CBRE, the world leader in commercial real estate services, has released the Czech Republic property investment report for the 3rd quarter of 2016. Investor demand across all sectors continues. We expect that a volume of ongoing transactions in Q4 will exceed the total property investment volume in Q1 – Q3 2016.
- It is expected that Q4 will exceed the total investment volume in the first nine months of 2016
- In Q3, 88% of the total investment transactions were closed in Prague
- Czech investors accounted for 75% of the market share in Q3
The total investment volume in Q3 2016 amounted to €497m in 13 transactions and stood more than €40m above the 10Y Q3 average. The average transaction size reached €38m. In Q3 investment transactions in Prague dominated the market and accounted for 88% of the total investment volume, due to two €100+ million transactions - the sale of City Tower and sale of Galerie Harfa & Harfa Office Park. Local investors were very active with a 75% share of the market in Q3.
We see strong demand across all sectors and expect that Q4 will be strongest quarter ever.
Chris Sheils, Head of Investment Properties CBRE, commented:
“In Q1-Q3 2016, the total investment volume reached app. €1.46bn. There is an unprecedented volume of ongoing transactions and whilst we expect that some will eventually close in 2017, the outlook is that 2016 will be a record year in terms of investment volumes, with Q4 being the strongest quarter ever recorded.”
