The year 2023 will be just as challenging, but will also bring new opportunities to the real estate market
The real estate investment market is impacted by increased inflation expectations, higher interest rates and the inflated cost of financing, and this will continue into 2023. This inevitably leads to increasing yield expectations. In most European markets, across various sectors, yields have increased this year. According to BNP Paribas Real Estate, some price corrections are still expected in some markets and asset types in 2023. The market is expected to stabilise in the second half of the year, when investment activity could also see some revival. Currently, most markets are in the stage of ‘price discovery’. Since the summer, we have been witnessing a ‘dance floor situation’ on the Czech real estate investment market. Buyers are sitting on one side of the dance floor and sellers on the other, and everyone is waiting to see who will dare to enter the dance floor first. CPI inflation could reach 15.8% this year according to forecasts from the Czech National Bank, and inflation could be double digit in the first half of 2023 at the very least.
