Buying Commercial Real Estate in Prague 2026

Prague commercial investment in Q1 2026 continued at €250M+ (Colliers). Prime office yield 5.00-5.50% (a center office with long-term tenant generates 5% net income annually), prime industrial 5.50-6.00%, prime retail 5.25-5.75%. Prime office capital values 5,500-6,500 €/m².

Prague's investment market combines international funds (CPI, PPF, HB Reavis) and domestic investors. Prime office yield 5.00-5.50% is competitive in European context (Vienna 4.25%, Berlin 4.50%). Best opportunities: class A offices in Karlín and Pankrác, plus CTPark Praha logistics.

— Lovec-Realit.cz editorial team, Q2 2026

Prague Investment Market Q1 2026 - Key Indicators

SegmentPrime yieldPrime capital valuePrime rent
Office - City center5.00 - 5.25%≈ 6,000 - 6,500 €/m²30 €/m²/month
Office - Inner Prague5.25 - 5.50%≈ 5,500 - 6,000 €/m²21-22 €/m²/month
Office - Periphery5.75 - 6.25%≈ 4,500 - 5,500 €/m²15.5-16.5 €/m²/month
Retail high street (Prague 1)5.25 - 5.75%≈ 8,000 - 12,000 €/m²40-120 €/m²/month
Industrial / logistics5.50 - 6.00%≈ 1,500 - 2,000 €/m²5-7 €/m²/month
Retail parks6.00 - 6.50%≈ 3,500 - 4,500 €/m²18-25 €/m²/month

Note: Q1 2026 yields stable (Colliers). CZK/EUR ~25.

Segments and Opportunities

Investment market splits into segments with distinct risk-return profiles.

  • Class A offices:prime yield 5.00-5.25% center, 5.25-5.50% inner. Best: Karlín (Rustonka, Enterprise Office Center), Pankrác (Empiria Tower, Pankrác Prime).
  • Class B offices:yield 6.00-7.00%, value-add potential (renovation, repositioning). For sophisticated investors.
  • Retail high street:prime yield 5.25-5.75%, capital values up to 12,000 €/m² on Pařížská or Wenceslas Square.
  • Industrial / logistics:yield 5.50-6.00%, strong demand driven by e-commerce. Best: CTPark Praha, Prologis Park Praha.
  • Retail parks:yield 6.00-6.50%, defensive positioning in economic cycle.

Investment Process

  1. Define investment strategy.Core (yield 5-6%), core+ (6-7%), value-add (7-10%), opportunistic (10+%).
  2. Due diligence.Legal, technical, environmental (LEED/BREEAM), commercial DD.
  3. Transaction structure.Share deal (SPV) or asset deal. SPV typical for larger transactions (>€10M).
  4. Financing.Bank loan typically 55-65% LTV, rates 5-6% p.a. for offices.
  5. Close transaction.Standard SPA, attorney escrow.
  6. Property management.Key to value preservation. FM costs 100-150 CZK/m²/month.

Tax Aspects

  • Transfer tax:0 CZK (Act 386/2020 Coll.).
  • VAT:21% on new premises, older may be exempt.
  • Income tax:19% on net rental income.
  • Property tax:for 5,000 m² Prague office 30,000 - 80,000 CZK/year.
  • Depreciation:50 years (2% annually).
  • Legal form:SPV (s.r.o. or SICAV) for tax optimization.

FAQ

What is Prague's prime office yield in 2026?

Prime office yield in center 5.00-5.25%, inner 5.25-5.50% (Colliers Q1 2026). Capital values 5,500-6,500 €/m² for prime buildings.

Best segments?

Class A offices in Karlín and Pankrác (yield 5.00-5.25%). Logistics CTPark Praha (5.50-6.00%). Retail high street on Pařížská for core investors.

What LTV in financing?

Bank loans typically 55-65% LTV, rates 5-6% p.a. Sponsor equity min. 30-40%.

Without broker fee?

Yes.