Friday, 27 February 2026
The Czech investment market is moving into 2026 from a position of strength following a high-volume year in 2025. Market activity is expected to remain elevated, supported by domestic capital, stable pricing and an active transaction pipeline, although the availability of prime assets is likely to become a key constraint.
Total investment volume in the Czech Republic is estimated to have reached €4.3 billion in 2025, marking the strongest annual performance on record. The market was driven largely by Czech investors and local real estate funds, which remained the dominant source of capital across most sectors.
A particularly active fourth quarter helped lift full-year results. Investment activity in Q4 2025 reached €1.84 billion, making it one of the strongest quarters historically. Mixed-use assets accounted for the largest share of quarterly volume at 43%, followed by offices at 29%, with hotels, industrial, retail and residential assets making up the remainder.
Josef Stanko, Director of Market Research, noted that domestic investors are increasingly executing large and complex transactions that were previously led by international capital.
Among the most significant deals was the sale of the Palladium shopping centre in central Prague to Reico. Other notable transactions included the disposal of Harfa Business Centre B to the Ministry of Finance and the acquisition by Penta Real Estate, in joint venture with the DBK shopping centre owner, of Česká spořitelna’s current headquarters in Prague 4. Additional completed transactions cited include Campus Science Park in Brno, Forum Karlín in Prague 8, Aventin Shopping Znojmo and the Ibis and Diplomat hotels.
Pricing across prime segments remained broadly stable at the end of 2025, with selective yield compression in the most liquid sectors. Prime office yields stood at approximately 5.25%, prime industrial at around 5.00%, prime shopping centres at roughly 6.00% and prime high-street retail at about 4.50%. Investor interest has been returning primarily to sectors with transparent rental performance, particularly logistics and centrally located offices.
Looking ahead, investment activity in 2026 is expected to be supported by continued fundraising by Czech real estate funds. Estimates suggest that approximately €1.5 billion of equity capital is currently available for deployment, with an identified pipeline of roughly €3 billion in potential transactions.
However, market growth may be tempered by limited supply, especially in segments where new development remains constrained. Offices are expected to account for a significant share of upcoming transactions, supported by tenant demand and a relatively tight pipeline of high-quality space.
While the outlook remains positive, transaction volumes in 2026 will continue to depend on financing conditions, asset availability and the pace of international capital returning to the Czech market.
Source: Colliers
