The demand for industrial spaces in CEE is moderating after a record year, with vacancy rates having slightly increased but still at a healthy level. The shift in demand patterns has included larger deals and tenant diversification. Despite challenges, logistics is an attractive asset class with yields comparable to offices and retail, revealed the discussion at CEE Property Forum 2024 in Vienna, chaired by Martin Polák, Managing Director CEE at GARBE Industrial Real Estate.

The biggest growth in Eastern Europe is foreseen in Bulgaria going into 2025, while the rest of the countries are projected to make side moves in the coming years, according to a report by the Eastern European Construction Forecasting Association (EECFA).

CBRE has summarised this year's developments in the Czech commercial real estate market and provides an up-to-date outlook for 2025. The report highlights anticipated investment activity and the evolution of key segments for the upcoming year.

Like other real estate segments, retail has always been adapting to changes in customer behaviour. This evolution thus is a subject of constant investment and innovation, based on the quality and uniqueness of locations. CEE Property Forum 2024 in Vienna has explored financing challenges together with the importance of data-based decisions in the discussion panel focused on retail.

Countries in the Southeast Europe (SEE) region are making significant efforts to adapt EU regulations in order to attract international investors. Several nations have successfully utilized both domestic and foreign capital to improve infrastructure, and certain market segments have outperformed expectations, setting the stage for further development in the coming years. These insights were highlighted during CEE Property Forum 2024, held in Vienna at the end of November.

Investors across Europe will continue to focus on sectors with strong structural tailwinds, such as living and logistics, according to a Knight Frank report. 

The real estate market in Southeast Europe has been influenced by various crises in recent years, leading to lower investment levels. However, in 2025, a growth in investment activities is expected as a result of lower interest rates. Investors are particularly interested in the Balkans region, especially in Serbia, with the highest demand anticipated for investments in the hotel and residential sectors, while demand for office space is somewhat lower. These are some of the conclusions drawn by participants at the 8th edition of Balkans Property Forum 2024, organized in Belgrade by Property Forum.

Only one new office building has been completed in Prague in Q3 of 2024. On the other side, efforts to upgrade some older properties have continued either on an ongoing basis or by temporarily taking them off the market, according to a survey prepared by Colliers. 

According to the 2024 European Purpose-Built Student Accommodation (PBSA) Investment Barometer, conducted by The Class Foundation and Savills, involving investors and operators with portfolios totalling over 132,000 beds across Europe, with an asset value of c.€25.3 billion, respondents expect to increase the number of beds they have by 70% over the next 2-5 years. 

Despite the improving performance, inflation and financing costs remain significant challenges in the hospitality sector in CEE. However, reduced interest rates, stabilised construction costs, and strong recovery in midscale and budget segments may stimulate investment, panellists stressed at CEE Property Forum 2024 in Vienna.