Wednesday, 11 February 2026
Investment activity in the Czech commercial real estate market reached a historic high in 2025, with total transaction volumes exceeding previous peak levels and more than doubling year-on-year, according to market analyses by international advisory firms. The surge in capital inflows was accompanied by one of the lowest levels of new office construction in recent years, reinforcing demand for existing assets across key segments.
Market data from several brokerage houses indicate that total annual investment volumes approached €4–4.5 billion, surpassing the previous record set in the mid-2010s. Domestic investors played a dominant role in transactions, accounting for the majority of deployed capital, particularly in the second half of the year.
Large mixed-use and retail-anchored complexes were among the most significant deals recorded during the period, while office properties continued to attract steady interest. According to quarterly investment overviews, offices represented roughly one quarter of overall transaction volume, reflecting sustained demand for prime and well-located assets despite higher financing costs.
At the same time, the development pipeline remained subdued. Prague’s office market recorded one of its lowest annual completion volumes in modern history, contributing to tightening vacancy conditions in central and established business districts. Analysts attribute the limited new supply to a combination of elevated construction costs, stricter financing conditions and lengthy permitting processes, factors that have slowed the launch of new commercial projects.
The imbalance between strong investment demand and constrained new deliveries has supported pricing levels for existing properties and maintained competitive conditions for high-quality assets. Advisory firms note that while investor sentiment remained cautious due to macroeconomic uncertainty and interest-rate dynamics, the Czech market continued to benefit from its relative stability, transparent legal framework and liquidity compared with several neighbouring markets.
Overall, 2025 marked a year in which record capital deployment coincided with historically low new construction volumes, shaping a market environment characterised by limited supply and continued investor focus on established income-producing properties.
