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H2 Industrial Market Outlook

20

05

2015

The expected GDP growth of between 2.5 - 3.5% during 2015 and into 2016, has had a positive impact on demand for both goods and service in markets throughout central Europe (CE). As a result, retailers, e-commerce operators and automotive components producers are currently the main drivers of demand for industrial space. This increase in demand has put commercial properties in CE as an asset class under the spotlight of international investors, with industrial properties being the most attractive among all property classes.

Additionally, historically low interest rates and favourable financing conditions have had a positive impact on supply by developers. With a vacancy rate of 8% across CE and trending lower, built-to-suit projects are increasingly common. On the country level, the Czech Republic and Romania appear the most promising for investment, with increased interest from companies carrying out high-tech manufacturing and R&D centers, especially in the Czech Republic.