According to data from real estate advisory firm Colliers, indicative demand reached approximately 2.2 million square meters, while the volume of finalized lease agreements stood at around 2.1 million square meters.

This marks a major change compared to previous years, when demand and actual take-up diverged significantly.

Market normalization after years of imbalance

Between 2021 and 2023, indicative demand rose sharply from around 1.16 million to 2.9 million square meters, while actual leasing activity lagged behind. The gap reflected cautious decision-making by companies, limited availability of suitable space, and longer investment and approval cycles during a period of economic and geopolitical uncertainty.

In 2024, the market corrected on both sides, with both demand and take-up declining. However, 2025 brought a renewed acceleration, with leasing activity increasing by approximately 45% year-on-year and indicative demand growing by around 10%.

As a result, the two curves finally converged after several years of divergence.

Companies are executing postponed decisions

Experts note that 2025 was largely driven by projects that had been delayed in previous years.

“Companies stopped following only cautious scenarios and started executing projects prepared earlier,” commented Jiří Kristek from Colliers, adding that the alignment of demand and take-up signals a more stable decision-making environment.

Strong fundamentals supported by logistics and manufacturing

The Czech industrial market continues to benefit from strong structural drivers, including:

  • manufacturing expansion
  • logistics growth
  • e-commerce development
  • supply chain restructuring within Europe

The Czech Republic remains an attractive location due to its central position, infrastructure, and established industrial base.

At the same time, demand is increasingly concentrated in key regions such as Prague and its surroundings, South Moravia, Pilsen, and selected industrial hubs in Moravia and Central Bohemia.

Construction remains strong but controlled

Despite stable demand, new development is proceeding cautiously. Most projects are either pre-leased or backed by secured tenants, while speculative development remains limited.

According to market data, approximately 1.5 million square meters of new industrial space is currently under construction in the Czech Republic, with a significant share expected to be completed in 2026.

Developers remain selective, balancing demand growth with financing conditions, energy costs, ESG requirements, and long-term tenant expectations.

Rental stability and changing expectations

After periods of volatility, industrial rents stabilized in 2025. In the Prague region, prime rents reached around €7.25–€7.50 per m²/month, while regional markets typically ranged closer to €5.15–€5.38 per m²/month.

However, tenants are becoming more demanding. Location alone is no longer sufficient—operational efficiency, energy performance, and technological readiness are increasingly decisive factors in lease negotiations.

A more balanced industrial market

The key takeaway from 2025 is clear: the Czech industrial real estate market has moved into a more balanced phase.

With demand and actual leasing activity now closely aligned, the sector appears to be stabilizing after several years of volatility.

While regional differences and sector-specific fluctuations remain, the overall trend points toward a more predictable and mature market environment.