In H1 2024, Central Europe’s* commercial real estate market is experiencing a cautious yet measurable recovery, highlighted by a 43.4% year-overyear increase in investment volumes, particularly driven by a resurgence in Poland. Despite the ongoing economic challenges, sectors such as logistics and industrial real estate are showing strong resilience.

Looking forward, the CEE commercial real estate market is anticipated to continue its recovery trajectory, with a projected annual growth of 10% – 15% over the next few years. The industrial and retail sectors are expected to outperform, while office spaces may see a slight decline. The anticipated return of international capital could further strengthen the market, though local investors are likely to remain key players in the interim.

Logistics and Industrial sectors lead the market

In H1 2024, the logistics and industrial sectors continued to lead the commercial property market in Central Europe. The ongoing evolution of supply chains, combined with a stabilizing e-commerce environment, has bolstered demand. However, the office sector remains under pressure due to the persistent shift towards remote work, which continues to influence leasing decisions.

The trend towards local capital sources has continued in H1 2024, with regional investors accounting for a growing share of total investment volumes. This shift highlights the strategic importance of local knowledge in navigating the current market conditions, especially as Western capital remains cautious amidst global economic uncertainties. While this trend could partly reflect the retreat of Western investors, it also underscores the increasing confidence and capacity of CEE capital to take a more prominent role in driving investment activity across the region