Real estate investors upping risk
7. 3. 2016 | Source: BusinessInfo.cz
An excess of capital in the Czech real estate market is pushing investors into buying-up properties previously dismissed as being too high risk. This means that properties far removed from top-notch projects such as Prague's Palladium shopping centre, or new office spaces, are now moving to centre stage.
"Investors are spending more on properties with a higher risk on return," says Peter Wojtusiak, an investment specialist with consultancy firm CBRE. "Thanks to this liquidity is increasing, and prices are growing slightly."
Chinese group CEFC has been flying the flag of non-top league acquisitions, for example with its purchase of the former headquarters of Prague's Živnobanka bank. On the one hand, the building is in the desirable Na Příkopě street, but it is also a protected site, and market analysts say commercial usage presents many challenges.
Robert Schönfeld's RSBC investment group recently went on a major buying spree. Using the capital of the erstwhile Penta group co-founder Martin Kúšik, RSBC spent tens of millions of euro on a real estate portfolio of commercial and residential apartment spaces in several large cities across the Czech Republic. Most of these are historical apartments in city centres. But increased real estate investment appetites are still far removed from pre-crisis levels.
Originally published in E15 weekly, economic and business newsmagazine. Author: Daniel Novák