CBRE predicts the highest property investment volume in Q4 2016
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.
The total investment volume in Q3 2016 amounted to EUR 497 mln in 13 transactions and stood more than forty million EUR above the 10Y Q3 average. The average transaction size reached EUR 38 mln. In Q3 investment transactions in Prague dominated the market and accounted for 88% of the total investment volume, due to two EUR 100+ mln 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.
In Q1-Q3 2016, the total investment volume reached app. EUR 1.46 bln. 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 EUR 3 bln, or even exceed this record high volume, coupled with continuing yield compression. The office sector should dominate the market this year with a 40% share of the 2016 investment volume.
CBRE Group, a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2016 revenue). The Company has approximately 75,000 employees and serves real estate investors and occupiers through approximately 450 offices worldwide (excluding affiliates). CBRE offers a broad range of integrated services including project management; property management; investment management; valuation; property leasing; strategic consulting and research and consulting. In the Czech Republic, CBRE has almost 350 employees and manages nearly 70 commercial premises with a total area nearly 1.2 mil. sq. m. Read more at www.cbre.cz.