General property tendencies in the Czech Republic

It`s impossible to deny the fact that the Czech Republic is the favored location among tourists all over the world. Real estate here provides owners and customers with rather big earnings and ambitions.

First of all, the Czech Republic possesses an advanced and dynamical property market owing to the almost perfect state of the economy and abiding interest of the investors in real estate. The lack of investment opportunities on the market is one of the drivers behind significant year on year investment volume decline in spite of that the Czech Republic is considered to be one of the most promising and ambitious countries to invest.

The availability of space for production facilities has been boosted in recent years by a major government programme designed to support the growth of municipal manufactured properties and zones. The programme is currently also being concentrated on the regeneration of brownfields for farther commercial use. The CEE region’s increasing economic capacity involved a record number of real estate investments in 2017, with the Czech Republic’s EUR 3.3 billion ranking it at the top in the region in terms of per-capita investment. A great share of these investments is due to the industrial property sector, in which investors and manufacturing companies appreciate the availability of technical and transport infrastructure and immediate proximity to the German and Western European markets. This explains why the demand for vacant land plots and industrial zones is expected to grow among investors in the fields of manufacturing, logistics and research and development.

It is in the ongoing interest of private owners and the state to utilize present economic development and provide an adequate supply of these properties for newly incoming investors, as well as for investors that are already established on the Czech market. The main priorities in the preparation of industrial zones and regeneration of brownfields are a clear asset structure of land plots in the given zone and the presence of transport and technical infrastructure on such land plots. These plots are then offered to investors in the manufacturing and research and development sectors.

We`ve also noticed new local investors who are entering the real estate industry and property in the Czech Republic completely dominated investment in Q1 2018.