The first quarter of 2025 was marked by extraordinary activity on the Czech commercial real estate market. According to Colliers, total investment volume reached €1.48 billion, already surpassing the full-year 2023 results of €1.15 billion. Several large transactions with a value of over €100 million contributed to this record.
“Several important transactions were concluded in the first quarter of this year. Most of them had been discussed and anticipated for several months, but some flew under the radar and went almost unnoticed until they were announced. Total volume of transactions completed reached €1.48 billion, which is more than the full-year volume for 2023,” says Josef Stanko, Director of Market Research at Colliers.
Most significant transactions in the first quarter
One of the most significant transactions during the first quarter was the acquisition of Contera/TPG’s industrial portfolio in the Czech Republic and Slovakia. This transaction was significant not only because of its volume of approximately €370 million (for the Czech part), but also because the buyer was Blackstone, one of the world’s largest real estate investors.
Another significant transaction involved the acquisition of Hilton Prague, the largest hotel in Prague with 791 rooms, by the Czech investment group PPF. With a value of over €250 million, this was the largest ever single transaction for the purchase of a hotel in Central and Eastern Europe.
Redstone Real Estate Group, which invested more than €300 million in two mixed-use properties on the Prague market, also has some activities worth mentioning. It acquired Myslbek (a major office building with a commercial arcade on Na Příkopě Street in the centre of Prague) from AEW, and Atrium Flora (an established shopping centre with an adjacent office complex in Prague 3) from G City Europe.
“These transactions are not only proof of the continuing strength and size of Czech capital, but also underline the attractiveness of the Czech Republic for major international investors looking for opportunities that match their investment criteria,” says Josef Stanko, adding that Czech investors continue to hold a dominant position with a 72 percent share. In terms of the geographical destination of invested capital, Prague accounted for 70 percent of the volume in Q1 2025.
Stable yields support the market
The yield environment remained stable in the first quarter of this year. At the end of the quarter, yields on prime office properties stood at 5.50 percent and on prime industrial properties at 5.25 percent. In the retail sector, yields on prime shopping centre properties were 4.50 percent, yields on prime shopping centre properties were 6.00 percent, and yields on prime retail parks were 6.25 percent. This stability has been key in balancing price expectations between buyers and sellers, which in turn has led to more deals being closed.
“Total investment volume in the Czech commercial real estate market for the full year 2025 is expected to reach or even exceed €2.5 billion, with industrial real estate expected to account for a larger share of the investment volume in 2025 than in the previous two years,” predicts Josef Stanko. Regionally, Colliers expects total annual volumes in CEE to again exceed €10 billion.
Situation in the CEE region
Investment growth was not only evident in the Czech Republic but also across the entire Central and Eastern Europe (CEE) region. Except for the residential sector, all sectors recorded an increase in investment in Q1 2025. Industry and logistics led the way with €800 million, triple the amount of last year’s figure and regaining the top spot after 2024.
Retail came second in investment volume, growing 38 percent year-on-year but slower than in 2024. While rising spending power is supporting this sector, changing consumer habits, price sensitivity, and high interest rates are changing retail investment trends in CEE.
The office sector has also seen a strong recovery, with investment volumes more than tripling year-on-year. Growth was particularly strong in Bulgaria (+806 percent) and the Czech Republic (+618 percent). In the hotel sector, investment volumes increased almost ninefold: well above the five-year trend.
