Abstract
The global financial crisis has shown that property prices can significantly affect the financial sector and the real economy. More multinational investors are active in the commercial real estate market compared to the residential sector, which, according to the European Central Bank, increases the risk of spill-over of financial instability from abroad. Although the evolution of commercial property prices may increase the probability of default of firms operating in this sector, more attention is not given to a detailed analysis, which focuses mainly on residential property. This article analyses the development of the commercial real estate capital value index in the Czech Republic. The analysis revealed that, unlike the global economic crisis, the COVID-19 pandemic had a different impact on individual commercial real estate markets.