We expect the Czech economy to remain strong in 2018. Although wage costs are rising, companies are continuing to expand, which is good news for the office and industrial sectors. As wages are rising faster than inflation, people have more disposable income which will have a positive impact on the retail sector.
An increased confidence in the fundamentals of the CEE economies has been pushing investment volumes up. Investors have shown great appetite for the Czech Republic while Czech investors have been investing in other markets at never before seen levels.
The Prague office market has been experiencing a very active period. Supported by a positive economic outlook, the positive market sentiment is expected to continue through 2018. We forecast take-up will once again exceed 300,000 sq m in 2018.
The Czech industrial & logistics market has been growing rapidly. With consumer spending growing, retailing has become the prime driver of the market.It is all about people nowadays, companies need to create attractive and productive work environments.
Currently, the retail sector in the Czech Republic enjoys a very favourable period. The Czech economy is growing, and both purchasing and consumer behavior are experiencing positive development. The desire to be in the right location in the most appropriate city is as important as ever and this is helping to drive prime rental growth.