Central Europe's commercial real estate sector is experiencing a transformation, with Hungary leading the recovery through an 86% year-on-year increase in investment driven by Asian capital from China and South Korea. The CATL factory in Debrecen and BYD in Szeged, along with the planned Volvo plant in Košice, Slovakia, are reshaping the region's industrial landscape and creating demand for logistics space.
The Czech Republic strengthened its position as a logistics and tourism hub in 2025. After a slow start, the warehouse and logistics market saw dramatic growth, with the third quarter bringing almost 500,000 sqm of newly leased space. Construction continues at record pace, with 1.7 million sqm in various completion stages, potentially bringing the market close to 20 million sqm. Tourism development sparked hotel sector activity, with PPF acquiring the Hilton, Four Seasons and Diplomat hotels in Prague, pushing total hotel transactions above €500 million for the first time since 2019.
Slovakia's investment market recovered significantly, with commercial real estate transactions exceeding €800 million. Regional investors from CEE accounted for 60% of transactions, with Czech investors representing two-fifths of that total. "In 2025, no office building exceeding 10,000 sqm was completed, and the Slovak capital now has the highest stock of office space per thousand inhabitants among the Visegrad Four countries," said Josef Stanko, Director of Market Research at Colliers.
Bulgaria experienced a landmark year with full Schengen integration, removing border controls and boosting investor confidence. The country's economy exceeded forecasts with accelerated GDP growth, falling unemployment and rising wages. Poland maintained solid commercial real estate performance, with notable transactions including the sale of half of Mennica Legacy Tower for €180 million and TAG Immobilien's Resi4Rent portfolio sale for €565 million.
Looking ahead to 2026, Stanko predicts mixed prospects across the region. "2026 will bring new impulses to the commercial real estate market in CEE – from growing investment and modernization of office and retail space to strengthening demand for residential and logistics projects," he said. Bulgaria faces adopting the euro, Hungary expects 2.5% GDP growth from new manufacturing plants, while Romania faces challenges with expected GDP growth of just over 1%.
