Cigler Marani Architects, administrative complex The Park, Prague, 2005; sold in 2013 for 7.67 billion CZK
Prague - The volume of real estate investments in the Czech Republic increased by 82 percent last year. Investors closed deals totaling 1.1 billion euros (30.15 billion CZK), more than half of which (565 million euros, 15.5 billion CZK) consisted of the three largest transactions. This is based on an analysis released today by the international real estate consulting company Colliers International. The largest real estate transaction in the Czech Republic last year was the purchase of the administrative complex The Park by the American company Starwood Capital for 280 million euros (7.67 billion CZK). The complex offers 116,000 square meters of office space in Prague 4. According to Colliers, investors last year primarily focused on office properties, which accounted for 62 percent of transactions. This share was similar to that in 2012 and is only slightly higher than the five-year average of 56 percent. However, the logistics sector also saw an unusually high level of investments, contributing 28 percent to the total volume of transactions. The five-year average in the logistics sector is 15.6 percent. The most active investors in the Czech market were American investors, who facilitated 36 percent of all real estate investments last year. Czech investors closed deals totaling 355 million euros (9.7 billion CZK). From their perspective, it was the second most successful year. Demand for offices rose by 9.9 percent year-on-year to 289,900 square meters. The number of vacant offices slightly increased at the end of last year, with 13.15 percent being unoccupied. Developers and investors initiated the construction of 14 office buildings last year, totaling 186,600 square meters. At the end of 2013, there were 25 office buildings under construction in Prague, of which 16 are expected to be completed this year and the rest next year. The industrial real estate market had a record year last year, mainly due to logistics companies that renewed lease agreements en masse. The largest spaces were built for Škoda Auto in Mladá Boleslav (27,000 square meters) and for Faurecia in Nýřany (22,490 square meters) and Mladá Boleslav (21,050 square meters). By the end of 2013, the total volume of industrial space had risen to 4.45 million square meters. Retail recovered last year from the crisis, as evidenced by the low volume of retail construction. However, this could soon change. "Approximately 150,000 square meters of new retail space, including shopping centers and retail parks, are currently under construction and are expected to be completed in 2014," said Omar Sattar, the CEO of Colliers International in the Czech Republic. This year, the volume of real estate investments should be higher. "There is a cautious optimism prevailing in the business community. We are witnessing a growing trend away from a pure focus on savings towards planning for growth in business activities while striving to improve the work environment," added Sattar.
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