Is Czech Republic next on investors agenda?
• With economic performance being perceived as the main driver of future investments, focus has shifted more towards Germany and CEE countries, especially those linked to the German economy. As a result investment volumes in the CR should increase.
• The real estate investment market in the Czech Republic has been through the ups and downs and has now reached long-term average levels for most market indicators. The question now is: will capital values increase and what will be the drivers? Furthermore will cross-border investors’ interest fall upon the CR in the same way currently experienced by PL? • Compression of prime yields in the CR has been slower than in the EU-15 and PL and prime yields are still close to their cyclical peak. Furthermore occupier markets are resuming their activity and are expected to strengthen further.
• Development of yields, capital values and investment volumes bring positive prospects and the Czech Republic once again stands out as an attractive opportunity. In this report we try to examine where we are heading in the near future.