C&W: Czech real estate volume lower than in 2017
The total volume of real estate investment in the Czech Republic after the first three quarters of 2018 is lower than it was for the same period in 2017. Cushman & Wakefield writes in a new report that €1.2bn in transactions have been recorded and that the annual total should reach around €2.5bn, which is off the pace in 2017 when the Czech market produced €3.4bn in deals. The slower pace isn't due to a declining market or economy, claims C&W, but rather a lack of larger deals. Poland, on the other hand, looks set to reach an all-time record annual volume of €6bn in real estate investment, boosted primarily by foreign capital coming in from South Africa, South Korea, Singapore and North America.
“Investor demand continues to be focused on prime product with prices remaining very robust," said Jeff Alson, Head of Capital Markets CEE at Cushman & Wakefield. This is being supported by the very strong occupier market in most segments. Global investors appear to be more comfortable with the relative risk of CEE compared to other markets. Regardless, they are still enjoying a premium return compared to Western Europe.”