The price of this market report covers 4 quarterly reports on this sector. This quarterly report will be downloadable instantly as a PDF document, with the 3 remaining reports delivered at regular intervals throughout the year.

The Czech Republic Real Estate report examines the Commercial Office, Retail and Industrial 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 the rental market performance in terms of 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

However, despite the encouraging signs, BMI remains cautious Rents and capital values remained stable in 2010 after a difficult period in 2009, but we have seen a wide disparity in the 2011 results which reflect market volatility and will see correction further down the line as the market is increasingly considered overpriced However, there is no indication that there will be anything more than gentle rises in rents and capital values going forward Yields are likely to remain at present levels throughout 2012

Key Points

- Real estate investment in is expected to continue growing in the commercial real estate segment, with increasing interest anticipated from the international arena

- Compared to the performance of most of its CEE neighbours, the Czech republic has weathered the eurozone storm well and we still see some growth opportunities in rental rates across key sectors

- We expect the Czech Republic's economic growth to be hit hard in 2012 by weakened external demand The Czech economy remains highly dependent on exports and investments for economic growth, both of which have come under pressure since H211 Ongoing fiscal austerity and weak consumer spending will see to it that growth remains largely stagnant this year

- Our real GDP growth forecast for the Czech Republic has been slashed to 0 1% in 2012 from 0 8% previously This view was further bolstered by data released by the statistical office showing the country was in a technical recession at the end of 2011 Weakened external demand combined with ongoing fiscal austerity and no real recovery in consumer spending will combine to produce stagnant growth this year Precluding a more dour outlook is our expectation for the global recovery to take hold towards the tail-end of the year

- We have revised our forecast for the Czech Republic's current account deficit to 4 3% of GDP in 2012 from 4 7% previously The same dynamics remain in play with the widening income account deficit outstripping the merchandise trade surplus However, soft domestic demand coupled with lower profit outlook for Czech subsidiaries of foreign companies will mean a lower overall deficit in 2012

Click for Report details:Czech Republic Real Estate Report Q3 2012