www.colliers.cz

COLLIERS IN THE CZECH REPUBLIC

Peter Chatfield, Klára Pančochová, Colliers International

Colliers International provides real estate services of the highest quality locally, regionally and globally. In Central & East Europe, Colliers has offices in the Czech Republic, Poland, Slovakia, Hungary, Romania, Bulgaria, Russia, Ukraine, Baltic States, Serbia & Montenegro and FYR Macedonia.

Although the Czech Republic is one of the smallest countries in Central Europe, with a population of just over 10 million, the country has maintained a steady economic state and is currently one of the top destinations for capital flow into the CEE region. As Prague has become one of the top "Buy" markets in Europe for office and industrial sectors according to PricewaterhouseCoopers, we are proud to be located in this market and be involved in a number of the largest transactions.

Real Estate Investors are optimistic about the industry’s potential to generate healthy returns over the coming years. The Prague market is definitely maturing, offering investors a more "low risk" environment, both from a real estate and macro economic perspective. Prague has made huge progress as a property investment location and has hit the top of investor’s lists. This ranking could be interpreted as portraying a high degree of future investment confidence in the Czech Republic.

Investment Property, Sales and Purchases

Colliers Prague office specializes in investment sales and purchases, office and industrial leasing, tenant representation, valuation and consulting services, market research and marketing support.

From a 12 pct yield level five years ago, Prague is now seen as a well-established and liquid investment market with 6.5% yields on Class A office buildings by the end of 2005. To have attained western-European yield levels in such a short time is beyond expectations.

The volume invested in institutional real estate in the Czech Republic in 2005 reached €1.5 billion, approximately the same volume as in 2004. Retail is definitely the most active product sector and this trend will continue in 2006.

Colliers Prague’s Industrial team is the market leader in the Czech Republic for the marketing of industrial space.

The warehouse and industrial market has seen record year in its 10 years history. Total activity in developer’s driven segment was over 450,000 sqm compared to 150,000 sqm in the year 2004.

The Czech industrial market produced almost 410,000 sqm of new leasable area in 2005 compared to 120,000 sqm market activity in the whole 2004. This record take-up has been further positively influenced by EU accession as operations based in Western Europe are continuing to relocate their major logistic and production facilities to the Czech Republic.

The Prague office market saw strong performance in 2005. That was mostly due to increasing take-up and decreasing vacancy rate when compared to 2004. Several interesting projects were finished extending the total office space approximately by 146,000 sqm.

By the end of 2005 the total modern office stock in Prague was of some 1,824,000 sqm. The total office take up in the Prague market was at 189,000 sqm. As compared with the leased office space of 131,000 sqm in 2004 it represents an increase by more than 40 pct. The strong tenant demand and below average volume of new supply caused a significant decrease of vacancy rate from 15.6 pct in 2004 to 12.47 pct in 2005.

Colliers International is dedicated to providing the key information and knowledge needed to help our clients make sound real estate decision, and to the professional development of industry leading marketing materials to ensure the best results is achieved.

The Colliers International offer is: "We accelerate your success by making our knowledge your property."

For more information visit our website: www.colliers.cz

Colliers International Czech Republic
Slovanský Dům, Na Příkopě 859/22
110 00 Prague 1
Czech Republic

Tel: +420 221 451 518
Fax: +420 221 451 514
E-mail: prague@colliers.cz
Website: www.colliers.cz

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