Investment in commercial real estate in the Czech Republic exceeded €1 billion in Q2 2026, up 121% quarter-on-quarter and 47% year-on-year. For the first half of the year, total volume reached €1.47 billion. According to Knight Frank's analysis, full-year investment could approach €3 billion, keeping the market above its long-term average.
Residential rental dominated Q2, accounting for 41% of total transaction volume, followed by offices at 35%. Domestic investors drove 74% of transactions, though a return of foreign capital was also visible in the first half. "The Czech investment market confirms its appeal to both domestic and foreign investors. A combination of a stable market, limited supply of quality assets and stabilising financing creates good conditions for a strong second half. Transactions in preparation include both office buildings in Prague and logistics portfolios," said Josef Karas, Partner and Head of Investment at Knight Frank. The largest transaction of the year so far was the sale of the Písnice project — a portfolio of 760 flats in Prague 4 — acquired by WOOD & Company through its newly established WOOD & Company City – OPF fund from CIB GROUP. In partnership with SATPO, the portfolio will be revitalised under the City Home brand.
Yields remained stable across most segments in Q2, with a slight decline in residential rental to 4.25%. Prime office and industrial/logistics yields stood at 5.00%, shopping centres and retail parks at 5.75%, and high streets at 4.25%. "Yields are stable across most segments. The slight decline — meaning a rise in value — was recorded in the currently attractive residential rental segment. Strong investor demand and limited supply of quality assets should limit any significant yield expansion," said Lenka Šindelářová, Head of Research & Consultancy at Knight Frank.
Knight Frank expects continued strong investor demand in the second half of the year, with the gradual return of foreign investors potentially pushing full-year volume towards €3 billion — below the record set in 2025, but above the long-term average.
