For investors, it is important to monitor these trends in order to target attractive segments with real business potential.

Investment is expected to increase above EUR 2 billion in 2025, driven by economic recovery and growing interest in real estate assets. Retail is on the rise – high occupancy and strong rental potential ensure stable returns. The residential market faces a chronic shortage. In Prague, the annual demand for new apartments is estimated at 10,000, but only about 6,300 are approved, some of which end up with institutional investors. In Prague, rental yields improved to ~4%, and in Ostrava, they increased up to ~5%.

In 2025, increased investment activity is expected due to more favourable credit conditions and still attractive offers. Retail is constantly growing. In 2023, the average property price was approximately €2,433/m² (apartments €2,685/m²). A slight decrease was recorded but the market is stabilising.

Residential properties are experiencing consistently high demand and have limited supply. This creates space for quality development projects. One of these is also Bory Bývanie. “We want to envision Bory as a city district. Not only a project with apartments but also with a church, kindergarten, school, tram, and greenery. So it will be not just a development but also a comprehensive, vibrant district by 2030,” said Michal Rehák, business development director, in the Penta Podcast.

Commercial spaces are a stable segment in cities. The pressure is mainly on the quality of space (A+). Projects in Prague and Bratislava are among the most stable investments. Prague is among the most expensive markets in Central Europe with prices up to €5,600/m², while Bratislava exceeds €4,000/m². “Our experience is that, as long as we’re in the centre, the offices function well and it’s a product that belongs there. Offices are as competitive as residences. Whenever we conducted evaluations and compared whether an office or residential project would turn out better, offices always came out on top,” said David Musil, managing director of Penta Real Estate Czech Republic, in an interview.

Real estate markets in the Czech Republic and Slovakia offer a combination of growth, stability, and yield, especially in the segment of residential investments in cities with high demand. Penta Fund responds to this dynamic development selectively with an emphasis on the quality of projects and investor trust.