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February 11, 2018 5:00 pm | FILED UNDER: business

Industrial Real Estate Poised to Grow in 2018

By ČTK

Prague, Feb 11 (CTK) – The offer of industrial real estate will grow in the Czech Republic by some one tenth this year and demand will increase by 8.3 percent, according to a study in which CEEC Research analytic company addressed some 40 developers.

 

The growth in demand will be pulled in particular by higher need of companies to extend their areas. Interest in industrial development comes mainly from foreign investors.

 

“The situation in the industrial development market and the sector of industrial buildings in general can be influenced a lot by support to investment projects,” said Jan Lidral of Takenaka Europe company.

 

“This system can be expected to target support to projects with a higher value added in the coming years, for example research and development centres, testing and technology centres an also sophisticated production plants with higher technological level,” he added.

 

Viliam Zathurecky, director of Leis company, expects supply and demand to rise mainly in the South Moravia Region with respect to the opening of the A5 Vienna-Brno motorway up to the Austrian border.

 

“Demand for industrial areas will quite certainly have a growing character in the coming years. As regards supply, it remains to be seen. Due to protracted and complicated building permit processes, there will be a lack of prepared projects,” said Jan Palek of Goodman company.

 

Most developers said in the survey that prices of plots of land for industrial real estate have grown in the past year, by 9 percent on average. With this price growth, leases go up as well.

 

Clients lease the most often industrial areas for three to five years. The average net yield from the lease stands at 8.7 percent, the developers said.

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