As many as 60% of investors across Europe focused on the real estate market indicate that in 2021 they will invest more than last year. The aim is to increase market liquidity. Germany should be the first to recover from the corona crisis in real estate investment in Europe. London is also very attractive for investors. Investors continue to be most interested in office real estate (35%), but residential properties (24%) are also gaining more and more prominence. Investors' interest also persists in the area of industrial and logistics real estate (22%).
Slovakia's potential for attracting investment from industry and logistics, especially in connection with the growing e-commerce segment, remains strong. However, the obstacle to growth is the overly lengthy construction process, which often blocks even unfounded objections from local activists.
The prolific change of 2020 has shaped the real estate industry more than anything else in decades. The digitization had been underway before the pandemic, but the speed of that shift has accelerated in ways that nobody could have predicted.
The Arete Group received the CIJ Awards Slovakia Award for 2020 in the Best Warehouse Development category over 10,000 m2. Arete Park Veľká Ida is a well-situated industrial park near the second largest Slovak city, Košice. This highly specialized hall with a unique architecture of the industrial and administrative part was built according to the assignment of the tenant, Dominion Steelcon A/S Slovakia, a member of the Dominon group, which is a global manufacturer of demanding technological equipment. The property with an area of 12,000 m2 represented an investment of 13 million euros.
FM Logistic Group operates its own warehouses in Central Europe with electricity from renewable sources. The company has signed contracts for energy from renewable sources with the largest Polish energy group PGE and with the Czech company Pražská Energetika. The contracts relate to logistics facilities owned and operated by FM Logistic.
"Shipment volumes are growing and the whole world today faces a shortage of containers for the transport of goods. Maritime transport is busy, but also railways, and in the coming months, we certainly do not expect a major decline and release of capacity, quite the contrary. Shortening supply chains is not on the agenda yet,” says Aleksander Raczysnki, CEO of the Gefco Czech Republic, Slovakia, and Hungary, in an interview.
The IPEC development group started the construction of a research and development center and production halls in the Senec industrial park for a German investor. In the first phase, a research and development center will be created here by partial reconstruction and attached new construction of existing buildings, in which highly qualified engineers will find work. Subsequently, new production halls with a total area of up to 20,000 m² will be added. They will arise next to existing production facilities. The developer and owner of the project is IPEC, the builder is Strabag. A total of 70 engineers will find work here in the first phase. The German manufacturer will lease the capacity from IPEC for 15 years. The building will be handed over to the user in August 2021.
The latest ExCEEding Borders: Industrial and Logistics Market report in CEE-17 discusses key trends, challenges, technologies, the labor market, and investment incentives in the sector. It identified key challenges, including the availability of land and real estate in locations that meet the expectations of both developers and end-users. Availability and reliability of public services, connection to transport infrastructure, availability and skills of the workforce, and access to investment incentives.
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