The Czech investment market ended 2025 with record results. In the fourth quarter alone, property investments exceeded €1.8 billion, representing a 139% increase compared to the same period the previous year, according to Knight Frank data.
For the full year, investment volume reached nearly €4.4 billion, the highest value in history and 137% more year-on-year.
Domestic capital played a key role, with Czech investors realising 86% of real estate investments in 2025, and 96% in the fourth quarter. Mixed-use properties had the largest share of investment volume for the full year at 26%, including the Palladium, Atrium Flora and Myslbek complexes, followed by offices at 24% and warehouses at 18%.
"The dominance of domestic investors, who were behind 86% of the total transaction volume in 2025, is the main driver of the current market," said Josef Karas from Knight Frank. "Investment appetite is confirmed by the decline in yield rates for prime properties on shopping streets in Prague, which proves that quality properties remain a priority despite stable interest rates."
Yield rates decreased by 25 basis points for the most attractive buildings on Prague shopping streets, leading to an increase in their value. At the end of 2025, yield rates reached 5.00% for offices, 5.75% for shopping centres, 4.25% for shopping streets, 5.00% for industrial and logistics properties, 5.75% for retail parks and 4.50% for rental housing projects.
The largest investment was the long-awaited sale of Palladium, with investment fund REICO becoming the new owner. Among office transactions in the fourth quarter, the most significant included the acquisition of Kavčí Hory Office Park in Prague 4 by Conseq realitn fund, the transfer of Harfa Business Centrum B in Prague 9 to Finanční správa, and the purchase of the three-building Česká spořitelna complex in Prague 4 by Penta Real Estate together with MAT Corporation.
