Office real estate regained the top spot among commercial real estate investment sectors in Central and Eastern Europe in the first half of 2026, according to data from Colliers.
Offices accounted for 29% of total investment in the CEE-6, up from 23% a year earlier. With a total market volume of EUR 5.8 billion, this corresponds to approximately EUR 1.7 billion in investments.
Retail real estate became the second-largest segment, with a 27% share, up from 21% in the first half of 2025.
Investor interest in residential and “living” properties grew even faster. Their combined share rose from 7% to 19%.
At the same time, industrial and logistics real estate—which was the largest market segment just a year ago—saw its share decline from 31% to 17%. This was due not only to changes in activity within the warehouse market itself but also to the rapid growth of transactions in other real estate classes.
Colliers notes that in the office segment, investors are primarily seeking modern buildings in prime locations with high energy efficiency and a stable stream of rental income.
The situation is becoming more challenging for outdated office buildings. They must either undergo modernization or be considered for repurposing.
Thus, the structure of the CEE market is gradually changing: after several years of logistics dominance, capital is once again flowing more actively into traditional offices and retail real estate, while institutional housing is emerging as a major investment segment in its own right.
Czech capital was one of the most active sources of investment in the Central and Eastern European real estate market in the first half of 2026, according to a Colliers study.
The total volume of investments by Czech investors in the region is estimated at approximately 1.9 billion euros. The presence of Czech capital was particularly noticeable in Poland, the largest investment market in Central and Eastern Europe.
Investors from the Czech Republic accounted for 23.6% of all investments in Polish commercial real estate from January through June. Germany accounted for about 19%, Polish capital for 11.5%, U.S. capital for 10.6%, and Hungarian capital for 6.8%.
The Czech Republic itself, meanwhile, remained the second-largest market in the CEE-6. In the first half of the year, deals totaling over 1.4 billion euros were concluded there. This is less than the record 2.2 billion euros for the same period in 2025; however, according to Colliers’ assessment, the market remains one of the most stable in the region.
Yields on premium office properties in Prague are estimated at approximately 5.25%, on prime warehouse facilities at around 5%, and on shopping centers at around 6%. These are among the lowest capitalization rates among the largest markets in Central Europe, reflecting investors’ relatively high valuation of Czech assets.
The activity of Czech capital in neighboring countries is part of a broader trend. Colliers notes that in the Central and Eastern European (CEE) markets, the influence of not only global funds from the U.S. and Western Europe but also investors from Central Europe itself is growing.
This is gradually fostering the development of a distinct regional investment capital capable of sustaining transactions even during periods when major international funds adopt a more cautious approach toward the region.
Investments in commercial real estate across the six largest markets of Central and Eastern Europe reached EUR5.8 billion in the first half of 2026, increasing by approximately 7% compared with the same period last year, according to the Colliers CEE Investment Scene H1 2026 report.
The study covers Poland, the Czech Republic, Hungary, Romania, Slovakia and Bulgaria. The investment volume was above the average for the first halves of the past five years, which amounted to EUR4.6 billion, and above the ten-year average level of EUR5.1 billion.
Poland became the largest market, where the volume of transactions exceeded EUR3 billion. It accounted for around 52% of all CEE-6 investments. The Czech Republic ranked second with more than EUR1.4 billion, while Hungary attracted almost EUR600 million, showing the best first-half result since 2021.
According to Colliers, the market recovery differs from previous investment cycles. Capital is returning selectively, with investors giving preference to properties with stable income, good locations, high energy efficiency and long-term demand from tenants.
Offices became the largest segment, followed by retail real estate, residential properties and institutional rental, as well as industrial and logistics real estate.
Colliers forecasts that by the end of 2026, the volume of investments in CEE-6 commercial real estate may reach EUR12.5-13 billion, compared with EUR11.6 billion in 2025, and approach the peak levels observed before the pandemic.
Among the main risks for the market, experts cite high interest rates, rising refinancing costs, geopolitical tensions, weakness in German industry and energy costs. At the same time, additional investment opportunities are being created by infrastructure projects, the defense industry, the energy transition, artificial intelligence, reindustrialization and the relocation of production closer to European consumers.
Colliers is a global professional services and investment management company operating in more than 70 countries. Its annual revenue amounts to around $6 billion, its workforce totals around 28,000 people, and assets under management amount to approximately $110 billion.
BUSINESS, COLLIERS, EUROPE, EXPERTS CLUB, INVESTMENTS, REAL ESTATE
Oil refining capacity in Europe and the U.S. will decline over the next decade, while it will continue to grow in the Middle East, Africa, and Asia, according to forecasts by S&P Global Energy experts.
Western governments are urging companies to expand refinery capacity to ensure uninterrupted supplies of critical resources during future crises, but investors are reluctant to fund new projects, which will create problems in the future—both in Europe and North America, the Financial Times reports.
This year, refineries in the U.S. and Europe are operating near full capacity as the industry struggles to cope with shortages caused by the war in the Middle East, and they are generating high profits.
According to a forecast by S&P Global Energy, European refinery capacity will decline by 20% over the next ten years through 2035, to a level slightly above 9 million barrels per day (bpd). Last year, facilities with a combined refining capacity of about 500,000 b/d were shut down in Europe, and the United Kingdom, for example, lost two of its six refineries.
S&P Global Energy also expects U.S. capacity to decline by 7% over this period, to 16.7 million bpd.
The energy crisis caused by the war in the Middle East has not altered the industry’s trajectory, notes Daniel Evans, who is responsible for the oil refining market at S&P Global.
“Recent supply disruptions have forced a reassessment of the strategic importance of the refining industry in the West. But does this change the long-term fundamentals? I would say most likely not,” he noted.
Unlike in North America and Europe, companies in China, the Middle East, India, and Africa have built large, new, and highly competitive refineries.
The British newspaper Metro has named Sofia the most underrated capital in Europe, highlighting the city’s combination of relatively affordable prices, historical heritage, modern cultural life, and proximity to natural attractions.
According to the British publication, the Bulgarian capital remains significantly less popular among mass tourists than traditional destinations in Western and Southern Europe, despite its potential for short city breaks.
Metro cites the British market as one example. In 2025, approximately 343,000 travelers from the United Kingdom visited Bulgaria, whereas Spain welcomes around 18 million British tourists annually. Thus, even with growing interest, the gap between Bulgaria and one of Europe’s largest tourist destinations remains vast.
At the same time, tourism in Sofia itself is growing. According to the city’s tourism authorities, the capital welcomed more than 1 million tourists from January through September 2025, and the number of arrivals increased by approximately 10% year-over-year. Foreigners accounted for about 63% of visitors.
Metro highlights Sofia’s historic center as one of its main attractions, where monuments from different eras are concentrated within a small area.
St. Alexander Nevsky Cathedral remains one of the city’s main attractions. The British publication also draws attention to the archaeological complex of ancient Serdica, a significant portion of which can be seen right in the center of modern Sofia.
The city’s proximity to Vitosha Mountain is cited as a distinct advantage. As a result, a trip to Sofia allows visitors to combine exploring the capital with hiking trails and outdoor recreation without having to travel long distances to another region of the country.
British journalists also highlight the capital’s burgeoning cultural scene. Among the events mentioned is the A to JazZ music festival, and among the cultural venues are the Sofia City Art Gallery and other museums in the city.
Another factor contributing to the city’s appeal is the relatively low cost of food, public transportation, and entertainment compared to other European capitals. Metro considers Sofia’s affordability to be one of its advantages amid rising travel costs to the most-visited cities in Western Europe.
Overall, Bulgaria welcomed approximately 13.6 million foreign visitors in 2025, a 2.7% increase from the previous year, according to data from the country’s National Statistical Institute. More than 9.5 million tourists were registered at lodging facilities, a 5.8% increase over the year.
Thus, the British Metro’s focus on Sofia aligns with a broader trend of growing interest in Bulgaria as a destination in its own right for city tourism, rather than merely as a country of summer resorts and winter getaways.
Azerbaijan intends to increase electricity exports to neighboring countries and enter the European energy market, said the country’s president, Ilham Aliyev.
“By expanding our export capabilities to neighboring countries, we will also enter the European market. After all, we have already entered the European market with our oil and gas, but we want to enter it with electricity as well,” Aliyev said in an interview with the Azerbaijani state television channel AzTV.
According to him, the only route for supplying electricity to Europe currently runs through Georgia and Turkey, but Azerbaijan intends to expand the number of export routes. In this regard, a feasibility study for the Black Sea Energy project has already been prepared.
In addition, in November 2024, as part of COP29, Azerbaijan, Kazakhstan, and Uzbekistan signed an agreement to lay an electrical cable along the bottom of the Caspian Sea.
“Azerbaijan will establish itself as a country that generates, receives, transmits, and exports electricity,” Aliyev said.
He also noted that the capacity of solar power plants in the Nakhchivan Autonomous Republic (NAR) could reach 500 MW, and up to 1 GW in the future.
“The main issue here is export capacity. To achieve this, of course, negotiations must be held with the relevant authorities in the respective countries, and these are already underway,” the president said.
At the same time, Aliyev noted that the existing power transmission lines from the NAR to Iran and Turkey have limited capacity, which needs to be increased.
“That is, for exporting 500 megawatts—or even 1,000 megawatts—of electricity, there are currently two routes: one to Turkey and the other to Iran. But in the future, this could also include Europe,” he said.
The head of state added that Azerbaijan’s plans to export electricity are in line with the interests of the countries “surrounding us.”
“It’s just that coordination efforts here must be carried out properly, at the necessary level, and negotiations must be accelerated. I can say that negotiations on this matter are currently underway with both Turkey and Iran. It’s too early to say anything for sure,” the president said.
