€201m in investment transactions were registered in the first half of 2012, down 73 percent from the €785m recorded in the same period last year, writes Colliers International in its 2012 mid-year Report on the Czech property market. “The first half of 2012 represents a similar volume to H1 2010,” says Omar Sattar, Managing Director, Colliers International Czech Republic. Five of the seven investment deals concluded involved properties located outside of Prague. Development has been looking up, on the other hand, with the office segment the busiest. Seven new office buildings totalling 76,100 sqm were added to Prague’s market in the first six months of 2012, increasing the total stock to 2.86 million sqm. Despite challenges in obtaining financing, developers have managed to start developments, and another 23,400 sqm of offices in four smaller buildings will be completed by the end of the year. A total of 111,400 sqm is currently on tap for 2013.
Meanwhile, industrial properties in the Czech Republic expanded by 115,400 sqm since the start of 2012. The final gross take-up for 2012 may struggle to reach the level of industrial warehouse demand posted in 2011, due to the challenging economic climate. However, a number of large manufacturers are actively seeking to expand their operations in the Czech Republic, reports Colliers.
