The investment panel at the 2025 CEE Property Forum brought together leading dealmakers to examine how the flow of capital into the region is being reshaped by a mix of global uncertainty and local opportunity. Guided by moderator Philipp Zschaler, Managing Partner and Head of the Real Estate Industry Group at Andersen Germany, the discussion moved beyond headline trends to explore how investor profiles, pricing expectations, and cross-border strategies are shifting as markets across Central and Eastern Europe recalibrate.
Peter Heckelsmüller, Head of Acquisitions & Sales for CEE, Austria, and Switzerland at Deka Immobilien, acknowledged past market headwinds, including capital outflows related to rising interest rates and competition from bonds. He remarked, “Our focus has been on managing liquidity, executing successful sales, and ensuring that every sale leads to a reinvestment that refreshes our portfolio. As we look forward, we’re targeting new acquisitions mainly in core markets—Germany, Paris, Australia, Switzerland—and also see more opportunities in Central and Eastern Europe where acquisition yields remain compelling.” He emphasised Deka’s ongoing commitment to office, hotel, and logistics assets, admitting, “Roughly two-thirds of our investments remain in offices, but we are observing a healthy recovery in the hotel sector and are actively pursuing logistics deals across prime cities like Warsaw, Prague, and Vienna.”
Christopher Mertlitz, Managing Director and Head of European Investments at W. P. Carey, offered his perspective on the competitive landscape. “The market is seeing a noticeable split: smaller deals attract a wider range of local and private capital, while the number of active investors for deals over €100 million has thinned considerably. This has heightened the importance of having access to pre-raised capital and the flexibility to transact in an all-equity environment,” he remarked. Mertlitz further addressed shifting buyer profiles, noting, “We’re at a point where buyers’ and sellers’ expectations are starting to converge. There’s renewed optimism about investment volumes picking up in 2026, especially as more core capital re-enters the regional market.”
Bringing a regional lens, Andrei Văcaru, Head of Capital Markets CEE at iO Partners, described the ascent of local capital sources: “Recent years have seen local capital rise to a level of importance not witnessed before, particularly in markets like the Czech Republic and Hungary. While Middle Eastern investment is present, its overall influence remains marginal except in cases of large, strategic transactions.” Văcaru cautioned that “the makeup of investors—and even the definition of a ‘core’ player—is shifting as regional funds become more significant players, often outpacing larger, traditional Western European groups.”
Adrian Karczewicz, Head of Divestments CEE at Skanska, reflected on CEE’s outperformance compared to other global regions, positioning Poland and neighbouring markets as rising stars for investment: “Central Europe currently stands out compared to our projects in the Nordics and the US. The positive sentiment from our head office and shareholders reflects growing confidence in the Polish and CEE markets, with new developments actively underway in capital cities and regional hubs.” He highlighted that GCC capital is finding its way indirectly into the region, particularly in industrial portfolios, and noted, “Direct investments—especially in hotels—are already happening, with sovereign funds from the Middle East securing prime assets in cities like Warsaw.”
Benjamin Perez Ellischewitz, Principal at Avison Young in Hungary, pointed to structural change in the hospitality sector. “Hospitality transactions barely registered in central European investment volumes a few years ago. Now, they account for nearly 20% of the Hungarian market, driven by strong demand from both traditional operators and new brands entering hybrid and boutique segments,” he underscored. Perez Ellischewitz detailed deal diversity as a hallmark of the current market, explaining, “We’re seeing everything from €20-30 million boutique hotel sales in city centres to trophy assets changing hands for over €100 million. The influx of new operators and the resilience of tourism are fuelling this trend.”
Victor Constantinescu, Partner and Co-Head of Real Estate at Kinstellar, addressed the regulatory environment: “The landscape is continuously shaped by government involvement and regulatory changes—from anti-monopoly and foreign direct investment clearance to nuanced populist measures. While there are no systemic issues on the horizon, the key to thriving as an investor in CEE is flexibility and opportunism, particularly as governments roll out new defence and industrial policies. This region offers a boom market for those prepared to adapt quickly.”
As the panel drew to a close, participants shared their forecasts for the year ahead. While outlooks varied, consensus emerged around resilience and adaptability. “We are living in a complex and unpredictable environment, but that creates opportunities for those paying close attention,” one speaker summed up. In Zschaler's words, “The great capital hunt may pose more questions than answers in 2026, but with such diverse expertise and a region in transformation, the CEE market is poised for a dynamic—and potentially rewarding—year.”
