CEE office market hits record low on new construction
Office markets across the six largest CEE capital cities, Prague, Warsaw, Budapest, Bucharest, Bratislava, and Sofia, have entered a new phase characterized by a severe supply crunch.
Office markets across the six largest CEE capital cities, Prague, Warsaw, Budapest, Bucharest, Bratislava, and Sofia, have entered a new phase characterized by a severe supply crunch.
The office markets of CEE's six largest capitals records resilient demand for high-quality space in 2026, although new development has slowed, tightening supply, according to Colliers.
Manova Partners is expanding its investment activities in CEE with a focus on Poland. The international real estate investment manager currently manages a property portfolio in the region worth more than €1.4 billion.
NEPI Rockcastle said its Q1 net rental and related income (NOI) reached €157.7 million, up 3.4% versus Q1 2025. Property NOI increased 3.2% to €155.4 million, while net revenue from energy activities rose to €2.3 million, reflecting the scaling of the group's renewable energy platform.
Administrative costs for modern office buildings in Romania are set to rise by approximately 10% in 2026 compared to last year, according to Colliers. The increases stem from higher property taxes, inflation and rising wages, with utility costs excluded as these are typically billed separately.
CEE real estate investment rebounded strongly in 2025, with volumes reaching €11.6 billion across six core markets, representing a 31% year-on-year increase according to Colliers.
DHL Supply Chain and Pepco have extended their collaboration to strengthen distribution operations across Europe. The expanded partnership aims to ensure product availability, reduce delivery lead times, and enhance network performance for Pepco's growing store footprint.
Industrial developer CTP recorded gross rental income of €205.1 million in Q1-2026, up 12.3% year-on-year with like-for-like rental growth of 4.6%. The company's annualised rental income increased to €849.3 million by the end of March 2026.
The EU's downward trend in transport costs ended abruptly in March 2026, with Romania emerging as one of the most heavily impacted member states.
CEE is transforming from Europe's periphery into a defence industry powerhouse, according to a new KPMG study. The region's combination of cost efficiency, industrial capacity, and strategic location is attracting investment as European defence spending increases.
Romania emerged as the most dynamic mergers and acquisitions (M&A) market in Central and Eastern Europe (CEE), recording 9% growth in transaction numbers during 2025.
Real estate investor GTC has leased over 150,000 sqm of commercial space in 2025 across 30 office complexes and six shopping centres in CEE.
Construction costs and plot acquisition have become the primary concerns for real estate developers in Central Europe in 2026, affecting 27% and 25% of companies respectively, according to a Deloitte report.
Commercial property investment in CEE rebounded strongly in 2025, with a combined volume of €11.3 billion across Czech Republic, Poland, Hungary, Romania and Slovakia. This represents a 34% year-on-year increase and stands 24% above the five-year average, according to data by Knight Frank.
The Middle East conflict is driving up energy prices and pushing inflation higher across CEE. Oil and gas shocks hit import-dependent economies hardest, forcing central banks to postpone planned rate cuts as markets turn risk-off, according to an analysis by ING Bank.
NEPI Rockcastle, the largest owner of shopping centres in CEE, said its net operating income rose 11.2% year-on-year to a record €618 million in 2025, while the distributable earnings increased 6.7% to €441 million.
MOL Group disclosed its financial results for 2025, showing profit before tax of $1.3 billion, representing an 11% decrease compared to 2024. The Hungarian energy company faced a challenging macroeconomic environment, but strong downstream and consumer services results supported overall profitability.
CEE property investment reached a turning point in 2025, with transaction volumes across the region's six main markets totalling €11.6 billion, representing 31% annual growth according to Colliers' latest analysis.
SafeFleet, one of Romania's largest fleet monitoring companies, closed 2025 with 15% revenue growth compared to the previous year.
The Austrian Post Group has acquired 100% of Hungarian parcel service provider Delivery Solutions Zrt., operating under the brand Sameday Hungary.

Enevo Group and Kraftfeld have signed a contract for the construction of a battery energy storage system (BESS) with a power of 110 MW and a capacity of 220 MWh, at Drăgăneşti-Olt, in Olt county, Romania.
Premier Energy has signed an up to €825 million Bridge Facility Agreement with J.P. Morgan and UniCredit to fund the acquisition of the Evryo Group, including its electricity distribution subsidiary, Distributie Energie Oltenia, as well as to refinance approximately €100 million of current indebtedness.
The Competition Council has authorised the transaction through which Pavăl Holding intends to acquire the Carrefour group in Romania.
Softronic Craiova has completed the modernisation of the 19 electric locomotives contracted by national rail operator CFR Călători through the National Recovery and Resilience Plan (PNRR).
Hagag Energy, the energy investment platform of international investor Hagag Europe, has appointed Pavel Ciubotaru as Chief Operating Officer (COO) of its Natural Gas Division.