The commercial investment market in Prague saw increased activity during Q4 2009 as the total volume of investment was more than double that of Q1-3 2009 combined, at over €385m, according to Jones Lang LaSalle’s Prague City report.

The demand came from both domestic and international buyers with activity from the domestic market focusing on smaller scale investments whilst the larger deals were concluded by larger investment funds.

George Lewis, head of capital markets at Jones Lang LaSalle, said: “Already in 2010 investor outlook is more positive with a general enthusiasm for deals to happen during the course of the year. Investor groups remain highly selective and are focused on prime product. The biggest challenge facing investors is the availability of the right product at a pricing level, which makes sense for both the buyer and the seller. While bank finance remains limited, we do not anticipate any significant activity for secondary product.”

The first smaller scale distressed sales appeared on the market in the quarter with the majority being sold at auctions. The report predicted that throughout 2010 this type of investment will continue appearing on the market.