In 2016, the volume of property investment trading hands in the Czech Republic is expected to reach €2bn, according to CBRE’s Outlook 2016, with investors focusing mainly on office and retail properties. The 2015 volume (€2.4bn as of October) will not be repeated, however, as this year’s results were affected by two extraordinary transactions – sale of Palladium shopping mall and RPG residential portfolio, says CBRE’s managing director Richard Curran.
E-commerce is expected to be the main driver in the logistics sector, with demand increasing for major sheds of more than 50,000 sqm. The capacity for new development is limited in the Czech Republic by a lack of available land and labor in the top locations. Over 1 million square meters is in planning across the country.
At the same time, office development is likely to slow, with only 26,000 sqm of new space to be added in 2016, and little in the retail pipeline. CBRE foresees just two new shopping centers opening in 2016: Aupark in Hradec Králové and Galerie Přerov will add 34,000 sqm of retail space.
