The volume of foreign investment in Slovak real estate has increased significantly in recent years, and new investors continue to enter the market. The dynamic growth of the Slovak economy is reflected in the boom in real estate projects, which are mostly located in the capital city, Bratislava but increasingly in other regions as well. In spite of the recent extensive development, Bratislava still has potential for further growth. The central and eastern regions of Slovakia have also been undergoing much development, particularly in logistic centres and industrial parks, but they are still some distance behind western Slovakia.
There will be around 480,000 m2 of class A office space in Bratislava by the end of 2006, with further growth expected in 2007. Mixed use complexes are increasingly being developed here, which include retail, residential and office space. Retail space in shopping malls continues to grow, with demand for units being high. However, yields on Slovak real estate investments have fallen in recent years and are now similar to those in Western Europe and other major cities in Eastern Europe.
Industry issues
- Expansion of the market will continue in the short to medium term
- Producers are moving eastward in search of a stable supply of inexpensive labour, thus fuelling demand for industrial parks
- New phases and extensions are being added to existing logistics parks and shopping malls
- International Financial Reporting Standards (IFRS) are now compulsory for some companies
- Careful planning can optimize the tax position for real estate projects
- Cost control and strong project management are essential to maximise potential returns on real estate development activities
Services and solutions
Industry-specific services
We can assist with:
- Buy side due diligence (pre- and post-acquisition)
- Sell side due diligence
- Acquisition structuring
- Post-acquisition restructuring (mergers / demergers, etc) to give a tax efficient structure
- Advice on real estate investments in Slovakia
- Exit strategy - optimizing the commercial and tax position
- Advice on financing
- Inward investment advice including establishing Slovak companies
- Market analysis
- Cash flow management advice
- Financial and tax forecasting
- Dispute resolution
- Review of investment prospectuses from a tax and legal perspective
- Audit services
General services
- Audit and Assurance Audit, accounting advice, application of IFRS
- Tax Corporate tax, structuring of mergers and acquisitions, transfer pricing, investment incentives, VAT, customs, excise, personal tax and social security, visas and work permits, payroll, etc.
- Human Resource Services Strategic HR management, HR audit, job evaluation, reward consulting, performance management
- Transactions Mergers and acquisitions, corporate finance, including debt and equity raising and structuring, tax planning, due diligence, business valuation, international structuring
- Performance Improvement Risk management, internal audit, finance function effectiveness, IT value management, sustainability, operational effectiveness, project management
- Investigations and Forensic Services Fraud investigation and prevention, dispute resolution
- Business Recovery Services Corporate restructuring, business regeneration, receivables management, liquidation, bankruptcy
PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 130,000 people in 148 countries work collaboratively using connected thinking to develop fresh perspectives and practical advice.
“PricewaterhouseCoopers” refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.
|
|
