Sunday, 19 October 2025
A quiet shift in financial power is reshaping Central and Eastern Europe’s real estate landscape. For the first time, domestic investors are driving the region’s property growth, supported by an equity base exceeding €35 billion. This marks a turning point where local capital is replacing the long-standing dominance of Western institutional investors.
Over the past year, markets in Poland, the Czech Republic, Slovakia, Hungary, Romania, and the Baltics have experienced a stabilizing wave of investment from home-grown funds. As higher interest rates and tighter lending slowed foreign inflows, locally regulated investment vehicles, pension funds, and public institutions stepped in to maintain market momentum. These regional investors are now focusing on income-producing assets, sustainable development, and long-term value creation rather than speculative short-term gains.
At the top of the regional hierarchy, CPI Property Group and NEPI Rockcastle remain the most influential, jointly managing more than €25 billion in assets. CPI has continued to adjust its portfolio toward logistics and residential sectors, while NEPI Rockcastle’s retail dominance in Romania, Poland, and Bulgaria is supported by strong consumer recovery and robust tenant demand.
Beneath these market leaders, a new class of domestic investors has taken shape. In the Czech Republic, REICO ČS Nemovitostní Fond and ZFP Realitní Fond now manage a combined €1.7 billion. Slovakia’s IAD Investments, through its Prvý Realitný Fond, has surpassed €575 million in assets, establishing itself as a key institutional player. Hungary’s open-ended funds — including Erste Ingatlan Alap, OTP Ingatlan Alap, Raiffeisen Ingatlan Alap, and Diófa AM — collectively manage more than €4 billion, providing steady capital inflows even during market slowdowns.
Further north, Baltic funds such as EfTEN Real Estate Fund AS and Lords LB Asset Management together control over €1.5 billion, marking an important step in the institutionalization of property investment across Estonia, Latvia, and Lithuania. Meanwhile, in Poland, PFR Nieruchomości, the state-backed housing investment platform, continues to expand its residential portfolio alongside private partners like Echo Investment and Griffin Capital Partners through their joint Resi4Rent platform.
A defining feature of this evolution is improved transparency and regulation. National financial authorities — from Prague’s CNB to Budapest’s BAMOSZ — have tightened oversight, aligning fund governance with EU standards. This has boosted investor confidence, encouraging both retail and institutional participation.
Across the region, investors are increasingly prioritizing ESG compliance and sustainability in their strategies. Major funds such as REICO and IAD are aligning with EU disclosure frameworks, while larger groups like CPI and NEPI have committed to carbon neutrality targets for 2030. The focus has shifted toward renovating existing portfolios, reducing emissions, and improving energy efficiency.
Transaction data across 2024 and 2025 shows a clear trend toward local ownership. Assets once held by Western investors are being acquired by domestic funds, often financed by domestic savings and pension schemes. In Prague and Warsaw, local buyers now outnumber international bidders in several high-value transactions — a development few anticipated a decade ago.
As 2026 approaches, the region’s investment climate appears more stable than it has been in years. With inflation easing and interest rates expected to decline, local investors enter the new year with stronger equity positions and reduced refinancing pressure. Analysts describe this as the emergence of the first truly independent institutional cycle in Central and Eastern Europe — driven not by imported capital, but by the region’s own economic strength and financial discipline.
In total, the top 20 CEE real estate investors now collectively manage over €35 billion in equity and assets, signalling a new era in which property ownership, development, and financing are increasingly defined within the region itself. The days when Central Europe’s property fortunes depended solely on London or Frankfurt may soon be history — replaced by a network of home-grown investors building the foundations of long-term, self-sustained growth.
Editor’s note:
Data verified from audited and regulatory filings for Q3 2025.
Combined equity and NAV values rounded to the nearest €0.1 billion.
Exchange rates based on the ECB average for Q3 2025.
Disclaimer: Figures and rankings are based on public data and estimates as of Q4 2025 and do not constitute verified financial statements or investment advice.
