More than €1 billion worth of commercial properties were already transacted in Q1 2025 in the Czech Republic, representing a 180% increase compared to the same period last year, according to Savills.
It is also the strongest quarter since 2020. In the European context, the Q1 2025 volumes are forecast to surpass €50 billion, a 28% year-on-year increase. Savills sees a broad-based recovery taking shape, with most countries set to record an annual increase in investment activity, with the Czech Republic, Portugal, France, Ireland, and Romania likely to see the strongest growth compared to Q1 last year.
Fraser Watson, Head of Investment in Savills Czech Republic & Slovakia, says: “This surge of investment volume in the Czech Republic is largely attributed to the completion of several unusually large transactions, a rare alignment of factors, although overall market activity is expected to remain higher than in 2024.“ Fraser pointed out one of the standout deals, which had been led by US-based Blackstone, the world’s largest alternative asset manager. It acquired industrial assets from TPG and Contera for €370 million. „This could be a bellwether for the return of large foreign investors to the Czech market,” commented Fraser Watson.
James Burke, Director, Global Cross Border Investment at Savills UK, added that, however, some geopolitical and economic headwinds remained, we were seeing a material uptick in interest for CBD offices, hotels, data centres and various retail sectors, in addition to ‘beds and sheds’. „Robust, long-term occupational fundamentals are giving investors the confidence to invest in European real estate,“ James Burke concluded.
