Published: January 17, 2011
Market increased by 30% in H2.
Investment in the Czech Republic’s property market grew by 30% during the second half of 2010 year-on-year, according to real estate adviser CB Richard Ellis (CBRE).
Some €420mn worth of transactions closed between July and December, with Czech investors accounting for 60%. This brought the total spend for the year to €646mn.
Major deals included the sales of Hotel Intercontinental for €108mn, the City West office project for €70mn and €48mn for the GY shopping centre.
Stuart Bloomfield, CBRE’s head of capital markets in the Czech Republic, said activity increased in the retail, industrial and hotel sectors during the year. Furthermore, there was a greater level of activity outside of Prague. “We expect these trends to continue through 2011 and to see a similarly increasing diversification of the investor base in terms of nationality.”
Czech prime yields for office and retail stand at 6.75%, a drop of 10 basis points on the first half of 2010.