The Czech market witnessed a continued steep fall in commercial transaction volumes in Q2 2009, making it the weakest quarter in six years, according to DTZ in its latest Investment Market Update for the country.

At the same time, DTZ registered a tangible increase in the level of interest from a small number of institutional investors and open-ended funds, which are actively placing bids on properties in good locations. According to DTZ, there has also been an increase in the number of domestic-based opportunistic investors attempting to acquire well located properties at discounted prices.

Total investment volume in Q2 2009 amounted to around € 18m, a -96% drop on the year-earlier period and a -61% decline compared with Q1 2009 and only two investment transactions were recorded in Q2 2009.

Prime yields currently stand at around 7% for offices and retail and +9.5% for industrial/logistics. The majority of international investors have shifted their primary focus to Prague, according to the adviser. Assets in non-established locations with low specification will suffer most during the coming 12 months, DTZ predicted.