The fourth quarter of 2024 has not brought a significant change to the Czech industrial and logistics real estate market. While demand has returned to almost pre-Q1 volumes, the amount of new project completions has remained low, according to the regular quarterly survey conducted by Colliers.
Companies in regional cities in the Czech Republic have been facing an increasing challenge in finding quality office space, reports the Regional Research Forum. H2 2024 data for Brno and Ostrava shows that a shortage of office space is thus creating pressure on the market and tenants.
Bucharest recorded a 20% decline in office leasing, to 339,000 sqm, in 2024, compared to the previous year, although it remained above the five-year average, according to a Colliers report.
Investment activity is accelerating, especially in Poland and Slovakia, while interest from Asian companies in logistics and manufacturing is increasing across CEE, according to a Colliers report.
Vacancy rate in the Prague office market decrease in Q4 2024 has been the largest since 2018, reports Prague Research Forum in its Office Market Figures for Q4 2024 and 2024. The report has also revealed the record annual take-up and the overall situation of the market.
Even though the volume of commercial real estate delivered to the market in 2024 was below average, the Czech market did not freeze and maintained its activity. This was mainly thanks to the Czech capital, according to Colliers' experts, and this trend will continue in 2025.
Only one new office building has been completed in Prague in Q3 of 2024. On the other side, efforts to upgrade some older properties have continued either on an ongoing basis or by temporarily taking them off the market, according to a survey prepared by Colliers.
The demand for industrial space has been still below the five-year average in the third quarter of this year, published Colliers in its regular quarterly industrial real estate market report. However, the first signs of market recovery have appeared and the number of concluded contracts has grown slightly.
The total investment volume in the Czech Republic for the first three quarters of 2024 has exceeded the €1 billion threshold, reveals a regular quarterly survey published by Colliers. Approximately half of the properties bought and sold in 2024 are located outside Prague.
Elmet Group Metal & Electric, a metal and electric components specialist, will lease 4,565 sqm of space for production and storage activities within ELI Park 5 Bucharest. The project is being developed by ELI Parks in partnership with Eren Cons.
P&G Romania will relocate its HQ to a space of approximately 7,000 sqm in YUNITY Park business campus, developed by Genesis Property. The lease contract will run for 10 years.
DevHub, a Romanian software development company, has solidified its presence in the Romanian market by opening two new offices, with a total area of over 1,000 sqm, located in the office buildings within the mixed-use projects Iulius Town Timișoara and Palas Iași, developed by Iulius.
New appointments
Garbe has named Zuzana Štěpánková as Business Development Manager in the Czech Republic. She has previously worked at iO Partners as Senior Consultant.
Romanian developer Redport has appointed Sorin Ioan Blaga as COO. In recent years, Blaga has served as CEO of Liebrecht & wooD Romania, managing real estate developments with a combined value of several hundred million euros, and as COO & Co-CEO of The Concept Group.
From mid-October, László Csapó will take up the position of Director of Business Development at Danubius Hotels Zrt. He succeeds Andrea Róna, who had held the position since 2022.
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