The first half of 2025 marked a remarkable resurgence of investor activity across Central and Eastern Europe, with the Czech Republic emerging as the regional leader. Investment volumes exceeded €2 billion, already surpassing the total for the entire previous year — and even outperforming Poland’s much larger market.

The industrial and logistics sector drove much of this growth, attracting both major international funds and domestic investors. A highlight of the period was Blackstone’s acquisition of the Contera Industrial Portfolio, valued at more than €370 million.

The Czech market’s momentum was further boosted by high-profile hotel acquisitions in Prague, including the Hilton and Four Seasons (Europa Property).

Housing prices in the Czech Republic are soaring at an exceptional pace.

For many Czechs, buying a home has become an unattainable dream, as the country ranks among the least affordable housing markets in the EU when measured against average incomes. The overheated property market has also prompted policymakers to pause their 18-month streak of interest rate cuts.

Deputy Governor Eva Zamrazilová of the Czech National Bank warned against viewing real estate as a “risk-free” investment. She suggested that the government should take steps to reduce the appeal of property, potentially through tax adjustments or restrictions on foreign ownership. In an interview with Bloomberg, Zamrazilová also encouraged financial institutions to develop alternative investment products to steer savings away from bricks and mortar (Bloomberg).

 “Interest in mortgage loans and the purchase of one's own home, especially in large cities and economic centers of the Czech Republic, is still high. It can be assumed that the price of new and subsequently older apartments will continue to grow, thanks to the excess of demand over limited supply. Supply is hampered in particular by the slow pace of construction permits and limits its ability to respond to any market changes,” said Miroslav Linhart, a leading financial advisory partner at Deloitte, adds to the situation in Europe (Deloitte).

Sources:

Europa Property, https://europaproperty.com/czech-republic-leads-cee-real-estate-investment/?utm_source=chatgpt.com

Deloitte, https://www.deloitte.com/cz-sk/en/Industries/real-estate/research/property-index.html