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.

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.

The CEE office market has been coping with post-COVID consequences and forcing both landlords and tenants to explore opportunities to improve space utilisation. Expert speakers at CEE Property Forum 2024 in Vienna have revealed interesting strategies for the best office assets in the panel dedicated to the office market.

We have previously published insights on the recovery efforts in Ukraine, and we would like to share some remarkable examples of how commercial projects damaged by missile attacks are being rebuilt. Shopping malls, office buildings, and logistics centres are often prime targets during hostilities, yet Ukrainian businesses are showcasing extraordinary resilience as evidenced in this summary prepared by the Ukrainian Real Estate Club for Property Forum.

CPIPG has published unaudited financial results for the Q3 period 2024. The company is planning to continue in its disposals also in upcoming years. To execute this CPIPG has strengthened its team.

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.