Czech Investment Market Q1 2018 - overview
According to our latest report on the state of the investment market, it is expected that the positive investment climate should last also this year. We provide a brief overview of the Czech real estate investment market for the past period Q1 2018.
Investment market in the Czech Republic in the first quarter of 2018 was quiet when compared to the first quarter of 2017. Volume of sales in 2018 Q1 reached ca. €397 million. Commercial real estate investment recorded in 2018 Q1 represented 12 % of the total transaction volume noted in 2017. The highest office deal volume was registered in Prague 1 thanks to the most important office transaction of 2018 Q1 4 concluded between Amundi Asset Management and Curzon Capital Partners III, the property Prague City Centre was acquired for more than €60 million. There were also registered several significant property disposals in the retail sector. In 2018 Q1, hotel and industrial sectors were active too. The 2017 year witnessed high levels of commercial property investment in the Czech Republic (over €3.25 billion); it is expected that the positive investment climate should last also this year.
Prague office market - overview
What changes has the past period brought to the market? How has been the stock and supply, gross take - up, and projects under construction developed?
Here is a brief overview of the office market figures for the first quarter of 2018.
Around 38,200 qm of new office space was brought onto the Prague‘s commercial property market for the past period.Compared to the first quarter of 2017, 2018 Q1outcome suggests better start of the year in terms of new supply.
Among the newly completed projects of the first quarter can be included Visionary located in Prague 7 or City West A1, which is located in Prague 5.
In 2018 Q1 a number of new office schemes initiated construction. Among the newly started projects were Rustonka R4 in P8 or Kvetinovy dum – VN 47 in P1.
Prague’s office gross take-up was less resilient in the first quarter of 2018 contracting by 52 % q-o-q. When compared to the 2017 Q1 gross take-up declined by 4 %. Total gross demand in Prague totaled approximately 81,000 m2 in 2018 Q1
Prime rental levels stood between 20.00 - 21.00 € /m2/ month in the Central Business District (CBD) at the end of March. Apart from the capital’s CBD we lately witnessed upward trend for prime rents also in other districts of Prague.
Prague‘s office vacancy remained low in the first quarter of 2018. Vacancy rate experienced a drop of 110 basis points standing at only 6.4 % in 2018 Q1.
More detailed data in our office report in Market Research section.
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Prague residential market - overview
Real Estate and Consulting Company Professionals s.r.o. informs about the state of the Prague residential market in 2017.
In line with long-term declining trend in number of issued building permits in Prague, the 2017 year saw again a fall to only 4 848 when compared to the previous year representing a drop of 6 % y-o-y.
With regard to the building permits issued for construction of new residential buildings, the Czech Statistical Office registered a y-o-y increase of more than 13 % standing at 487. (Source: CZSO)
A slight increase y-o-y was recorded in number of newly started apartment constructions. According to the information published by the CZSO, the index of asking prices of apartments located in Prague, in the Czech Republic and in the Czech Republic without Prague were further increasing throughout the year 2017.(Source: CZSO)
Czech Investment Market 2017 - overview
Real Estate and Consulting Company Professionals s.r.o. informs about the state of the Czech Investment market in 2017.
In 2017, the Czech Republic saw a 12 % fall of investment volume when compared to €3.7 billion registered in the previous year and experienced the second 2017 Q4 investment amount represented 22 % of all 2017 transactions strongest investment performance ever recorded. Throughout 2017 the investors acquired Czech commercial properties for more than €3.25 billion.
Retail market was the most active sector in 2017 followed by office and industrial segments.
Acquisition of industrial portfolio situated in Pilsen region was one of the most significant deals closed in the last quarter of 2017. Notable retail transaction of 2017 was undoubtedly the sale of Olympia Brno to Deutsche EuroShop, the acquisition was concluded in the first quarter of the year.