02. April 2013     Print Print 

Czech Republic commercial property delivers a 4.7% return

The IPD Czech Republic Annual Property Index, released today, delivered a total return on Czech all property of 4.7% in 2012, 310 basis points lower than 2011.

Dr. Nassos Manginas, Managing Director of IPD DACH, said, “A reduction in capital growth by 0.9% was the primary driver of lower performance, however income return at 6.6% was also weaker in 2012 compared with the 3-year average trend of 6.9%pa.

In 2012, Czech real estate performed better than equities (MSCI Czech Equities, 0.3%) but lower than bonds at 17.2% (JP Morgan Government Bond Index 7-10 yr), a pattern that repeated also over a 5-year period.

Sector performance in 2012 shows that offices, having the highest weight in the databank (39%) generated a fair performance of 4.4%, followed by industrials at 2.8% with a share of 15%, while retail properties were leading with 7.0%, and making up 27% of the databank.