New data from real estate consultancy Cushman & Wakefield reveals that Czech investors were behind 39 out of 43 major commercial property deals during the first six months of the year. This strong showing has propelled total investments in the sector to nearly CZK 52 billion (approximately EUR 2.1 billion), marking a staggering 187% increase compared to the same period in 2024. Such a dramatic rise underlines a renewed momentum in the market, fueled largely by Czech investment funds and private capital groups.

The second quarter of 2025 alone saw deals worth around CZK 15.8 billion (EUR 600 million), with the lion’s share of capital flowing into industrial and logistics properties. These sectors have become increasingly appealing due to stable tenant demand, e-commerce growth, and the expansion of regional supply chains. Office buildings and high-end hotels followed closely behind in investment volume, showing that investors are diversifying their portfolios while betting on long-term urban and tourism recovery trends.

One of the key factors contributing to this domestic investment surge is the growing ability of Czech funds to raise capital efficiently, even in an environment where global financial conditions remain uncertain. According to Michal Soták, Head of Capital Markets at Cushman & Wakefield, “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.” He added that these dynamics are likely to persist, with a noticeable uptick in demand for modern office space expected to continue throughout the year.

Sector-wise, industrial real estate led the pack, accounting for 28% of all commercial property investments. Office buildings and hospitality properties each made up 23%, showing a relatively balanced interest across major asset classes. The hotel sector in Prague, in particular, has drawn renewed attention, thanks to a tourism rebound and the city’s enduring appeal to both business and leisure travelers.

Two standout hotel deals highlighted the strength of Czech investors in high-profile acquisitions: the purchase of Prague’s iconic Four Seasons and Hilton hotels. These landmark properties were acquired by PPF Group, one of the Czech Republic’s largest and most influential investment conglomerates. Together, these two transactions made up more than 81% of the total value of all hotel investments during the first half of the year, demonstrating a sharp focus on premium assets in strategic locations.

While Czech investors dominated the bulk of deals, the largest individual transaction came from abroad. U.S.-based investment firm Blackstone made headlines by acquiring a portfolio of ten logistics parks across the Czech Republic from TPG Real Estate, in a deal valued at CZK 12 billion. This transaction underscores the continued attractiveness of Czech industrial assets on the global stage and affirms the country's position as a critical logistics hub in Central Europe.

Looking ahead, experts predict sustained growth in domestic real estate investment, particularly in the office and industrial segments. With Czech funds increasingly stepping in to fill the void left by international players, and with favorable economic indicators supporting the rental market, the outlook for commercial property remains robust. The surge in activity also reflects growing investor confidence in the Czech Republic’s macroeconomic stability and its ability to offer long-term returns in a rapidly evolving European property landscape.

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Source: HN.cz