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.

Prague's office market is experiencing a supply shortage that will continue through 2026, with vacancy rates dropping to just 5.9% - the lowest since early 2020, according to a report by Colliers. Despite strong demand, limited new construction is creating tension in the market.

Shopping centres outside Bucharest were the most attractive real estate asset class for investors in 2025, accounting for almost 40% of the total transaction volume, according a new report by Cushman & Wakefield Echinox. Bucharest office buildings came second, with a 30% share in the total investment volume.

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.

Kyiv’s office market posted moderate growth in 2025 despite continued uncertainty. Annual gross absorption rose by 26% y/y to around 160,000 sqm, with total leasing activity reaching 165,000 sqm. However, market experts note that demand remained uneven and was only partly driven by organic business expansion, the URE Club writes in an article for Property Forum.

Wing has successfully closed its €100 million bond programme launched last year with substantial oversubscription. The final tranche, with a nominal value of €34.8 million, attracted purchase orders totalling €57.64 million at a fixed annual interest rate of 6%.

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

Data has become mission-critical to real estate fund management, shaping investment decisions, operations, regulatory compliance and investor confidence. Yet many European real estate managers still rely on fragmented systems, inconsistent standards and legacy processes that prevent data from being used effectively. The result is growing operational friction and a narrowing path to alpha, writes Sylwia Toczyska, Enterprise Account Management at Vistra Fund Solutions, in an article for Property Forum.

Crescon has started construction of the residential project Rezidence Starochodovská in Prague 11, featuring over 80 units, which is slated for completion at the end of 2027.