Moderate optimism and improving prospects in the Central European real estate sector

By: Trademagazin Date: 2025. 02. 24. 10:54

The majority of Central European real estate market players expect that the economic, investment and financing environment will be more favorable this year than it was in 2024. Deloitte’s seventh real estate market confidence survey provides a comprehensive picture of the business sentiment in the commercial real estate market. Based on the results, cautious optimism prevails among respondents. Despite the ongoing challenges, more than 80 percent of those surveyed expect the economic situation to stabilize or improve and they have a similar opinion regarding bank financing.

Deloitte experts surveyed real estate market experts and decision-makers in Central European countries, including Hungary, for the seventh time, and then analyzed the market sentiment and expectations experienced in the sector based on the responses. Deloitte presents the results of the survey in a recent study.

Regional expectations regarding the economic environment have slightly improved over the past year. Four-fifths of respondents believe the economy will stabilize or improve, with only 19 percent expecting a downturn in 2025. This is the second best result in the past five years. Market participants’ confidence has improved slightly, with more than a third of participants optimistic about 2025. However, this optimism is muted, with nearly half of respondents believing that their business opportunities will be similar to 2024.

The region’s real estate market sentiment was at its worst since the study was conducted in December 2022. At that time, more than half of respondents expected market activity to decline in the following year, and their prediction came true, with the real estate market in 2023 generating the lowest transaction volume in the region since the financial crisis. The business outlook for December 2023 showed a modest improvement in comparison. However, in several countries in the region, 2024 did not bring a real breakthrough in investment. According to the latest Central European survey, the regional outlook is currently more positive than a year ago. More than half of respondents expect investment to increase in the Central European region.