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The Central and Eastern European (CEE) commercial real estate market continued its recovery in the first half of 2026. Investment transaction volume across the CEE-5 region (Poland, Czech Republic, Slovakia, Hungary and Romania) reached EUR 5.5 billion, up 6% year-on-year, according to the latest Knight Frank report, “CEE Investment Market – H1 2026”. Poland remained the region’s largest investment market, accounting for 55% of total CEE-5 volume, while Czech capital continued to play a key role, accounting for 36% of investment capital deployed across the region.
Poland remains the clear market leader
Poland remains the largest and most liquid investment market in Central and Eastern Europe. In H1 2026, transaction volume increased by as much as 77% year-on-year, with Poland accounting for 55% of total CEE-5 investment volume. The Czech Republic accounted for 26%, Hungary for 11%, while Romania and Slovakia each represented 4% of the market.
Poland’s strong performance reflects both solid economic fundamentals and a resilient occupier market. According to Knight Frank forecasts, annual investment volume in Poland could reach EUR 6 billion in 2026, which would be the highest level since the pandemic. Activity is expected to strengthen across all major sectors, with particularly strong rebounds in the office and retail sectors and continued high demand for industrial and logistics assets.
“Poland is once again clearly outperforming other CEE markets in terms of investment activity. The 77% year-on-year increase in transaction volume shows that investors are increasingly recognising the potential of our market, supported by strong economic growth, resilient occupier demand and an attractive premium compared with Western European markets. Importantly, the current stage of the cycle is attracting both domestic and regional capital, as well as an increasingly broad group of international investors,” says Charles Taylor, CEO, Knight Frank Poland.
Czech capital gaining strength across the region and beyond
One of the most significant trends in the CEE market is the growing activity of domestic and regional capital. In H1 2026, Czech investors deployed almost EUR 2 billion in commercial real estate across the region, accounting for 36% of total investment capital invested in CEE. The Czech Republic also remains a market with an exceptionally strong domestic investor base, with local capital accounting for 75% of total investment volume.
The expansion of Czech capital is not limited to the CEE region. Czech investors are increasingly looking for opportunities in Western European markets as well. In 2026, transactions involving Czech investors were recorded in Germany, Austria, Croatia and Slovenia. The strength of Czech investment funds is also reflected in the growth of assets under management, which have been increasing at an average annual rate of 37%.
“The growing scale of Czech capital and the availability of a range of financing solutions are expanding the investment opportunities available to local investors. In H1 2026, Czech capital accounted for 36% of total investment volume in CEE. Given the relatively limited size of the domestic market, investors are increasingly looking abroad for opportunities, both in other CEE countries and in Western European markets. The potential for further expansion of Czech capital remains significant,” comments Josef Karas, Head of Investment, Knight Frank Czech Republic.
Regional investors remain ahead of the international capital comeback
The data shows that domestic and regional capital continues to move ahead of the return of international investors. In H1 2026, domestic investors accounted for 75% of investment volume in the Czech Republic, 30% in Romania, 15% in Slovakia and 11% in Poland. At the same time, investors from the US, Asia, and South Africa are gradually returning to the market, alongside capital from Western Europe, including increasingly active French SCPI funds.
According to experts, this pattern is characteristic of the current stage of the cycle. Local and regional investors, with a deeper understanding of individual markets and the ability to respond more quickly to changes in pricing, are among the first to capitalise on emerging investment opportunities. Their activity is also helping to rebuild market liquidity ahead of a broader return of international capital.
Offices and retail lead investment activity
The office sector led investment activity across CEE in H1 2026, accounting for 27% of total investment volume, or approximately EUR 1.5 billion. Offices were the dominant asset class in the smaller CEE markets, namely Hungary, Romania and Slovakia, while large office transactions were also completed in Poland and the Czech Republic.
Retail was the second-largest sector, accounting for 25% of total investment volume, or EUR 1.4 billion. In just the first six months of 2026, retail transaction volume reached 73% of the full-year volume recorded in 2025. As much as EUR 1.03 billion was invested in Poland, making it the leading CEE market for large shopping centre and retail portfolio transactions.
The industrial and logistics sector accounted for a further 19% of the market, with investment volume reaching EUR 1.04 billion, of which as much as 75% was transacted in Poland. Investors focused primarily on assets offering stable, long-term income, including sale-and-leaseback transactions and build-to-suit (BTS) projects.
The living sector also saw a significant increase in investment activity in the first half of the year, driven by several major transactions, including the largest BTR (Build-to-Rent) transaction ever recorded in Poland, involving Resi4Rent and Vantage. At the same time, several significant forward-purchase transactions were completed in Prague involving domestic institutional investors such as REICO, Mint Living, Dostupné Bydlení České spořitelny and Kooperativa. Together with the largest transaction of the year to date – Wood & Company’s acquisition of a portfolio of 760 rental apartments in southern Prague – these deals increased the living sector’s share of total investment volume in Central and Eastern Europe to 21%.
Hungary back on investors’ radar
Hungary was one of the markets to significantly regain momentum in H1 2026. Investment volume increased by 24% year-on-year, while Hungary accounted for 11% of total CEE investment volume. Improving investor sentiment was supported by a stabilising macroeconomic environment and a decline in 10-year government bond yields to around 5.2%, the lowest level since early 2022.
“The Hungarian market is clearly regaining investors’ attention. Growing activity in the office and retail sectors, improving sentiment and more favourable financing conditions are creating a solid basis for further growth in the second half of the year. We expect investment volume in Hungary to exceed EUR 1 billion in 2026, with both domestic investors and regional capital, particularly from the Czech Republic, continuing to play an important role,” adds Erika Loska, National Director, Knight Frank Hungary.
CEE-5 markets increasingly attractive to global capital
Although the current recovery is being driven largely by domestic and regional investors, the outlook for the coming quarters points to a continued return of international capital. CEE offers investors attractive pricing, resilient occupier demand, limited new supply and a more favourable risk-return profile compared with some Western European markets.
Prime yields are expected to remain broadly stable across most sectors and markets in the region. At the same time, growing competition for the best assets could support further yield compression in the coming quarters, particularly for prime office assets in Warsaw.
CEE capital is expected to remain a key driver of investment activity, while a broader group of international investors is also gradually returning to the region, including Nordic, French and US capital. The combination of growing liquidity, improving economic fundamentals and the return of international investors should support further growth in transaction activity in the second half of 2026.
Contact person:
Dorota Lachowska
Head of Research | Poland
+48 601 518 654
dorota.lachowska@pl.knightfrank.com
