INVESTMENT MARKET HIGHLIGHTS

• The volume of investment transactions recorded in the Czech Republic during Q1 2023 totalled €421 million, the highest quarterly volume since Q1 2022. While transaction count in Q1 2023 was almost identical to Q1 2022, investment volume was subdued, posting a 54% drop y-o-y.
• All sectors posted weaker investment volumes y-o-y and, with the exception of retail properties, transactions were also lower compared to the previous quarter. Thanks to a single portfolio transaction closing in Q1, the retail sector accounted for the largest share of transactions by value, with a 48% share of the Q1 2023 investments. Industrial investments followed with a share of 30%.
• Domestic capital accounted for 86% of the Q1 2023 volume, with acquisitions totalling €362 million. The remaining 14% of transactions by volume came from European investors.
• Across all real estate sectors, prime yields have shown the first signs of stabilisation and for the first time in the last 12 months have stayed unchanged from the previous quarter.
• Although the volume of closed transactions does not necessarily reflect the very latest market sentiment, the increased number of investor acquisition enquiries seen on the market lately is pointing to a more positive trading activity in the second half of the year.

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