The year 2016 is still wrapping up, but investment market observers are already predicting that strong demand across all investment sectors will continue in 2017. Once again, the final volume of investment activity could go past €3bn, while downward pressure on yields is likely to continue. The speed of yield compression, however, will slow down. Currently, more than 50 transactions are ongoing with a total volume in excess of €3.3bn is under negotiation. According to CBRE, more than 50 percent of the total investment volume in 2017 could come from the regional cities.
Prague’s office market take-up will continue to be driven by relocations and expansions. Average headline rents (€20.50/sqm/month) of the best locations could rise slightly due to a temporary lack of space. It’s a situation that will change rapidly, however, with 178,800 sqm in sixteen projects under construction scheduled for completion in 2017. All are located in established office locations such as Butovice-Stodůlky, Pankrác, Budějovická and Karlín. In retail, just three new projects are to come on line in 2017: Central Jablonec, the expansion of Centrum Chodov in Prague 4 and the expansion of IGY České Budějovice. Three new shopping centers are set to get underway: Bořislavka (10,000 sqm), Palác Stromovka (13,000 sqm) in Prague and Avion Shopping Park in Brno (13,200 sqm). One specialized center – Outlet Arena Moravia (11,700 sqm) is to be delivered.
