Discounters and CEE brands are expanding rapidly, including cross-border growth within the region - reveals Colliers in its recent “Highlights 2024 & Predictions 2025: Real Estate Market” report.

Key predictions for 2025 include:

Economic Outlook

Colliers forecasts a 2.8% average GDP growth in the CEE region for 2025, with all countries achieving at least 2% growth. Poland is expected to lead with 3.5%. Growth will be fueled by both solid household consumption and rising investments, supported by EU funds, rebounding after a slowdown during the transition to the new EU budget cycle. However, external challenges persist, particularly the weak German industry, which affects the CEE region due to strong trade ties with Germany.

The region’s integration into global supply chains and exposure to geopolitical shifts make it vulnerable, but its adaptability has demonstrated resilience. While rising global protectionism raises concerns, the CEE region could seize the opportunity to expand its role in world trade and attract new investments in a restructured global market.

Office

Hybrid work continues to shape tenant demands as companies prioritize efficiency, employee attraction, and well-being. Demand for smart office solutions, such as remote access management and occupancy analytics, is growing, with ESG-compliant buildings remaining a key focus. Despite sluggish overall demand, interest in high-quality spaces persists, creating a "tale of two markets" across the CEE region.

Investment

Investment activity is gaining momentum, particularly in Poland and Slovakia, with regional investors playing a larger role amid reduced foreign presence. Lower interest rates and a focus on ESG compliance are driving optimism, while potential REIT legislation in Poland could transform the market and influence neighbouring countries.

Industrial

Stabilizing construction costs are enabling new industrial developments, though demand varies regionally. Prime locations and transport corridors in Hungary and Poland attract the most interest, with growing attention from Asian companies in logistics and manufacturing.

Retail

Retail parks dominate new developments, reflecting consumer preferences for convenience and smaller financial footprints for developers. Large-scale projects remain limited due to market saturation, though some gaps persist. Discounters and CEE brands are expanding aggressively, including cross-border activity within the region.

Residential

Rising housing demand from 2024 is expected to sustain upward price momentum, with high-quality projects commanding premiums while outdated properties lose appeal. Build-to-Rent (PRS) schemes continue to grow in popularity.


Colliers