On June 1, AmCham Real Estate Council held an intel session on industrial development with Pavel Sovička of Panattoni Czech Republic and Slovakia.
Prague, Brno and Pilsen struggle with limited supply of land for industrial development, while there is huge potential for growth in the market. Generally, in the Czech Republic, the use for production exceeds the use for logistics, customers want to invest and expand, but they hit the wall of plot supply, as the country, unlike its neighbors, does not offer new development sites.
The permitting process reflects the lack of motivation of the authorities, as the taxes collected locally are routed elsewhere and the case of Germany shows that it is possible to charge different tax rates to industrial and retail development. Also, taxes collected by municipalities remain primarily in their budgets. It is crucial that the municipalities in the Czech Republic feel the potential and the benefits of industrial development in their respective areas.
Investment is crucial for the country's future. "Unless the salaries and the economic output of the country rise, it is difficult to generate more tax per capita", Pavel pointed out.
We discussed possible government policy steps, the economic benefits of industrial development for municipalities, energy efficiency solutions for producers amid the general price rise, and much more.