According to the latest analysis by Savills, the Czech Republic ranks among the most attractive investment markets within the European Union. In recent years, the domestic market has demonstrated strong investor activity and record transaction volumes in commercial real estate. This robust investment momentum has continued into this year, indicating another above-average year for the market.
In 2025, investment volumes in commercial real estate in the Czech Republic increased by 137% year-on-year, representing the highest growth rate in Europe. Finland ranked second with a 96% increase, followed by Hungary at 79%. The Czech market, therefore, significantly outperformed most European countries, including many traditionally strong investment destinations.
“Liquidity is one of the best indicators of the strength and quality of an investment market. It reflects investors’ ability to efficiently acquire and dispose of real estate assets, while also demonstrating the presence of capital capable of funding even the largest transactions. In this respect, the Czech market has long ranked among the most mature and liquid investment markets in Europe,” says David Sajner, Investment Director at Savills.
Market liquidity is reflected not only in overall investment volumes but also in the market’s ability to absorb large-scale transactions, attract a diverse range of investors, and facilitate efficient trading across all commercial real estate sectors. A key role is played by Prague, which has long established itself as the region’s leading investment hub. In 2025 alone, commercial real estate transactions in the Czech capital reached approximately €3.1 billion, representing the highest volume ever recorded and surpassing the previous record set in 2019.
International capital returns to the market
While domestic capital remains the largest buyer group, its dominance is less pronounced this year than in previous years. Of the total transaction volume recorded by the end of May 2026, 48% was attributed to Czech investors. However, international investors have also been highly active, with buyers from Israel accounting for 17%, Italy for 16%, followed by investors from Austria, the United States, and Switzerland.
While domestic capital remains the largest buyer group, its dominance is less pronounced this year than in previous years. Of the total transaction volume recorded by the end of May 2026, 48% was attributed to Czech investors. However, international investors have also been highly active, with buyers from Israel accounting for 17%, Italy for 16%, followed by investors from Austria, the United States, and Switzerland.
“After several years of strong dominance by domestic capital, we are seeing renewed interest from international investors. Thanks to its stability, transparency and liquidity, the Czech market remains highly attractive even in a broader European context,” adds David Sajner. New investors are also entering the Czech market. Among the most notable international acquisitions this year are the purchase of Na Příkopě 14 by Generali, the acquisition of the Augustine Hotel Prague by Kempinski, the acquisition of Jindřišská 16 by ATL Immoinvest, and the first investment in the Czech Republic by the French SCPI fund MNK Partners, which acquired the production facilities of Gunnebo in Zlín.
2025 was exceptional, and 2026 represents a return to normalised levels
The first five months of 2026 generated an investment volume of €752 million, compared to €2.138 billion during the same period in 2025. However, the year-on-year comparison should not be interpreted as a sign of weakening investor demand. The year 2025 was exceptional by any measure. Investment activity gained significant momentum already in the first quarter of 2025, when transaction volumes reached €1.496 billion, making it the third strongest quarter in the history of the Czech investment market. This was followed by a record-breaking fourth quarter, during which transactions totalling €1.836 billion were completed, almost matching the total investment volume recorded during the entire year of 2024.
The exceptional performance was driven by several landmark transactions, including Palladium, Harfa Business Centre, Kavčí Hory Office Park, ČS Headquarters, Campus Brno, the Contera Portfolio, Hilton, Atrium Flora and Myslbek. The sale of Palladium alone, valued at more than €700 million, was the largest transaction of its kind in Central and Eastern Europe. The exceptional character of 2025 is further highlighted by the fact that the five largest transactions of the year accounted for approximately €1.67 billion, exceeding the average annual investment volume of the entire Czech market recorded between 2021 and 2024.
“The decline in transaction volumes during the first half of 2026 does not indicate a decrease in investor interest. Rather, the market is returning to more typical levels following an exceptionally strong year that is unlikely to be repeated anytime soon,” says David Sajner.
Offices maintain their position as the leading investment sector
The office sector has recorded the highest level of investment activity since the beginning of the year. By the end of May, office assets accounted for approximately €348 million of investment volume, representing 46% of the market total. Key office transactions completed this year include Jindřišská 16, Keystone, ČS Antala Staška, T-Mobile HQ, Olympus HQ and the former Prague 10 Town Hall. The positive outlook is further supported by a strong pipeline of ongoing deals. In Prague alone, around twenty office transactions are currently being marketed or negotiated, with a combined estimated volume of around €1.5 billion.
In addition to prime office assets, investor interest is also growing in older office buildings and properties requiring refurbishment. These assets are increasingly attractive to investors pursuing value-add strategies, which focus on modernisation, repositioning, and ultimately enhancing asset value. Particularly attractive are buildings that offer potential for energy-efficiency improvements, adaptive reuse, or even conversion into residential developments, where location characteristics and planning regulations support such opportunities.
Retail and Hotel properties remain stable investment sectors
Investor interest also remains strong in the retail park sector. Demand continues to exceed supply, while the Czech market has become largely saturated. As a result, investors are increasingly seeking opportunities in neighbouring countries, particularly Poland, Austria, and Germany.
Strong activity is also continuing in the hotel sector. Following major transactions completed in 2025, including Hilton, Four Seasons and Vienna House Diplomat, the market has seen further significant deals this year, including Vienna House by Wyndham Andel’s Prague and Augustine Hotel Prague. Additional transactions involving prime hotel assets in central Prague are currently in preparation.
2026 could become one of the strongest years on record
By the end of May, 20 transactions had been completed with a total volume of €753 million. Should all currently negotiated transactions be successfully concluded, total investment volume for the year could reach as much as €3.3 billion. A more conservative forecast by Savills anticipates a total volume of around €2.7 billion. “We do not expect 2026 to replicate the record-breaking performance of 2025. Nevertheless, all indicators suggest that it could rank among the strongest investment years of the past decade. The market continues to benefit from ample capital, a healthy pipeline of opportunities and an active investor base,” concludes David Sajner.
