Total investment turnover in the Czech real estate investment market reached EUR 417 mln in H2 2010 and EUR 646 mln in 2010 as a whole, according to the latest report by CB Richard Ellis.

Stuart Bloomfield, Head of Capital Markets Czech Republic commented: 'There were several encouraging signs in the second half of 2010. Investment volume continued to increase overall showing a healthy year-on-year increase of 30%. There was increased activity in the retail, industrial and latterly hotels sectors as well as increased activity outside of Prague. We expect these trends to continue through 2011 and expect to see a similarly increasing diversification of the investor base in terms of nationality.'

Local investors were the most active in H2 2010, accounting for 60% of total investment turnover. Major transactions in H2 2010 were sales of Hotel Intercontinental (EUR 108 mln), the City West office project buildings B2&B3/Siemens HQ (EUR 70 mln) and the GY shopping centre (EUR 48 mln).

Czech prime yields for office and retail now stand at 6.75%, marking a drop of 10 basis points compared to H1 2010. Yields compressed for the second time in 2010 after a long period of stagnation from Q1 2009 to Q1 2010.