The new episode of our video overview highlights trends in the Czech commercial real estate market. These are the highlights:
- Market Dynamics: In H1 2024, 85% of commercial real estate investments in the Czech Republic came from domestic investors, reflecting a growing local capital presence. Despite economic challenges, investment activity rose by 13% to €817 million, mainly in retail and office sectors. Returns are increasing only in offices, while retail yields are declining.
- Office Market: A new office complex of nearly 120,000 sq m is under construction in Prague, which has a total office space of almost 4 million sq m and the lowest vacancy rate in CEE, just below 8%. Trends include renegotiating leases and a demand for sustainable buildings.
- Retail Properties: Over 37,000 sq m of new retail space was opened in H1 2024, with total retail space now nearly 4 million sq m. Renovations of older centers and a boom in retail parks highlight the sector's resilience. Integration of online and offline shopping continues to grow.
- Industrial and Logistics: More than 360,000 sq m of warehouse space is available in a "shell & core" state. The total area of modern industrial spaces exceeds 12 million sq m, but construction is slowing. The automotive industry drives demand, and rental rates in Prague have begun to decline.
Watch our video overview for more insights:
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