ARTICLES LABELLED WITH TAG Cushman&Wakefield

The number of office schemes built in Prague this year is the highest in the last five years: a total of 17 new buildings providing office space will have opened by the end of the year. The last time the market reached such a high figure was in 2014 – at the time, it was 18 schemes. In the meantime, the number was one-third lower, about 11 buildings on average.

The One Cotroceni Park project, developed by One United Properties in Bucharest on a 5.8 hectares land plot, will give a new dimension to the Work - Live - Shop concept on the local market, offering a 15,000 square meters retail area, comparable to that of a medium-sized shopping centre, to the future employees and residents who will live within the project.

Nearly 70,200 sqm of office space is currently under construction on Katowice’s office market, according to Cushman & Wakefield. Of the six projects underway, the largest is Face2Face Business Campus, comprising two phases with a total of 46,800 sqm.

Lublin’s total office stock remained unchanged at the end of June 2019, flatlining at 191,200 sqm, according to Cushman & Wakefield. Despite the lack of new supply, occupier activity was healthy, which pushed the city’s vacancy rate down to 10.6%, representing a 9.1 pp decrease year-on-year.

The office space market in Prague is currently doing very well and has a great potential for further development. Its excellent condition is illustrated by several parameters that Cushman & Wakefield has been monitoring on a long-term basis and whose correct interpretation in relation to the current results is presented here. These indicators are primarily the highly positive trend in the office demand (the occupied office space increased by 47,000 sqm), vacancy rate remaining at its record-breaking low (with just 4.6% of stock being vacant) and the highest number of newly opened buildings in the last five years (17 buildings including 11 newly built ones).

Kraków’s total office stock amounts to nearly 1.35 million sqm. According to reports from developers, more than 110,000 sqm is expected to be completed by the end of 2019, pushing this year’s new supply up to a record high of 200,000 sqm, according to Cushman & Wakefield.

The first half of 2019 witnessed two new office completions in Szczecin totalling nearly 3,500 sqm, whilst another 27,300 sqm is expected to be added to the city’s stock by the end of this year.

The hotel investment market is reaching new heights in the Czech Republic with year to date volumes at €530 million and 10 hotel transactions. This is more than a 100% growth compared to the average yearly transaction volume of €250 million, recorded over the past five years.

The Bucharest office market could have a record year in terms of deliveries in 2019, provided that all the announced projects are finalized on time, a scenario in which modern office spaces with a total area of ​​about 377,000 square meters will have been delivered in the capital city, according to data from Cushman & Wakefield Echinox.

According to Cushman & Wakefield’s latest DNA of Real Estate Q2 2019 report, the European logistics sector continues to perform strongly with strong rental growth and investor demand driving down yield by 2bps, whereas yields in the European office and retail sectors remained flat.