Uncertainty surrounding the permitting process is dampening demand for development land—developers are waiting for both investors and tenants
Five or more hectares, at least 20,000 square meters of buildable area, and a valid building permit. This is what the most common demand for development land in the Czech Republic looks like. However, according to the real estate consulting firm 108 REAL ESTATE, other requirements and conditions in this market segment have changed year-over-year. Developers are no longer buying land for future projects but are now almost exclusively tailoring their purchases to specific tenants or end owners. The traditionally most attractive locations around Prague, Brno, and Plzeň have been joined by regions associated with announced major investments—for example, the Cheb area, where Mercedes-Benz plans to build a large logistics center for spare parts. According to 108 REAL ESTATE, buyer interest is also focused on areas near newly constructed highway sections, particularly the D6 and D35.
