TheWrap: Don't freak out

Karlín Group has sold its stake in the Nové Holešovice joint venture to EP Real Estate, exercising its preemption right. Serge Borenstein confirmed the deal for E15. His JV with Prague's transport authority (DPP) and CPI Property Group was set up to redevelop the Nádraží Holešovice metro station and its surroundings. The deal was probably inevitable, since EP Real Estate (owned by business mogul Daniel Křetínský) is already a dominant landowner in the district via its energy and sports activities. Then there’s his enormous holdings in adjacent Bubny where the development potential runs to up to 300,000 sqm GFA. The buyout consolidates land control ahead of a masterplan that has been politically complicated. Karlín Group retains its own land near the southern metro vestibule and will continue participating in the ongoing international masterplan workshop. "For the transport authority, this is a dream deal," said Jan Ludvík of Karlín Group.

The Czech National Bank left its base rate at 3.5% at Thursday's board meeting — where it has sat since the May 2025 cut of 25 bps. Lombard rate stays at 4.5%, discount at 2.5%. No surprise from markets. February inflation fell below the 2% target for a second consecutive month, but the Middle East conflict and rising oil prices appear to have given CNB’s board reason to hold. Rate direction from here depends on how the oil and FX picture evolves.

Demaco has turned its in-house design and engineering function into a standalone practice. DMC Design & Engineering, led by Filip Slabotinský alongside Tomáš Budař and Jaroslav Kaizr, operates as a separate entity — and external assignments already account for roughly half its workload, a share that is growing. In an interview with ThePrime, Slabotinský explains how the company deployed its dmc donstruct methodology for the Lenzing Biocel facility at DMC Paskov where it achieve a change in zoning in just 12 months and the construction permit was filed 2 months later.

Czechs believe in real estate so deeply that they invest in it despite the hassle, and even when it isn't making them money. If more of them don't, it's probably only because more of them can't afford to. That’s how I read a new STEM/MARK survey for Salutem Group. It found that 39% of Czechs consider property the safest investment available — above savings accounts, gold, equities, or bonds. Yet only 6% of the population actually holds investment property; among households saving CZK 10,000+ monthly, the share rises to 17%. And that’s despite the fact that gross rental yield averages 3.6% annually. Throw in costs and vacancies and that falls below 3% — less than savings accounts (after taxes). Higher yields are on offer in the regions – up to 5.9% gross. But the premium reflects higher default risk, not a free lunch. Yet 2/3 of all Czech investors in real estate are active outside Prague and Brno.

Global real estate deal colume reached $873 billion in 2025 according to McKinsey & Company, up 12% year over year. But that’s thanks to larger ticket sizes rather than more deal activity. While the office sector saw a 17% recovery in the volume of office deals, there’s a growing enthusiasm for specialty properties like data centers, senior and student housing, and flex industrial, with global deal volume rising 14%. Weaker assets face structural obsolescence with few viable conversion paths. Closed-end fundraising rebounded 16% to $146 billion, but it’s the second-lowest annual total for the past ten years. It’s also just half pre-pandemic levels.

Olomouc construction firm Gemo has taken a 40% co-investor stake in Sequoia, the 33,000 sqm office building Passerinvest is building at Roztyly metro.  The CZK 4 billion project is financed with 50% debt with the developer hoping to earn €23.5 per sqm rents when it opens two years from now. Passerinvest is simultaneously developing the Hila and Orion building at its Brumlovka campus in Prague 4. Expressed a different way, the developer is investing a total of CZK 21 billion by 2029. While it intends to add the two additions to Brumlovka to its permanent portfolio, Passerinvest plans to sell the remainder of Sequoia at some point.

Czech hotels recorded their best transaction year ever in 2025: 16 deals totaling €764 million, according to Cushman & Wakefield. Prague drove the story — 13 hotels, €742 million, up 870% year-on-year. Average price per key exceeded €255,000, up 62% from 2024, lifted by the Hilton Prague which was acquired by PPF, Four Seasons Prague, and the Diplomat. And it’s not over, as there’s nearly €500 million in deals still in play, including (allegedly) the Marriott Prague, Augustine, Mozart Prague, and Andaz Prague.

PSN has brought in Martin Šrytr as Business Development Manager, tasked with identifying acquisition opportunities with a focus on the Prague market. Šrytr arrives via Twistcafe Group, where he led EMEA retail expansion for franchise concepts; before that, Cushman & Wakefield (commercial advisory), Prochazka & Partners (lease and transaction negotiations), and IWG. PSN focuses on urban residential revitalization across Prague and other Czech cities.