Following a long period of decline, the value of commercial real estate on the Czech market is on the rise. CBRE writes in its European Valuation Monitor for Q2 2015 that the trend reflects what’s happening across the CE markets. Growth in Western Europe began a few quarters sooner. “We’ve experienced the most prominent movement of values in the industrial sector, where over the last 12 months prime yields have compressed from 7.5 percent to 6.75 percent,” says Clare Sheils, head of valuation for CEE at CBRE.
However, the value of commercial real estate has not yet achieved pre-crisis levels. There are exceptions, however, such as the Palladium shopping center in central Prague, whose sale price was 7 percent higher than in 2007. Sheils observes that while prime-end markets are still the main focus, investors are becoming less risk-averse, as they turn to secondary and tertiary markets.
