Czech Real Estate Market Demonstrated Resilience and Attracted Investors in 2024

Growth of Investments in the Czech Real Estate Market

In 2024, the Czech real estate market experienced a revival, with investment activity reaching €1.66 billion—a year-on-year increase of 45%. Despite continued investor caution driven by economic challenges and geopolitical uncertainty, strategic opportunities have emerged to strengthen real estate portfolios. One of the players that seized these opportunities is the NEMO fund, which focuses on stable, long-term investments in the office segment.

Stability and Growing Investor Interest

In recent years, the Czech investment market has demonstrated remarkable resilience, even when compared to its Western European counterparts. According to a report by CBRE, the Prague office market has rebounded from the pandemic, with a vacancy rate of just 7.4%—the lowest among major capital cities in Central and Eastern Europe. Josef Eim, Vice Chairman of the Board at ČMN, which manages real estate assets for the NEMO fund, confirms this trend:

“The Czech office market shows extraordinary resilience. While Western Europe and the United States are experiencing downturns, Prague continues to maintain a low office vacancy rate and remains an attractive destination for investors seeking secure, long-term capital placement. Through the NEMO fund, we aim to offer investors the opportunity to participate in this stable market. Unlike Western commercial real estate markets, the main driver of stability in Prague is the persistent demand exceeding supply—a bittersweet outcome of one of the slowest permitting processes in the world.”

This trend of market stability is complemented by the growing interest of Czech individuals in investing. A survey by the Czech Capital Market Association shows that more people are recognizing the need to actively prepare for retirement and are exploring ways to grow their savings. According to the survey, 41% of Czechs now consider themselves investors—a figure that continues to rise.

Slowdown in Prague Construction and Emerging Investment Opportunities

While the entire CEE region saw a slowdown in office construction in 2024, this trend is particularly pronounced in Prague. CBRE data indicates that new office development in the city has significantly decelerated, leading to a shortage of high-quality space and a potential increase in rental prices.

Currently, Prague has one of the lowest levels of office space under construction in the entire CEE region. This means that the supply of new offices will remain limited in the coming years—creating unique opportunities for investors focused on the real estate sector. Furthermore, the office vacancy rate in Prague stands at just 7.4%, one of the lowest in the region. At the same time, demand for office space in the city remains high, despite the broader economic slowdown.

This combination of factors—a slowdown in development, limited supply of quality space, rising rents, and low vacancy rates—creates a strong investment case for existing office properties in Prague.

NEMO Fund Acquisitions in 2024

In 2024, the NEMO fund strategically strengthened its portfolio through the acquisition of four office buildings in Prague: Idea Office Building, Smíchov Gate, Anděl 17, and Victoria Vyšehrad. This single-day transaction doubled the size of the fund and brought in prestigious tenants such as Google, Mercedes-Benz, CEMEX, and Notino.

NEMO continues to follow a conservative investment strategy, allowing it to respond flexibly to market developments and maximize returns for its investors. As a result, the fund achieved an annual return of 6.21% in 2024, manages assets worth CZK 5.2 billion, and is trusted by more than 11,800 investors. The NEMO fund was established by Českomoravská Nemovitostní.