Construction of 7 million m² of industrial space is planned in the Czech Republic, brownfields will not be avoided

At the same time, the number of projects created by regenerating brownfields or converting older properties and sites is increasing. Given the decline in development land and the regulation of greenfield development, this trend will continue and intensify. According to the CzechInvest agency, there are over 4,300 brownfield sites in the Czech Republic covering an area of 132 km2.

"The Ústí and Karlovy Vary regions are connected by the chance to draw significant funds for the regeneration of brownfields, while at the same time a great economic recovery of these regions is expected. The South Bohemian Region will be helped by the completion of the motorway network, especially the new sections of the D4 and the connection with Austria,"

says Director of 108 Agency Jakub Holec.

According to the company, the volume of modern industrial space in the Czech Republic will exceed 12 million sqm this year. In response to the previous two very strong years characterised by a consistent growth in tenant demand, over 1,000,000 sqm of new construction will be completed this year. In terms of absolute numbers, new development is most relevant to the Central Bohemia region, which also dominates current demand.

According to CzechInvest, the availability of development land or areas for redevelopment coincides with the potential for economic growth and the objectives of public support. The fact that over 50% of brownfield sites have an industrial or agricultural history (1,289 industry, 1,242 agriculture) shows that they are most densely present in the Ústí nad Labem, Moravian-Silesian and Liberec regions. In the first two, heavy industry is gradually being phased out. The Karlovy Vary Region is close behind with its stock of these potential development areas. For example, in the Sokolov district, brownfields have the largest average area of 24.31 hectares.

"No longer functional premises can be used again for industrial production or processing of raw materials. The Pilsen region and other regions will eventually have an opportunity with the potential implementation of a so-called gigafactory in Líně.The Ústí nad Labem region may create a base for other suppliers and processors connected to the contemplated start of lithium mining in Cínovec and its subsequent processing in the electric vehicle industry,"

believes Matěj Indra of 108 Agency, according to whom production will continue to slightly outweigh logistics in demand.

EU financial resources should help the renewal of brownfields, which are more than 60% owned by private owners and in a quarter of cases are publicly owned, in the Moravian-Silesian, Ústí nad Karlovy Vary regions.Very often the excellent location of unused buildings or sites is neutralised by environmental or other pressures. This is also why the CzechInvest data shows that developers and investors are cautious, focusing mainly on smaller projects with an investment volume of up to CZK 60 million.

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