The market value of office buildings in the Czech Republic and in Prague in particular has continued growing as a result of steady demand and insufficient supply. Yields from premium office schemes in Prague currently range around 4.3 percent. Aggregate investments in commercial properties in the Czech Republic for the first three quarters of 2019 amounted to EUR 2.5 billion (almost CZK 64 billion).
The number of large transactions significantly increased across the sectors last year. Deals worth more than EUR 50 million (almost CZK 1.3 billion) accounted for about 35 percent, which is much more than in the previous years. What is even more important is that there have been significantly more local investors able to afford this type of transaction.
Office buildings are at the top in terms of the total volume as well as in terms of the number of transactions. Out of a total of 67 transactions last year, 29 took place in the office sector. The appreciation of commercial properties is aided by the strong demand for office space. This is demonstrated by the vacancy rate of office buildings at 5.1 per cent in the third quarter – while this is higher than in the previous two quarters, it is still relatively low.