The end of the year was in a rush in the field of investment in commercial real estate and confirmed both the dominance of Prague and Czech investors
The volume of investment in commercial property in Prague approached 80% of all Czech transactions last year. Even though they reached a total volume of €1.2 billion. The end of the year was relatively hectic. For example German investment company Deka Immobilien sold the Lighthouse Towers administrative complex in Prague's Holešovice to Czech firm Star Capital Investments just a few days before the arrival of the new year. According to CBRE, the world leader in commercial real estate services, there were more than twenty running negotiations in the last calendar month that will be closed during this year. Transaction volume in commercial real estate in 2020 will reach in the Czech Republic €3 billion. And office buildings will be once again the most demanded.
The Czech economy will be marked by continued slowdown in 2020, with GDP growing by 2.0%. Despite the slowdown in growth, the unemployment rate should remain at a very low level, at around two percent. The average wage will rise by the lowest percentage in three years, 5.7%. Inflation is expected to be 2.5-3.0% during 2020. These are some of the conclusions of the 2020 analysis of the economic outlook compiled by Deloitte's economic team.
- 2019 was lackluster year for IPO activity with deals and proceeds down overall
- Technology sector dominates with 263 IPOs raising US$62.8b in 2019
- 2020 expected to see more robust IPO activity, particularly in the first half of the year
Geopolitical uncertainty and trade tensions heavily impacted the 2019 IPO landscape, pushing overall IPO activity down in terms of deals and proceeds. 2019 has registered 1,115 IPOs with proceeds of US$198b – a 19% fall in deal volume and a 4% decrease in proceeds compared with 2018. However, as US-China-EU trade tensions, concerns about economic growth and other geopolitical issues – including Brexit and social unrest in Hong Kong – subside, a healthy increase in IPO activity is expected in 2020, particularly in the first half of the year, as markets are expected to become more volatile leading up to the US Presidential elections.
- 69% of telco leaders say 5G and IoT will lead digital transformation drive
- Only 44% see network performance as a critical use case for AI and automation
- 67% believe talent is the biggest obstacle to analytics and AI deployment
Telco leaders are optimistic about the promise of digital transformation, but there is a lack of synergy in the application of emerging technologies at the network layer. That is according to a global EY report, Accelerating the intelligent enterprise, which includes analysis of 27 leading telcos about their digital transformation journey.
On December 9, the Amcham held a discussion on affordable housing, featuring Prague City Hall Council member and Deputy Mayor for Prague 7 (Praha Sobě) Lenka Burgerová, IPR SDM Section Director Jaromír Hainc, co-Executive Director of The John Marshall Law School Fair Housing Legal Support Center and Fair Housing Legal Clinic professor Michael Seng and Head of Housing Policy Department at the Ministry of Regional Development Marie Mohylová, Deputy Minister for Coordination of EU funds and international relations Section Daniela Grabmüllerová, PasserInvest Business Development Director Eduard Forejt, and Senior Associate at Squire Patton Boggs Lenka Nová.
We discussed how the public administration on both national and regional levels plans to deal with a lack of housing in Prague and rapidly growing prices.
Strategic Directions for Czech Economic Policy
- 1) Transition to High-Tech Manufacturing
- 2) The City Campus as Idea Factory
- 3) Government Programs That Drive Innovation
- 4) Government as a Competitive Advantage
In Policy Pipeline policy developments in the Czech Republic and abroad are monitored to bring better understanding of current topics and trends.