Thursday, 22 January 2026
Arcona Capital, which manages around €400 million of property assets across Central and Eastern Europe, expects investor interest in Czech retail property to remain solid over the coming year. The company points to recent market activity and financing transactions as indicators of continued support for the sector.
Chris Sheils, Head of International Business Development at Arcona Capital, said the firm expects the increase in Czech commercial real estate investment volumes recorded between 2024 and 2025 to continue, with retail assets accounting for a growing share of transactions.
Sheils referred to a refinancing completed in December for a private client in Prague. “The new loan was secured for a fixed seven-year term at very competitive market rates,” he said. “It covers a portfolio of thirteen fully-leased hypermarkets in Prague and other Czech cities.”
Jaroslav Sedivka, Arcona’s Head of Treasury, said the financing was provided by two international banks and reflected the characteristics of the underlying assets. “The thirteen properties enjoy average fifteen-year lease terms. The lessee is a highly-regarded multinational supermarket brand. In addition, the properties themselves have benefitted from substantial investment in environmental improvements and are Breeam certificated,” he said.
According to Sheils, macroeconomic conditions are also supportive of grocery-focused retail formats. He noted that disposable income in the Czech Republic is expected to rise by around 2% to 2.5% per year over the next two years, supported by forecasts of lower inflation. “This naturally has a significant effect on household expenditure in the retail grocery sector, and investors are making decisions based on perceived trends in evolving consumer preferences,” he said.
Arcona expects grocery-anchored retail parks to remain a stable segment, supported by essential consumer spending, established tenants and locations integrated into local communities. The company also anticipates rising interest in convenience-focused retail parks, reflecting consumer demand for accessible, everyday shopping formats.
The firm believes retail parks may also play an increasing role alongside e-commerce. “We believe that retail parks will progressively bridge the gap between traditional retail and the urban logistics centres required to meet consumers’ demands in ever-shorter timeframes,” Sheils said.
Looking ahead, Arcona expects investor interest in grocery-led retail to remain strong in both the Czech Republic and Poland. Guy Barker, Managing Director at Arcona Capital, said: “We remain very confident in the fundamentals of the convenience retail sector and are advising our investors accordingly. We are encouraged by the depth of the occupier market, by continuing urban and suburban growth, and by the evolving balance between conventional retail preferences and online alternatives. We believe the sector stands out by offering investors stable and sometimes exceptional performance while maintaining a conservative risk profile for their portfolios.”
