TheWrap: 2025 Wrap-up

How was 2025? That’s an impossible question to answer at a time when the world changes course from week to week. The best I can do is admit that it was a good year in more ways than I expected.

For example, it’s looking as if the total volume of commercial real estate transactions in the Czech Republic reached nearly €4 billion. That’s fantastic for the bottom lines of the country’s biggest real estate agents, lawyers, and tax advisors. More broadly, it suggests a basic level of comfort regarding the local business and investment environment, despite the macroeconomic and geopolitical chaos raging all around us.

Then again, huge inflows into property could be a sign that other assets are less trustworthy. AI-mania is propping up global stock markets in ways that look increasingly risky. ChatGPT, Claude, and Gemini are fantastic tools, and artificial intelligence will eventually change the world. But this current AI bubble will burst at least once before this revolutionary technology truly transforms our lives.

Here in the property world, Czech investors were responsible for roughly 80% of 2025’s transactions. Local investor dominance is nothing new, obviously. The only surprise is that foreign capital mustered as much as 20% of the volume.

If the world's stock markets seem obviously overpriced, the situation is trickier with Czech properties. We tend to get stuck bickering about valuations and whether Czech real estate funds are making sensible buys.

Will today's valuations stand up five years from now? Is local investor domination of the market a sign of strength?

Or is the lack of investment from Europe a signal of the continent's malaise? Because, let's not kid ourselves: sure, it survived the first chapter of Trump's trade war (so far), but it’s been a pretty bad year for Europe. I moved to Prague at the end of the Cold War when America was seen as both victor and trusted ally. That’s gone now. The current administration despises the EU project almost as much as Russia does.

The good news is that Europe could be starting to face its new reality and relenting on its most extravagent idealism (which many view as ideology). At the beginning of 2025, Europe recognized that it will have to defend and arm itself. Last week, Brussels signalled it would re-think the speed at which it bans the sale of combustion engine vehicles. There will likely be a reckoning soon on energy. It’s just that there’s no easy way to do this when money is short and mission unity is Missing In Action.

Happy holidays to you all!

I can still accept requests for Corporate Tables at ThePrime Gala but please make them soon. On the flip side of that, if you haven’t received invitation you were counting on, now might be the time to order your individual tickets. They’re on sale for CZK 8,500 + VAT at this link.

Sandberg Capital has acquired a 60% stake in HotelTime, a Prague-based property management system serving over 700 hotels across 20 countries. Sandberg, which has backing from the EIB, J&T Finance, and Slovak banks, now manages assets exceeding €500 million. HotelTime director Jan Hejný said he chose Sandberg in part because of its ambitions in the travel and leisure sector.

Mint has acquired its fourth build-to-rent project—168 fully furnished units in a redeveloped industrial building. Rents at Mint Living Praha Hloubětín will be around CZK 700/sqm following the completion of work by the developer Finep. Tenants should be able to begin moving in by early 2026. The deal brings Mint's portfolio to more than 630 rental units across Prague, Brno, and Plzeň. Management expects that figure to rise by nearly 1,000 during 2026 and to 10,000 within a decade.

Elmos Semiconductor opened a Brno design center, bringing another German automotive technology investor to the Czech Republic's growing semiconductor cluster. The Dortmund-based firm generates €580 million in revenue with €146 million in operating profit, supplying chips for autonomous driving, parking sensors, and vehicle control systems. The new center will compete for Czech engineering talent with Onsemi, NXP, STMicroelectronics, and Renesas, who already operate similar facilities locally. Back in 2022, the German state blocked a Chinese chip producer from acquiring Elmos over economic and national security concerns.

Upvest and RSJ closed fundraising for CCM SICAV II, acquiring an additional 6.3% stake in Westfield Černý Most—bringing their combined holdings across two funds to 31.3%. Unibail-Rodamco-Westfield retains majority ownership and management. The pair plans two more qualified investor funds in 2026 to exercise remaining purchase options, targeting a 40–49% stake. The center's recent expansion earned first place in the shopping center category at the Best of Realty awards in November. Komerční banka distributed the fund to institutional investors and individuals.

Manova Partners sold the 62,245-sqm Amazon Returns Center in Sereď on behalf of a separate account to ERSTE Realitná Renta. The location sits 40 minutes northeast of Bratislava and serves Amazon's European distribution network. The transaction pushes Manova's 2025 deal volume past €530 million. It currently manages 14 office and 20 logistics properties across CEE worth approximately €1.5 billion with 96% income-based occupancy.

Star Capital Finance has opened a qualified investor subfund called SCF CROP that will target CEE retail parks. It is targeting annual returns of over 10%. SCF won't charge any management fees and will receive compensation only on returns exceeding 6%. The structure mirrors SCF Eagle, which holds six Polish shopping centers and has delivered a reported 18% return since launching last year. SCF set the minimum investment at €100,000 and the lock-up period at 3 years.

PSN obtained permits to convert the historic Koh-i-noor industrial complex in Vršovice into a mixed-use district with over 600 units. The 2-hectare project combines new construction with the renovation of two heritage-protected buildings—the iconic factory chimney remains. Demolition kicks off in Q2 2026.

YIT formed a 50-50 partnership with ONE FAMILY OFFICE for Lumo Braník, converting the former Kuta Centrum administrative complex on Zelený pruh into approximately 152 residential units. YIT will handle the development side of the project but has brought on ONE FAMILY OFFICE as a financial partner. Construction starts in 2026. Deal terms and value were not released.

Czech residential markets strengthened across all segments in Q3 2025; new construction prices averaged CZK 137,061/sqm, rising 2.6% q-o-q. Prague prices now exceed CZK 167,000/sqm, while transaction volumes climbed 4.5% with 5,631 new apartment sales. Prices for single-family homes rose just 0.4% nationwide, but sales hit 7,100—1,450 of which took place in the Central Bohemian region.

Czech commercial real estate investment volumes are approaching €4.1 billion across 69 transactions, with domestic capital behind 61 of them (€3.391 billion of the total). Colliers writes that the six largest deals surpass the combined annual volumes from 2021–2024. The average volume for those years was €1.5 billion. Prague transactions matched 2019 levels at €2.8 billion. Sector-wise, office deals made up 26% of the total volume, followed by mixed-use (25%) and industrial (17%).

Harden Construction has begun work on the first building at its 5-hectare BTS project, Business Park Most Joseph. It is Harden's debut on the Czech market, but the company has already built 1.2 million sqm of similar facilities around Europe for companies like H&M, Action, Danfoss, Samsung Electronics, Raben, Carrefour, and DB Schenker.

-Spire Capital Partners agrees strategic capital for BONARD
-Manova sells Amazon Returns Center in Sereď
-Prague Matches London for Retail Openings; US Brands Surge
-Dr. Max extends lease at Prologis Park Prague-Rudná
-Butovice Offices bought by Investika
-Generali buys GARBE Progresus Park Klášterec I
-SPM Invest acquires Campus Science Park in Brno
-UBM Warns Labor Shortage Reshaping Prague Development
-CTP begins construction on ABB’s newest facility
-David Mazáček (Upvest): We’re not trying to replace banks
-GARTAL ramps up output, beginning with City Lofts
-Signal Space raises the entertainment bar in central Prague
-Marketa Vrbasová (Knight Frank): Auto Suppliers Face Indirect Hit from Trade Wars
-Pavel Sovička (Panattoni): Productivity is the problem. Not developers
-David Sajner joins Savills
-Energy efficiency still low in Prague office sector
-Crestyl achieves planning breakthrough on Savarin
-Michal Sotak (Cushman & Wakefield): Emotions drive investment
-Michal Bilý (108 Real Estate): Q2 new industrial leases strengthen
-Robert Ides (ARETE): We’ll recycle our equity abroad