After several slower years, the commercial real estate investment market is experiencing a historically record-breaking year. Savills expects investment volumes in 2025 to reach up to €4.1 billion. To date, 69 transactions have been completed with a total volume of €4.093 billion. By the end of the year, additional transactions worth tens of millions of euros could be closed. Domestic capital is behind 61 completed deals (accounting for 88 % of all transactions) with a total value of €3.391 billion, representing 83% of the total volume. Savills also expects strong investment activity in the first quarter of 2026, when already negotiated transactions exceeding €300 million are set to be finalised.
“Further facts underline the historic significance of this year. The six largest transactions completed this year alone have surpassed the total annual investment volumes recorded between 2021 and 2024, which averaged around €1.5 billion. In Prague alone, commercial real estate transactions this year have reached approximately €2.804 billion – a level last achieved across the entire Czech Republic in 2019,” says David Sajner, Investment Director at Savills.
David Štrouf, Investment Associate Director at Savills, adds: The revival of investment activity and the growing attractiveness of the Czech market are driven not only by the strength of domestic capital, but also by the fact that investors are allocating historically record volumes of capital into real estate funds. In addition, the market has offered a sufficient supply of high-quality assets this year.
The structure of completed transactions is in line with previous years. The largest shares are held by office properties (26%), mixed-use properties (25%), and industrial assets (17%), which together represent approximately 68% of the total volume.
“The key advantage domestic investors have over foreign players is their access to sufficient own capital and their deep knowledge of – and confidence in – the local market. Unlike international investors, they therefore do not need to factor in an additional ‘risk premium’ for investing outside their home market,” adds David Sajner. Among foreign investors selling assets in the Czech Republic, closed-end funds are the most common. These funds typically need to exit within a five- to seven-year horizon, thereby completing their investment cycle. They are selling assets at prices that remain attractive when compared to their home markets. At the same time, these markets are not seeing a significant inflow of new capital into funds, prompting investors to redeploy proceeds from Czech sales into new investments in their preferred markets, such as Germany, the Netherlands, or the United Kingdom. “Over the longer term, we expect foreign investors to return and the current imbalance – which today clearly favours domestic players – to gradually even out,” concludes David Štrouf.
Interest in higher-profile assets in the regions has generally been lower than in Prague. “In regional markets, significant assets are almost exclusively targeted by domestic investors, while international investors tend to focus primarily on Prague. In the last quarter, Brno saw the completion of the fourth-largest office transaction of the year with the sale of Campus Science Park, acquired by a local investor,” says David Sajner. In other regional capitals, transactions are predominantly concentrated in the retail sector. Industrial parks, however, continue to attract strong demand across the entire Czech Republic, particularly in locations close to major motorway corridors – around Prague and along the D1 and D5 highways.