Wednesday, 17 December 2025
Following a record year in 2025, the Czech commercial real estate market is expected to maintain stable growth in 2026, supported primarily by domestic investor activity and a diversified sector mix, according to CBRE.
CBRE estimates that total investment volume in the Czech market will approach €4 billion by the end of 2025. Domestic investors accounted for around 80% of total investment activity in the first three quarters of the year, a trend the advisory firm expects to continue into 2026. Looking ahead, CBRE forecasts investment volumes to remain strong, exceeding €3 billion next year.
“The stability of the Czech real estate market, driven by domestic capital, puts us in a good position for continued growth. In 2026, we expect dynamic development and the emergence of strategic opportunities across sectors,” said Clare Sheils, CEO of CBRE for the Czech Republic.
According to CBRE, the strong performance in 2025 was underpinned by active domestic investors and transactions across multiple sectors, including offices, retail, hotels, mixed-use schemes and industrial parks.
“The market dynamics and liquidity across sectors that we have seen this year are likely to continue into next year,” said Jakub Stanislav, Head of Investment Property at CBRE. “This also applies to the office market, which will remain robust despite limited supply of new projects.”
Stanislav added that investment activity in shopping centres will continue but with more selective opportunities, while the hotel sector may face constraints due to a limited supply of assets available for sale. “In such an environment, the industrial-logistics segment has very good prospects for strengthening,” he said.
CBRE expects downward pressure on yields to persist in the office segment, reflecting strong demand for prime assets. In other sectors—retail, hotels and industry—yields are expected to remain broadly stable. However, CBRE anticipates a widening gap between yields for prime assets in core locations and secondary properties, particularly in the industrial and logistics sector.
New office supply in Prague in 2025 is expected to reach less than 27,000 sq m, marking the lowest annual increase on record. Supply growth is also expected to remain limited in 2026, with only 30,700 sq m currently under construction and scheduled for completion next year.
“The lack of newly completed offices will keep the vacancy rate low and stable at around 6.5% in both 2025 and 2026,” said Simon Orr, Head of Office Agency at CBRE. “Rents are rising across all submarkets, and the gap between premium and secondary properties is widening.”
According to CBRE, lease renegotiations continue to dominate office leasing activity, while large-scale relocations are often being postponed until the next lease cycle. Survey data cited by CBRE indicates that employees have largely returned to offices following the pandemic, supporting demand for high-quality, well-located office space. Demand is expected to be driven mainly by existing occupiers, with pre-leasing becoming more common as construction activity gradually increases.
The Czech industrial and logistics market is expected to surpass 13 million sq m of completed space by the end of 2025, supported by a wave of large project completions in the fourth quarter. In 2026, new construction is forecast to moderate to around 650,000 sq m, down from approximately 1.2 million sq m in 2025.
Despite a slight increase, vacancy remains low at around 4.5%, although regional differences are significant. Vacancy rates reach around 9% in the Pilsen region, compared with 2.2% in Prague and its surroundings. CBRE also points to “grey vacancy”—shell-and-core space not yet officially recorded—as a source of hidden supply.
Demand remained strong in 2025, with the third quarter marking the second-strongest quarter in the past two decades. Total take-up for the year is expected to reach around 1 million sq m. CBRE forecasts that leasing activity could stabilise at approximately 850,000 sq m in 2026.
“The Czech industrial and logistics sector continues to demonstrate great resilience and the ability to adapt quickly,” said Jan Hřivnacký, Head of Industrial & Logistics Agency at CBRE. “Tenants are now in a slightly stronger position, and developers are more willing to negotiate lease terms and incentives, especially in locations with higher vacancy rates.”
Prime industrial rents currently reach approximately €7.40 per sq m per month, with further growth expected, although rental trends vary significantly by region.
After a period of modernisation and expansion of existing shopping centres in 2025, no new large retail developments are expected to open next year. Development activity will focus on projects already underway, including Dornych in Brno, Galerie Pernerka in Pardubice and the renovated Kotva department store in Prague, all scheduled to open in 2028.
Retail park construction will continue to dominate the development pipeline, with more than 170,000 sq m expected to be delivered. Macroeconomic indicators such as GDP growth, real wages and consumer confidence are expected to remain broadly stable, supporting retail sales growth of around 3% in 2026.
“Czechia remains a key destination for international retail brands entering the CEE region,” said Jan Janáček, Head of Retail and Retail Leasing at CBRE. “While rising operating costs and changing consumer behaviour require careful strategies, the combination of stable economic growth and continued retail park development provides a solid foundation for the market.”
Janáček added that CBRE’s latest survey indicates that retailers plan further expansion, particularly in regional shopping centres and retail parks, with growing use of artificial intelligence in areas such as marketing, personalisation, customer analytics and supply chain optimisation.
Source: CBRE
