What does Slovakia offer business and why the Slovak market is a strong partner in Europe
Thanks to a stable political climate and pro-business orientated atmosphere in the country is Slovakia ideal partner for all national and multinational companies. Despite of fact that Slovakia is a small country, offers many different opportunities for business (Automotive, IT, Light mechanical engineering, etc.) and CBRE provides its services to all kind of industrial segments. (Source: CBRE)
Slovakia is the key investment opportunity
Currently we have a very hight level of interest of new investors in Slovakia. A steadily growing macro-economic confidence and the availability of good quality stock in Slovakia at realistic pricing is stimulating the market. We expect 2017 to be another strong year with the current interest expected to lead to a number of significant transactions. Overall the investment market has improved significantly across all segments with a notable increase in the number of investors invested or ready to invest in Slovakia.
- Office development remains dominated by strong local groups and it is mainly focused on Bratislava. Regional cities such as Košice and Banská Bystrica are increasingly viewed as strong options for companies seeking to move their noncore activities and/or to take advantage of a very strong HR source, particularly in Košice where the city is becoming well known as an IT hub in the region.
- On the back of an improving retail market, many investors are also looking for shopping centre schemes, particularly those capable of achieving upside through more efficient asset management.
- Future investment in infrastructure/ highways and the current trend of portfolio sales has already helped to steer investment in logistics´ new locations across Slovakia.
Slovakia is among the Top 10 EU countries in terms of industry’s share of economic output. Industry accounts for 23% of GDP here, the 7th highest share in the EU.
The two largest industrial sectors, automotive and metals, continue their strong growth. Export-oriented sectors such as consumer electronics and machinery are also improving.
- Development of industrial and logistics premises in all major markets in Europe is positive and this trend is noticeable in Slovakia as well. Slovakia has reinforced its position in the automotive industry and remains attractive for both suppliers and logistics companies. The market also experienced stronger investment activity in industrial and logistic premises.
Key factors for new logistics locations include good access from the highway and high technical standards. The location of production plants are additionally contingent upon the availability of skilled labour and the possibility of obtaining state incentives.
The retail sector benefits from the strong economic growth together with the lower unemployment and the rise in real wages.
We have recorded a number of new single tenant operators who have successfully entered the market in Slovakia. New potential development is expected to focus more on convenience based shopping schemes in under saturated local areas. In smaller and less demanding regional towns that lack existing retail schemes retail parks 2,000-4,000 m2 in size are expected.
- There will be a need to continually redesign, refurbish, re-model and re-negotiate with occupiers, as the retail evolution delivers new challenges including new trends, new competition and especially new customers’ behaviour.
Entire building concept including the flexibility of the space, modern technologies, green solutions as well as location, amenities, traffic connection, parking possibilities; all these are the factors that play an important role in tenants´ selection process of new office premises.
Looking at the employment market dynamics, modern work concepts supported by new technologies and connectivity are important to enhance the productivity and satisfaction of employees. Companies adapt alternative working concepts and enhance the use of office premises. Work of architects and workplace specialists gains on importance.