The Czech Republic boasts one of the best established commercial real estate sectors in the CEE region with a stable business environment and favourable regulation providing an attractive market for property development and investment. While the country's weak economic performance over the past two years has hindered real estate growth, a return to growth is seeing investors return to the market in large numbers, with many migrating from oversaturated Western European markets .
With a focus on the three principal cities of Prague, Plzen and Brno, we consider how best to maximise returns in the commercial real estate market. While rental rate growth has been inconsistent over the past few quarters, our in-country sources note a more stable economic environment is seeing rents stabilise across all three of the office, retail and industrial segments.
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A return to stable growth, coupled with the potential for favourable long-term returns is seeing a rise in transactional activity as we move into H2 2014. Of the three segments, we not that the retail real estate market remains the most attractive segment from an investment stand point with the capital, Prague recently revealed to be in the top 10 most sought after locations in Europe for international retailers. Meanwhile, we see further opportunities for growth stemming from the country's thriving tourism sector, with visitor numbers having increased significantly over the past few years.
Despite the relative optimism surrounding the sector going into the second half of the year, the commercial real estate market is set to face many of the same problems as seen over 2012-2013: high vacancy levels, stagnant rental rates and a poor construction pipelines. However, the risks are set to be less severe as balance sheets for consumers and businesses have improved and extra liquidity in the market place should induce more transactions and reduce market associated risks.
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The Czech Republic Real Estate Report features Business Monitor International (BMI)'s market assessment and independent forecasts of major construction projects in the residential and commercial markets, plus rental prices and yields in major cities. The report critically analyses the prospects for real estate within the broader economic and financial context - both domestic and global - via our econometrically-modelled and clearly explained banking and economic forecasts and follows this through to evaluate the implications for REITs.
BMI's Czech Republic Real Estate Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the real estate industry in Czech Republic.
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"Czech Republic Real Estate Report Q3 2014" now available at Fast Market Research
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Contact Name: Bill Thompson
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Contact Phone: 1-413-485-7001
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001