The Czech industrial and logistics real estate market closed Q1 2026 with strong results, completing approximately 307,000 sqm of new space - the second-highest volume of new construction in a single quarter in history. The market added its largest industrial building in modern domestic history, with construction activity remaining high, vacancy rates at a healthy 4.7%, and stable rents.

The Prague office market is showing signs of recovery as the developers launched three new office projects in Q1, and the volume of space under construction rose by 81% year-on-year. Pre-leasing is gradually returning, and there is a growing willingness to build speculatively without pre-secured tenants.

Romanian construction activity increased by over 6% in the first two months of 2026, following a record 2025, and remained the country's only major economic sector showing growth in April, according to Colliers analysis based on Eurostat data.

The European defence sector is undergoing a significant transformation, becoming increasingly diversified, innovation-oriented, and technologically advanced. Supported by defence investments totalling up to €800 billion, this development is directly influencing the geographic distribution of industrial activities and altering the structure of real estate demand across the region, finds a Colliers study.

Leasing transactions for modern office space in Bucharest increased by 14% in Q1 2026 compared to the same period last year, while new demand rose by 24%. However, the market remains below pre-pandemic levels, according to Colliers data.

Administrative costs for modern office buildings in Romania are set to rise by approximately 10% in 2026 compared to last year, according to Colliers. The increases stem from higher property taxes, inflation and rising wages, with utility costs excluded as these are typically billed separately.

Commercial real estate investment in CEE is on track for another record year, with Prague maintaining its position as the region's safest market, according to Colliers.

CEE real estate investment rebounded strongly in 2025, with volumes reaching €11.6 billion across six core markets, representing a 31% year-on-year increase according to Colliers. 

Nearly 9 out of 10 large companies in Romania plan to maintain their current office footprint in 2026, signalling a shift from expansion to optimization, according to a Colliers survey of 101 companies.

Leasing demand for logistics space in Romania dropped 56% to approximately 80,000 sqm in Q1 2026 versus the same period of 2025, according to a report by Colliers.