Domestic real estate funds are highly regarded by both affluent individuals and smaller investors, offering a more appealing return on investment than term deposits with minimal risk. This consistent influx of capital necessitates continuous acquisition of properties to meet projected revenues.
Šindelářová noted that while Czech investors demonstrate strong faith in the domestic market, a scarcity of available properties is prompting increased investment activity across Central and Eastern Europe.
Prime Properties Attract Buyers
The Czech real estate market has seen a surge in offerings over the past year, with highly desirable properties coming onto the market. notable transactions include the PPF group’s acquisition of the Four Seasons hotel in Prague and the Fio real estate fund‘s purchase of the former customs building in the capital. In the rental housing sector,the Reico ČS Fund acquired a meaningful real estate asset.
Investor activity has continued through the summer, with the investment company Accolade purchasing an industrial complex near České budějovice for 2.5 billion crowns. Milan Kratina, Executive Director of Accolade, emphasized the strategic value of investing in regional centers.
Further ample deals are anticipated for the remainder of the year. While the first half saw a focus on industrial parks and hotels, the latter half may witness increased investment in sectors like office spaces.
Radka Novak, head of office space at Cushman & Wakefield, highlighted the Prague office market’s stability for both tenants and investors, noting its dynamic adaptation to evolving workplace trends. Currently, office buildings such as the Port 7 complex near the Holešovice metro station and the River Garden II and III buildings in Karlín are available, with the popular Forum Karlín also seeking a new owner.
