The first half of 2026 marked a turning point for Central and Eastern European real estate investment markets. Investors are once again deploying capital across the region, but with a much stronger emphasis on quality, operational resilience and future-proof assets rather than broad market exposure.
The recovery reflects improving financing conditions, lower inflation across much of the region and increasing confidence that CEE continues to offer attractive long-term growth prospects supported by resilient domestic demand, nearshoring, digitalisation and energy transition.
Poland remains the region's investment leader
Poland once again accounted for more than half of total CEE investment activity, with transaction volume exceeding EUR 3.0 bln, representing its strongest first-half performance since 2018.
The market recorded major transactions across retail, offices, logistics and residential assets, highlighting its exceptional liquidity and sector diversification.
Among the landmark deals was the EUR 575 mln acquisition of 18 Resi4Rent projects by Vantage Development, the largest institutional PRS transaction ever completed in Poland. Retail also recorded exceptional activity, including the sale of a 70% stake in Posnania shopping centre.
Supported by strong economic growth, substantial EU investment and resilient domestic consumption, Poland continues to strengthen its position as the region's primary investment destination.
The Czech Republic and Hungary continue to strengthen
The Czech Republic recorded investment volumes exceeding EUR 1.4 bln, maintaining its position as one of the region's most stable and institutional markets. Although below the exceptionally strong first half of 2025, activity remained supported by domestic capital, limited availability of prime investment product and stable macroeconomic fundamentals.
Hungary delivered one of the region's strongest recoveries, with investment approaching EUR 600 mln, its best first-half performance since 2021. Improving macroeconomic sentiment, sharply lower inflation and stronger domestic investor activity contributed to renewed market momentum after several challenging years.
Investors focus on quality over quantity
The composition of investment activity demonstrates how investor priorities continue to evolve.
Offices regained their position as the largest investment sector, followed closely by retail, while residential and logistics assets continued to attract significant capital.
Across all sectors, investors are increasingly prioritising:
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resilient cash flow and secure income;
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ESG-compliant, energy-efficient buildings;
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prime locations with strong occupier demand;
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assets offering refurbishment and repositioning potential; and
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long-term relevance supported by structural economic trends.
Rather than pursuing cyclical opportunities, investors are focusing on assets aligned with nearshoring, digital infrastructure, urbanisation, demographic change and the energy transition.
Financing conditions continue to improve
Debt markets have become noticeably more supportive than during the past two years, although lenders remain highly selective.
Banks continue to favour assets with strong sponsors, stable income streams and credible sustainability strategies, while buildings requiring significant capital expenditure or exhibiting weak energy performance are facing more challenging financing conditions.
This increasingly disciplined lending environment is reinforcing the market's flight to quality and supporting pricing for prime assets.
CEE Growth Premium Continues to Support Investor Confidence
Despite a more challenging global environment, Central and Eastern Europe continues to outperform Western Europe, supported by stronger economic growth and resilient domestic demand. While the outlook varies across individual markets, the region's long-term fundamentals remain compelling. Structural trends such as nearshoring, defence spending, infrastructure investment and reindustrialisation, combined with CEE's competitive costs, strategic location and strong EU integration, continue to reinforce the region's attractiveness as a destination for real estate investment.
Outlook: confidence returns, but discipline remains
Despite ongoing geopolitical uncertainty and elevated interest rates, the outlook for the second half of 2026 remains cautiously optimistic.
Active transaction pipelines, improving macroeconomic conditions and growing participation from domestic and regional investors are expected to sustain investment activity throughout the remainder of the year.
Capital has returned to Central and Eastern Europe, but it is flowing selectively towards assets that are future-proof. Investors increasingly recognise that resilience, operational excellence and sustainability are no longer defensive characteristics—they have become the primary drivers of long-term value creation.
Grzegorz Sielewicz, head of economic & market insights, CEE
Central and Eastern Europe has entered a new phase of its investment cycle. Rather than a broad market rebound, the region is experiencing a more mature recovery in which asset quality, operational performance and long-term strategic relevance determine where capital is allocated. As liquidity continues to improve, CEE is reinforcing its position as one of Europe's most compelling commercial real estate investment destinations.
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