In the entire 2022, we have monitored a decrease in total investment volumes (ca 18%) compared to the 2021. Total investment volumes in 2022 reached €1.576 billion, which was the lowest result since 2013.

Investors are now paying far closer attention to the movement of swap rates, loan margins and LTV ratios as these factors have a significant impact on net cash flows and naturally on the entry rate assumption. Tighter financial conditions and a deteriorating economic outlook will continue to weigh on commercial real estate investment minimally during the first half of 2023. While increasing construction costs and extraordinary rental indexation is driving rental growth, the capital values will stagnate as the cap rates decompress. Ultra-low interest rates are unlikely to happen in 2023.

Czech real estate investments still provide attractive yield returns in comparison to the Western European markets. The appetite for assets remains solid, with limited new development seen in all segments. Core logistics and offices remain the most sought-after property types. In 2023, the investment volume is forecasted to stay stable or to slightly decline by 5-10% y-o-y.