Investment volumes in the Czech commercial real estate market could reach €3.9 billion in 2025, according to a Savills analysis. In Prague alone, commercial properties worth approximately €2.5 billion are currently at various stages of sale - the highest amount of assets offered in the past ten years. The majority of available properties are office buildings and mixed-use properties combining retail and office space. Hotels and industrial or logistics assets represent a smaller share.
"The volume of €2.5 billion has not been traded in Prague in any of the past four years, during which annual investment activity hovered around €1.5 billion. We haven't seen such a strong level of supply on the market for at least a decade," says David Sajner, Investment Director at Savills. "Several factors have converged on the market, including funds approaching the end of their investment cycles and accumulated investor demand. The first major transactions have set realistic pricing benchmarks and triggered a wave of further sales."
The market's recovery is being driven by falling interest rates and more accessible financing. Interest rates on savings accounts have dropped to around 3-4% annually, encouraging investors to seek higher returns through real estate funds. Debt financing in euros has stabilised at approximately 3.5%, and up to 60-70% of an investment property's value can be financed through loans. "Real estate investments typically serve as the more conservative part of an investment portfolio," explains David Štrouf, Investment Associate Director at Savills.
Several factors support the attractiveness of investing in office properties, including the shortage of new office space construction. New office buildings are typically constructed only after securing a pre-lease of 40-50% of the total space. Prime office rents in central Prague now exceed €30 per sqm, while in inner-city locations they average around €20 per sqm. "For projects currently under construction, rents are already being agreed at €23-26 per sqm - approximately 15% higher than in today's completed buildings," says Pavel Novák, Head of Office Agency at Savills.
Investment volumes in German offices during the first to third quarters of 2025 remain 73% below the ten-year average. However, investor activity is increasing across non-core markets in Central, Eastern, Southern, and Northern Europe. For the first time in history, their combined share has exceeded 50% of the total European investment volume, driven by heightened interest in the CEE region, the Nordics, and Southern Europe.
