A speck of office spec

Generali Real Estate’s conversion of a former semi-conductor plant in Prague's Pankrác is well underway. The reconstruction will result in 8,000 sqm of ultra-modern office space across five floors. The reconstruction preserves the original prefabricated skeleton construction, which offers super-high ceilings and abnormally tall windows. It’s targeting carbon-neutral operation through photovoltaic panels, heat pumps, and rainwater management systems. Isola (Italian for island) is designed by Chapman Taylor and will offer office units of up to 1,600 sqm. An extra floor is being added (on top) along with a pair of green terraces with scenic views of Prague’s skyline. Its first tenants are expected by spring 2027. Generali’s own office building behind Isola has also been gutted, after its staff moved temporarily to Brumlovka. The timing of both buildings is being coordinated to complete as close to each other as possible.

Residential building permits in the Czech Republic dropped to their lowest level since 1999 during the first quarter of 2025. Authorities issued just 1,602 permits in January, 1,370 in February, and 1,681 in March, marking a historic low for the 26-year period. The decline follows a troubling pattern that began between 2022 and 2023, when residential building permits fell 40% in the first quarter, followed by annual drops of approximately 15%. Renovation permits also decreased roughly 20% compared to last year's first quarter.

Metrostav posted net profit of CZK 1.7 billion in 2024, up 53% year-on-year. Operating revenues rose 11% to CZK 57.3 billion. Completed major projects included Prague's Máj department store and Plzen's main railway station reconstruction. Its subsidiary Subterra finished the Střelice-Zastávka rail modernization and continued work on Prague's Metro D line.

On their first day of trading on Prague Stock Exchange's Start market, shares in M2C rose 7.8% to CZK 302. Trading volume hit CZK 16.8 million, making it the bourse’s fourth most-traded stock. M2C sold 800,000 shares at CZK 280 each, raising CZK 224 million in gross proceeds in return for a 21% stake. The company’s current market capitalization stands at CZK 1.154 billion.

For the fourth time, Five Guys has pushed back the date of its Prague debut, this time until September. We’ll see. Mouths have been watering ever since the wildly popular burger chain revealed that its Czech debut would be in the renovated Maj department store. But Maj opened a year ago and the dead space in its food court remains vacant. By contrast, its future neighbor Popeyes opened on time and has since been rolling out restaurants like clockwork in Prague, Brno, and České Budějovice.

A group of Hungarian investors have teamed up to buy the Budapest Marriott Hotel from CPI Europe. The vendor claims the sale was based on an open international tender won by the BDPST Group and the Diorit Private Equity Fund (managed by Gránit Asset Management). The deal is worth more than €115 million. CPI’s aggressive deleveraging campaign continued in Bucharest where it has closed a partial sale of IRIDE Business Park to ALFA Group for more than €50 million.

But will he sell? It’s the question being asked by many about CPI Property Group founder Radovan Vitek. E15 claims to have spoken to six independent sources who claim he’s considering offers for his sprawling property empire. In Prague alone, the company’s assets include Quadrio, Zlatý Anděl and the enormous 7th district brownfield Bubny. With a €6.87 billion market capitalization, the sale could end up being one of the largest transactions in Czech business history. E15 claims Vitek faces a series of personal and professional challenges. These include the task of deleveraging the company at a time when high interest rates make disposals challenging. J&T along with PPF are rumored to be among the top contenders for the prize. Indeed, it’s tough to think of many other outfits that could be up to the task. Anyway, the opening question still stands: is CPI even for sale?

If Seznam zpravy is to be believed, Reico has pushed Trigea, Klepierre, Investika and Wood & Co. out of contention in the race to buy Palladium. The asset is being sold for Union Investment by CBRE. The German investor bought asset with its 41,000 sqm of retail and 18,000 sqm of offices for a reported €570 million ten years ago from Hannover Leasing. Union is reportedly seeking €700 million from Reico for the right to collect rent from Palladium’s 163 shops, 25 restaurants, and dozens of office tenants.

The Slovak Chamber of Architects revealed nominations for the 24th annual CE ZA AR architecture awards after an expert jury visited 31 shortlisted projects from 93 initial submissions. This year's nominations showcase sustainable building conversions, modern regional construction using traditional crafts, and innovative urban regeneration projects. Winners will be announced at the ceremony on October 2, 2025.

The Czech National Bank's board unanimously decided to maintain interest rates at 3.5 percent after cutting them by 0.25 percentage points in May. Governor Aleš Michl said continuing inflationary pressures from the economy prevent further rate cuts. Inflation will remain above 2 percent for the rest of the year, according to the central bank chief. May data showed annual price growth accelerated to 2.3 percent from 1.7 percent in April. Service prices continue rising strongly while wage growth pressures intensify.

Czech electric vehicle sales surged 131% in the first four months of 2025, reaching a 5.5% market share despite the end of EU subsidies in October 2024. The growth outpaces all European markets, though from a low baseline compared to the EU average of 15%. The Škoda Elroq leads domestic sales with over 1,200 registrations, making it the 15th best-selling car overall. Experts remain cautious about sustained growth without government incentives, noting the 10% market share threshold may take one to two years to achieve permanently.

HSF System has delivered a new Möbelix furniture store in Prague Čestlice for the investor TBB s.r.o. The two-phase project totaled approximately CZK 470 million. It’s a two-story, reinforced concrete building serviced by 20,000 sqm of paved surfaces for parking and handling zones. It’s HSF System's second Möbelix project after completing warehouse expansion in Prešov.

Chanel opened its first standalone Prague perfume and cosmetics boutique in the reconstructed Baroque Savarin Palace, occupying 60 sqm on Na Příkopě street. Flower shop Kytky od Pepy also launched in the palace passage, joining the Mucha Museum’s 1,100 sqm space. In the autumn, Crestyl plans to open the Piano Bar concept from Warsaw and a Starbucks café.

Penta Real Estate has finished renovating the historic Nusle Brewery buildings, creating over 100 apartments while preserving numerous original architectural elements. The CZK 4 billion project features a central square with General Kutlvašr monument, new shopping passage, and bridge over Botič river. New retail tenants include Penny, Rossmann, Zrno zrnko, and Czech Post office. A Turnov Brewery branch will open next year in the eastern wing's 15-meter-high spaces.

PSN sold 285 residential and commercial units in 2024, up nearly 40% from 2023, generating over CZK 2.2 billion revenue. It sold off seven entire buildings and signed 670 new or extended rental contracts. In the meantime, PSN launched six reconstruction projects, while expanding regionally with Brno Jedna's first phase and entered mountain resort market with Špindlerův Mlýn apartments. PSN plans CZK 4 billion investments over the next three years.