INVESTMENT MARKET HIGHLIGHTS - H1 2021
- The investment market in the Czech Republic is slowly recovering but still remains weak compared to the pre-pandemic* times. A total investment volume of €716 million was transacted in the country during H1 2021, showing a year-on-year drop of 63% - but a 16% improvement if the exceptional Residomo transaction is taken out of the H1 2020 figure, and still far below (-59%) H1 2019.
- The number of concluded transactions was on par with the activity level recorded in H2 2020 (27 deals), being an improvement of 23% against the first half of 2020. However, the market still awaits the return of larger transactions exceeding the €100 million mark.
- More than a year into the pandemic, the office sector remained the leading asset class, capturing almost €339 million (i.e. 47% of the H1 volume). At just over €120 million, industrial transactions accounted for 17% of the total H1 investment. This is a 30% increase y-o-y, but standing slightly below the H2 2020 volumes share (20%).
- Foreign capital accounted for 58% of the total volume transacted in H1 2021.
- For the fourth consecutive quarter, prime yields remained unchanged across all asset classes.
* For clarity, the COVID-19 pandemic started to affect the Czech Republic in March 2020