3. Institutional rental housing will grow
Institutional rental housing—professionally managed apartments catering to affluent clients—is poised for further growth. Following a strong 2024, experts predict that investment funds and large companies will expand their rental housing portfolios, particularly in Prague.
TIP: This sector is stable and potentially lucrative, but not cheap. For investors, focusing on long-term properties with professional management could yield reliable returns.
4. Mortgage rates may hurt family buyers
The family home market, heavily reliant on mortgages, remains sluggish due to elevated interest rates. Many potential buyers have stayed on the sidelines, slowing the construction of single-family homes.
Experts warn that mortgage rates are unlikely to drop significantly this year, making it harder for families to enter the market.
5. Commercial real estate offers an investment opportunity
Commercial real estate is experiencing a resurgence, with both domestic and foreign investors showing strong interest. Sectors like office buildings, hotels, and multifunctional spaces are thriving. For example, the Prague Hilton Hotel recently sold for EUR 300 million (CZK 7.5 billion).
Logistics and shopping centers also remain in high demand due to the expanding e-commerce sector. However, the office market is tight, with a lack of modern spaces driving up prices and competition.
TIP: Investing in commercial properties that meet modern standards—such as energy efficiency and flexible layouts—can yield strong returns. Focus on assets that align with EU criteria to capture future demand.