The first half of 2025 saw continued improvement in the commercial real estate market in Central and Eastern Europe (CEE). According to data from Knight Frank, the total value of investment transactions across the five key markets in the region (Czechia, Poland, Romania, Slovakia, Hungary) reached nearly €5 billion, equivalent to almost 60% of the total volume recorded in 2024. Czechia emerged as the leader with €2.1 billion, surpassing Poland for the first time, where €1.7 billion was registered. Together, the two countries accounted for 77% of all investment activity in the region.
The logistics sector maintained its leading position, attracting 32% of the total investment volume, particularly in Czechia, Poland, and Slovakia. Its popularity stems from strong fundamentals, stable income streams, low risk levels, and structural trends such as the growth of e-commerce and nearshoring. Offices ranked second (23%), followed by retail (16%), hotels (11%), and residential (8%).
Among the largest transactions were Blackstone’s acquisition of the Contera portfolio (assets in Czechia and Slovakia) for €470 million, PPF Real Estate’s purchase of the Hilton Prague and Four Seasons Hotel Prague, and a record sale & leaseback of Eko-Okna’s production facilities in Poland, valued at €253 million.
“In Poland, we are seeing the return of large institutional investors, so far mainly in the logistics segment. It is also worth noting the dynamic development of domestic capital activity—a trend that just five years ago was marginal in the commercial real estate sector but now accounts for 15% of the total transaction volume. We expect its share to continue to grow,” commented Dorota Lachowska, Head of Research at Knight Frank Poland.
The CEE Investment Market report also highlights the increasing role of domestic investors across the region. In Czechia and Hungary, they accounted for 78% and 80% of volumes, respectively; in Romania, 35%; and in Poland, 15%.
“The Czech investment market stands out for the strong presence of domestic capital, which dominates the largest transactions. Solid economic fundamentals, stable demand in the logistics sector, and prospects for rental growth in prime office space make our market particularly resilient,” added Lenka Šindelářová, Head of Research & Advisory at Knight Frank Czechia.
Outlook for the second half of the year remains positive, supported by a stable pipeline of transactions, sustained prime yields, and falling interest rates. Sectors expected to lead the market include offices (across all CEE countries), industrial properties (in Poland and Slovakia), and retail (in Czechia and Romania).
“Romania continues to offer the most attractive yields in the region, strengthening its position as a key destination for international capital. In H1 2025, the office sector staged an impressive comeback, accounting for nearly one-third of investment value, while retail assets captured a 42% market share. Activity was mainly concentrated in retail parks, which remain the preferred format for both investors and tenants thanks to their flexibility, strong performance in regional cities, and stable consumer demand. This balanced sectoral structure underscores Romania’s resilience and its ability to provide sustainable growth opportunities across asset classes,” said Ileana Stanciu-Necea, Head of Research at Knight Frank Romania.
