Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Czech Republic MarketBeats

Marie Baláčová • 11/18/2021

Czechia’s economy is on its way to recovery from the pandemic-induced recession. After a record-breaking contraction which continued into the spring because of a strong third wave of COVID-19, the economy is set to recover to its pre-pandemic levels by the end of this year. However, infection rates are on the rise again and vaccine coverage still lags the EU average across age groups, while industry continues to be hampered by supply chain disruptions and high energy prices. This leads to a revised GDP growth forecast of 2.6% for 2021 and 5.4% for 2022 according to Moody’s Analytics. Domestic recovery and global supply-chain problems pushed inflation above 3%, which prompted the central bank to raise its policy rates several times, and more hikes are coming this year.

Industrial

High demand for industrial space leading to the lowest vacancy rate in history drives unprecedented rental growth and warehouse development. Developers are most active in the Olomouc, Moravian-Silesian, and South Moravian regions. Rental rates growth continues in all regions, but it is the most striking around Prague, where available warehouses and development opportunities remain scarce.

Office

The drop in GDP growth caused by the supply chain and the consequent automotive industry crisis may further affect the market. Only about 53 thousand sq of new office area were delivered to the market year-to-date, leading to the lowest annual supply in 2021 since 2016. On the other hand, the leasing activity in Q3 increased by 17% q-o-q, although the annual demand will probably not reach the 10-year average.

Retail

The positive sales trend in shopping centres continued throughout the summer, while footfalls on average kept below their pre-pandemic levels. It is evident that existing anti-pandemic measures, such as obligatory FFP2 face masks, prevent people from frequent visits to shopping centres, although the average basket increased significantly. The situation differs by location and type of the shopping centre: turnover growth is faster in the regional schemes, especially those at peripheries of larger towns.

Investment

On the Czech real estate market, hotels and prime retail in Prague are still suffering from the slump in travel and lower employee mobility. Other sectors have performed admirably, despite Covid – retail, in particular. As there is a shortage of adequate product on the market, insufficient to cover the excess of capital available, for this year investment activity of around EUR 1 billion is anticipated, with office transactions having an approx. 50% share. In the coming year, significant changes from the current trends of low activity and high pricing are not expected, despite a probable increase in industrial and retail deals next year.

Hospitality

Continued restrictions led to constrained hotel performance in H1 2021, which recorded an occupancy of 6% and ADR of €55. Nonetheless, performance has been picking up even with a partial lifting of restrictions, with RevPAR in June reaching 41% above the same month last year, generating optimism for a healthy post-COVID market recovery once restrictions are fully lifted. Accordingly, investor interest in hotels is returning and the gap in buyer-seller expectations is narrowing, however the number of hotel assets being put on the market in Prague remains limited, partially due to owners’ misconceptions that now is not the right time to sell.

 

Get the full Czech Republic property market picture with all the market data by downloading the reports.

Current Marketbeats

Loading bay, Contera, Teplice, Czech Republic
Czech Republic Industrial Data

Industrial Marketbeat is a summary of the Czech Republic industrial property sector providing comment on recent trends as well as market data and analysis.

Download

Karlin, Prague, Czech Republic
Prague Office Data

Office Marketbeat is a summary of the Prague office property sector providing comment on recent trends as well as market data and analysis.

Download

Square, central Prague, Czech Republic
Czech Republic Retail Data

Retail Marketbeat is a summary of the Czech Republic retail property sector providing comment on recent trends as well as market data and analysis.

Download

people at desk hands only
Investment Data

Investment Marketbeat is a summary of the Czech Republic office property sector providing comment on recent trends as well as market data and analysis.

Download

Hotel Prague
Hospitality Data

Hospitality MarketBeat is a summary of Prague's hotel property sector providing comment on recent trends as well as market data and analysis.

Download

MORE Insight

Prague, Czech Republic
Research • Economy

Czech Real Estate Market View

A regular update on the commercial real estate market in Czech Republic.
Marie Baláčová • 11/4/2021
Women Hotel City
Insights • Hospitality

The Hotel Investment Scene in CEE

Welcome to our third edition of the joint Cushman & Wakefield–CMS report on the Hotel Investment scene in CEE: Overcoming the Pandemic & Bridging the Financial Gap.
Bořivoj Vokřínek • 7/1/2021
Research, graph, table, data
MarketBeat

CEE MarketBeats

Cushman & Wakefield MarketBeat reports analyse quarterly commercial real estate activity in the CEE region (Czech Republic, Hungary, Poland, Romania, and Slovakia) across office, retail, industrial and hospitality real estate sectors including supply, demand and pricing trends at the market and submarket levels.
Marie Baláčová
Prague, Czech Republic
Research • Economy

Czech Real Estate Market View

A regular update on the commercial real estate market in Czech Republic.
Marie Baláčová • 11/4/2021
Women Hotel City
Insights • Hospitality

The Hotel Investment Scene in CEE

Welcome to our third edition of the joint Cushman & Wakefield–CMS report on the Hotel Investment scene in CEE: Overcoming the Pandemic & Bridging the Financial Gap.
Bořivoj Vokřínek • 7/1/2021
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Cookies
MORE OPTIONS
Agree and Close
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
AGREE ALL
REJECT ALL
Save settings

NEMŮŽETE NAJÍT, CO HLEDÁTE?

Obraťte se na jednoho z našich profesionálů.