Savings accounts are no longer relevant for serious investors
While at the tail end of the Covid pandemic it was possible to park spare cash in deposit accounts and earn a risk-free return of 5 to 6 percent, bank interest rates now stand at just around 2 % a year. For anyone looking for attractive ways to invest, leaving money with financial institutions (especially given inflationary pressures) remains by far the less appealing option. A big question mark also hangs over bitcoin and commodities. By contrast, investment in real estate funds is gaining ground.
It hardly needs saying that nobody ever got rich by “sitting on their money”
Even conservative real estate funds currently deliver returns of around five percent, while the riskier ones target double digits. No wonder – in most districts of Prague and Brno the value of residential property rose by around 20 % last year. In the regions the numbers vary considerably and local specifics need to be taken into account.
Clients also appreciate that (unlike with equity investment funds, for example) they have a precise overview of which properties are actually held in the fund's portfolio, allowing them to make their own calculation of returns and risk, whether based on hard data or subjective impressions. Some funds, for instance, specialise exclusively in rental housing and buy up entire development projects.
“Work from home” doesn't match reality
There is also strong interest in investment in office buildings. Post-pandemic predictions that commercial properties would stand empty have not come true. Many large companies have indeed switched to a hybrid model in which employees alternate between the office and working from home, but the pressure for a gradual return to a physical presence in the office is mounting.
Home office was seen as the future; today most large companies merely tolerate it
Occupancy of office space in Prague currently stands at roughly 95 %. Rents in the most attractive locations near the city centre or within walking distance of metro stations are steadily rising. And relatively few new offices are being built. After their experience at the start of this decade, many developers have shifted their focus to the residential sector. Major office construction in Prague is currently under way only on Rohanský ostrov.
It is mainly Czech money
The total volume of capital transactions on the commercial real estate market reached approximately 4.4 billion euros last year, or around 108 billion Czech crowns. That is a barely believable year-on-year increase of 137 %, according to data from Knight Frank.
Almost all of it is investment from local money. Czech capital accounted for 86 % of total transaction volume, and in the final quarter of 2025 it was as much as 96 %. It seems many investors treated themselves to an interesting and highly promising stake in one of Prague's office, industrial or mixed-use buildings.
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