Commercial REThe impact of COVID-19 and consequent restrictions in the Czech Republic have resulted in an uneven development across the real estate segments as overall demand in the industrial segment and retail parks has been rising despite the pandemic. On the other hand, hospitality and office segments are significantly impacted and structural adaptation in 2021 is expected.
The institutional investment and development of rental housing or growth of co-working spaces in the office segment were among the most significant trends that accelerated in 2021.
Further development of each segment in 2021 will continue to largely depend on the economic and COVID-19 pandemic situation.
The total transaction volume of 2020 amounts to EUR 2.71 bn., which is only 12% less than in the previous year. The total investment volume in 2020 includes the significant acquisition of Residomo by Heimstaden amounting to over 1.3 bn. EUR. Without this transaction, a decrease of 55% would have been recorded in 2020 compared to previous year.
A more stable situation is expected in 2021 thanks to COVID-19 vaccination; especially prime real estate investment proved to be resilient and attractive for investors across all markets.