FM newsroom – property management. Commercial property markets across Central and Eastern Europe have started 2026 with steady momentum, despite geopolitical uncertainty and economic pressures. Investors remain active across the region, with domestic and regional capital increasingly shaping deal activity and market confidence.
Hungary and Poland Drive Regional Activity
According to the latest market analysis by Colliers, investment volumes across CEE reached EUR 2.1 billion in Q1 2026, following an exceptionally strong performance in 2025.
Hungary delivered one of the strongest performances in the region during the first quarter, with investment volumes exceeding EUR 325 million. This marked the country’s best start to a year since 2018 and almost doubled the level recorded in the same period last year.
Despite political uncertainty, investors have remained engaged. In fact, the environment appears to have encouraged more selective and strategic investment decisions, particularly among domestic and regional players.
Local investors are increasingly returning to the market with long-term strategies, helping to improve liquidity and support pricing activity. Early signs suggest that investors are positioning themselves for medium-term opportunities rather than waiting on the sidelines.
Poland once again confirmed its position as the region’s leading investment market. First-quarter investment volumes approached EUR 1.1 billion, representing growth of more than 40% year-on-year and the strongest opening quarter since 2022.
The Polish market stood out for both the scale and diversity of transactions. Logistics assets remained highly attractive, while retail saw renewed momentum through major portfolio deals. The office sector also showed signs of recovery, particularly for high-quality assets in prime locations.
A major trend supporting Poland’s resilience is the growing strength of domestic capital, which is helping to speed up transactions and reinforce investor confidence.
Selective Growth Across Central and Eastern Europe
Elsewhere in the region, Bulgaria recorded a sharp increase in activity. Investment volumes surpassed EUR 100 million, making it the country’s strongest start to a year since 2007.
Meanwhile, Czechia and Slovakia experienced year-on-year declines after exceptionally strong performances in early 2025. However, analysts suggest this reflects transaction timing rather than weakening market fundamentals. Romania recorded only a modest slowdown.
Retail Continues to Attract Investors
Retail property emerged as the strongest-performing sector across CEE during the first quarter, continuing trends already visible in 2024. Nearly EUR 630 million was invested in retail assets during Q1 alone.
The office sector also remained active, attracting more than EUR 600 million in investment, while industrial and logistics assets accounted for roughly a quarter of total market volumes.
At the same time, demand for leisure, entertainment, dining and sports facilities is reshaping the retail landscape across the region.
Economic Pressures Continue
The wider economic backdrop remains challenging. Rising energy prices, linked partly to instability in the Middle East, are continuing to fuel inflation concerns and delay expectations of interest rate cuts during 2026.
However, the current inflation cycle differs from the post-pandemic period. Demand is softer, borrowing conditions are already restrictive, and the risk of overheating has eased considerably. As a result, markets are adjusting rather than slowing dramatically.
Domestic Capital Becomes a Key Strength
One of the clearest themes emerging across the CEE property market is the rising influence of domestic and regional investors. Rather than focusing on short-term market timing, investors are placing greater emphasis on long-term fundamentals, income security and transaction certainty.
Although geopolitical risks and economic uncertainty remain present, they have not stopped investment flows into the region. Instead, they have encouraged a more selective and mature investment environment.
As 2026 progresses, Central and Eastern Europe is expected to remain an attractive destination for commercial real estate investment, supported by strong local investor participation, improving liquidity and resilient market structures.