CEE commercial real estate: a resurgent market in H1 2025
The first half of 2025 has marked a significant turning point for the Central and Eastern European (CEE) commercial real estate market. With investment volumes nearing an impressive €5 billion across the five key CEE markets, the region has demonstrated a robust return of investor confidence. This figure alone represents almost 60% of the total investment seen in all of 2024, signaling a vibrant and growing market ideal for businesses looking to expand or establish new operations.
Logistics & warehousing lead the charge
For businesses in need of prime warehouse or logistics space, the CEE market offers unparalleled opportunities. The logistics sector continued its dominant performance, attracting 32% of total investment volumes. This strong appeal is particularly evident in the Czech Republic, Poland, and Slovakia, driven by compelling fundamentals such as stable income, low risk, and transformative structural trends like the surge in e-commerce and the increasing practice of nearshoring. Businesses seeking efficient and strategically located warehousing solutions will find the CEE region, especially these countries, to be a highly attractive destination.
Office market rebound creates new opportunities
Beyond logistics, the CEE office market is also experiencing a remarkable comeback, accounting for 23% of the total investment volume. This resurgence indicates growing demand and renewed activity in the corporate sector, providing excellent prospects for businesses in search of modern, well-located office space. Romania, in particular, showcased a dynamic performance with its office sector making up nearly one-third of its total investments, highlighting its capacity to deliver sustainable growth opportunities for office occupiers.
Key regional hotspots for business expansion
The investment landscape highlights specific countries as leaders in the region, offering strategic advantages for businesses:
Czech Republic & Poland: investment powerhouses
The Czech Republic led the investment activity with a staggering €2.1 billion, surpassing Poland, which recorded €1.7 billion, for the first time. Together, these two countries commanded 77% of all regional investment, underscoring their appeal for commercial property. This high level of investment translates into robust market infrastructure and diverse options for businesses seeking premium office or warehouse space.
Romania: a market of dynamic growth & competitive yields
Romania continues to stand out as a particularly dynamic market, offering some of the most competitive yields in the region. Its balanced sectoral performance, including a strong showing in the office sector, reinforces its position as an attractive destination for both international capital and businesses looking for growth. The resilience and growth opportunities across asset classes make Romania a compelling choice for new ventures.
Investor confidence fuels a positive outlook
The growing role of domestic investors across the region further bolsters market stability and confidence. In the Czech Republic and Hungary, domestic capital accounted for 78% and 80% of total volume, respectively, while in Poland, it now represents a significant 15% of transaction volume—a substantial increase from just five years ago. This robust domestic engagement, coupled with the return of major institutional investors, particularly in the warehouse sector in Poland, paints a very optimistic picture.
Looking ahead, the positive outlook for H2 2025 remains firmly in place. A robust transaction pipeline, stable prime yields, and declining interest rates across the CEE region are all factors that will continue to drive market activity and create favorable conditions for businesses seeking to rent commercial property. Whether your business requires state-of-the-art office facilities or highly efficient logistics and warehouse solutions, the CEE market in 2025 offers a landscape of growth, stability, and opportunity.
Source: property-forum.eu
