INVESTMENT MARKET HIGHLIGHTS

• Investment volumes slowed, with the value of H1 transactions 43% down on H1 2022. Transaction volume of €278 million was recorded in Q2 2023, bringing the H1 total close to €709 million.
• Investments into the retail sector constituted the highest share at almost €418 million during H1 2023, representing the strongest half-year performance since H2 2018. The industrial sector followed at 18% with investments of €125 million (down 39% y-o-y), despite no industrial assets changing hands in Q2 2023.
• Domestic buyers continue to keep the market moving. In H1 2023, they accounted for 79% of all purchases, spending in total close to €563 million across 11 transactions. In consequence, the proportion of investments into Czech regional assets outperformed the country as a whole in H1 2023. Out-of-Prague investments, typically the mainstay of local investors, recorded a drop in volumes of just 14% y-o-y, while total national transaction volume fell 43%.
• From the previous quarter, prime yields shifted up by 25 basis points for office (to 5.25%), industrial (to 5.25%) and residential assets (to 5.00%). Investment yields of prime shopping centres remained unchanged at 6.50%.

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