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Prague residential market 2018 H1 - overview

Real Estate and Consulting Company Professionals Ltd. informs about the state of the Prague residential market in 2018 H1.

In the first half of 2018 Prague saw only 1,801 issued building permits, down from 2,462 registered in the first half of 2017. Over the last five years an average of around 5,144 newly completed apartments have been registered in Prague each year.Further increases in apartment asking prices were registered in all monitored locations in the first half of 2018.

Report| Residential Market 2018 H1

The development of the Kbely complex is on track

Professionals Ltd. | The development of the area Kbely is on track
Real Estate and Consulting Company Professionals Ltd. in long-term cooperation with the shareholders of Maloja Investment SICAV, JSC mediated further sale of the real estate in the Kbely industrial complex. Subject of the transaction was the original galvanizing plant. Merbadu is the new owner of the 10 000m2 property. They have taken full advantage of the real estate potencial in a very short space of time, and continues to work on developing and upgrading premises to improve the current conditions for existing tenants. 
"The whole area of Kbely offers many expansion opportunities for landowners and industrial property owners, thanks  to excellent connections to Prague´s backbone communications and public  transport", says Petr Kozojed, Head of Investment at Professionals. There are many facilities in the immediate vicinity of the complex, golf course, residential neighborhoods, private airport for small airfield with service facilities and metro station. 
"We are glad we could recommend such a reliable buyer to the owner of the Kbely complex and thus participate in the successful development of the property“, concludes Petr Kozojed.
 

Prague office market Q2 2018 - overview

Professionals Real Estate and Consulting agency informs about Prague office market Q2 2018.

The majority of new supply was developed in Prague 4 and in Prague 5 in the second quarter. In total over 42,000 m² were completed in the capital city of Prague. Office supply in Q2 increased slightly when compared to the first quarter, reflecting a large amount of office space underway being lately on the Prague market. Waltrovka - Dynamica with 13,000 m² located in Prague 5 was one the largest completed project in 2018 Q2. The largest newly completed office building In the Prague 4 district was Trimaran comprising 10,300 m² of office area. Prague office market is expected to see lower new office supply in the second half of the year.

In total, there was approximately 296,700 m² of new office supply under way in the Prague property market. It is forecasted that by the end of 2018, there will be further completions in Prague of ca. 66,000 m². The estimate of completions for next year 2019 suggested around 170,300 m². Districts P8 and P4 comprised nearly 1/2 of the Prague pipeline in 2018 Q2. The largest office project slated for completion in the 2018 H2 was Palmovka Open Park with 24,500 m² in P8. In 2018 Q2 construction work on two new projects located in P4 and P9 was started.

Prague office prime rents have been largely stable in the capital, apart from Prague Central Business District (CBD) showing an increase in prime rent from 20.00– 21.00 € /m²/ month to 20.50 – 22.00 € /m²/ month. Prime rents stayed unchanged in areas such as the Inner city and Outer city where prime rents were between 14.50– 16.50 € /m²/ month and 13.00 – 15.00 €/m²/ month respectively.  In the second quarter the office vacancy rate increased to 6.7 % from 6.4 % a quarter ago. In the q-o-q comparison the office vacancy rate increased by 30 basis points and decreased by 200 basis points y-o-y.

The Real Estate and Consulting company Professionals has celebrated 25 years in the Czech market

On Wednesday 3rd October early evening a gala evening was held in Aureole, one of the highest restaurants in the Czech Republic, to celebrate the 25th anniversary of the Professionals.

A unique evening was held in the spirit of the famous series The Professionals with heroes Bodie, Doyle and their senior chief Cowley and was attended by about 180 guests including partners and friends of the company.

Excellent Dalibor Gondík played the role of seasoned master of ceremonies. The evening started with a humorous story whose history was to rewrite the map of the real estate market in the Czech Republic. The speech was about the executives, the spouses Thomas Duda and Viktoria Dudova and their former and current employees who were introduced as Professionals in all respects.

The theme of the series of Professionals was spread across the "action" evening. Beginning in the private elevator of Aureole, the guests "Joined the action", with the words "You're going with us", using their fingerprint, they transformed into the role of main allies of the Professionals. Guests could immortalize their presence at the crime scene directly in front of the green screen using props playing the roles of agents from the special department of the CI5, the Interpol allies and FBI agents, as well as all kinds of bad guys. The evidence in the form of the highest quality photographs were taken by the guests for the file of evidence.

The distinctive space was dedicated to the employees of the Professionals team. "The company can only be as good as its employees. Professionals has been at the top of the field for 25 years and thanks to our team, we believe that it will not be different in the years to come." said Tomáš Duda, CEO of Professionals Ltd. in his speech during the opening. The words of gratitude were also directed to the business partners whom Tomáš Duda said: "For 25 years, you are our main allies, our business partners, for whom we have the honor to look for optimal solutions according to our best consciousness and conscience. Thanks to your trust, we have been in the market for 25 years."

The whole atmosphere of the evening illustrated the unique space of a restaurant located at a dizzying height, on the 27th floor with a panoramic view of Prague. With a glass of good wine, at sunset, guests could enjoy a unique culinary experience in the form of delicious dishes from chef Jiří Král and his top team. The party brought Bara Zmeková's musical performance and the Prague Jazz Swing Quartet joined by Nina Marinova's violin.

Czech Investment Market 2018 Q2

Czech investment market in the second quarter of 2018 was busier compared to the first quarter (61 % q-o-q) with a volume of sales €638 million. Commercial real estate investment recorded in 2018 Q2 represented ca. 1/5  of the total transaction volume reached in the previous year 2017. In 2018 Q2 the investors were concentrated on office market (ca. €323 million, 51 % of the total investment). The most important office acquisition was registered in Prague 5 – Nove Butovice, where the Metronom office property was sold to Reico for €90 million. Further significant office transaction was sale of Visionary building in Prague 7 to CA Immo for €68 million.

Apart from the office transactions, there were registered several property deals in the retail category. The biggest retail transaction in the Czech Republic was acquisition of Futurum in Hradec Kralove which was also the largest investment deal of the second quarter. Industrial sector was active too, reaching the lowest share on total investment in Q2.

Download the report | Investment | Q2 2018

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.

Download the report | Investment | Q1 | 2018