25 YEARS AFTER

VELVET REVOLUTION

HOW ARE YOU

SLOVAKIA?

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REAL ESTATE TIMELINE

Start of production
Sony Slovakia in
Trnava

2002
Samsung Electronics
Slovakia - start of
production of CDT
(Cathode Display
Tube) monitors.

2004
Entry of Parkridge

2006
Opening of
production facility

(Senec) Kia

PSA Peugeot
Citron Slovakia in

Motors Slovakia

Trnava

1997
First modern
business center in
Slovakia BBC1

IBM

Tatra Banka

Entry of

AT&T

(7,408 m2)

Entry of Hewlett-

First landmark
building in Bratislava
VUB Tower
1992
The first IKEA
store in Slovakia,
Bratislava
Tomikov Street
(2,000 m2)

1995
The first McDonald
in Slovakia, Bansk
Bystrica

1996

Entry of Tesco
(Tesco bought 7
department stores
Currently 16 stores in from K-Mart)
6 cities.

1999
First Hypermarket
Tesco (Nitra)

2000
First traditional
shopping center
in Slovakia Polus City Center
Bratislava

2002
First regional traditional
shopping scheme,
Optima in Koice
(36,000 m2)

(40,000 m2)

Opening of the 1st phase

of the biggest shopping
center in Slovakia AVION Shopping Park
(today 103,000 m2)

Entry of

K-Mart

286

1989
On November 16, 1989, Slovak high
school and university students
organized a peaceful demonstration in
the center of Bratislava. The next day
riot police suppressed a big student
demonstration in Prague. That event
sparked a series of demonstrations.
On November 27, the entire top
leadership of the Communist Party,
including General Secretary Milo
Jake, resigned. TheSoviet era
endedand Czechoslovakia became a
democratic state.

CZECH AND SLOVAK

FEDERAL REPUBLIC

TOTAL NUMBER OF HIGHWAY (KM)

1991

INTERNET
CONNECTION

1992

1992
Elections in 1992 indirectly
decided about theseparation of
the Czechoslovak Federation. In
July 1992 Slovak National Council
adopted a declaration on the
sovereignity of the Slovak Republic
and in September they approved
the Constitution of the Slovak
Republic.

Controls to Bratislava

ST

1993

1994

1995

2009
Total supply of
traditional retail
space in Bratislava
exceeds 300
thousand m2

2014
Total supply of retail space
in Slovakia exceeds

1.5 million m2

2.2

MILLION AIRPORT
PASSENGERS

1997

1998

1999

2000

2001

2002

2003
2003
EU Membership
Referendum
92.46%
voted YES

2000
Slovakia became member
of OECD, again was
included in the list of
candidates for membership
in NATO and European
Union.

2004

2005

2006

2007

2008

2009

198

296

2010

2011

2012

2013

2014

30.126 SK
2004 (March 29)
Slovakia became member
of NATO
2004 (May 1)
Slovakia and other 9
countries became the
members of EU

NATO

NATO

Car production in
Slovakia/year

MILLION AIRPORT
PASSENGERS

IIHF World
Championship

1998
Theeconomical reformsmade
progress, decentralization of the
state administration, privatization
of banks, insurance companies,
telecommunications, large
companies. The flow of foreign
capital in the country increased.
The Government was successful
also in breaking through the
isolation of the country

SLOVAK REPUBLIC

1.4

mail server

1996

1.3 million m2

2014
1.5 million m2 - total office stock
in Bratislava.
130 thousand m2 under
construction.

2012
First greenoffice
building BBC1 Plus in
Bratislava
(14,568 m2)

ST pobox.sk

WEB PAGE

2010
Record level of office
Take-up in Bratislava
(153,500 m2)

Apollo BC II + ABC I
the largest business
complex in Central
Europe (81,540 m2)

2007
H&M enters Slovak
market, first shop in
Avion Shopping Park
Bratislava (currently
14 shops)

First e-shop in
Slovakia - Alza

2009
The lowest office
Take-up in Bratislava
(63,550 m2)

575,776

1990

1 million m2

2008
First regional BC
Europa (Bansk
Bystrica)

2014
Total supply of modern industrial
space in Slovakia market exceeds

295,391

1989

2007
Total office stock in
Bratislava exceeds

Entry of Johnson

2004

1 million m2

Entry of VGP

THOUSAND AIRPORT
PASSENGERS

ST

MOBILE
PHONE
OPERATOR

Lenovo

Panattoni

2013
Point Park Properties
announces
acquisition by
TPG and Ivanho
Cambridge

2011
Prologis develops
the largest
industrial facility
in Slovakia to
date:Prologis
Park Galanta-G
(94,000 m2)

925,000

2006
Highrise towers in
Bratislava - Tower
115 and CBC I

2005
Entry of

Entry of Dell

Packard

1997
First retail park
Soravia

2002
The tallest office
building in Bratislava
National Bank of
Slovakia (111.6 m)

281,347

1989
Local department
stores PRIOR

2001
Eurotel (Slovak
Telekom) moving to
the Millenium Tower

Goodman

2010
Total supply of
modern industrial
space in Slovakia
exceeds

328

391

Entry of

2000
First integrated office
building to the SC
- Millenium Tower
(Polus Tower)

1999

(acquisition of
Parkridge portfolio)

2009
Entry of

980,000

1993

Entry of Prologis

2008
Entry of

639,763

1990
First private bank
in Slovakia

182,003

OFFICE
SECTOR

1989
Formation
of the office
market (office
space to rent
e.g. Technopol,
Incheba in
Bratislava)

2007

1,000,000

2001
Completion of AIG
Lincoln in Lozorno
first A-class
industrial park
(Automotive suplier
park)

461,340

INDUSTRIAL
SECTOR

1996

Entry of Pinnacle (P3)

RETAIL
SECTOR

REAL ESTATE TIMELINE

1992
Start of
production Volkswagen
Slovakia in
Bratislava

1989
Local
warehouses
and owner
occupied
schemes.

TOTAL NUMBER HIGHWAYS (KM)

420

Source: Colliers International, Slovak Statistical Office, Sario, Airport Bratislava

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Damian Harrington
REGIONAL DIRECTOR
RESEARCH AND
CONSULTING
EASTERN EUROPE
Colliers International

In 2004 I left the UK to work and travel across EMEA. After four years I was lured
into focusing on the CEE markets which have changed enormously in this time. I
remember backpacking around these parts in the late 90s and once you stepped off
the beaten track, there was a sudden drop-off in the quality of space, environment and
infrastructure. As of today there is a huge difference, visible in improvements to the
built environment and the quality of life available in the cities we live and work across
the region. So how did we get here? Roll on EU Accession and the CEE markets began
to transition through separate, yet blurred, growth phases.
Between 2002-2006 the markets underwent a restructure with inward investment
agencies helping to manage the vast growth opportunities in situ. Economies went
into rapid expansion mode, resulting in a substantial demand increase for high-quality
commercial real estate (CRE) from occupiers and investors. Investment activity had
begun to trickle through, but from 2002-2006 it doubled almost every year.
Then we hit the diversification stage of 2006-2009, as economies in the region
continued to expand with activity rippling out from the capital cities into larger regional
cities. The EU expanded further as Romania and Bulgaria came on board in 2007.
This was swiftly followed by large-scale commercial development and a take-up boom,
which helped to drive a surge in CRE investment during the peak years of 2006-2008.
Then came the global financial crisis, which arrived late in the region in 2009. All
markets were hit hard, bar Poland, which managed to weather the storm as EU
structural fund receipts, continued corporate investment and expansion and a bit of
good luck helped drive the national economy through the tough times. As of 2014, the
region is now back on its feet with positive economic and business sentiment driving
activity forward in the current investment cycle
Whilst we have seen a lot of change in the last 10 years, the next 10 years will
continue to see much change, but it will be different. Generational change, workspace
planning, e-commerce and outsourcing will significantly impact the way we live,
work and play. It will continue to be an exciting and interesting region to work in, and I
look forward to remaining a part of this change.

John Verpeleti
CHAIRMAN OF THE
MANAGEMENT BOARD
EASTERN EUROPE
Colliers International

As an Australian, I was not in the region for the Fall of the Wall, but have had the
pleasure of living and working in Central and Eastern Europe since January 1991. The
extent of change over that period, at multiple levels, has been both fascinating and
astounding, yet, quite often, we need reminders of how significant the transformations
have been.
Even at the geographic level there are indicators that things are not as they once were
- for instance, Hungary now has borders with 5 countries which didnt exist when I
arrived. It is always a challenge for me to explain this to my Australian friends.
Few people spoke English when I arrived, yet today it is certainly the dominant
business language. In the early days, with high levels of German and Austrian interest
in the new economies, some felt that German would become the lingua franca.
There were few motorways and often exceedingly long border waits travelling
from one country to another. There was a nascent property industry, with virtually
no trading, and, by extension, virtually no property professionals. How different
things are these days as the economies and physical landscapes have all changed,
very much for the better, as the region took to developing and changing its ways of
interacting with the rest of the world.
Approximately 10 years ago, eight of our countries entered the European Union,
in different months, and a further two entered in 2007. And to show that we are
still transitioning today, one more country entered last year and still more remain
in negotiations to enter. Many of the countries of our region are also part of the
Schengen arrangements which facilitate easier, borderless travel. And a small number,
including Slovakia, have also moved into adopting the Euro, a common currency, as
their domestic one. Although the change process remains incomplete, we have clearly
experienced many and significant advances.
At the property level, it holds true that there were virtually no modern office buildings
at the beginning of the nineties (and Warsaw really only delivered in the late nineties),
modern shopping centres only emerged after the mid-nineties, and there were no
investment sales until the late nineties - those, depending on the country, at doubledigit, or near double-digit, yields.
Property markets at the outset even struggled to benchmark rental levels before the
Deutschmark and the U.S. dollar came to be used as formal reference points, although
hard currency benchmarking was prohibited for a while in some jurisdictions.
In the early days of the investment market and into the early 2000s, there was
minimal differentiation in yields in the different countries as CEE was still viewed as a
single market by many. That has all changed, of course, and in most markets of the
region today, the Euro dominates as the benchmark and one of our markets has even
moved to being considered core by many global, institutional investors.
Much has changed at a rapid pace throughout Central and Eastern Europe and we are
all now benefitting from the transitions which have taken place and we are living in an
environment and conditions which would have been considered unimaginable a little
more than a generation ago.
I wish Slovakia all the very best in commemorating 25 year anniversary of Velvet
Revolution. Colliers International is pleased to have been operating in the country since
2003 and to have played a role in business and in the development of the property
market in the country. We look forward to continuing and expanding our relationships
in the exciting times still to come.

Ermanno Boeris
MANAGING PARTNER
SLOVAKIA
Colliers International

I came to Slovakia during my university studies as part of an internship for an Italian

company that moved its production here. So I can only assess the development of
Slovakia starting from 1.3.1999. Before I came to Slovakia, I knew very little about the
place. Now I have been living here for fifteen years and I feel at home.
When the real estate boom started, I was working in the energy sector. When the real
estate bubble burst, I started at Colliers.
After all these years, I can say that the added value of Slovakia is the desire of people
to work hard, to better themselves and develop their skills. This is important, as those
with updated skills and training are in a better position to choose. The people we
hired in the 90s for the Italian company I worked for at the time had undergone highquality training and were able to adapt to changes.
Nowadays, local voices are not just advisory ones across the many international
companies with branches in Slovakia; they have the power to make decisions at an
international level. Thanks to those who wanted to progress further, Slovakia can also
boast of many internationally known success stories. Let us mention ESET, Sygic
and, currently, the flying car!
Progress has not been completely smooth sailing. Since the Slovak economy is quite
small on a European scale, it is prone to the ups and downs of its larger trading
partners. I experienced first-hand the industrial growth stimulated by the tax reform
of 2004, but I saw the economy decline almost as fast as it had grown during the
global financial crisis.
After joining the European Union, the borders opened and the bureaucracy decreased.
For illustration, in logistical terms, we saved one day delivering goods from Italy to
Slovakia thanks to the open borders. Bratislava was again a bit closer to Vienna, also
thanks to it being a low-cost alternative to the Schwechat airport.
During the boom, an unsustainable euphoria that lacked logic seized the market. It
eventually became one of the causes that triggered the crisis. We are going to feel the
consequences of the massive purchases of irrationally expensive land for another 10
to 15 years. The crisis also confirmed that a strong euro may not be good for exportoriented countries. In 2009, when the exchange rate changed, I claimed that it was
good for the Slovaks, but, from the long-term perspective, it would not be good for
Slovakia. And the crisis confirmed that.
A positive impulse for the Slovak industry and economy came in 2011. The production
of small city cars started at the Volkswagen plant and swiftly increased 100% to
420,000 vehicles in a year as the company hired 1,800 new employees. This was
proof that it takes a relatively small amount of investment for the Slovak economy to
start moving. But there is also danger in that.
In the real estate area, a number of investors started to be active between 2006
and 2007, but only three remain after the crisis: Heitman, Immofinanz, and ERSTE
Immobilien. On the other hand, a strong trio of Slovak investors are successfully
exporting their wealth into a number of countries.
A normal market has been working in Slovakia for as long as four years now.
The development curve, after much turbulence, has been increasingly stable.
Unfortunately, Slovakia is still not in the leading position in terms of investments
within the V4 region. But it has a strong potential in terms of quality. Leading
companies make high-end products here and that means that they trust this country
and its people.

Colliers International | Slovakia

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