Commercial property investment in CEE rebounded strongly in 2025, with a combined volume of €11.3 billion across Czech Republic, Poland, Hungary, Romania and Slovakia. This represents a 34% year-on-year increase and stands 24% above the five-year average, according to data by Knight Frank.
The Czech Republic was one of the main drivers of regional growth, with investment volume reaching €4.39 billion, marking a 137% year-on-year increase. Domestic and regional capital led the revival, with Czech sources accounting for 86% of the country's investment volume. Czech funds were among the most active investors across the region, investing €3.8 billion domestically, nearly €1.1 billion in Poland (gaining the largest market share), and over €430 million in Slovakia.
The largest transaction in the region was the sale of Prague's Palladia for more than €700 million. Offices returned as the largest investment category, representing 32% of total CEE volume. Industrial and logistics properties attracted €2.8 billion, while retail drew €1.9 billion (17% of activity).
Prime yields in the Czech Republic remained the lowest in the region at 5.0% for both offices and industrial properties, and 5.75% for shopping centres. Across the region, prime yields stabilised in ranges of 6.0-7.25% for offices, 6.0-7.5% for industrial, and 6.25-7.25% for shopping centres. "In the CEE context, the Czech Republic functions as a liquidity anchor. The depth of domestic capital and predictability of pricing brings stability to the broader region, especially when international capital is more selective," said Josef Karas from Knight Frank.
Looking ahead to 2026, strong Czech capital activity is expected to continue across the CEE region. While Polish investment should grow after 2025's decline, the Czech market will likely see a year-on-year decrease following its record year. "Positive investor sentiment should persist across CEE markets in 2026. Prime yields should remain largely stable, with value growth driven primarily by expected prime rental growth, especially for top office projects in Prague and Warsaw," added Lenka Šindelářová from Knight Frank.
