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Prague leads office investment market in CEE
28 Nov

The Czech capital outperformed tough competition to become Central Eastern Europe’s top investment market for office space in the first nine months of 2017, racking in a total of €746m ($888m) worth of transactions.

That’s according to Knight Frank, a respected property consultant firm specialising based in London. The figures released by the firm reflect a recent resurgence in the Czech economy and return of investor appetite amid a period of economic and political stability.

Michael Gerrity from World Property Journal, “notes that the uninterrupted weight of capital flowing into the city is causing an upsurge in property prices” whilst “prime office yields have fallen to 4.75%, the lowest in Central Eastern Europe”.The majority of the investment is locally-based although there is an increasing number of overseas capital flowing in, particularly from the US, Germany and Switzerland.

Ryan Wray, Head of Capital Markets in Knight Frank's Prague office commented; "Prague has continued to outperform its other CEE rivals over the past 24 months both in terms of investment volume and office take-up. Prague has a very stable office supply pipeline which ensures rental stability. The economic outlook is equally stable and outperforms that of many traditional Western European markets, investors recognize this and it is reflected in investment demand and yields".

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