Overview of the latest economic events in the Czech Republic

The real estate market in the Czech Republic continues its growth trend. According to an analysis by FérMakléři.cz, prices of older flats rose by 27 % year-on-year in the second quarter and by another 7 % compared to the first quarter. The average price per square metre now stands at CZK 77,343. The most significant price growth was recorded in Ústí nad Labem and Ostrava, where flats are still the cheapest. Although the quarter-on-quarter dynamics suggest slowing growth, property prices are still driven up by high demand for own housing combined with limited supply. At the same time, the Czech Office for the Protection of Competition (ÚOHS) is preparing a reform of the rules for assessing mergers and acquisitions. It plans to introduce the possibility to intervene in smaller transactions outside the traditional thresholds, which should also protect competition in the case of innovative start-ups or strategic technologies. This step may have a significant impact on M&A in the Czech Republic and contribute to increased transparency and predictability of the market.

Foreign investment

The dynamics of foreign investment in the Central European region continues to grow, with the Czech Republic remaining an attractive destination for international capital. Deloitte's "Czechia Best Managed Companies 2025" programme highlights Czech companies with high investment potential, thereby promoting their visibility among foreign investors. This is particularly important at a time of growing cross-border acquisition activity. Among the most significant current transactions is the acquisition of a British pension insurance company Pension Insurance Corporation Group companies Athora Holding Ltd. for $7.78 billion. American pharmaceutical company Merck announced the purchase of British Verona Pharma for $10 billion. Mining company Royal Gold expands its portfolio through acquisitions Sandstorm Gold (USD 3.5 billion) and Horizon Copper ($196 million). The construction sector will be taken over GMS Inc. firmou SRS Distribution Inc. for $5.5 billion. Banking sector sees consolidation through acquisition TSB Banking Group společností Santander UK for $3.61 billion. Private equity firma Thoma Bravo invests $2 billion in a software company Olo. Konsorcium KKR a Stonepeak acquires British property developer Assura plc for £1.6 billion. The Swiss company Holcim then after spinning off its North American division Amrize plans to use up to CHF 22 billion for acquisitions focused on sustainable construction. These transactions confirm the strong global interest in strategic assets and point the way forward for international investment activity.

Significant events outside the Czech Republic with global impact

The most famous cryptocurrency, bitcoin, set a new historical record when it reached the value of 121,207.55 USD (roughly 2.56 million CZK). This is the first time it has crossed the USD 120,000 mark, a result of increased investor interest and the anticipation of new legislation in the United States, where the House of Representatives will take up bills to regulate digital currencies. This legislative framework could bring greater legal certainty to the cryptocurrency markets and support institutional investors. In the global oil market, on the other hand, the situation is reversed. The fall in oil prices from USD 80 to USD 67 per barrel has led to the suspension of billions of dollars of acquisition plans by oil giants Aramco a Adnocwho have dominated the transaction charts in recent months. At the same time, Europe's largest automaker Volkswagen has announced a restructuring of its electric vehicle range. It plans to discontinue the ID.5 model due to weak sales and is planning a major upgrade of the ID.4 model, which will visually resemble the upcoming ID.1 and ID.2 cars.

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