“The time shift between GDP development and rental activity is 12 to 24 months,” claims the recently published analysis of the Czech real estate market by the consultancy Colliers. Only when the economic decline hits the rock bottom can we start counting down the time of market decline for the individual segments of commercial properties. No one knows yet, however, if the domestic GDP is still declining or started going up in the third quarter.
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The relationships between property developers and builders are not always ideal – says Václav Matyáš, President of the Association of Building Entrepreneurs (SPS). However, he sees the future of relationships between construction firms and their major customers in the post-crisis period optimistically.
On the face of the real estate market, affected by the crisis, is beginning to emerge the first signs of relaxation. Apparent retreat of stiffness can be attributed to the first breath of revival, now only almost negligible, which does not mean certainty yet that the end of instability is in sight. Nevertheless, the number of developers who will not hesitate to go into large residential and multi-functional projects right now is constantly increasing. And neither staggering amounts of their investments, which amount to hundreds of millions (of course – EUR), will not discourage them.
Life in the natural environment with the city within reach is the goal determined by so many developers of projects that it is nothing original itself today. Certainly it is valid in the vicinity of Bratislava, where the idyll of „the paradise on the earth“ is defined by the convenient location and clean environment. How the Little Paradise – the big project being prepared in the village of Slovak Grob cadastre – should differ from other promised heavens whose undisguised ambition is to attract demand from the competition?
Long-term development of Petržalka will directly derive from the choice of the carrier transport system and its implementation deadline. On this finding agreed the self-administration representatives of the largest municipal district of Bratislava and representatives of developer companies at the discussion meeting Impulses to the development of the municipal district Bratislava – Petržalka which arranged the Internet magazine Stavebné fórum.sk and held in the building of Technopol the last day of September.
As usual, the 17th year of the Building of the Year contest was traditionally untraditional. Even though this year the organizers feared that the number of contestants would be affected by the current economic crisis, the change was not too big. 55 buildings were submitted. The construction sector seems to have a certain delay because in-progress projects simply have to be completed, plus there are many types of buildings that cannot be omitted. These 55 buildings were highly varied – from family houses to apartment houses, libraries and cultural centres to roads and tunnels.
The consequences of the global economic crisis, which hit head-on probably all construction segments, have logically affected the business of architects as well. It has had the biggest impact on studios that dealt with large industrial and residential projects. We talked about the current situation in architectural projects and demand for them with Ján Bahna, President of the Union of Slovak Architects and head of the architectural studio AA ateliér architektúry.
While pessimists remain immersed in gloomy musings inspired by the crisis, the number of optimistic announcements is slowly growing. As the Slovak Investment and Trade Development Agency (SARIO) confirmed, the interest of foreign investors in Slovakia is not declining, in spite of the economic crisis. The year-on-year comparison looks almost miraculous: while at the end of last August the Agency recorded 131 investment projects worth EUR 3.549 billion in total, this year the number of projects was 139 and their total value EUR 4.378 billion. A slight, yet very enjoyable increase.
Spišská Nová Ves – an important centre of central Spiš well-known by its parish church from the mid of 14th century with the highest church tower in Slovakia (87 m), baroque building in which is located the Gallery of Spiš, building of Reduta with the theatre, but also the unique Šošovkové Square (Lens Square) – one of the longest of this type in Europe. Currently this area is gradually integrating into the wider context of the municipal district Novoveská Huta in 6 km distance southwest of the town centre.
Residential development is shaken by a crisis; however, it is just, can purge the market and provide an opportunity to strengthen market positions to the strong and the prepared – this is how Dušan Kunovský, the founder and majority owner of Central Group, a dominant player on the Czech residential market after fifteen years of existence, evaluates the current situation.
The establishment of the Czech Green Building Council was officially announced today. The Council is a non-profit organization aimed at promoting sustainable construction – i.e. construction activities that are cost-effective and environmentally-friendly. The association is open to all enterprises and institutions in the field of property development and construction, including public administration, educational and research organizations as well as finance institutions.
Properties worth CZK 158 billion were sold on the Czech real estate market in 2008. According to a survey conducted by the domestic firm MindBridge Consulting, commissioned by the Czech branch of the real estate franchise chain RE/MAX, this represents a total of 93,000 transactions with the average value of CZK 1.7 million.
Perhaps like that would be easy to paraphrase an early – based on „the magic“ date tomorrow on September 09, 2009 – the opening of business mega complex on the former Mills site at Nitra. Although the beginnings were certainly not easy and simple (presence of problems with the actual demolition of the original buildings in the area), everything turned well, so Mills, a. s. – the investor and developer in one legal entity – is slowly preparing a grand opening party, for which invited people from Nitra and from not small Nitra region.
During the past weekend summit in London financial leaders of the G20 identified too much acceptance of risk and inadequate remuneration of officials of banks benefiting from the state aid as the main cause of the financial crisis. There was even calling for reform of the banking system and harder sanctions against the so-called tax heavens. Is it possible to challenge this argument or is the sector called „state within a state“ living, among others, from the accumulation of money, the real culprit?
The market will show a visible increase at the end of this year, no later than in the first quarter of the next year – says Kamil Kosman, the Director of the section of real estates funding and mortgages of Česká spořitelna. The crisis – however – even after its end – will bring some changes into the practice and life of banking houses, as well as developing companies.