In a video interview recorded at CEE Property Forum 2025 in Vienna, Victor Constantinescu, Co-Head of Real Estate at Kinstellar, shares how investors are approaching 2026, why flexibility is becoming essential and how geopolitics is increasingly influencing capital allocation across CEE.
What are your clients expecting for 2026 in terms of real estate? What are their biggest fears?
Central and Eastern Europe remains a top market for investors. There is still optimism. Investors want to do business in CEE; they like the markets, and they understand them. The region has come a long way since the transition period.
At the same time, the market has changed structurally. In the past, certain geographies and certain asset classes were dominant. Today, investors need to be much more opportunistic and flexible in what they are targeting. There are opportunities across various sectors, but finding the right product and the right pricing remains a challenge.
We are also seeing local players, particularly domestic investment funds, becoming much more active. They know the markets well and understand how to navigate them, and they continue to strengthen their position.
In terms of fears, geopolitics is clearly a major factor. Trade tensions, tariffs and the broader global political climate have introduced new uncertainties. The situation in Ukraine also remains a key concern. Increasingly, investment decisions are influenced as much by geopolitics as by pure market fundamentals, and this trend is unlikely to reverse anytime soon.
What kind of effect can geopolitics have on certain asset classes?
We are likely to see increased investment in sectors related to industrial production and defence. There is already discussion about a second wave of logistics, not driven primarily by retail demand, but by the need to support industrial and defence production.
Given the current geopolitical context, governments are encouraging investment in these areas. This creates opportunities not only for industrial and infrastructure projects, but also for related sectors such as office space for companies entering the market.
There will be significant activity in these areas in the coming years.
Is there ample liquidity on hand?
There are opportunities, but governments need to take a more proactive, pro-business stance to attract and facilitate investment. In the current environment, this is becoming a necessity rather than an option.
Liquidity exists, but local players will need to become even more flexible and professional in their approach. We are likely to see more joint ventures and partnerships emerging, as investors seek local expertise and risk-sharing structures. This will create substantial opportunities across the region.
