The Czech industrial and logistics real estate market closed Q1 2026 with strong results, completing approximately 307,000 sqm of new space - the second-highest volume of new construction in a single quarter in history. The market added its largest industrial building in modern domestic history, with construction activity remaining high, vacancy rates at a healthy 4.7%, and stable rents.

The Prague office market is showing signs of recovery as the developers launched three new office projects in Q1, and the volume of space under construction rose by 81% year-on-year. Pre-leasing is gradually returning, and there is a growing willingness to build speculatively without pre-secured tenants.

The European defence sector is undergoing a significant transformation, becoming increasingly diversified, innovation-oriented, and technologically advanced. Supported by defence investments totalling up to €800 billion, this development is directly influencing the geographic distribution of industrial activities and altering the structure of real estate demand across the region, finds a Colliers study.

Commercial real estate investment in CEE is on track for another record year, with Prague maintaining its position as the region's safest market, according to Colliers.

European air travel reached record levels in 2025, with airports handling 2.6 billion passengers, a 4% increase year-on-year, according to a new Colliers report.

Office construction in Czech regions is slowing down as developers increasingly focus on residential projects due to poor profitability without pre-leases or prime locations, according to a report by Colliers.

Prague's office market is experiencing a supply shortage that will continue through 2026, with vacancy rates dropping to just 5.9% - the lowest since early 2020, according to a report by Colliers. Despite strong demand, limited new construction is creating tension in the market.

The Czech investment market recorded its strongest year ever in 2025, with total investment volume reaching €4.3 billion, significantly exceeding previous highs from 2016 and 2017, according to Colliers.

Annual demand for industrial real estate in the Czech Republic reached its third-highest level ever last year, while the volume of buildings under construction remained at record levels. Interest in investing in local industrial real estate reached over €800 million, more than the last three years combined, according to a report by Colliers.

Central Europe's commercial real estate sector is experiencing a transformation, with Hungary leading the recovery through an 86% year-on-year increase in investment driven by Asian capital from China and South Korea. The CATL factory in Debrecen and BYD in Szeged, along with the planned Volvo plant in Košice, Slovakia, are reshaping the region's industrial landscape and creating demand for logistics space.