In the second quarter of this year, the volume of transactions in the Czech Republic reached 298 million euros (7.2 billion crowns), which represents a decrease of 27 percent compared to the previous quarter. Compared to 2021, investments fell by nine percent.
“In the second quarter of 2023, there were only a few transactions in the Czech investment market with premium assets, while the market continued to search for a new price level and still shows the difference between the offer and sale price. Transaction activity is still ongoing, although at a much lower level than in previous years,” said Josefína Kurfürstová, analyst for the Czech Republic and Central and Eastern Europe at Colliers.
The largest Czech transaction in this year’s second quarter was the sale of the Palác Pardubice shopping center for approximately 124 million euros (three billion crowns). This accounted for 42 percent of the total volume of investments. The second was the upcoming transaction of the Israeli group G City. It consolidated its full ownership of the Arkády Pankrác shopping center in Prague 4 by acquiring the last 25 percent. The share was worth 60.5 million euros (1.5 billion crowns), which roughly corresponds to the announced sale price of the entire shopping center, which, according to Colliers, is being negotiated with an established Czech investment fund.
The office sector saw a transaction when REICO sold its Rohan office building in Prague 8 for approximately EUR 33 million (797 million crowns). The building was bought by the investment fund Fio banka.
According to Kurfürstová, the volume of investments in real estate should increase in the third quarter of this year. “Domestic investors will again play a significant role and we expect further transactions across key real estate sectors. Our total volume estimate for 2023 remains unchanged at 1.5 billion euros (36 billion crowns),” added Kurfürstová.
In the region of Central and Eastern Europe, according to the survey, the Czech market was the second most active with a 34 percent share. Poland accounts for the majority of regional volumes at 42 percent.
The Colliers Group provides real estate and investment advisory services. It was founded in 1976, its headquarters are in Toronto. Last year, according to its annual report, the company had sales of $4.5 billion (99 billion crowns) and maintains assets worth $98 billion (2.2 trillion crowns). It operates in 65 countries and employs 18,000 people. Colliers is a member of the Industrial Research Forum (IRF) along with other real estate consultancies CBRE, Cushman & Wakefield and JLL.
2023-08-19 17:00:00
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