2012-10-26 05:13:20 - New Business research report from Business Monitor International is now available from Fast Market Research

The Czech Republic Real Estate report examines the commercial office, retail, industrial and construction segments throughout the county in the context of a cautiously optimistic outlook for a market vulnerable to eurozone sensibilities.

With a focus on the three principal cities of Prague, Plzen and Brno, the report covers market performance in terms of rental rates and yields over the past 18 months, and examines 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
- www.fastmr.com/prod/464469_czech_republic_real_estate_report_q4_ ..


However, despite the encouraging signs and the relative strength of the market by regional standards, BMI remains cautious. Rents and capital values remained stable over the first six months of 2012, but we saw a wide disparity in the 2011 results which reflect market volatility and will see correction further down the line as the market is considered increasingly overpriced. However, there is currently no indication that there will be anything more than gentle rises in rents and capital values going forward, and yields are likely to remain at present levels throughout 2012. Nevertheless, with a full-year recession expected in the CEE country, and a poor performance by the construction sector thus far, downside risks are gathering.

Key Points

* We forecast the Czech economy to post full-year growth of 0.1% in 2012, before making a mild 1.3% recovery in 2013. Data released by the statistics office earlier in 2012 showed that the economy had been in recession for three straight quarters.
* We maintain our bearish outlook for the Czech construction sector, based on: significantly revised data from the Czech Statistical Office, revealing a 7.2% year-on-year (y-o-y) contraction in 2011; persistent corruption allegations leading to the freezing of EU funds; and the overhanging effects of the financial downturn in Europe, with its implications for the domestic sector. Thus for 2012 we forecast negative real growth of 2.3%; following this we expect a gradual return to the greens and annual average real growth of 3.0% until the end of the forecast period in 2021.
* A similarly bleak outlook is expected for the country's residential and non-residential segment, which we now expect to contract by 4.3% y-o-y during 2012. However, we anticipate a slow rebound in the sector, with annual average real growth of 1.6% forecast between 2013 and 2016.
* Nevertheless, the Czech Republic still represents an attractive and strategic investment avenue for the global construction majors, based on its geographical location as well as the increasing need for a new infrastructure fleet. However, there are downside risks based on continuous GDP data revisions, the weak outlook for short-term opportunities and the transport ministry's renegotiating of contracts, which raise questions over both industry and country risks.

Partial Table of Contents:

Executive Summary
SWOT Analysis
- Czech Republic Real Estate/Construction SWOT
- Czech Republic Political SWOT
- Czech Republic Economic SWOT
- Czech Republic Business Environment SWOT
Real Estate Market Overview
Market Analysis - Office
- Supply And Demand
- Rents And Yields
- Table: Historic Rents - 2011-H112 (CZK per m2/month)
- Table: Net Yield, 2011-2012 (%)
- Table: Terms Of Rental Contract/Lease - Mid-2011
- Industry Forecast Scenario
- Table: Forecast Rents - (CZK per m2/month)
- Table: Forecast Net Yield, 2008-2016 (%)
Market Analysis - Retail
- Supply And Demand
- Rents And Yields
- Table: Historic Rents - 2011-H112 (CZK per m2/month)
- Table: Net Yield, 2011-2012 (%)
- Table: Terms Of Rental Contract/Lease - Mid-2012
- Industry Forecast Scenario
- Table: Forecast Rents - (CZK per m2/month)
- Table: Forecast Net Yield, 2008-2016 (%)
- Table: Czech Republic Retail Sales Indicators, 2008-2016
Market Analysis - Industrial
- Supply And Demand
- Rents And Yields
- Table: Historic Rents - 2011-H112 (CZK per m2/month)
- Table: Net Yield, 2011-2012 (%)
- Table: Terms Of Rental Contract/Lease - Mid-2012
- Industry Forecast Scenario
- Table: Forecast Rents - (CZK per m2/month)
- Table: Forecast Net Yield, 2008-2016 (%)
Forecast Scenarios
- Construction And Infrastructure Forecast
- Table: Czech Republic Construction And Infrastructure Industry Data, 2008-2016
- Table: Czech Republic Construction And Infrastructure Long-Term Forecasts, 2013-2021
- Macroeconomic Outlook
- Table: Czech Republic - Economic Activity
Real Estate Risk/Reward Ratings
- Real Estate/Construction Risk/Reward Ratings
- Table: Central and Eastern Europe Real Estate Risk/Reward Ratings
- Czech Republic's Business Environment
- Table: BMI Business And Operation Risk Ratings
- Institutions
- Table: BMI Legal Framework Rating
- Infrastructure
- Table: Labour Force Quality
- Market Orientation
- Table: Emerging Europe - Annual FDI Inflows
- Table: Trade And Investment Ratings
- Table: Top Export Destinations
- Operational Risk
Competitive Landscape
Company Profiles
- FINEP
- Orco Property Group
- Passerinvest
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Full Table of Contents is available at:
-- www.fastmr.com/catalog/product.aspx?productid=464469&dt=t

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Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010

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