Development land market in the Czech Republic: a valid building permit can double the price of a property
The crisis of the building permit procedure connected with its failed digitalization has also affected the area of transactions with development land for further construction. The increasingly lengthy process of obtaining a building permit has opened up the price scissors between land with a valid permit and those without one. According to real estate consultancy 108 REAL ESTATE, which specialises in this type of deals, the price difference can be up to twice as high. Meanwhile, in 2025, investor activity did not decrease, but rather increased slightly, only excluding properties for speculative development without a known tenant in advance. This was particularly evident in the price growth of well-prepared plots in attractive locations, where a price of EUR 150 per square metre is not exceptional. This applies not only to the usual areas around Prague and Brno, but also to Liberec.
However, in the bands above EUR 100 per square metre, there are plots that not only have a valid building permit, but also have reserved utility capacity and good transport accessibility,
adds Michal Diviš, Head of Investment, 108 REAL ESTATE, which has traded about 450,000 sqm of development land so far this year, to the requirements of liquid properties from the buyers' point of view. Prices above EUR 200 per square metre in the most lucrative locations were no exception. Especially in the areas around Prague with a predominance of agricultural land with a rating of 1 or 2, where it is practically impossible to change the designation for construction.
The value of a valid building permit is demonstrated by the price of land without such permit. It is usually around EUR 50/m2 , even less in areas bordering Poland. The supply of the local market and the speed of the construction procedure in Poland bring down the price of comparable development land in the Czech Republic by 20 percent or more.
Investors, including developers, are much more cautious than in previous years. We see a number of purchased land plots that have not been able to obtain the necessary permits for many years. It is therefore quite common for the owner or prospective acquirer to devote much more time to investigating possibilities, communicating with local authorities, concerned bodies and other institutions,
adds Darek Vodehnal, Senior Associate in the investment team of 108 REAL ESTATE.
Time is an increasingly important factor for the price of development land, which has been rather stagnant on average so far this year. The greater the risk of prolongation or even conflict with the public interest, the lower the interest. Even in the vicinity of Prague or Brno, there are several dozen high-quality properties that are virtually unsaleable due to complicated permitting procedures and uncertain outcomes. Even opportunistic land developers are turning away from quality agricultural land. In this category, on the other hand, there is an opportunity for investors in renewable energy sources - in conjunction with so-called agrovoltaics. This is despite the fact that this has so far been met with a rather reticent approach by many local governments or agricultural associations.
The segment that benefits from this constellation is brownfields. In 108 REAL ESTATE this year, we have seen cases where an investor preferred an older industrial site to a so-called greenfield, but without the necessary permits. In the case of an older industrial complex without tenants and adequate quality of halls, the price can be around EUR 200 per square meter of built-up area, much less for undeveloped.
The mathematics is then quite clear: compliance with the zoning plan and the expected quick acquisition of a building permit, sufficient network capacity, sometimes a very attractive location and sometimes even the possibility of subsidies for brownfield conversion. All this has set the market for older industrial sites in motion,
adds Jakub Holec, CEO of 108 REAL ESTATE.
The price is of course higher for higher quality properties that can be leased or used by the buyer immediately. In this case, the price can be around EUR 600 - 800 per square meter of built-up area and sometimes even above EUR 1,000 if the property is located in the wider area of Prague or Brno and can be used for last mile logistics. In 2025, 108 REAL ESTATE found new owners for industrial complexes of around 15,000 sqm, with about one third of the built-up area.
108 REAL ESTATE data show two interesting trends: the sellers have so far almost always been foreign companies or companies with foreign capital that have decided to close their operations in the Czech Republic. On the buyers' side, on the other hand, there are only Czech companies and entrepreneurs. The usual price of CZK 50 to 100 million for similar properties is acceptable for them in combination with bank financing.
Probably the most positive news is that in addition to the revival of older sites and the preservation of jobs, we feel great confidence in the further economic development, especially of domestic manufacturing companies oriented to the domestic market and export,
Michal Diviš sums up his experience.
Due to the growing number of this type of assets entering the market, 108 REAL ESTATE sees several impacts on the real estate market. There will be less pressure to take quality agricultural land, while the number of revitalizations and upgrades of older sites will increase. There will be an increase in demand for sale and leaseback services, where the owner can stay on the site as a tenant after paying the purchase price. Redevelopment, modernisation and occupation of lower quality industrial complexes by more creditworthy, long-term tenants seems to be an opportunity for a new type of developers or non-institutional investors. Despite the growing demand for higher value-added industrial space, older ones with rents typically 50% above the local average offer interesting returns.
A selection of significant land transactions completed in 2023-2025
