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.

European investors continue to lead commercial real estate investment across the continent, accounting for 48% of activity in Q1 2026, according to BNP Paribas Real Estate data. American investors follow with 31%, while Asia Pacific investors represent just 7% and Middle Eastern investors 2%.

International law firm Pinsent Masons has opened an office in Warsaw with a team of over 40 people. The new office will handle complex investment projects from the outset, focusing on real estate, infrastructure, construction, mergers and acquisitions, banking and finance, and cross-border matters.

GTC reported rental revenues of €202 million for 2025, up 8% from the previous year, while maintaining an 87% occupancy rate across its commercial portfolio.

Demand is rising in the Czech historic property market, with castles, fortresses and historic estates increasingly becoming prestigious locations not only for living but also for business, according to Luxent – Exclusive Properties.

Real estate leaders are pivoting toward agentic AI, which moves beyond simple chatbots. These systems combine autonomy, planning, and memory to execute proactive, goal-driven tasks with appropriate approvals and logging, according to a report by McKinsey & Company.

This week’s news was dominated by annual financial results and industrial investment activity, alongside signals of tightening conditions in key office markets. Here are the most relevant stories shaping the regional market.

The Czech investment market recorded its strongest year ever in 2025, with total investment volume reaching €4.3 billion, significantly exceeding previous highs from 2016 and 2017, according to Colliers.

Central and Eastern Europe’s real estate market continued to show broad activity and evolving dynamics in the third week of February, with multiple reports highlighting leasing momentum, construction growth, investment transactions and sector diversification.

Investors in CEE are entering 2026 with higher activity than their Western European counterparts, according to a new survey conducted by CBRE.