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The Slovak industrial market slowed down slightly due to still rising energy prices and other costs. Developers are more cautious with new constructions and so are foreign investors. This will give an opportunity to local developers and larger companies with a stable background. At the beginning of 2023, 108 Agency Slovakia expects a cooling down of the market.

In Q3 2022, the Czech industrial market grew at a faster pace than at any time previously, adding 511,100 sqm of new modern industrial space to the market. The market stock overtook the level of 10.65 million sqm, further expanding after breaking the 10 million sqm milestone in H1 2022. The vacancy rate decreased to 0.99% for the first time in recorded history, plunging the national average just below 1% of all available space on the market, says Colliers.

Investment into the world’s office markets fell sharply in Q3 2022, however, there is plenty of capital still circulating poised to target the best assets, as well as any areas of discount, as debt-backed buyers withdraw and others pause decision-making. The Czech market is copying the global market, but the number of opportunities for buyers to source a ‘bargain’ is limited, says Savills in its latest Capital Markets Quarterly report. 

In Q1-Q3 2022, CA Immo was able to increase its recurring earnings (FFO I) by 2.4% year-on-year to €102.5 million in the third quarter. Rental income rose by 2.5% to €158.1 million in the first nine months. The recent portfolio expansions and higher rental income from investment properties thus more than offset the effects from portfolio sales. Consolidated net income rose by 40% to €267.5 million, driven among other things by a strong revaluation result (Q1-Q3 2021: €180.4 million). The positive development in the third quarter was mainly due to the good letting business and the takeover of two project completions into the own portfolio. Following the strong first nine months, CA Immo confirms its earnings forecast for 2022 and expects recurring earnings (FFO I) of more than €125 million.

In the first three quarters of 2022, Immofinanz’s rental income reached a high €216.9 million, the results of asset management improved by 3.2% to €168.4 million, and sustainable FFO 1 from the standing investment business (including the S Immo dividend) rose by more than 15% to €115.9 million. Net profit equalled €248.6 million.

Serbia’s real estate market experienced record demand for office, logistics and residential space this year and this growth trend will continue in 2023. Banks will be somewhat stricter in terms of granting loans and financing conditions will tighten but the overall outlook is still positive, according to the speakers of the investment and financing panel of Balkans Property Forum 2022, organised last week in Belgrade.

In the third quarter of the year, the office leasing volume in Bratislava increased by 40% quarter-on-quarter, but in a year-on-year comparison, the volume decreased by 12%, reports the Bratislava Research Forum.

In Q3 2022, the Czech industrial market slowed down in comparison to the previous record-breaking year and a half after tenant demand decreased. The stock of Class A industrial premises for lease reached 10,652,456 sqm and there is currently 1,152,780 sqm under construction. The vacancy rate stayed at a historical low of 1.03%, so there is only 109,699 sqm available on the market for immediate lease. Nevertheless, due to the political-economic situation with the energy crisis and the high inflation rate, companies are planning layoffs and developers are more cautious. It is possible to expect that the tough time for tenants as well as developers will continue until at least next March, says the newest industrial property market report by 108 Agency.

Rent indexation shall provide for further FFO increase, while low interest cost and improved maturity profile offer downside protection, says GTC. 

Over one million square metres of industrial space is currently under construction in the Czech Republic. Most of them are pre-leased. New completions reached a record 521,600 sqm, representing the highest-ever volume of new space delivered to the Czech market. This is a 295% increase compared to Q3 2021 and an incredible 340% increase compared to Q2 2022. However, possible pressure on the correction of market rents can be expected. Given the current rent levels, it is already possible to register a declining interest of some of the Czech and foreign companies in leasing industrial space in the Czech Republic, according to the latest Knight Frank report.