The future of a commercial real estate
Commercial real estate is one of the highest priority areas for investment, both among foreign and local entrepreneurs. The high popularity of this market segment is annually confirmed internationally by reports provided by leading analytical companies. To know which direction will be most profitable for investment, you need to understand the general trends in commercial real estate in the Czech Republic.
Experts say that in this market one of the most active trends will be an increase in demand for the opening of so-called “flexible offices” or coworking. This segment is already actively developing in the United States and major European cities. In the Czech Republic, the niche of coworking hubs is still relatively free. But thanks to the popularization of freelancing, experts give very favorable forecasts for the active development of this area. It is expected that in 2020 in Prague, the total occupied area for coworking will leave at least 10,000 sq.m.
Trends in commercial real estate in the Czech Republic: an overview
Experts predict that the commercial real estate market will transform under the influence of trends that are observed in the global economy. 2020 will be the starting point for increasing investment in a new format of work and entertainment spaces. These trends will be observed in the next period. Let’s consider some of them:
- a growing share of business centers in the investment market: this trend is associated with the active development of e-commerce, the IT market, an increase in the number of call centers, insurance companies, and financial institutions. The Czech Republic is one of the business centers of Europe, with offices of many world-class companies located here. That is why in the future the construction of new office quarters with a developed infrastructure system will be observed.
- expansion of retail and industrial space: despite the active growth of online stores, some brands are interested in opening physical offline retail outlets. Migration from the Internet will be typical for medium and small stores that are oriented to the mass market. There is also an increasing tendency to increase demand for industrial premises, workshops by young companies.
- the intensive development of commercial real estate in the suburbs: increasing population density in Prague, Brno and other large tourist cities, greater competition in the commercial real estate market, and the lack of available properties caused a shift in the vector of investor interests towards the suburban areas of the Czech Republic. That is why in the coming years the tendency to build new commercial space in the suburbs will continue.
If you are interested in learning more about trends in commercial real estate in the Czech Republic, which properties are the most profitable, please contact our specialists. We are sincerely interested in your success.
