According to data from the international consulting firm Cushman & Wakefield, Central and Eastern Europe (CEE) has strengthened its position as one of the key regions driving investment activity in the real estate market across the Old Continent. CEE is closing 2024 with some of the largest transactions in Europe across all major sectors, reflecting a return of confidence in the region’s economic resilience and its potential for further growth. Experts at Cushman & Wakefield estimate that the total value of investments in the four key CEE markets (Poland, Czech Republic, Slovakia, and Hungary) will reach EUR 7.7 billion. Poland, accounting for 62% of the volume (EUR 4.7 billion), is the leader, followed by the Czech Republic with a 25% share, Slovakia with 9%, and Hungary with 4%.
In the past, CEE accounted for around 4% of the total investment volume in Europe, but forecasts for 2024 indicate that this share could rise to nearly 6%, narrowing the gap compared to Western European markets.
The year 2024 shows an improvement in liquidity, particularly in the key CEE markets, Poland and the Czech Republic. Increasingly active local and international capital is now competing for larger volumes, which is likely to attract and encourage more global funds to the region in 2025,” says Jeff Alson, Head of Capital Markets at Cushman & Wakefield in CEE.
The strengthening of CEE’s position was made possible by several significant buy/sell deals. An example is the spectacular logistics transaction between Blackstone, Contera, and TPG, valued at EUR 470 million, which is the largest deal in this segment in Europe this year. The deal between Blackstone and Contera marks a significant return of Western capital to the CEE region and confirms the strong fundamentals of the real estate market in Central and Eastern Europe, which is supported by high demand, limited supply, and excellent risk-to-return ratios in markets like the Czech Republic and Slovakia,” comments Michał Soták, Head of Capital Markets at Cushman & Wakefield in the Czech Republic.
In addition, NEPI Rockcastle finalized the purchase of the Magnolia Park and Silesia City Centre properties, with the acquisition of both shopping centers for EUR 780 million being one of the most important transactions in the European retail sector. Finally, the largest office market transaction was the sale of the Warsaw Unit office tower by Ghelamco to the Scandinavian investor Eastnine for EUR 280 million.
If Poland achieves EUR 4.7 billion in transactions this year, it will represent a 2.5-fold increase year-on-year, which is unprecedented in Europe. Equally impressive is the balanced activity of investors across different market segments, including retail, office, and logistics sectors, each accounting for EUR 1.2 to 1.5 billion in investment volume,” comments Paweł Partyka, Head of Capital Markets at Cushman & Wakefield in Poland.
Forecasted transaction volumes in Q4 for the CEE region are expected to reach around EUR 3.5 billion, with Cushman & Wakefield participating in 53% of these transactions, handling buy/sell deals worth EUR 1.8 billion. This further strengthens the company’s position as a leader in key CEE markets such as Poland and the Czech Republic.
As experts from Cushman & Wakefield indicate, the rebound of the capital market in CEE reflects a combination of favorable economic conditions in the region, including low unemployment rates, which positively influence consumer sentiment, strong institutional support from the EU, and attractive price margins compared to Western Europe. Looking ahead to 2025, the development trajectory of CEE indicates resilience and growing importance of this region in the European real estate market.
