Colliers: Central and Eastern European commercial real estate market recovery continued in the first quarter

Growth was also recorded in most Central and Eastern European markets, including Hungary, where investment in the commercial real estate market exceeded €165 million, almost 50 percent of the total volume last year. In Hungary, the hotel sector was the focus of investor interest in the first quarter, alongside industrial real estate.

In the Central and Eastern European (CEE) region, investment volumes increased in all real estate segments except residential real estate in the first quarter of 2025. The industrial and logistics market led the growth with €800 million.

They highlighted that despite rising wages, CEE continues to operate at a competitive cost level, with high labor quality and increasing R&D investments.

Based on investment volume, the retail market closed in second place, with an annual growth of 38 percent. The sector is supported by increasing purchasing power, while changing consumer habits, price sensitivity and a high interest rate environment are transforming retail investment trends in the CEE region.

The office segment also experienced a significant recovery, with investment volume more than tripling year-on-year. The renewal of the segment is also supported by the transformation of working habits and continuous modernization in the regional markets, which further increases investor interest.

They added that the performance of the hotel sector increased ninefold, far exceeding the trend of the past five years. In the case of the Czech Republic and Hungary, the investment volume in the first quarter of 2025 has already reached or exceeded the full annual value of 2024. The growth is driven by a revival in tourism, targeted promotions and the growing international recognition of Central and Eastern European cities.