New Market Report Now Available: Czech Republic Real Estate Report Q1 2014

The Czech Republic Q1 2014 Real Estate report examines the commercial office, retail, industrial and construction segments throughout the country in the context of a cautiously optimistic outlook for a market vulnerable to eurozone sensibilities. Despite the sector's recent travails, the Czech Republic still represents an attractive and strategic investment avenue for the global real estate investors, based on its geographical location, coupled with rising income levels and living standards.

With a focus on the three principal cities of Prague, Plzen and Brno, we consider how best to maximise returns in the commercial real estate market, while minimising investment risk and exploring the impact of government austerity on a market where cash flow is already restricted. The key growth areas driven by increasing activity on the part of international investors, and the potential of the domestic consumer market, are also explored with corporate growth strategies looking to the country for expansionary opportunities.

Full Report Details at
- http://www.fastmr.com/prod/759060_czech_republic_real_estate_report_q1_2014.aspx?afid=301

In spite of the relative optimism surrounding the sector going into 2014, the commercial real estate market is set to face many of the same problems as seen over 2012-2013: high vacancy levels, stagnant rental rates and a poor construction pipelines. However, the risks are set to be less severe as balance sheets for consumers and businesses have improved and extra liquidity in the market place should induce more transactions and reduce market associated risks.

Recent Developments:

International retailer Amazon has announced plans to open two distribution centres in the country in 2014, which will be located near the cities of Prague and Brno. The centres will add to the company's network of 25 facilities, which are located across seven European countries. Each of the centres will measure about 95,000m2 in area.

* In November 2013, local real estate company CPI Group was reported to be gearing up for M&A activity after the company reportedly secured loans totalling US$180mn in from Endurance Fund, to be used for acquisitions.
* According to Colliers International, headline vacancy levels for the Prague office sector stood at 13% in November 2013, below those seen in Bratislava, but above Warsaw's.

BMI Forecasts:

* We believe the Czech Republic economy is poised for a modest turnaround this year as leading indicators signal that the worst may be now over. We forecast real GDP growth of 1.3% for 2014, following estimated 0% growth last year.
* We forecast household consumption to growth of 0.13% this year, up from -0.1% in 2013 and - 2.7% in 2012. This should have a positive growth effect on the retail real estate segment as demand for consumer goods translates into new retails premises.

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For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

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