Investment volumes in commercial real estate in the Czech Republic reached almost €1.14 billion in the first half of 2026, with the residential sector emerging as the second strongest investment segment. The period was shaped largely by Wood & Company's acquisition of 760 rental apartments in the Písnice district of Prague, which remains the largest investment transaction on the Czech market so far this year. According to Savills, the limited supply of large residential portfolios highlights growing institutional investor interest in the sector.
"The Czech market offers only a limited number of large-scale residential portfolios, which are particularly attractive to institutional investors. Whenever such a portfolio comes to market, it typically attracts significant interest from both domestic and international capital. The transaction in Prague's Písnice district confirms that rental housing is becoming a fully established investment asset class alongside traditional commercial real estate," said David Sajner, Investment Director at Savills.
The Písnice acquisition drove the residential sector to its strongest quarterly transaction volume since 2020, the year that saw the largest rental housing transaction in Czech market history, comprising more than 42,500 older apartments in northern Moravia. Large residential portfolios in the country were historically developed during the former regime by state-owned enterprises building housing for their employees. Over time these assets entered the open market, laying the foundation for institutional rental housing. Today, only a limited number remain, including the OKD portfolio in northern Moravia and the portfolios of Třinecké železárny and Chemopetrol.
The limited availability of stabilised portfolios is increasingly prompting investors to acquire projects directly from developers, often during construction, and to manage letting either in-house or through specialised property management companies. Modern institutional rental housing examples include projects developed for REICO ČS NEMOVITOSTNÍ, Mint Living, Heimstaden, Kooperativa, Invesco and AFI Home, among others. "Institutional investors see significant potential in larger rental housing portfolios due to their stable returns, efficient management and long-term investment horizon. Large-scale, stabilised portfolios are among the most sought-after assets on the market and are typically held by investors for decades," said Marek Pohl, Head of Valuation at Savills.
The build-to-rent segment is becoming one of the fastest-growing areas of the Czech investment market. "The limited supply of high-quality residential portfolios, growing demand for rental housing and a stable long-term return profile are making institutional rental housing an increasingly attractive investment opportunity," said David Sajner.
