Czech Industrial Market Sees Strong 2025 Growth
The Czech industrial and logistics market recorded a strong performance in 2025, confirming its resilience despite a more cautious economic environment. Total new supply reached 813,500 sqm, representing a 53% year-on-year increase, while modern industrial stock expanded to more than 13.2 million sqm. Construction activity remained robust, with 1.25 million sqm under development at year-end, although the share of speculative projects declined to 27%, reflecting a more disciplined approach by developers.
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Demand fundamentals strengthened significantly throughout the year. Net take-up reached 1.25 million sqm, up 39% year-on-year, marking one of the strongest results in the market’s history. Manufacturing companies were the main drivers of leasing activity, accounting for more than half of total net take-up, followed by distribution and logistics operators. Despite a quarterly slowdown at the end of the year, overall occupier demand remained well above long-term averages.
Vacancy edged higher on an annual basis, reaching 4.8% by the end of Q4 2025, although it remained low by European standards. Prague and Central Bohemia continued to be the tightest submarkets, with vacancy close to 2.6%, while higher availability persisted in selected regional markets. Prime rents proved stable across most locations, with headline rents in Prague holding firm at €7.25 per sqm per month, underlining the continued attractiveness of prime logistics hubs.
Investment activity closed the year on a strong note, supported by improving macroeconomic conditions and easing monetary policy. Total investment volume in the industrial and logistics sector reached approximately €100 million in Q4 2025, with prime yields stabilising around 5.0%. With solid occupier demand, limited speculative supply and stable pricing, the outlook for the Czech industrial market over the next 12 months remains cautiously optimistic.
Regional Director Industrial Agency
Head of Research
