Monday, 25 August 2025
The Czech commercial real estate market recorded unprecedented investment activity in the first quarter of 2025, with transaction volumes already exceeding the total for all of 2023. According to data released by Colliers, investment reached EUR 1.48 billion in Q1 alone, surpassing last year’s full-year total of EUR 1.15 billion. The growth was driven by several major transactions, each exceeding EUR 100 million.
“Several significant transactions were finalized in the opening months of the year. While some were long-anticipated, others came as a surprise to the market,” said Josef Stanko, Director of Market Research at Colliers. “The total volume reached EUR 1.48 billion, more than what we saw throughout 2023.”
Among the most notable transactions was the acquisition of Contera/TPG’s industrial portfolio in the Czech Republic and Slovakia. Blackstone, one of the largest real estate investors globally, acquired the Czech portion of the portfolio in a deal worth approximately EUR 370 million.
Another landmark transaction involved the acquisition of Hilton Prague—Central and Eastern Europe’s largest hotel with 791 rooms—by Czech investment group PPF. Valued at over EUR 250 million, it represents the most expensive single-hotel acquisition ever recorded in the region.
Redstone Real Estate Group also completed two high-profile acquisitions in Prague worth over EUR 300 million. The group acquired the Myslbek office and retail complex on Na Příkopě Street from AEW, and Atrium Flora—an established shopping centre with adjoining offices in Prague 3—from G City Europe.
“These deals highlight both the strength of Czech capital and the appeal of the Czech Republic to large international investors,” Stanko noted. Domestic investors accounted for 72% of total investment volume, while Prague alone attracted 70% of all capital deployed in the country during Q1.
Yield Stability Supports Market Activity
The investment surge has been supported by a stable yield environment. At the end of Q1 2025, prime office yields stood at 5.50%, industrial yields at 5.25%, and retail yields ranged from 4.50% for premium shopping centres to 6.25% for retail parks. This consistency has helped align price expectations between buyers and sellers, facilitating deal closures.
Looking ahead, Colliers projects that total real estate investment in the Czech Republic could reach or even exceed EUR 2.5 billion in 2025. Industrial real estate is expected to make up a larger portion of the total than in the previous two years.
Wider Growth Across CEE
The strong investment momentum observed in the Czech Republic was also reflected across the broader Central and Eastern Europe (CEE) region. All major sectors—except residential—posted growth in Q1 2025. The industrial and logistics segment led the way with EUR 800 million in investment, tripling its volume year-on-year and reclaiming the top spot in the regional rankings.
Retail investment increased by 38% compared to Q1 2024, though the pace of growth has slowed amid shifting consumer behaviour and persistent high interest rates. Nonetheless, rising consumer spending continues to support the sector.
The office market recorded a strong rebound, with regional investment volumes more than tripling year-on-year. Notably, the Czech Republic and Bulgaria posted the strongest gains, with year-on-year increases of 618% and 806%, respectively. Meanwhile, the hotel sector saw investment volumes rise nearly ninefold—well above the five-year average—driven in part by transactions like the Hilton Prague acquisition.
Colliers expects total annual investment volumes in CEE to once again exceed EUR 10 billion in 2025, reflecting renewed investor interest and increased transactional activity across the region.
Source: Colliers Czech Republic
