Recently published research from Business Monitor International, "Slovakia Real Estate Report Q1 2014", is now available at Fast Market Research
Boston, MA -- (SBWIRE) -- 02/10/2014 -- We forecast that an improved economic performance in 2014 will underpin increased activity, in terms of both supply and demand, in Slovakia's commercial real estate market in 2014. Despite lower economic growth than in 2012, the Slovakian economy still increased by 0.6% in 2013. Given that the Slovakian economy is still recovering from the 2009 recession, the largest in its recent history, and has to contend with severe austerity measures as the Government looks to decrease the deficit, this performance was to be expected. In 2014 economic growth is expected to increase by 2% year-on-year.
View Full Report Details and Table of Contents
Across the retail, office and industrial real estate markets BMI predicts rents to remain at 2013 levels moving into 2014. High volumes of new supply will act as a counterweight to potential rental increases fuelled by increases in demand in some sectors.
In the retail sector Slovakia currently has roughly 1.54 sq metres of retail space, of which over a third is situated in the capital, Bratislava. With the exception of the opening of Slovakia's first designer outlet centre in October 2013, there was very little activity in the retail real estate market over 2013 as a whole. However, on the back of the 'one fashion outlet' centre towards the end of 2013, BMI predicts increased activity in 2014, particularly regarding a higher volume of new retail supply.
Like the retail sector, rents in the office sector will remain stable moving into 2014. With vacancy rates of 12% in Bratislava, amounting to 1.5 million sqm of sapce, and several new large-scale completion expected in 2014- including the Westland Gate complex (35,000 sqm)- supply will significantly exceed demand in the market.
Despite record numbers of leased warehouse space in Bratislava in the first half of 2013, increased speculative developments in the industrial real estate markets should create a favourable environment for tenants by ensuring that rents remain stable. Indeed, over the course of 2013 industrial vacancy rates rose; increasing from 4.53% in Q212 to 6.30% in Q313. Nonetheless demand for industrial space in Slovakia continues to rise. Thus, despite BMI forecasting that rents will remain at 2013 levels in 2014, BMI does see the potential for rents to increase moving into 2015. Given the relatively low rents and cost, tenants of industrial properties should gain net yields of between 8 and 11 per cent across Slovakia.
- The Slovakian Government approves 2014 budget with a lower than planned deficit, cutting it to 2.64% of GDP rather than the originally intended 3%
- In October 2013 the 15,000 sqm 'One Fashion Outlet' designer outlet centre, Slovakia's first such facility, opened in Bratislava.
About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Business research reports at Fast Market Research
You may also be interested in these related reports:
- Singapore Real Estate Report Q1 2014
- South Korea Real Estate Report Q1 2014
- United Arab Emirates Real Estate Report Q1 2014
- United States Real Estate Report Q1 2014
- Peru Real Estate Report Q1 2014
- Croatia Real Estate Report Q1 2014
- Philippines Real Estate Report Q1 2014
- Czech Republic Real Estate Report Q1 2014
- Greece Real Estate Report Q1 2014
- Bulgaria Real Estate Report Q1 2014
Copyright © 2005-2014 - SBWire, The Small Business Newswire - All Rights Reserved - Important Disclaimer
Contact Us: 888-4-SBWIRE (US) - 920-593-5640 (International)