CBRE predicts the highest property investment volume in Q4 2016 in Czech Republic
CBRE has released the Czech Republic property investment report for the 3rd quarter of 2016. Investor demand across all sectors continues. We expect that a volume of ongoing transactions in Q4 will exceed the total property investment volume in Q1 – Q3 2016.
The total investment volume in Q3 2016 amounted to EUR 497 mln in 13 transactions and stood more than forty million EUR above the 10Y Q3 average. The average transaction size reached EUR 38 mln. In Q3 investment transactions in Prague dominated the market and accounted for 88% of the total investment volume, due to two EUR 100+ mln transactions – the sale of City Tower and sale of Galerie Harfa & Harfa Office Park. Local investors were very active with a 75% share of the market in Q3.
We see strong demand across all sectors and expect that Q4 will be strongest quarter ever.
“In Q1-Q3 2016, the total investment volume reached app. EUR 1.46 bln. There is an unprecedented volume of ongoing transactions and whilst we expect that some will eventually close in 2017, the outlook is that 2016 will be a record year in terms of investment volumes, with Q4 being the strongest quarter ever recorded.” Chris Sheils, Head of Investment Properties CBRE
There is a reasonable assumption that the total investment volume in 2016 will reach EUR 3 bln, or even exceed this record high volume, coupled with continuing yield compression. The office sector should dominate the market this year with a 40% share of the 2016 investment volume.