Over 6.8 million sqm of industrial space to be built in four regions

by   CIJ News iDesk III
2023-09-21   16:28

More than 6.8 million sqm of industrial space will be created in the Karlovy Vary, South Bohemia, Liberec and Ústí nad Labem regions. More than half of the planned projects are being prepared by the trio of developers CTP, Panattoni and Prologis. The projects are currently at various stages of permitting and preparation, from environmental impact assessments, planning and building permits to the first implementation works. This is according to an analysis by real estate consultancy 108 Agency.

According to the analysis, EU money could help the renewal of brownfields, which are more than 60 percent owned by private owners and in a quarter of cases publicly owned, in the Moravian-Silesian, Ústí nad Karlovy Vary regions.

"The Ústí and Karlovy Vary regions are linked by the chance to draw significant funds for the regeneration of brownfields, while a major economic recovery is expected in these regions. The South Bohemian region will be helped by the completion of the motorway network, especially the new sections of the D4 and the connection with Austria," said Jakub Holec, director of 108 Agency.

According to the analysis, the regions could also be helped by a higher number of already non-functional sites suitable for redevelopment. More than half of the brownfields with an industrial or agricultural history are in the Ústí nad Labem, Moravian-Silesian and Liberec regions, it said. The first two are experiencing a decline in heavy industry. The Karlovy Vary Region is close behind with its stock of development sites. In the Sokolov district, for example, brownfields have the largest average area of 24 hectares.

"An unprecedented opportunity will eventually open up for Pilsen and other regions with the potential implementation of a gigafactory in Lini. The Ústí nad Labem Region may also create a base for other suppliers and processors connected to the contemplated start of lithium mining in Cínovec and its subsequent processing in the electric vehicle industry," said Matěj Indra, Head of Industrial and Logistics Property Leasing at 108 Agency.

According to the company, the volume of modern industrial space in the Czech Republic will exceed 12 million square metres this year. The industrial real estate market has seen steady growth since the covid-19 pandemic, with two million sqm of industrial space added to the market in the last two years alone. Earlier, consultancy Colliers said the Czech industrial property market grew by 269,100 sqm in the second quarter of this year, up 11 per cent year-on-year. It was the highest growth in the last five years. There was 11.3 million sqm of industrial space in the Czech Republic.

Source: 108 Agency and CTK
Photo: Accolade