In the first quarter of this year, the Central and Eastern Europe (CEE) region saw continued appetite for investment in commercial real estate. According to estimates by Colliers, this could result in another record year.
The total volume of commercial real estate investment in the CEE region reached €2.1 billion in the first quarter of 2026. While this represents a 29% year-on-year decline, the drop is due primarily to the exceptionally strong comparison base from last year. 2025 was exceptional for real estate investment in the region—total transaction volume exceeded €11.6 billion, representing the highest figure in the past five years and more than double that of 2023.
The outlook for the entire year for 2026, however, remains very positive. Colliers analysts estimate the volume of investment in CEE at between €11.5 and €12 billion: roughly at last year’s level or slightly above it. “While the Czech Republic is unlikely to repeat last year’s exceptional performance, when the Czech share of investment approached that of the much larger Polish market, the region is expected to grow. We will see a return to a landscape where Poland dominates, Hungary is growing, and Prague remains an expensive but reliable market for investors who are not seeking the highest returns but the highest certainty,” summarises Josef Stanko, director of market research at Colliers, speaking about the results for the first quarter of this year.
The most aggressive prices are in Prague.
The Czech Republic has long been among the most active investment markets in the region, and last year confirmed this. While the first quarter of this year appears subdued at first glance, Prague maintains a special position in the CEE region. This is particularly true from the perspective of yields. Office properties are at 5.25%, and retail spaces in the form of shopping centres offer a prime yield of 6.0%. Behind these price levels in Prague lie lower perceived risk, market depth and liquidity—factors with which other major cities in the region struggle to compete.
Polish dominance and the Hungarian surprise
Poland was the region’s strongest performer in the first quarter of this year. Investment volume there approached €1.1 billion, representing year-on-year growth of more than 40%. Poland thus accounted for exactly 50% of all investments in the region.
The real surprise, however, is Hungary. After years of caution—reflecting a combination of political uncertainty and Budapest’s strained relations with its EU partners—capital has returned with unexpected vigour. The volume exceeded €325 million, nearly double that of the first quarter of last year and the strongest start since 2018. “This year’s elections have not deterred investors; on the contrary, both domestic and regional investors see the Hungarian market as an opportunity, not a risk. If this trend continues, Hungary could reach an investment volume comparable to that of the Czech Republic on a year-on-year basis,” notes Josef Stanko, adding that Czech capital accounted for approximately €460 million of the total CEE regional investments worth €2.1 billion.
Economy and Geopolitics
Higher energy prices are once again pushing inflation forecasts upward and pushing back realistic expectations for interest rate cuts. While geopolitical tensions have not disappeared, markets have learned to live with them. The key difference from 2022, when an inflationary wave followed the invasion of Ukraine, is that this time around, demand is more subdued and monetary conditions are already in restrictive territory. Investors are more selective: choosing assets and locations more carefully and increasingly relying on domestic and regional capital that is better suited to longer holding periods and does not require a quick exit.
