FM newsroom – commercial property, CEE region. The Central and Eastern European real estate market is entering a new phase of stable optimism, driven by improving fundamentals and rising investor activity. As capital flows strengthen, CEE continues to outperform Western Europe and reinforce its position as a strategically attractive region.
Resilient momentum returns to CEE real estate
The latest Colliers CEE Investment Scene Q1–Q3 2025 report highlights a region steadily regaining confidence. Investor sentiment has moved from “cautious optimism” to pragmatic execution, supported by easing inflation and growth projected to significantly outpace Western Europe—twice as fast this year and triple by 2026. CEE is increasingly viewed as a place of selective opportunity, with Poland remaining the most liquid market, Hungary and Romania advancing through manufacturing and logistics, and Bulgaria gaining visibility ahead of its 2026 Eurozone entry and recent credit rating upgrades.
Investment surges past EUR 7 billion
CEE investment volumes grew rapidly, rising 38% year-on-year to over EUR 7 billion in the first three quarters of 2025. Poland reached EUR 2.6 billion, and Czechia delivered EUR 2.5 billion, the latter achieving an exceptional 131% increase driven by triple-digit growth across office, industrial, hotel, and mixed-use sectors. Major deals such as Blackstone’s acquisition of Contera’s industrial portfolio pushed industrial volumes close to EUR 700 million, while hotel investment surpassed EUR 490 million. Hungary rebounded strongly to EUR 700 million—its hotel sector alone soaring by 186%—and Slovakia exceeded EUR 600 million, with retail absorbing half of total volumes.
Domestic capital takes centre stage
A major structural shift is the rise of local investors. Polish private investors and family offices reached a historic EUR 600 million, representing 23% of the national volume. Regionally, CEE-based investors accounted for 57% of all capital deployed—double the pre-pandemic average—showing strengthening confidence and growing regional integration.
Sector snapshot: offices, logistics, retail, and alternatives
Office markets are regaining traction, supported by a supply gap and rental growth, with even older central buildings achieving premium rents after refurbishment. Logistics remains stable, with demand centred on long leases and strong tenant covenants. Retail continues to evolve rather than contract as investors reposition assets, particularly retail parks and secondary centres, to align with shifting consumer preferences. Alternatives are gaining ground, with self-storage, data centres, student housing, and senior living benefiting from structural demand and income resilience.
Capital strategies shift toward income growth
Value-add strategies remain dominant, but renewed interest in core and core+ assets is returning where rental growth is visible, especially in Warsaw and Prague offices and logistics hubs in Poland and Hungary. Investors remain conservative in underwriting, relying primarily on income growth to drive returns, while joint-venture structures re-emerge in logistics development for projects with strong pre-lets.
Debt markets regain momentum
Financing conditions improved notably across 2025, with banks—especially German lenders—returning to the market for well-let, prime assets. Debt funds remain active in transitional and value-add opportunities, and margins have tightened for prime borrowers, signalling rising lender confidence and stabilising financing environments.
Outlook: positive, practical, and steady
The 12-month outlook is constructively positive, with transaction volumes expected to rise as pricing expectations align and financing stabilises. Domestic liquidity, steady disinflation, and moderate economic growth should continue to support activity. As European capital markets normalise, CEE is positioned to benefit from renewed cross-border investment and sustained long-term appeal.