Wednesday, 19 August 2026
Commercial real estate investment across Central and Eastern Europe continued to recover during the first half of 2026, with transaction volumes across the five main regional markets exceeding €5.5 billion. Activity increased by 6% compared with the same period of 2025, although the improvement was unevenly distributed, with Poland accounting for more than half of the capital deployed.
According to Knight Frank’s CEE Investment Market H1 2026 report, Poland generated 55% of investment across the five markets covered, followed by the Czech Republic with 26%. Hungary represented 11%, while Romania and Slovakia each accounted for 4%.
Poland recorded the strongest increase, with investment volume rising 77% year-on-year during the first six months of 2026. Hungary also moved higher, recording a 24% increase as transaction activity strengthened following a weaker period.
The Czech Republic moved in the opposite direction, with first-half investment falling 33% compared with a particularly strong 2025. Despite the decline, approximately €1.5 billion of property changed hands during the period, leaving the country firmly established as the region’s second-largest investment market. Slovakia and Romania recorded declines of approximately 48% and 45%, respectively, as fewer major transactions reached completion.
The composition of investment is also changing. Offices were the largest asset category during the first half, attracting approximately €1.5 billion and representing 27% of the regional market. Office transactions were particularly important in Hungary, Romania and Slovakia, while significant deals were also completed in Poland and the Czech Republic.
Retail followed closely with €1.4 billion, equivalent to 25% of investment. The figure is already equal to around 73% of the retail volume recorded during the whole of 2025. Poland was responsible for €1.03 billion of this activity, reflecting the return of larger shopping-centre and portfolio transactions to the market. Elsewhere in the region, retail investment remained more concentrated on smaller retail parks and convenience-oriented properties.
Industrial and logistics property accounted for 19% of regional investment, with transactions totalling approximately €1.04 billion. Poland represented around three quarters of that amount. Buyers have remained selective, with demand concentrated on properties supported by longer leases and established occupiers, including sale-and-leaseback transactions and build-to-suit facilities. US investors accounted for the majority of industrial investment in Poland during the period, according to Knight Frank.
One of the more significant developments has been the growing institutional role of rental housing. Living assets represented 21% of CEE investment during the first half following several large transactions in Poland and the Czech Republic. These included the Resi4Rent and Vantage transaction in Poland, several forward-purchase agreements in Prague and Wood & Company’s acquisition of a 760-apartment rental portfolio in southern Prague.
Hotels represented 4% of investment, with the Czech Republic accounting for 62% of hotel transactions across the five markets. A further 4% of regional investment was allocated to mixed-use properties.
A notable feature of the current recovery is the importance of capital originating within CEE itself. Czech investors deployed approximately €2 billion across the region during the first half of the year, equivalent to 36% of total commercial property investment. Domestic buyers accounted for 75% of investment in the Czech Republic, compared with 30% in Romania, 15% in Slovakia and 11% in Poland.
At the same time, the investor base is gradually becoming more international. Knight Frank reports renewed participation from US, Asian and South African capital alongside increasing Western European interest, including French SCPI funds.
The economic background could provide additional support during the remainder of the year. Poland’s GDP is forecast to grow by 3.7% in 2026, while Czech economic growth is projected at 2.2%. Knight Frank expects the major CEE economies covered by the report to be growing faster than both the EU and eurozone averages by 2027, although inflationary conditions continue to vary considerably between countries.
For the second half of 2026, Poland is expected to remain the principal source of regional transaction growth. Knight Frank forecasts approximately €6 billion of Polish commercial property investment for the full year, which would represent the country’s highest annual volume since the pandemic. Offices and retail are expected to contribute to the increase, while industrial property is forecast to maintain a significant share of activity.
The Czech market is expected to finish the year at close to €3 billion. Although below its exceptional 2025 result, this would remain above its longer-term average. Prague offices are expected to contribute more strongly during the second half, while industrial property and build-to-rent remain active investment segments.
Hungarian investment could exceed €1 billion for the year, supported particularly by office and retail transactions. Slovakia is expected to see some improvement following a relatively subdued first half, with industrial assets likely to contribute to activity. In Romania, the outlook has already been strengthened by AFI’s acquisition in July of six open-air shopping centres from MAS for almost €200 million, leading Knight Frank to expect 2026 investment to exceed last year’s level.
Pricing remains markedly different across the region. The report’s H1 prime yield comparison puts Czech industrial and office property at 5.00%, compared with 6.25% and 6.00% respectively in Poland. Hungary stood at 6.75% for industrial and 6.50% for offices, Slovakia at 6.00% for both categories, and Romania at 7.50% for industrial and 7.25% for offices. Prime shopping-centre yields ranged from 5.75% in the Czech Republic to 7.25% in Romania.
Knight Frank expects yields to remain broadly stable across most CEE markets and sectors while international investors gradually increase their presence. Regional capital, and Czech investors in particular, is nevertheless expected to remain an important source of liquidity. With investment already above €5.5 billion at the halfway point, the second half of 2026 will test whether the recovery can broaden beyond Poland and translate improving investor sentiment into higher transaction volumes across the rest of the region.
