Transformation of Czech motorway network to boost regional development and industrial growth

The Czech Republic is preparing for a major transformation of its motorway network, a strategic move that will have far-reaching effects on the country’s industrial and logistics sectors. According to a report from Colliers, the second half of this decade will see a significant wave of motorway expansion, improving connections to key European transport corridors (TEN-T) and positioning the Czech Republic as a vital logistics hub in Central Europe.

This expansion is not just about improving national mobility; it is a critical step toward strengthening the country’s role in cross-border trade. New transport links to Germany, Poland, Austria, and Slovakia will enable more efficient goods transportation and fuel demand for new storage and distribution centers along these corridors. “The evolving transport network will attract tenant investors seeking prime locations with excellent access to other Central European markets,” said Josefina Kurfürstová, Senior Analyst at Colliers.

The motorway expansion is already underway, with more than 100 kilometers of new motorway sections expected to open by the end of 2024. This momentum is set to continue, with an average of 60 kilometers of new sections planned for each year over the next six years. While long-term projects may face potential delays due to permitting and construction challenges, the ambitious target of adding over 450 kilometers of new motorways by 2030 marks a historic expansion of the country’s transport infrastructure.

As the motorway network grows, so will the demand for industrial real estate. The Czech Republic currently has over 12 million square meters of industrial space under construction, with a vacancy rate hovering around 3%. Key industrial hubs such as Prague, Brno, Pilsen, and Ostrava are expected to maintain strong demand, but the expansion will also open opportunities in emerging locations. “New hubs like Olomouc–Přerov and Jihlava are likely to see increased demand for industrial space and higher rental rates as they gain better motorway access,” Kurfürstová added.

Improved infrastructure will make secondary and developing hubs more attractive to both investors and tenants. Locations like České Budějovice, Vysoké Mýto, and Litomyšl could emerge as new logistics and industrial centers, benefiting from better connectivity to national and international transport networks. Developers are expected to capitalize on these new opportunities, particularly as rental prices in these areas remain competitive compared to primary hubs like Prague, where rents range from €7 to €7.50 per square meter.

Several key projects are already in the pipeline, including the completion of the northern link between Prague and Ostrava (D11+D35+D1), which will relieve congestion on the existing D1 motorway. Other major routes will connect the Czech Republic more efficiently with Austria via the D3 motorway and with Poland via the D11, enhancing cross-border trade routes.

By 2025, plans to complete up to 118 kilometers of new motorways will bring substantial benefits to regional border towns, including Chomutov (D7) and Karlovy Vary (D6), which are set to become more accessible.

With the Czech motorway network poised for a historic expansion, the country stands on the brink of a major boost in industrial and logistics activity. As new transport corridors open, the Czech Republic will consolidate its position as a strategic hub for industry and logistics in Central Europe. “Investors, developers, and tenants should closely monitor the development of the motorway network over the next decade to capitalize on the new opportunities it will bring,” Kurfürstová emphasized. The expansion is not only a matter of infrastructure but a catalyst for regional development and economic growth across the country.