Real Estate Market
Development of the market in the CR with emphasis on industrial properties
The market of industrial properties intended for production displays certain specific characteristics as opposed to properties intended for warehousing and logistics. Recently the demand for production halls intended for rent is growing rapidly and thus exceeds the demand for fully prepared construction plots within industrial zones.
The market of business properties in the Czech Republic consistently offers significant potential in the area of prepared production facilities (generally rental properties), so that a foreign firm can launch production in the shortest possible period of time. This, of course, requires developers to either build production halls on a speculative basis or to at least prepare projects to the stage of construction approval. The latent insufficiency of such properties appears mainly in regions that suffer from high unemployment, but which at the same time can offer a sufficient workforce and are of interest particularly among foreign investors. Examples of such regions are Southwest Bohemia, North Moravia, and South Moravia.
The most commonly required size of production halls among investors in the manufacturing industry is to 5,000 sq m2. The type of relationship to the property depends on the investor's focus and type of production. Where this concerns the required size of prepared plots for industry, the most common demand is for sites covering up to 5 ha. An interesting segment is comprised of large production investors that require more than 20 hectares - and not uncommonly up to 40 hectares - of prepared land. According to CzechInvest's statistics, this group is not large, though it is undoubtedly significant - annually 5 -10 such investors address CzechInvest with their specific requirements for sites.
CzechInvest strives to satisfy the growing demand for business properties and thus cooperates with public and private developers in order to improve the supply of properties. The agency offers the possibility to utilise consulting and mediated financial support for construction, renovation and regeneration of industrial zones, brownfield sites and production halls.
