The supply of coworking spaces has grown to more than 50,000 sqm in Prague alone, complemented by another 58,000 sqm of serviced offices. Due to the growth of this concept in other regional cities, the real estate consulting company 108 AGENCY decided to launch a clear and intuitive Desking.cz - the first coworking comparison engine in the Czech Republic.
The real estate investment market is impacted by increased inflation expectations, higher interest rates and the inflated cost of financing, and this will continue into 2023. This inevitably leads to increasing yield expectations. In most European markets, across various sectors, yields have increased this year. According to BNP Paribas Real Estate, some price corrections are still expected in some markets and asset types in 2023. The market is expected to stabilise in the second half of the year, when investment activity could also see some revival. Currently, most markets are in the stage of ‘price discovery’. Since the summer, we have been witnessing a ‘dance floor situation’ on the Czech real estate investment market. Buyers are sitting on one side of the dance floor and sellers on the other, and everyone is waiting to see who will dare to enter the dance floor first. CPI inflation could reach 15.8% this year according to forecasts from the Czech National Bank, and inflation could be double digit in the first half of 2023 at the very least.
Season's Greetings To All Our Business Partners and Friends!
On November 23, a conference on Sustainability and revitalization of buildings organized by the Real Estate Academy in cooperation with the Finnish Embassy took place in Dům Radost in Prague 3.
108 AGENCY is moving to new offices. From 1 December 2022, we will be based in the office part of the PALLADIUM building at Na Poříčí 1079/3a in Prague.
The SKLAD association (Association of Competent Logistics Providers and Suppliers), of which 108 AGENCY is a member, has prepared a unique survey that reveals the trends and influences shaping the Czech logistics market. The result is a unique study that builds on the successful 2020 version.
On October 12, the autumn conference Real Estate Market Autumn 2022 took place, which was organized by the Stavební fórum. The event included a panel discussion on the subject of Investment, moderated by Lenka Šindelářová from the investment department of 108 AGENCY.
On one hand there is 1 million sq m of new warehouses this year alone, but on the other hand demand is decreasing. The length of leases required by developers’ increases to a minimum of five years versus the departure of some tenants from the e-commerce and automotive sector. Securing extensive leases and pre-leases by large logistics companies versus the need to sublet part of these premises. The growing importance of energy-efficient buildings and the emphasis on the lowest possible operating costs. The results of the third quarter on the domestic industrial real estate market show that the transformation of this entire segment has already begun, according to the recent report published by the real estate consulting company, 108 AGENCY.
The volume of real estate investment transactions in Q3 2022 reached 149 million EUR, which represents a 61% drop in comparison with Q3 2021. Cumulatively from January till September 2022, the investment volume totalled 1.4 billion EUR. If we added transfers of single assets and portfolios among related parties, the quarterly volume reached 390 mil. EUR, almost the same as in the same period last year. This is shown by data of the real estate consulting company 108 AGENCY.
