Investments in Czech commercial real estate reached nearly CZK 52 billion (EUR 2.1 billion) in the first half of 2025, marking a 187% year-on-year increase. In the second quarter alone, funds and investment groups signed deals worth approximately CZK 15.8 billion (EUR 600 million), primarily targeting industrial properties, followed by office buildings and hotels, according to analysis by real estate consultancy Cushman & Wakefield.

The report shows that domestic investors are the primary drivers of this surge, with Czech entities responsible for 39 out of 43 transactions.

During the first half of the year, 28% of investment deals focused on industrial properties, while offices and hotels each accounted for 23%. “The increasing ability of Czech funds to raise capital, the healthy state of the rental markets, and the strategic withdrawal of international investors are three key factors behind the uptick in activity in late 2024 and early 2025. We expect these trends to continue, with growing interest particularly in the office sector,” said Michal Soták, Head of Capital Markets at Cushman & Wakefield.

Hotels in Prague have become especially attractive. Out of six hotel transactions completed in the first half of the year, two major deals accounted for over 81% of the total volume — the sales of the Four Seasons and Hilton hotels, both acquired by the Czech investment group PPF.

The largest single deal overall, however, was the acquisition of ten logistics parks in the Czech Republic by investment firm Blackstone, which bought them from U.S.-based TPG Real Estate for CZK 12 billion.

Source: https://hn.cz/
Author: CzechTrade Australia