The structure of real estate investments in the Czech Republic is changing, with Q1 2026 data confirming the growing importance of rental housing and hotel properties, according to a Knight Frank report.
During Q1, the volume of investments in the Czech real estate market reached more than €450 million. The largest share went to rental housing (31%), followed by hotels (26%) and offices (23%). The remaining part consisted of retail and other segments.
Development over time shows that this is not a one-off fluctuation, but a gradual transformation of the investment structure, where alongside traditional offices, the importance of residential rental housing and the hotel segment is growing. These segments benefit from long-term housing demand and the continuing recovery of tourism, which is particularly evident in Prague.
Key investment transactions in Q1 2026 included the acquisition of the four-star Vienna House Andel's Prague hotel by Cimex Group and the purchase of Hotel Augustine in Prague 1 by Kempinski Hotels. In the rental housing segment, FKI REICO EPB I fund bought 207 apartments in the Kaskády Barrandov project from FINEP, while Dostupné Bydlení České spořitelny acquired the newly completed Rezidence Johann (209 apartments) and Barrandov Rezidence (174 apartments).
Domestic capital played a fundamental role in the market, with Czech investors realising 77% of all investments in the first quarter. "Data shows that investors are currently diversifying their portfolios more and strengthening exposure to rental housing and hotels, which benefit from the tourism recovery and growing demand for institutional housing," said Lenka Šindelářová from Knight Frank. Prime yields remained stable at around 5.00% for offices and industrial properties, 5.75% for shopping centres and retail parks, and 4.50% for the rental housing segment.
