"The advanced age of the retail portfolio does not mean that the Czech market is becoming obsolete across the board. On the contrary, it is entering a new phase where the focus is shifting from new construction to investment in existing properties. Owners are increasingly modernising their properties, changing their tenant mix and expanding their range of services," said Josef Stanko, Director of Market Research at Colliers.

Among capital cities, Budapest has the highest share of retail space older than 15 years at 84%, followed by Riga at 76% and Warsaw at 70%. Prague, at 63%, sits mid-range alongside Bratislava, ahead of Vilnius at 62% and Bucharest at 59%. Sofia has the youngest portfolio, with only 39% of space exceeding 15 years. Within the Czech Republic, smaller cities with up to 100,000 residents hold the largest volume of retail space at nearly 1.95 million sqm, while medium-sized cities have the oldest portfolio, with approximately three-quarters of space built more than 15 years ago.

Three Prague-area properties illustrate different approaches to ageing retail stock. The Kotva department store, built in the 1970s, is being converted by current owner Generali into a modern department store with a scheduled reopening in 2028. The former Máj department store followed a different path, being transformed into a dining and entertainment destination now including the first Czech branch of Five Guys. A third model is the Spektrum Shopping Centre in Čestlice, where the original building was demolished in 2019 due to structural problems and replaced by a retail park.

"The Czech retail market ranks among the most mature in the region, but a building's age alone does not mean that a centre will cease to function. A property's specific location, catchment area and technical condition will always determine which approach makes sense," Stanko added. The report also notes that the region's ageing population is shifting spending towards healthcare, leisure and services, prompting owners to supplement traditional retail with dining, fitness, wellness and community offerings. The next phase of retail development, Colliers concludes, will focus on adapting to changing customer needs rather than adding new space.