CEE Real Estate Market Rebounds Strong in H1 2025

The first half of 2025 marked a significant turning point for the Central and Eastern European (CEE) commercial real estate market. Across the five key markets – Czech Republic, Poland, Romania, Slovakia, and Hungary – total investment volumes reached nearly €5 billion. This impressive figure represents close to 60 percent of the full-year 2024 total, underscoring a rapid resurgence in investor confidence and market activity. The Czech Republic led the charge with €2.1 billion in investments, closely followed by Poland at €1.7 billion, highlighting these countries as regional powerhouses.

Logistics Sector Leads the Way for Warehouse & Industrial Space

For businesses seeking modern warehouse or industrial facilities, the CEE logistics sector remains the undisputed leader. Attracting a substantial 32 percent of total investment volumes, logistics properties are driven by robust fundamentals, stable income streams, and inherently low risk. Crucially, structural trends like the explosive growth of e-commerce and the increasing practice of nearshoring continue to fuel demand, making CEE an incredibly attractive location for distribution hubs and manufacturing support. This strong investment signals a healthy and expanding supply of high-quality logistics spaces.

Office Market Shows Resilience and Opportunity

Following logistics, the office sector secured 23 percent of the total investment volume, demonstrating its continued importance and resilience within the CEE landscape. While not as dominant as logistics, the substantial investment in office properties, including notable transactions like PPF Real Estate’s acquisition of premium hotels in Prague, reflects a confident outlook for professional workspaces. Businesses looking for new office premises can expect a market that is both active and increasingly attractive, supported by strategic investments.

A Positive Outlook for the Second Half of 2025

The optimism surrounding the CEE commercial real estate market is set to continue through the second half of 2025. A robust transaction pipeline, coupled with stable prime yields and the encouraging trend of declining interest rates, creates a highly favorable environment for both investors and businesses looking to lease. Offices, industrial (logistics), and retail sectors are all projected to lead the market, offering diverse opportunities. Furthermore, the growing involvement of domestic investors across the region underscores the market's increasing maturity and depth, promising stability and sustained growth for your future operations.

Source: europaproperty.com