Office markets in Central and Eastern Europe are continuing to evolve in response to changing occupier expectations, economic pressures, and ESG standards, according to Colliers' latest report covering Bulgaria, Czechia, Hungary, Poland, Romania, and Slovakia.
Diverging supply trends
While leasing activity has stabilised post-pandemic, development activity across the region remains uneven. Sofia stands out with active Class A development, while major markets such as Warsaw, Prague, Bucharest, and Budapest are seeing reduced construction volumes. In Warsaw, new office deliveries in 2024 are just one-third of pandemic-era levels.
Sustainability takes centre stage
Green certification has become a baseline expectation across CEE markets. Most new buildings now pursue LEED, BREEAM, or DGNB certification. Developers in cities like Bratislava are incorporating technologies such as geothermal systems, while older Class B assets in markets like Poland and Czechia face rising vacancies unless repositioned to meet sustainability and quality standards.
Occupier preferences are changing
Tenants across the region are increasingly prioritising quality, location, and ESG compliance over cost. In Warsaw, demand is shifting from IT and outsourcing to sectors like manufacturing. Sofia’s activity is driven by renewals and relocations, while Bucharest’s occupiers remain cautious amid market uncertainty. The public sector is emerging as a key occupier, particularly in Poland, Slovakia, and Hungary.
Flex space and leasing terms evolve
Flexible office space continues to grow, with Sofia leading in share and Budapest showing maturity in this segment. Prague’s flex market is expanding thanks to strong local operators. Longer lease terms are becoming common in Prague and Warsaw, while tenants in Bucharest favour flexibility, including break clauses.
Rising rents and polarisation
Rental levels are increasing, particularly for ESG-compliant buildings in central locations. Prime monthly rents range from €30/sqm in Prague to €16/sqm in Sofia. Incentives such as fit-out contributions and adjusted lease terms are playing a growing role in lease negotiations.
Market outlook
Warsaw leads the region in net take-up, while Prague maintains low vacancy. Bucharest and Sofia are recovering from recent peaks in vacancy rates. Budapest and Bratislava show more volatility, especially in older stock.
Despite short-term headwinds, the CEE office market remains fundamentally strong. “The region continues to offer attractive fundamentals – from competitive labour markets to strategic location advantages,” said Grzegorz Sielewicz, Head of Economic & Market Insights CEE at Colliers. As 2025 progresses, prime, green-certified buildings in core locations are expected to attract the bulk of demand, while outdated stock may face the risk of obsolescence.
