Poland is the leader of the region. Billions of euros are flowing into the commercial real estate market

The total value of investment transactions on the commercial real estate market in Central and Eastern Europe last year amounted to approximately EUR 11.8 billion, which means an increase of 34%. year to year – according to Cushman & Wakefield data. This is the best result since 2019.

The largest number of such investments is in the region – 38%. were located in Poland, and slightly less – almost 36 percent. was recorded on the Czech market. Slovakia took third place with a result of approximately 9%.

As Cushman & Wakefield experts noted, in the fourth quarter, significant improvement in liquidity was recorded, confirming a clear return of capital to the region. At the same time, domestic capital accounted for a record 65 percent. total investment volume.

Investment returns for prime assets remained stable. However, the so-called capitalization compression – i.e. a situation in which the prices of facilities grow faster than the income they generate, which leads to a decline in the rate of return – concerned the most attractive office and logistics properties.

Most transactions – 35.9 percent values ​​- included in the office real estate market. 25.5% was invested in the warehouse sector, 23.7% in retail properties, and 9% in hotel properties.

On the Polish market, transactions in office buildings accounted for 39%. investment value, warehouses – 33 percent, commercial properties – 19 percent, and hotels – 8 percent.

“The Central and Eastern European region is entering 2026 with greater price transparency and growing liquidity in local markets. In the case of the most attractive office and logistics facilities in locations with limited supply, we are already observing price increases. At the same time, portfolio transactions and contracts worth over EUR 100 million returned to the market. From the perspective of the capital market, the key phenomenon of 2025 in the CEE region was the unprecedented share of domestic capital. In Poland, domestic investors were responsible for approximately 20 percent of the total transaction volume and approximately 30 percent in the office segment, which is tangible proof of the professionalization of local players,” said Paweł Partyka from Cushman & Wakefield.

According to the company's forecasts, capitalization rates for the most attractive assets will remain broadly stable in 2026, although they may decline slightly in the case of office and logistics properties that meet ESG standards – especially where supply is limited.

“The risk related to, among others, the pace of normalization of interest rates and changes in demand dynamics remains moderate,” said Cushman & Wakefield experts. (PAP)

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