According to the newest study by CB Richard Ellis after a record breaking year in 2007, both overall investment volume and the number of deals closed fell significantly in the Czech investment market in 2008.
Offices were once again the dominant property sector, accounting for 67% of total investment volume in 2008. Foreign purchasers accounted for 94% of total investment volume, with German investors being the most active.
Stuart Bloomfield - Head of Capital Markets adds: "A lack of buyers pushed yields further upwards in H2 2008 as negotiation strength moved onto the buyer side. Transactions took longer to close and discrepancies between price expectations of buyers and sellers made it difficult to conclude transactions with fewer bidders attending competitive tenders."
Investment volume and number of deals for Q4 2008 hit only 112 million in four transactions. CB Richard Ellis expects that despite a continuation of the global economic downturn and increasingly tough times ahead for the occupational markets transaction volume will pick up slowly throughout 2009 particularly towards the second half of the year.