CBRE 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.
The total investment volume in Q3 2016 amounted to €497 million in 13 transactions and stood more than €40 million above the ten-year Q3 average. The average transaction size reached €38 million. In Q3 investment transactions in Prague dominated the market and accounted for 88 percent 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 percent share of the market in Q3.
CBRE sees 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 around €1.46 billion. 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.”
There is a reasonable assumption that the total investment volume in 2016 will reach €3 billion, or even exceed this record high volume, coupled with continuing yield compression. The office sector should dominate the market this year with a 40 percent share of the 2016 investment volume.
Income-producing properties are becoming an increasingly appreciated option for Romanian or foreign private investors who have previously been mainly active in the residential sector and who are now targeting...