The Hradec Králové region is a centre of industry not only due to its history. There is also a high level of education attained linked to its universities and the infrastructure that is essential for investors in the region is slowly improving.
Opening another section of the Prague – Hradec Králové highway became a debated event this summer. And it is precisely this fact that plays an important role in the field of industrial construction in the Hradec Králové region. Improving and expanding infrastructure can help the region and increase its attractiveness to investors.
Focused on infrastructure
“The Hradec Králové region has great potential. Hradec Králové is a university city and it is in its interest to attract foreign investors that would develop projects here primarily in the field of research and development,” said Jarmila Bartonová, a CBRE Consultant, when explaining the situation in the region.
In terms of infrastructure, it is not only a question of extending and expanding the motorway and creating a better connection to Poland at least, but also developing a by-pass around Hradec Králové, which Jarmila Bartonová considers to be the most important factor.
For instance, interest in the region is also demonstrated by the open distribution centre of the Albert chain opened in June in the Industrial Zone of Březhrad near Hradec Králové. As the chain stated in a press release, its warehouses cover an area of 21,000 sq. m. According to the Mayor of Hradec Králové, Zdeněk Finka, the premises meet all the necessary criteria – it is connected to the highway, it is close to two cities with 100,00 thousand inhabitants each and is accessible to employees via public transport and even on bicycle.
Planning should involve locals
According to Jarmila Bartonová, the region would also benefit from better planning in the sense that it should clearly separate land suitable for industrial construction. There is no doubt that interesting land for this purpose is available. Furthermore, improving industrial construction could be improved so that people do not perceive it negatively, which is still occurring.
“People need to keep an open mind on industrial real estate, which is changing and is often very sophisticated these days and deliberately choose land that will not infringe on residential construction. Infrastructure is also important,” added Jarmila Bartonová.
“I think it’s important to engage in a debate among investors, authorities and the local community so that industrial construction starts to be perceived more positively. Industry is evolving and the appearance and functionality of using real estate is becoming more and more sophisticated. It’s also important to carefully plan the location of industrial parks within a land-use plan that will ensure that buildings aren’t located near residential buildings and are well connected to infrastructure,” noted Jarmila Bartonová.
The workforce is there but it depends on the conditions
According to the Czech Statistical Office (CZSO), there are people available who could work on new projects in the region, although the unemployment rate was just 2.87% at the end of July. However, it depends on who the prospective investor is looking for, what requirements they have regarding the qualifications of the workforce and what they offer.
“I think there are good employees in the region, but investors can’t count on cheap labour,” added Jarmila Bartonová, where the average gross wage in the first quarter of this year was CZK 25,268 according to the CZSO, helped by healthy competition in the valuation of employees, the facilities provided by the companies and the overall working conditions offered.
A new life for brownfields and older spaces
In addition, the region records its production and industrial history, which left behind a legacy of brownfields and older, now unused production facilities, the reuse of which appeal to investors today and attract the interest of developers.
“There are halls that offer up to 30,000 sq. m. of space,” said Jarmila Bartonová when pointing out that new investors offer leases to the owners of older production facilities and are interested in revitalising and rebuilding them into more modern units.