The Stavrovski group ::: Property Development & Management

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The Market

In 2005 the Czech Republic showed a high leasing and investment activity and an overall healthy performance compared to 2004. More companies decided to either fully or partly move their administrative functions, mainly IT and accounting/financial services or their production facilities from Western Europe and the U.S. into the Czech Republic.

A continued strong demand for product on the Investors ’side and continuous speculative development on Developers side - this trend along side the maturing market, contributed in the Investment market to the record level of EUR 1.6 billion transacted through 32 transactions against EUR 1.2 in 2004 with further decrease in the yields in all segments of the commercial properties.

On the Office leasing side, a take-up figure of approx.189,000 sq m was recorded, showing an increase of 44% compared to 2004. The Retail ’s total modern shopping centre stock in Prague during the second half of 2005 reached 534,000 sq m,where the completion and opening of Centrum Chodov alone added 55,000 sq m to it. The total area of modern industrial warehouse in Prague in 2005 aggregated to 1,050,000 sq m compared to 890,000 sq m in 2004 and the year has witnessed the conclusion of the biggest industrial transactions that have ever occurred in the Czech Republic.

The market will remain strong and challenging during the course of this year with rental levels remaining stable in all sectors.