Watch the new episode of our 5-minute Real Estate Market Snapshot video and learn about the developments in the Czech commercial property market, this time from the perspective of the CEE region.
We’ve been monitoring the office, retail, logistics, investment and hotel markets for you since 1993 – for the 30 years Cushman & Wakefield has been providing first-class real estate consultancy on the Czech market.
In the video, you will find more details about the current situation:
- According to the July estimates from Moody’s Analytics, all Central European countries except Hungary can expect to see moderate GDP growth in 2023 with a return to stable economic growth in the following years.
- On the office market, structural changes continue across the entire sector in Prague and elsewhere, as most companies have adopted some form of hybrid working model. Developers are also responding to changes in tenant demand, and are more reluctant to launch new projects, as can be seen from the declining volume of offices under construction. In this way, the markets maintain an equilibrium.
- The outlook is much more optimistic for logistics and industrial parks. And no wonder: in the first half of this year, these markets maintained healthy vacancy rates across all Central European countries, despite very substantial new offers. The success enjoyed by logistics in our region over recent years can be attributed to factors such as the rapid development of e-commerce.
- Traditional retail still plays an important role. Despite all the challenges and risks, high-quality retail projects of various kinds are performing strongly in the region, supported by the fact that retail sales have now surpassed pre-pandemic levels.
- According to our recent survey, Prague and Budapest are the two most attractive cities in Central Europe for hotel operators. In recent years, Prague has struggled with a limited increase in the offer of hotels, and the share of luxury hotels is also below average. Changes are now under way, however, motivated by the gradual return of tourists from more distant countries, so we expect to see an improved performance across the entire sector.
- Despite all the positive trends buoying up the main indicators in commercial real estate markets, investment activity remains very low. Still, several significant deals did get the go-ahead, particularly in retail. With the passage of time and the courage of mainly local investors, we expect to see a recovery in the second half of this year.
You can view the commented roundup of the market situation in the video.