US Internet giant Amazon has given up plans to build a distribution centre in a Brno industrial zone and is looking for other locality in Central and Eastern Europe, Amazon´s spokesman for the Czech Republic Karel Taschner has told the Czech News Agency. Amazon was promising investment of almost 3 billion crowns and creation of 1,500 jobs in Brno. Locals, however, expressed concern over increased road traffic which they consider to be beyond tenable already. The Amazon spokesman for the Czech Republic made clear that Amazon was still open to looking for further opportunities in the Czech Republic, given European market growth. One project is going ahead: the construction of Amazon´s distribution centre in Dobroviz near Prague, set to begin in the near future.
The CTP developer firm has renewed efforts to build an distribution centre for the online retailer Amazon, the news agency ČTK reported on Saturday. The firm has again applied for an environmental impact assessment of the project despite the fact that earlier this year, Amazon said it dropped the plans over opposition from Brno’s City Hall. However, councillors approved the project last month. Amazon is planning to invest around 2.7 billion crowns in the distribution centre that should create up to 2,000 new jobs; another such facility should be built in Dobrovíz outside Prague.
A Dutch based real estate group whose man assets are tens of thousands of flats in the eastern city of Ostrava and surroundings has cancelled its plans to launch on the Amsterdam stock exchange. Domus NV announced that its plans for an Initial Public Offering (IPO) on the exchange have been dropped due to market conditions but that they could be resurrected in the future. The company is partly owned by the BXR group, one of whose main shareholders is Czech billionaire Zdeněk Bakala.
After four years of decline, prices of Czech apartments rose slightly last year. According to figures recently released by the Czech Statistics Office, apartment prices rose on average by 0.5 percent nationwide in the second quarter of last year. In Prague, however, the increase was considerably higher. The statisticians believe this is a sign that the whole market is recovering – but the real estate sector remains highly sceptical, expecting prices to stagnate at best for years to come.
The buying prices of apartments rose by 0.5 percent year-on-year in the second quarter of last year, for the first time in four years, the Czech Statistics Office said on Wednesday. The increase was driven by apartment sales in Prague where their purchasing prices rose by 3 percent while prices in other Czech regions stagnated, the statistics office’s chief analyst, Drahomíra Dubská, told a news conference. Apartments’ asking prices also increased in the second half of last year, according to Ms Dubská.
Developers expect the growth of Prague’s residential market to continue this year, according to an analysis by the CEEC Research agency. The offer of new residential real estate in the capital is expected to increase by 7.4 percent in 2014 while demand should grow by 3.6 percent, the head of the research agency said. However, the consultancy KPMG said the survey reflects the developers’ optimistic expectations; while not unrealistic, the analysis reflects a situation when a combination of low interest rates and an expected general economic recovery create favourable conditions for residential development.
In Business News this week: CzechInvest claims annual doubling of mediated investments; developers see recovery in Prague new property market; economic crime, mostly committed by staff, on the rise; more foreign filmmakers seek Czech support; record player maker plans marked increase in production; bitcoin ATM launched in Prague.