Around 20 million sqm of modern retail space across the CEE-6 and Baltic markets is more than 15 years old, driving a new wave of refurbishment, repositioning and selective redevelopment, according to Colliers' ExCEEding Borders Retail 2026 report. Total modern retail stock across the analysed markets stands at approximately 33.3 million sqm, of which more than 10.6 million sqm is already over 20 years old. The ageing profile reflects the development boom of the late 1990s and early 2000s. Budapest has the highest share of stock over 15 years old at 84%, followed by Riga at 76% and Warsaw at 70%, with Tallinn, Bratislava, Prague and Vilnius all exceeding 60%.
"CEE's retail market is moving from expansion to optimisation. The scale of mature stock creates significant investment opportunities, but there is no universal solution. Depending on the asset's location, competitive position and physical characteristics, the appropriate strategy may range from tenant-mix optimisation and refurbishment to a change of format or comprehensive redevelopment," said Wojciech Wojtowicz, Senior Business Analyst, Market Insights, Colliers.
In contrast to parts of Western Europe, where obsolete shopping centres are being converted into residential, logistics or mixed-use developments, many CEE retail assets continue to benefit from relatively healthy occupancy. Modernisation rather than wholesale redevelopment therefore remains the dominant strategy across much of the region. Landlords are broadening tenant mixes to include food and beverage, leisure, entertainment, health, wellness, fitness, healthcare, co-working and community services, all of which are less exposed to online substitution than traditional goods retail.
"Population ageing does not necessarily mean a shrinking consumer market. CEE households are becoming wealthier, while purchasing power is increasingly concentrated in the region's largest cities. At the same time, an ageing population and a shift towards more service-oriented consumption are changing the structure of demand. Retail destinations will therefore need to offer more than traditional shopping, strengthening the case for the modernisation and repositioning of mature assets," said Grzegorz Sielewicz, Head of Economic and Market Insights, CEE, Colliers. This evolution is already visible across the region. In Estonia, centres such as Tallinn's T1 Centre have reduced reliance on traditional retail by introducing recreational, sports, beauty, wellness and office uses. In Lithuania, MADA in Vilnius is undergoing major reconstruction to create a community-oriented lifestyle destination. In Slovakia, Vivo! Bratislava has repositioned towards daily needs and value-oriented retail, including a dual-supermarket concept.
Poland provides some of the clearest examples of mixed-use transformation, with former retail sites such as Pasaż Tesco in Gdynia and Malta in Poznań being redeveloped for residential use. In Latvia, the redevelopment of MOLS in Riga will create a mixed-use destination incorporating retail, dining, healthcare, hospitality, co-working, sports, wellness, leisure and events, centred on a planned 8,650 sqm public square. Retail parks, which are generally younger than enclosed shopping centres, are following a different path, with owners focusing on ESG upgrades, convenience-led retail and improvements to the customer experience rather than large-scale repositioning. Some older hypermarket-led schemes in Poland and Czechia are being converted into modern retail parks as an alternative to full redevelopment.
