Cushman & Wakefield expects overall investment volume in the Czech Republic to halve in 2012 to just over EUR 1 bn from EUR 2.1 bn in 2011. The Czech market saw EUR 256 mln of deals in the first six months of 2012, 60% down on H1 2011, but still 40% above the volume achieved in 2010.
Cushman & Wakefield expects overall investment volume in the Czech Republic to halve in 2012 to just over EUR 1 bn from EUR 2.1 bn in 2011. The Czech market saw EUR 256 mln of deals in the first six months of 2012, 60% down on H1 2011, but still 40% above the volume achieved in 2010.
Cushman & Wakefield said it expects to see a shift in investment activity into the second half of 2012. 'Core offices in Prague are currently attracting the most interest with prime yields hovering at low sixes,' said James Chapman, head of capital markets C&W Czech Republic and Slovakia.
'Core-plus and value-add investment is growing from both domestic and international sources although they remains cautious whilst opportunistic investors seek yields above 9%. The completion of new developments is providing new investment product and successful re-leasing activity is generating interest for strong, established buildings.'
Chapman said high net worth individuals and family offices are continuing to become more active providing greater depth to the investor pool alongside the established institutional investors. 'However, closing a deal has become more challenging than ever before. Seeking security, investors pay attention to the slightest details, spending extra time on legal due diligence and modelling of income scenarios,' he added.
