Wednesday, 19 November 2025
Investment in Czech commercial property has remained strong through the first three quarters of 2025, continuing the pace set earlier in the year. The value of transactions recorded between January and September is estimated at about €2.46 billion. This places the market close to the volumes seen in 2020 and well ahead of the activity logged during the past four years. Analysts note that the unusually active first half of 2025 played the largest role in this outcome, with investment in that period already exceeding the full-year totals achieved since 2020. Although transaction levels in the third quarter were more moderate, they remained significantly higher than those seen during the same period last year.
A broad mix of assets changed hands in recent months. Office buildings and warehouse facilities represented the largest share of deals in the third quarter, supported by several major sales in Prague and regional cities. Among these were two office buildings in the Karlín district of the capital and a logistics complex near České Budějovice, each reaching valuations close to the upper end of this year’s transaction range. Investor interest has remained diversified across the market, covering established office properties, modern logistics parks and regional shopping centres, as well as older industrial sites with redevelopment potential. One such example is a former foundry in Brno, which is set to be incorporated into a growing business park.
Looking at the full nine-month period, industrial and logistics real estate attracted a significant portion of capital, followed by hotels, office buildings and retail assets. The distribution of investment suggests that buyers are seeking both stable income-producing properties and longer-term development opportunities.
Domestic investors have remained the main force behind market activity in 2025. They accounted for the majority of completed transactions, with participation ranging from smaller private investment groups to some of the country’s largest real estate companies. Market observers expect this trend to continue through the final months of the year, particularly as several Czech buyers are engaged in negotiations for high-profile assets now being marketed. At the same time, local capital has been expanding beyond national borders, with Czech funds increasing their presence in neighbouring countries such as Poland and Germany.
The closing months of 2025 are expected to be influenced by several major sales. The most prominent among them is the disposal of the Palladium shopping centre in central Prague, which has received approval from the competition authority and is set to become the largest single-property transaction ever completed in the country. Additional deals nearing completion include the sale of a major hotel in Prague 6 to PPF and several buildings currently being divested by international owners such as CA Immo and Amundi. Developers including Penta have also been active in acquiring new sites for residential development.
Not every transaction currently under negotiation is expected to be finalised by the end of December, yet the volume already achieved this year places 2025 among the strongest in the Czech Republic’s recent history. Whether it surpasses previous record years will depend on the timing of the remaining deals. What is already apparent is that the market has regained a degree of activity not seen for several years, driven largely by domestic investors and supported by a steady supply of properties coming to market. Analysts anticipate that these dynamics will continue to shape the market as it enters 2026.
Sources: Colliers, C&W and Accolade
