Industrial and Commercial Developments

The demand for office sector in Central Europe is significantly related to two factors: the location of industrial activity and the need to provide distribution linkages between Western and Eastern Europe. While there were significant additions to the office stock in Prague over the past five years, the need for additional space will reemerge with economic recovery.

The Czech Republic and particularly Slovakia are predicted to experience a significant shortfall in supply for industrial premises in coming years. The attractive taxation in Slovakia and its proximity to major Western as well as Eastern markets is attracting many foreign businesses.

The growth and progress predicted in Slovakia, particularly in the Auto manufacturing sector will lead to greater demand for industrial and commercial properties. Bratislava, could also replace Vienna as a leading freight logistics hub.

Traditional yet continual growth in tourist numbers is also fuelling the continuing introduction of new hotels to the market, most of which sustain occupancy rates of between 70-80%, and are fully booked during the high seasons. Increased business travel is also creating year-round demand for short-term accommodation; reducing the reliance on the shorter tourist season for profits.