In those properties, there is an interesting balance. I like women in sales. Sometimes conflicts arise, and when there is a woman in the men's negotiations, and sparks are flying, that woman can calm the situation down and make a good deal.
What is important to you when you choose women for your team?
I like people who have good morals, are active, cheerful, and above all, it's a job for a person who loves people.
What would you recommend to women who are at the begging of their business, perhaps in a male-dominated field. Should they go for it?
Definitely go for it. I think it's a very interesting field. Real estate is my dream sector and I wouldn't want to do anything else.
If someone tells you it won't work out, it's important to stand your ground and follow your dream.
What else would you like to achieve? Is there something like that or have you already accomplished everything you wanted to?
Not yet. It's not my peak and we'll see what happens next, just be surprised.
Source: authored article, own questioning
