By the end of the decade, more than 300 kilometres of new expressways are to be built in the Czech Republic, altering not only the country's transportation map but also the strategy of companies searching for locations for their logistics and production facilities, according to Colliers' analysis.
Three infrastructure projects, which have received the green light, are the most important: the connection between Brno and Vienna via the D52 motorway, the connection between Prague and Linz via the D3, and the completion of the northern section of the Prague D0 motorway ring road.
Not only will this reduce travel times between major cities, but it will also create new corridors for the movement of goods and services. Prague will be only three hours away from Vienna, the journey to Linz will take 2.5 hours, and connections to the Polish cities of Katowice and Krakow will be reduced to 4 and 4.5 hours, respectively.
According to Josefína Kurfürstová, senior consultant at Colliers, the Czech Republic is gradually becoming a logistical bridge between Germany, Austria, Poland, and Slovakia.
The cities that are set to become new development centres in the coming years are České Budějovice, Olomouc with Přerov, and Jihlava. Indicative rents in these locations range from €5.40 to €5.90 per sqm per month. This is significantly less than in Prague, where rents range from €7.00 to €7.50 per sqm/month.
According to Colliers' analysis, a certain decentralisation of the Czech industrial real estate market can be expected by the end of the decade. While traditional regions will continue to hold their position as major centres, more and more companies are considering moving part of their logistics to areas with better transport accessibility, lower rents and sufficient labour.
