CZECH REPUBLIC Law and Practice Contributed by: Matěj Manderla, Jan Wagner, Ivo Hartmann and Aleš Malach, Tenacta, advokátní kancelář, s.r.o.
addressed by the adoption of the new Building Act of 2021; however, this objective has not yet been achieved. Investment Activity and Domestic Capital Dominance Investment volumes rebounded in 2025, with domes - tic investors accounting for the majority of transac - tions, while foreign capital remained more cautious. Impact of Inflation and Interest Rates Elevated interest rates in previous years reduced transaction volumes; however, gradual rate stabilisa - tion and easing have supported a recovery in financ - ing and market activity. Mortgage rates remain higher than pre-2022 levels but are no longer prohibitive. Most Significant Transactions (2025) The largest transaction of the year was the acquisition of the Palladium shopping centre in Prague by the Czech real estate fund REICO, marking the biggest single-asset commercial real estate deal in the Czech market. In the office sector, key transactions included the acquisition of Kavčí Hory Office Park in Prague 4 by Conseq and the sale of Harfa Business Center B in Prague 9. Additional deals, such as the sale of The Square building, suggest a gradual stabilisation of the office market. The hospitality sector also recorded strong transac - tion activity, most notably the acquisition of the Hilton Prague, one of the largest hotel transactions in Central and Eastern Europe, alongside additional acquisitions of high-quality hotel assets located in Prague. In retail, besides Palladium, attention focused on the redevelopment of the Máj Národní department store and several transactions involving regional retail parks, confirming continued investor interest in the sector. 1.3 Proposals for Reform Implementation of the New Building Act The most significant ongoing reform is the implemen - tation of the new Building Act, aimed at speeding up permitting procedures through digitalisation and a unified authority system. Although already in force,
its practical impact is still evolving, with further adjust - ments expected in the coming years. Digitalisation of Planning and Permitting Processes Digitalisation of planning and permitting is progress - ing, but full integration is not yet complete and will continue to develop.
2. Sale and Purchase 2.1 Categories of Property Rights
Property rights are primarily governed by the Civil Code. The most important right is ownership. The law also recognises rights in rem to another’s property, such as easements, mortgage, pre-emptive rights and prohibition of alienation and encumbrance. The Czech legal system follows the principle superfi - cies solo cedit, under which buildings are generally part of the land, except for the right of superficies, which allows a structure to be owned separately on another person’s land for a limited time. 2.2 Laws Applicable to Transfer of Title The transfer of real estate in the Czech Republic is governed primarily by the Civil Code, as well as by the Cadastral Act, particularly where registration in the Cadastral Register is concerned. For standard commercial and residential properties, these are transfers for which no special rules generally apply; however, transfers involving the state, state- owned entities or municipalities are subject to stricter public law requirements, particularly with regard to transparency, approvals and pricing. 2.3 Effecting Lawful and Proper Transfer of Title The transfer of real estate requires a written agree - ment under the Civil Code. The key element of the system is the Cadastral Register, a public database that records ownership and other rights. Ownership is effectively transferred only upon registration in this register.
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