Monday, 8 December 2025
The Czech Republic’s industrial property sector continued to show resilience in the third quarter of 2025, supported by sustained construction activity and a healthy level of leasing demand. According to market data from leading consultancies, the country’s total stock of modern industrial space now exceeds 12.8 million square metres, reflecting the steady pace of new development across key regions.
Although the overall vacancy rate edged up slightly to around 4%, availability remains limited in the most sought-after areas such as Prague and the Central Bohemian region, where vacant space is still below the national average. Developers continue to build, with approximately 1.2 to 1.3 million square metres of warehouse and production facilities currently underway—one of the highest levels recorded in the past two years.
Market activity was notably stronger during the summer months. Leasing volumes rebounded after a quieter first half of the year, driven by a mix of pre-leases and new occupiers taking space in large-scale logistics parks. Demand was strongest among retailers, manufacturing firms, and distribution companies, particularly those consolidating operations into more efficient modern premises.
Rents remained largely stable. Prime industrial properties in Prague continue to command between €7.00 and €7.50 per square metre per month, while prime regional locations are achieving around €5.50 to €6.50. Despite a modest increase in supply, landlords have maintained pricing levels, supported by limited availability of high-quality space and ongoing construction costs.
Developers are also showing signs of cautious optimism. While speculative building remains a smaller share of the total pipeline, construction timelines are closely tied to tenant commitments, with many schemes moving from shell-and-core only after lease agreements are secured.
Overall, the Czech industrial sector remains one of the most dynamic in Central Europe. Its combination of strong fundamentals, steady rent performance, and rising leasing activity underscores the continued confidence of both investors and occupiers heading into 2026.
Source: IRF
