Czech Republic Investment Property

Czech Republic Investment PropertyThe Czech Republic is an interesting country to consider when thinking about property investment.  On the one hand the Czech Republic’s economic emergence has been staggering and the nation has gone from fiscal strength to fiscal strength with property prices across the country being boosted naturally by the increasing purchasing power of the local population.

But on the other hand the Czech Republic has not been particularly attractive for property investors.  Other than in the capital city of Prague where investors can buy to let to the professional marketplace, opportunities for profiting from the residential real estate sector have been limited.  But as Standard Life have just proven, when it comes to profiting from Czech Republic investment property one has to look beyond the residential sector.

Commercial property investment in the Czech Republic is reaping dividends for international corporate investors such as Standard Life and it is a sector rapidly expanding.  In fact the demand for commercial property is developing at a faster rate than the supply of grade ‘A’ office, factory, warehousing and light industrial space creating a perfect environment for investors to profit from increasing leasing rates and the capital appreciation that their real estate assets are accruing.

The reason that commercial property in the Czech Republic is so hotly in demand has a great deal to do with the country’s strategic position in Central Europe and on it positioning itself as a pan-European distribution centre.  Where once the Czech Republic had an incredibly strong provincial logistics capability, companies such as Bridgestone and DHL have taken the existing core skills and facilities and developed upon them to establish their European distribution centres near to the capital city of Prague.

Other companies are fast following in their footsteps and the Czech Republic is rapidly expanding as the core hub for distribution across Europe.  The financial giants Standard Life have been quick to realize the potential and have bought up Czech Republic investment property such as the Tulipan Park Logistics Centre which is very close to Prague airport and which houses firms such as the shipping giant Maersk.  The purchase has been made for Standard Life’s European Property Growth Fund and according to the company’s European Investment Director it represents merely the first of many inroads they expect to make into industrial and retail investment property in the Czech Republic.

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