INVESTMENT ACTIVITY IN CZECH REPUBLIC IN 2010 UP 30% COMPARED TO 2009
According to the latest report by CB Richard Ellis, total investment turnover in the Czech real estate investment market reached €417 million in H2 2010 and €646 million in 2010 as a whole.
Stuart Bloomfield, Head of Capital Markets Czech Republic comments: „There were several encouraging signs in the second half of 2010. Investment volume continued to increase overall showing a healthy year-on-year increase of 30%. There was increased activity in the retail, industrial and latterly hotels sectors as well as increased activity outside of Prague. We expect these trends to continue through 2011 and expect to see a similarly increasing diversification of the investor base in terms of nationality.”
As expected, local investors were the most active in H2 2010 being responsible for ca. 60% of total investment turnover.
Major transactions in H2 2010 were sales of Hotel Intercontinental (108 mil Euro), office project City West – buildings B2&B3 - Siemens HQ (70 mil Euro) and shopping centre IGY (48 mil Euro).
Czech prime yields for office and retail now stand at 6.75% (a drop of 10 b.p. compared to H1 2010). Yields have compressed for the second time in 2010 after a long period of stagnation from Q1 2009 to Q1 2010.