Investment transaction volume across the CEE-5 region (Poland, Czech Republic, Slovakia, Hungary and Romania) reached €5.5 billion in the first half of 2026, up 6% year-on-year, according to a Knight Frank report. Poland remained the largest market, accounting for 55% of total volume, with transaction volume rising 77% year-on-year. Knight Frank forecasts that annual investment volume in Poland could reach €6 billion in 2026, the highest level since the pandemic. The Czech Republic accounted for 26% of CEE-5 volume, Hungary for 11%, and Romania and Slovakia for 4% each.
"Poland is once again clearly outperforming other CEE markets in terms of investment activity. The 77% year-on-year increase in transaction volume shows that investors are increasingly recognising the potential of our market, supported by strong economic growth, resilient occupier demand and an attractive premium compared with Western European markets," said Charles Taylor, CEO of Knight Frank Poland.
One of the notable trends of the period was the growing role of Czech capital. Czech investors deployed almost €2 billion in commercial real estate across the region, accounting for 36% of total investment capital in CEE. Domestic capital represented 75% of total investment volume within the Czech Republic itself, and Czech investors also recorded transactions in Germany, Austria, Croatia and Slovenia. Assets under management at Czech investment funds have been growing at an average annual rate of 37%. "The potential for further expansion of Czech capital remains significant," said Josef Karas, Head of Investment at Knight Frank Czech Republic. Hungary also regained momentum, with investment volume rising 24% year-on-year, supported by a stabilising macroeconomic environment and a decline in 10-year government bond yields to around 5.2%. "We expect investment volume in Hungary to exceed €1 billion in 2026, with both domestic investors and regional capital, particularly from the Czech Republic, continuing to play an important role," said Erika Loska, National Director of Knight Frank Hungary.
By sector, offices led activity at 27% of total volume (approximately €1.5 billion), followed by retail at 25% (€1.4 billion), with retail transaction volume in H1 2026 already reaching 73% of the full-year 2025 figure. Industrial and logistics accounted for 19% of the market, at €1.04 billion, with 75% of that transacted in Poland. The living sector reached a 21% share of total CEE investment volume, driven by transactions including the largest build-to-rent deal recorded in Poland, involving Resi4Rent and Vantage, and Wood & Company's acquisition of a portfolio of 760 rental apartments in southern Prague.
Domestic and regional investors continue to lead the recovery ahead of a broader return of international capital, with investors from the US, Asia and South Africa gradually re-entering the market alongside French SCPI funds. Prime yields are expected to remain broadly stable across most sectors, though growing competition for assets could support further yield compression, particularly for prime offices in Warsaw. Knight Frank expects growing liquidity and improving economic conditions to support further growth in transaction activity in the second half of 2026.
