The modern developer-led warehouse stock in the Czech Republic has reached 11.70 million sqm. The Industrial Research Forum has announced industrial market figures for Q4 2023.

The Prague Research Forum – CBRE, Colliers, Cushman & Wakefield, iO Partners, Knight Frank and Savills – has shared an updated Prague office market insight. Figures and data for Q4 2023 have confirmed a cautious approach both from developers and tenants.

2024 will be a challenging year for many companies in the CEE real estate sector that will have to refinance their loans at new, increased costs. Those that need to redeem their corporate bonds in the coming quarters may also have a lot of problems.

Direct marketing company Mediapost Hit Mail has leased 19,000 sqm in Chitila Logistics Hub, the industrial project jointly developed by Global Vision and Globalworth. The lease transaction was brokered by Colliers.

In Q3 2023, the Prague office market grew by more than 60,000 sqm of modern offices. This was the best result since mid-2020. No further similar peak is expected in the next three years at least, as no new construction has started for more than a year. Although investors are placing increasing emphasis on the sustainability of buildings, benchmark rental prices are not changing fundamentally, while landlords are trying to attract more generous allowances or longer lease holidays, Colliers reports.

The Czech industrial real estate market has experienced a major boom in construction activity in 2023. Although there is currently more than 1.5 million sqm of space under construction, there are few newly completed projects and the vacancy rate remains below 2%. The total supply of modern industrial space in the Czech Republic increased by only 182,200 sqm during Q3 2023, bringing the total to 11.44 million sqm at the end of September. Rents have stabilised after rocketing over the last three years and at the end of September were between €7.50-7.70 per sqm per month for warehouse space and €9.50-12.50 per sqm per month for office space, reported, according to a Colliers survey. 

There is a high demand for private accommodation in Bucharest, offering students modern and flexible accommodation options, with the current supply covering less than half of the actual requirements, according to Colliers data.

At €3.2 billion for Q1-Q3 2023, CEE investment activity is at a 10+ year low (down 59% year-on-year). The pricing gap between buyers’ and sellers' expectations remains a significant barrier to seeing volumes return to the 5 and 10-year average levels of €10-11 billion. However, real estate fundamentals in CEE remain fairly robust.  Lower levels of vacancy are being recorded and some good levels of rental growth in certain sectors have been noted, reveals Colliers in its latest report.

Elektrokontakt Romania (EKR), a subsidiary of ELEKTROKONTAKT GMBH, has leased 14,735 sqm for the next 10 years in Mureș City Logistics, jointly developed by Globalworth and Global Vision. Following this deal, the project has reached full occupancy rate.

Czech Investment group Kaprain acquired ca. 53,000 sqm brownfield site from Howden ČKD Compressors, part of Howden, a leading global engineering company, which was recently acquired by Chart Industries. Howden ČKD Compressors exclusively appointed Colliers to market the facility for sale.