Commercial real estate investment in the Czech Republic rocketed to €1.280bn in the first three months of 2017, up from €409m the previous year. This is the country’s largest-ever first quarter investment volume, according to Cushman & Wakefield. Three major transactions helped boost the results: the sales of the Letňany shopping center, the CBRE GI portfolio and Olympia Brno. The Czech National Bank’s plan to lift its currency intervention is not expected to slow the strong demand for commercial real estate, according to C&W. “The situation will not change in any appreciable way for international investors, because income from commercial real estate is denominated in the euro to a large extent,” says Alexander Rafajlovič, partner of the capital markets team at C&W. “The same is true in most cases of acquisitions. On the other hand, an appreciating Czech crown may expose retailers to foreign owners exerting more pressure for rent increases. The position of Czech buyers, who will be able to offer more euros for properties, will also strengthen.”
