Commercial real estate in Central and Eastern Europe has had a strong first half of the year. The volume of investment across six key markets reached €5.8 billion, confirming that both capital and investor confidence are returning to the region. Meanwhile, the Czech market continues to maintain its reputation as one of the safest investment environments in Central Europe, as evidenced by some of the lowest yields on premium real estate in the region. At the same time, Czech capital has significantly sought out more investment abroad. This is most evident in Poland, where Czech investors have outpaced both German and American capital in terms of activity.
According to experts at Colliers, the first half of 2026 marked a clear turning point for the Central European real estate market. “Improving financing conditions, decreasing inflation and solid domestic demand are bringing big money back into the game. However, this is not a broad-based market recovery like the ones we’ve seen in past cycles. Capital is flowing very selectively. Investors are primarily targeting high-quality properties that are resilient to economic fluctuations, meet strict ESG criteria and offer secure long-term returns,” comments Josef Stanko, director of market research at Colliers, noting that projects related to digitalisation, nearshoring and energy transition have gained most notice.
The Czech Republic as an Expensive but Safe Haven
Over €1.4 billion flowed into the Czech commercial real estate market during the first half of the year. The Czech Republic thus accounted for a quarter of the total regional volume. Although this represents a nominal decline compared to last year’s record-breaking first half (€2.2 billion), the market views it more as a stabilisation following an exceptionally strong period.
The Czech market has long been considered the most institutionally stable and least risky in the entire region, a fact reflected in real estate prices. Prime yields in Prague are the lowest across all segments among the six Central and Eastern European capitals that the Colliers team has reviewed. For office space, they stand at 5.25% (compared to 6.25% in both Warsaw and Bratislava), and for industrial warehouses, at 5.00%. The situation is particularly exceptional for premium shopping centres; Prague’s yield of 6.00% is even lower than the average for Germany’s four largest cities (6.63%).
Investor interest in the Czech Republic is currently focused on rental housing (so-called PRS and BTR projects), which account for a significant portion of activity. Investors also continue to eye office buildings. In fact, vacancy rates for these properties have fallen in central Prague, while older and less efficient buildings on the outskirts of the city face the risk of becoming unattractive to tenants. The market is primarily driven by strong domestic capital, but foreign players are also gradually returning to the scene.
Czech Capital Is Conquering the Polish Market
While the supply of premium projects is limited and prices are high at home, Czech investors are buying up properties across the border on a massive scale. Overall, Czech capital has invested €1.9 billion in the region, and despite a slight year-on-year decline, it remains the leading force in Central Europe.
This is most evident in Poland, which, with a transaction volume exceeding €3 billion, dominates the region and is experiencing its strongest first half of the year since 2018. Czech capital accounted for nearly 24% of these Polish transactions and outpaced the Germans (19%), Americans (11%) and Poles (11%) in investment activity.
The Polish market attracts investors thanks to its size and depth. Among other deals, Vantage Development completed a massive acquisition of 18 Resi4Rent residential projects for €575 million —the largest institutional transaction in Polish rental housing history.
A New Phase in the Investment Cycle
From a broader perspective, real estate investment in Central and Eastern Europe continues to grow faster than in Western Europe, despite the more challenging global situation. However, banks’ approach to investment support is changing. While financing terms are improving, lenders remain highly selective. Anyone seeking favourable financing today must present a project with stable income, a strong owner and a clear sustainability strategy. Properties with high energy consumption that require modernisation face significantly greater challenges when negotiating with banks.
Central and Eastern Europe has entered a new phase of its investment cycle. Rather than a general market recovery, the region is now in a more mature phase of recovery. This is one where capital allocation is determined by asset quality, operational performance and long-term strategic significance. With liquidity gradually improving, Central and Eastern Europe is solidifying its position as one of Europe’s most attractive destinations for commercial real estate investment.
