Wednesday, 29 April 2026
Investment activity in Central and Eastern Europe (CEE) slowed in the first quarter of 2026 compared with the same period last year, although market engagement remains intact, according to recent data from Colliers.
Total investment volumes across the region reached approximately €2.1 billion in Q1 2026, reflecting a decline from the exceptionally strong levels recorded in 2025. However, the reduction is largely attributed to a high comparison base rather than a withdrawal of capital from the region.
Within this context, Poland accounted for more than half of total regional investment activity, with volumes approaching €1.1 billion, representing an increase of over 40% year-on-year and the strongest start to a year since 2022.
The data indicate that investor interest in the region remains, but with a more selective approach. According to Colliers, capital has not exited CEE markets despite ongoing geopolitical tensions, higher energy costs and delayed expectations for monetary easing. Instead, investors are focusing on asset quality, income stability and execution certainty.
Poland continues to act as the core investment market in the region, supported by the scale and diversity of transactions across sectors. Logistics and industrial assets remain the main drivers of activity, while retail has regained investor attention, partly due to portfolio transactions. The office sector has also shown signs of gradual recovery, particularly for well-located assets.
A notable structural trend is the increasing role of domestic capital. Across the CEE region, local investors now account for around 50% of transaction volumes, contributing to improved liquidity and shorter decision-making processes. This shift has supported market stability in a period of broader European uncertainty.
Elsewhere in the region, investment activity showed a more mixed pattern. Hungary recorded a marked increase in volumes, reaching over €325 million, nearly double the level of a year earlier. Bulgaria also reported higher activity, exceeding €100 million, while the Czech Republic and Slovakia experienced a slowdown following record levels in early 2025. These declines are largely explained by timing effects and the strong base of comparison rather than a deterioration in fundamentals.
Sectorally, retail attracted the largest share of investment in the first quarter, accounting for close to €630 million, followed by offices at over €600 million and industrial and logistics assets representing approximately a quarter of total volumes.
The broader macroeconomic environment remains a constraining factor. Higher energy prices continue to exert upward pressure on inflation, while expectations for interest rate cuts have been postponed. Central banks are maintaining a cautious stance, with monetary conditions remaining relatively tight.
Despite these conditions, the market is showing signs of adjustment rather than contraction. According to Colliers, current dynamics differ from earlier periods of economic disruption, with demand more subdued and financial conditions already restrictive, allowing investors to adapt their strategies rather than withdraw.
Overall, the first quarter of 2026 suggests that while investment volumes have normalised after a strong 2025, CEE real estate markets continue to attract capital, with Poland maintaining a leading position in the region.
