CBRE: The volume of real estate investment in 2016 was the highest ever, exceeding CZK 100 billion
CBRE, the world leader in commercial real estate services, has released the results of commercial real estate investments for 2016. The investments include real estate projects across all sectors, especially in the office, industrial, retail and hospitality segments. The total investment volume in the real estate sector exceeded CZK 100 billion (EUR 3.7 billion).
The most notable transactions in 2016 were the sale of P3 Logistics Parks, the Park and Florentinum, with 67 transactions being mediated on the Czech market in total. The market was dominated by investments in office properties accounting for 43% of total transacitons, while industrial investment made up 28% and the retail sector constituted only 17% compared to 2015, when it dominated the market. The largest number of transactions in the office sector took place in Prague, at 97%.
Asian investors that are active in the CEE market tend to be focussed on larger transactions, such as dominant properties, portfolios or even by taking an ownership interest in a real estate operating platform itself, such as the recent acquisition of P3 Logistics Parks by GIC, the Singaporean Sovereign Wealth fund.
Investments by Asian investors in 2016 accounted for 36% of total investment, followed by investors from the Czech Republic (32%), with Germany coming in third (12%).
CBRE predicts continued downward pressure on prime yields in the investment sector; however, this decline will be slower than in previous years. Currently, we monitor more than 50 ongoing transactions on the market with a total investment volume of over EUR 3.3 billion, which could be closed by the end of 2017. We further predict that more than 50% of the total investment in 2017 will be regional.
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.