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. 

Immofinanz Group has announced the completion of the minority shareholders of S Immo, at a price of €22.05 per share, as of December 3. 

The total volume of investments from six CEE countries reached €5 billion in the first three quarters of 2024, and next year the regional real estate investment market could exceed €10 billion, according to a Colliers report.

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.

Property investor Alfi Real Estate Fund has expanded its portfolio with the acquisition of Planet Koper shopping mall in Slovenia, the company announced on LinkedIn.

The international Hilton brand is set to debut in the Republic of Moldova's hospitality market by opening its first hotel in Chișinău. 

Construction activity in the 19 Euroconstruct countries is projected to decline by 2.4% in 2024, while next year it should return to growth, with an estimated rate of 0.6%, according to the conclusions of a conference held in early December 2024, in Milan. 

Price pressure and uncertainties still exist in the residential market in CEE. Build-to-sell is dominant and build-to-rent has already started in some countries. According to the panel focusing on the challenges and opportunities in the residential market at CEE Property Forum 2024 in Vienna, stabilised construction costs and lower mortgage prices, however, may boost investments.

Close to 80% of the office stock is at risk of obsolescence in markets such as Amsterdam, Paris and London, while in CEE-based capital cities this figure stands at an average of 43%, according to a report by Cushman & Wakefield Echinox.