PRAGUE, Dec 7 (Reuters) - The Czech commercial property market will continue its recovery next year with rising interest in offices and shopping centres, but volumes will stay well bellow pre-crisis levels, agent King Sturge said on Tuesday.
The international property consultancy firm expects resilient demand in 2011 for offices in the downtown Prague and dominant shopping centres there and in Brno, the country’s second-largest city.
“We think the next year will be better than this one,” investment consultant Jan Kovarinsky told Reuters.
“An increase of 10 percent (in comparable sales) next year should be realistic,” he said, adding the market might grow steeply if some large one-off transactions that have been started come through.
Among those, Czech developer VGP (VGP1.BR) (VGP1.PR) announced on Monday the sale of 80 percent in six of its 15 industrial parks for the approximate price of 300 million euros. The transaction should be completed in the first quarter next year.
This year, King Sturge expects commercial real estate transactions to grow to 600 million euros from 566 million last year. That remains less than a quarter of the peak of 2.7 billion euros in 2007. (Reporting by Roman Gazdik; Editing by Will Waterman)