“Several important transactions were concluded in the first quarter of this year. Most of them had been discussed for several months and were expected, but some flew under the radar and remained almost unnoticed until their announcement. The total volume reached 1.48 billion euros, which is more than the full-year volume of 2023,” says Josef Stanko, Director of Market Research at Colliers.
The most significant transactions in the first quarter
One of the most significant transactions in the first quarter was the acquisition of the Contera/TPG industrial portfolio in the Czech Republic and Slovakia. This transaction was significant not only because of its volume of approximately 370 million euros (for the Czech part), but also because the buyer was Blackstone, one of the world's largest real estate investors.
Another significant transaction was the acquisition of the largest hotel in Prague, the Hilton Prague, with 791 rooms, by the Czech investment group PPF. With a value of over EUR 250 million, it was the largest single hotel transaction in Central and Eastern Europe.
Also worth mentioning is the activity of Redstone Real Estate Group, which invested more than EUR 300 million in two mixed-use properties on the Prague market. It acquired Myslbek, a major office building with a shopping arcade on Na Příkopě Street in the center of Prague, from AEW, and purchased Atrium Flora, an established shopping center with an adjacent office complex in Prague 3, from G City Europe.
“These transactions are not only evidence of the continuing strength and size of Czech capital, but also underline the attractiveness of the Czech Republic for major international investors who are looking for opportunities that meet their investment criteria,” says Josef Stanko, adding that Czech investors continue to hold the dominant position with a 72 percent share. In terms of geographical location of capital, Prague accounted for 70 percent of the volume in the first quarter.
Stable yields supported the market
The yield environment remained stable in the first quarter of this year. At the end of the quarter, yields on prime office properties were 5.50% and on prime industrial properties were 5.25%. In the retail sector, yields on shopping malls were 4.50%, yields on premium shopping centres were 6.00% and yields on prime retail parks were 6.25%. This stability was key to aligning price expectations between buyers and sellers, which in turn facilitated the closing of more deals.
“The total volume of investments in the Czech commercial real estate market for the whole of 2025 should reach or even exceed 2.5 billion euros, with industrial properties expected to account for a larger share of the investment volume in 2025 than in the previous two years,” predicts Josef Stanko. Regionally, Colliers expects total annual volumes in Central and Eastern Europe to exceed €10 billion again.
Situation in the CEE region
The growth in investment was not only evident in the Czech Republic, but across the entire Central and Eastern Europe (CEE) region. With the exception of the residential sector, all sectors saw investment growth in the first quarter of 2025. Industry and logistics led with €800 million, three times the value of last year, and thus regained first place after 2024.
Retail came in second in terms of investment volume, growing by 38% year-on-year, slower than in 2024. While growing purchasing power supports this sector, changing consumer habits, price sensitivity and high interest rates are changing retail investment trends in Central and Eastern Europe.
The office sector also saw a strong recovery, with investment volume more than tripling year-on-year. Growth was particularly strong in Bulgaria (+806%) and the Czech Republic (+618%). In the hotel sector, investment volume increased almost ninefold, significantly above the five-year trend.
