Přehled Českého Realitního Trhu Czech Real Estate Market Survey 2
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1 2018 MASARYK CENTER Zaha Hadid architects Přehled českého realitního trhu CZECH REAL ESTATE MARKET SURVEY 2 Generální partner ARTN AREMD General Partner Partneři ARTN AREMD Partners 1 The content of Trend Report 2017 is based on the expert discussion of AREMD members, their own analysis and prognosis of future developments, and should be considered a discussion material. We welcome your comments and reactions at [email protected]. Association for Real Estate Market Development thanks to all experts who contributed to the production of the publication: Archour Gabriel, ACHOUR & PARTNERS advokátní kancelář Bečička Jaromír, Invicta Law, advokátní kancelář Bloomfield Stuart, Knight Frank Drtina Tomáš, GfK Czech Fiala Vojtěch, ACHOUR & PARTNERS advokátní kancelář Frait Jan, Česká národní banka Hejlová Hana, Česká národní banka Hlaváček Michal, Česká národní banka Holub Emil, Clifford Chance Kaděrová Martina, ARTN Kavka Martin, KPMG Česká republika Klapalová Zdenka, Knight Frank Klas Přemysl, KPMG Česká republika Klečka Karel, Panattoni Klumplerová Petra, VŠE Kosman Kamil, KAAP Media Kostrounová Lenka, ČSOB Kozáková Daniela, Havel & Partners Lux Martin, Sociologický ústav AV ČR Mazáček David, VŠE Mocková Marie, ARTN Novák Pavel, Knight Frank Pácal Jiří, Central Europe Holding Polák Radek, Trigema Pražáková Renata, Knight Frank Sadil Jan, ČSOB Soural Marcel, Trigema Šindelářová Lenka, BNP Paribas Real Estate Czech Republic Toman Petr, KPMG Česká republika Višňovská Denisa, Lexxus Vlk Ondřej, Colliers International Wray Ryan, Knight Frank Žáček Adam, Invicta Law, advokátní kancelář Association for Real Estate Market Development would like to thank also to all above mentioned companies for their support and extraordinary dedication in preparation process of the report. 2 CONTENTS Introduction by the President of Association for Real Estate Market Development 4 About us 5 Members of Association for Real Estate Market Development 2018 6 AREMD survey: The prices of residential real estate are reaching their peaks and continue to grow 8 Macroeconomic development and real estate prices in the czech republic and abroad 22 Residential Market 34 The development of new flats 38 Are the prices of new apartments at their peak? 41 Who is the goal of the Social Housing Act? 45 Luxury real estate on the Czech market 50 Office Market 56 Retail Market 64 Industrial Space Market 72 3 Current Trends in Tourism with an Emphasis on hospitality 76 Phenomenon of the Collaborative Economy and of the GDPR in the Real Estate Sector 79 Investment Market 82 The rise of private investors 87 Legal Entity and Real Estate Financing 90 Alternative financing of real estate 93 The entry of Czech real estate funds 97 Financing residential real estate 100 Introduction to the “Law” chapter 108 Summary of legislative changes 109 Legal aspects of employing foreigners in construction 111 Taxes on real estate 116 List of Published Quotes and Photos 120 4 INTRODUCTION BY THE PRESIDENT OF AREMD DEAR READERS, ARTN MEMBERS AND SUPPORTERS, It is my pleasure to introduce the Trend Report 2018. This publicati- Due to a noticeable price increase and yield decrease, some experts on is a completely unique and comprehensive summary of the real are starting to talk about a possible drop in the market. They are con- estate market for the previous period. When looking into our archive, vinced that it has reached its peak. This is questionable, because the I have found that this report has been published since 2002, and Czech Republic is a safe and stable country, and from this point of a regular survey that is a unique and completely extraordinary insight view it has the potential for sustainable development in the future. into the Czech real estate market has been its part since 2005. We definitely consider the realization of large transactions in regions Experts from various areas evaluate the previous year and come and the increasing appetite of domestic investors to be positive. This up with their expectations of future trends in all areas – from re- is proof that they trust our market and see a future in it. sidential and office markets, retail, industry and logistics, tourism, law, taxes and investment to real estate and financing. We regularly I wish for all of us that the market and the participants in it do well. ask what can be expected in the individual sectors of the real estate Particularly, I wish for less bureaucratic issues and more successful market and related sectors of economy. We investigate what key projects and common successes. factors will significantly influence the real estate market. We analyse in what sectors of the real estate market the biggest increase in the It is not easy to publish Trend Report every year. It entails a lot of number of new projects can be expected. We examine the direction work for the team and the authors. Without our sponsors’ support, in which the attention of both Czech and foreign investors will turn. we wouldn’t be able to prepare it in this quality and extent. We also map the news and trends we shouldn’t forget about in the fields of finances, taxes or law. Let me thank all our partners for their interest in our work and for the provided support without which we wouldn’t be able to make it. And what is the main topic that is entwined in the chapters of this year’s Trend Report you are looking at right now? The answer is I wish you much energy and many successes in the coming years, easy – it is prosperity. The economy is doing well, and the real estate Zdenka KlapalovÁ, market has been experiencing a long-term prosperity, but this is only ARTN president one side of the coin. The other, darker, side is the lack of affordable housing especially in Prague, which was previously announced by experts. Further tightening of the conditions for mortgage provision is taking place, real estate prices are reaching their historic highs, and developers point to the long time limits of building proceedings, which cause the lack of new apartments in the market. This situation is similarly reflected in the office market. With regard to the record- -breaking unemployment rate, companies strive to attract and keep employees with the opportunity of working in a modern and inspira- tional work environment. In relation to very long approval processes, developers are not able to promptly and adequately respond to the current trends and the related demand, but it is positive that the representatives of the capital city of Prague continue a dialogue with ARTN, show active interest in the situation with regard to the development of the city, and understand the need for cooperation between the private and public sector. We really appreciate that. 5 ABOUT US The Association for Real Estate Market Development (AREMD) is a non- Besides the high attendance rates the answers of the participants are -profit organisation, which was established as a legal entity on 12 Septem- a positive incentive for us: in the questionnaire surveys, they especially ber 2001 after a year-long informal prelude. Its members include leading highlight the very high professional level of the meetings. The pre- representatives of developer and investment companies, real estate, legal paration and selection of topics are also evaluated positively, as well and advisory offices, banks and other organizations active on the real esta- as the professionalism of the addressed experts from the expert panel. te market, as well as prominent representatives and senior management of the public administration. The objective is to bring together also tea- MARKET RESEARCH chers and university students, who are interested in this area. AREMD performed a comprehensive research of the real estate market The member base of AREMD consists of 102 members in 2017 and in the Czech Republic again in coll boration with the research agency GfK apart from prominent personalities active in all the areas of the real Czech. Its primary pu pose is to obtain an objective and comprehensive view estate market, it recently also includes 14 corporations. Owing to of developments on the Czech real estate market including current this, the AREMD group is modern, unique and has professional com- trends. 71 active experts participated in the questionnaire survey this petences, which are unrivalled in the Czech Republic year with a significant representation of AREMD members among the respondents. The main goals of AREMD are formulated in 5 fundamental areas: • enhancing of the quality and transparency of the Czech real estate EXPERT PUBLICATIONS market • standardisation of procedures and processes on the Czech real es- Trend Report has been issued since 2002 as a regular professional stu- tate market dy on the situation of the real estate market in the Czech Republic. • an increase in awareness of both the professional and lay public in This year’s already tenth edition offers readers and those interested in the given field the Czech real estate market a view on current issues and analytics of • promotion of the Czech real estate market both at home and ab- various segments of the real estate market. The same as last year, the road texts of individual chapters are based not only on the experience and opi- • an increase in the quality of education and better education of the nions of the collective of authors, but they are also based on the results professional public in the field of AREMD’s own survey. The activities consist of those for AREMD’s members, especially the re- Since 2014, the study has been available to both the professional gular monthly discussion meetings on current topics of the real estate and the general public on-line on the website of AREMD. Last year’s market development and further of the activities focused on both the edition was downloaded by 260 unique users.