According to CBRE’s European Investor Intentions Survey 2026, investor sentiment in Central and Eastern Europe (CEE) is expected to improve in 2026. Market participants indicate that it will be a more active year for real estate transactions in the region than the overall European average. While many European markets are moving toward gradual normalization, the CEE region stands out for a stronger growth trajectory, a higher appetite for risk, and greater confidence in the macroeconomic environment.
The survey shows that 58% of investors operating in Central and Eastern Europe plan to increase their acquisition activity in 2026, compared with 56% across Europe as a whole. Disposition activity is even more pronounced: 48% of CEE investors expect to sell more assets, significantly above the European average of 41%. At the same time, the share of investors unwilling to sell has fallen to just 10%, down from more than 22% two years earlier—its lowest recorded level. These trends suggest that the CEE market is entering a phase of accelerated asset rotation, driven both by the search for opportunities and by the need to recycle capital.
Value-add strategies gain importance amid market repricing
In the current market environment, investment strategies are pragmatic. In Central and Eastern Europe, 41% of investors opt for “value-add” strategies, compared with 37% across Europe, while “core” strategies are preferred by 17% in both groups. This points to a stronger emphasis on repositioning, selective refurbishment, and opportunities to generate higher returns as investors navigate liquidity gaps, price discovery, and heightened volatility.
“According to our survey, one in five European investors plans to allocate capital to the Central and Eastern Europe region. London remains at the top of their list, but Warsaw has climbed from fifth to third place, reaching its highest position ever. It has therefore overtaken traditional Western European hubs such as Berlin and Paris,” said Przemysław Felicki, Director in CBRE’s Capital Markets team.
The pricing gap between transaction parties has widened in Central and Eastern Europe, rising from 51% to 59%, while across Europe it narrowed slightly from 64% to 62%. This indicates that tensions between buyers’ and sellers’ expectations persist.
Supportive conditions underpin confidence
Despite elevated risk, investors point to several factors that support confidence in the CEE market. Lower borrowing costs are cited by 59.8% of investors in the region, compared with 46% across Europe, making this the most important supportive factor in CEE. Attractive entry pricing (43.3%) and a reduced pipeline of development projects (40.9%) are also cited more often in CEE than in the broader European sample, reinforcing investment decisions.
At the European level, sentiment has improved significantly: 89% of investors expect acquisition activity to increase or remain stable in 2026, and 83% forecast the same for selling activity. This overall improvement is mirrored in Central and Eastern Europe, where investors increasingly view 2026 as a year of recovery in transaction markets.
Residential remains the market’s cornerstone
Residential real estate remains the most attractive sector across Europe. Investor preferences for residential assets have risen from around 23% in 2022 to nearly 34% in 2026. Logistics, after peaking in 2024, has declined to around 25%, while the office sector has fallen sharply—from almost 39% in 2022 to about 13% in 2026. Retail and hotels have stabilized at low to mid single-digit levels. Investor preferences in Central and Eastern Europe align with this trend.
“Capital allocations are shifting from logistics, which dominated in 2024, toward a more balanced mix of sectors by 2026. Residential real estate remains key, despite still limited investment volumes in some parts of the region. Retail and hotel assets are gaining importance, while offices are seeing a slight rebound in popularity after a steep post-pandemic decline,” Przemysław Felicki added.
CEE cities rise in cross-border investment rankings
There have been notable changes in the 2026 ranking of Europe’s most attractive cities for cross-border real estate investment. London retains its long-standing position at the top, and Madrid and Barcelona secure places in the top five. The most significant shift for Central and Eastern Europe is Warsaw’s rise to third place—its highest result to date—highlighting the growing international appeal of selected CEE markets. This shift coincides with a relative decline in the ranking positions of several traditionally dominant Western European cities.
At the country level, Poland ranks third among European markets expected to deliver the highest total real estate returns in 2026, after Spain in first place and the United Kingdom in second.
ESG shaped by risk sensitivity and pricing
Sustainability continues to influence investment decisions across Europe and in Central and Eastern Europe. Upgrading existing buildings is seen as the most common ESG strategy, prioritized by 67% of CEE investors compared with 63% across Europe. In addition, 33% of CEE investors demand price reductions for assets with poor sustainability performance, compared with 23% in Europe. Meanwhile, 24% are more inclined to avoid such assets altogether, versus 21% at the European level.
Although ESG considerations affect nearly all investors in Central and Eastern Europe, they are often applied to reduce risk and costs rather than to prioritize proactive sustainability improvements. Increasingly, sustainability performance is being directly reflected in asset valuations and investment selection.
