Central European industrial market grew by 30 per cent
27 Feb, 2009, Warsaw
• Poland was the primary driver in 2008
• Hungarian market expanded by more than 100 percent
• Czech market dropped by one third
The total Central European industrial stock reached 10,5 mil sqm last year. The figures grew by 2.5 million square metres (a 31 per cent increase) between January and December 2008.
Most of the new industrial space was built in Poland (1,283,000 sq m), 17 per cent more than new construction in 2007. Hungary also performed very well with 253,981 sq m newly built, which means a 106 per cent increase in construction compared with 2007. Slovakia retained the level of supply at over 275,000 sq m. Following a number of record-breaking years, the Czech Republic slowed down by 30 per cent with 646,211 sq m newly constructed last year.
“Given its size, the Polish market is still unsaturated and can in medium term absorb a large quantity of new space. The Hungarian market tended to stagnate in the previous years and it made up for the previous uninspiring results last year. Slovakia has upheld its construction thanks to the inflow of foreign investments and logistic shifts. However, we don’t expect the Central European countries to break the previous years’ records,” says Ferdinand Hlobil, head of the CEE industrial team at Cushman & Wakefield.
“The Czech market started to slow down in the first half of 2008 mainly as a result of the
reduced inflow of foreign investments, with the global crisis added on top of that in the
second half of the year. Yet the construction exceeded the results of 2006 when more than half
a million square metres of modern industrial space were built in this country. For this year,
we expect a further decrease, as many projects have been cancelled or put on hold until later,”
Ferdinand Hlobil says.