The Czech investment market accelerated to 1.05 billion EUR in the second quarter
The volume of investment transactions in the Czech commercial real estate market reached EUR 1,051 million in the second quarter of 2026. This represents a significant increase compared to the previous quarter (EUR 657 million). For the first half of the year as a whole, the market reached approximately EUR 1.71 billion—less year-over-year than in H1 2025 (EUR 2.37 billion), but still nearly double the figure for H1 2024 (EUR 0.88 billion). This trend therefore reflects a normalization of the market rather than a weakening.
The strongest individual asset class was offices, with a volume of 358 million EUR, followed by residential properties (215 million EUR). However, the largest category by far, at 396 million EUR, is “other assets,” which includes smaller sectors not reported separately, such as mixed-use, healthcare, and education—a figure that reflects the diversity of opportunities rather than the strengthening of a single segment. Hotels contributed EUR 39 million, retail EUR 27 million, and industrial properties EUR 16 million.
Yields: Stability Across Sectors, Compression Only in Industrial
Prime office yields remained unchanged at 5.10% despite higher transaction volume, suggesting that the recovery in activity is not yet driving a revaluation. In contrast, industrial was the only sector to see yields compress, by 10 basis points to 4.90%—despite low transaction volume. Other asset classes remained unchanged following the first-quarter correction: retail parks at 6.00%, shopping centers at 5.75%, and high street at 4.50%.
Dominance of Domestic Capital
Czech capital maintained its dominant position in the second quarter, accounting for 72.8% of the total investment volume; domestic investment funds were active across all types of commercial real estate. Israeli investors became the second-largest group of buyers, with a share of nearly 11.4%, followed by Italian capital at 10.5%. The remaining 5.3% was distributed among investors from Cyprus, Austria, and France.
Industrial Land Market: Significant Regional Differences
The industrial land market in the Czech Republic confirmed significant regional differentiation. Prague dominates with prices above 250 EUR/m², followed by Brno and the Central Bohemian Region, while peripheral regions remain below 80 EUR/m². Investor demand is concentrated in prime locations (Prague, Brno, Plzeň) and is focused on large-scale plots exceeding 5 ha with a buildable area of 20,000 m² or more. The average price level for medium-sized industrial plots reached 95 EUR/m², representing an increase of approximately 46% over three years and reflecting the limited supply of zoned land as well as continued demand for industrial real estate in the CEE region.
“The second quarter confirmed that the market is returning to normal. This is not a return to the record volumes of previous years, but rather healthy activity supported by domestic capital and a broader range of sectors. Interestingly, the higher transaction volume has not yet led to a revaluation—prime yields across most asset classes remain stable. The only exception is the industrial sector, where we observed yield compression despite low transaction volume. This is a combination we will continue to monitor.”
Michal Bílý, Head of Market Research, 108 REAL ESTATE
