Investment activity in Central and Eastern Europe's commercial real estate market continued to grow in the first half of 2026, with total transaction volumes across Poland, the Czech Republic, Hungary, Romania and Slovakia exceeding €5.5 billion, a year-on-year rise of 6%, according to a new report by Knight Frank. Czech investors accounted for approximately €2 billion of that total, representing 36% of all commercial real estate investment in the region.
The Czech Republic remained the second-largest investment market in the region, recording transactions worth approximately €1.5 billion, equal to 26% of the regional total. Although this represented a 33% year-on-year decline, Knight Frank noted that the comparison follows an exceptionally strong 2025. Domestic investors accounted for 75% of transaction volumes in the Czech Republic during the period, while Czech capital was also active abroad, with deals completed in Germany, Austria, Croatia and Slovenia. Assets under management at Czech real estate funds have been growing at an average rate of 37% per year, according to data from the Czech Capital Market Association.
"The growing strength of Czech capital and the availability of various forms of financing are expanding the investment options of domestic investors," said Josef Karas, Head of Investment at Knight Frank. "Given the limited size of the domestic market, Czech investors are increasingly seeking opportunities abroad, both in other CEE countries and in Western Europe." "Domestic and regional investors are more active in the current phase of the investment cycle than many foreign players," added Lenka Šindelářová, Head of Research at Knight Frank. "At the same time, capital from the United States, Asia and South Africa is gradually returning to the region, and activity from Western European investors is increasing."
Among the transactions highlighted in the report are the acquisition of the Posnania shopping centre in Poznań by Trigea Funds, a portfolio of Vendo Parks retail parks acquired by Star Capital Finance, and the Wilanów Royal office building purchased by WOOD & Company. DRFG acquired the Korzó shopping centre in Nyíregyháza, Hungary, while Star Capital Finance also purchased a retail park portfolio in Romania. The residential rental segment strengthened considerably, rising to 21% of regional investment volumes, supported by several forward-purchase transactions in Prague by institutional investors including REICO, Mint Living, Dostupné bydlení České spořitelny and Kooperativa, as well as WOOD & Company's acquisition of a portfolio of 760 rental apartments in southern Prague.
Poland remained the largest market in the region, accounting for 55% of transaction volumes, with investment activity up 77% year-on-year. Knight Frank expects investment demand to remain firm in the second half of 2026, forecasting full-year volumes of up to €6 billion in Poland and approximately €3 billion in the Czech Republic. Prime yields in the Czech Republic stood at 5.00% for offices and industrial property and 5.75% for shopping centres at the end of the first half. The firm expects the pool of active international investors in the region to broaden, with greater participation anticipated from Nordic institutional investors, French capital and other international players.
