Boston, MA -- (ReleaseWire) -- 07/02/2014 -- 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. In 2014 , economic growth is expected to increase by 2 .4 % , accelerating to 3.0% in 2015 .
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 1.54mn square metres (sq m) 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, as higher wages and improving consumer confidence feed through into stronger household consumption.
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Like the retail sector, rents in the office sector will remain stable moving into 2014. With vacancy rates of 12% in Bratislava, amounting to 1.5mn sq m of space, and several new large-scale completions expected in 2014 - including the Westland Gate complex (35,000 sq m) - 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. 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...
The Slovakia Real Estate Report features Business Monitor International (BMI)'s market assessment and independent forecasts of major construction projects in the residential and commercial markets, plus rental prices and yields in major cities. The report critically analyses the prospects for real estate within the broader economic and financial context - both domestic and global - via our econometrically-modelled and clearly explained banking and economic forecasts and follows this through to evaluate the implications for REITs.
BMI's Slovakia Real Estate Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the real estate industry in Slovakia.
- Benchmark BMI's independent real estate industry forecasts for Slovakia to test other views - a key input for successful budgeting and strategic business planning in the Slovak real estate market.
- Target business opportunities and risks in Slovakia through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI's key industry forecasts, views and trend analysis covering real estate and construction, regulatory changes, major investments and projects and significant national and multinational company developments.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the real estate sector and within the broader political, financial, economic and business environment.
Overview of the real estate sector, including analysis of existing/planned real estate developments and emerging industry trends in the office, industrial and commercial sectors.
Features detailed city-level data and analysis on rental prices, yields, contract terms and real estate availability with separate chapters covering the office, retail and industrial sub-sectors.
Industry Forecast Scenario
Historical data series (2010-2012) and forecasts to end-2018 for the domestic real estate industry and for the local and global finance industry. Indicators include:
Real Estate: Office, retail and industrial real estate yields for all major cities (%); short-term forecasts on minimum and maximum real estate rental prices by sub-sector (US$ per square metre, and local currency per square metre)
Construction: Industry value (US$bn); contribution to GDP (%); employment (`000); real growth (%)
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