Prime yields stabilize with selective compression in offices and logistics; sector rotation and portfolio deals signal early expansion into 2026.
Cushman & Wakefield released its CEE Investment Market Update H2 2025, reporting total transactions of approximately €11.8 billion in 2025, a 34.0% year-on-year increase and the strongest annual performance since 2019. Liquidity broadened significantly in the fourth quarter, confirming a decisive return of capital to the region.
Three structural shifts defined the year: domestic capital comprised a record 65% of total volume, prime yields largely stabilized with selective compression in prime offices and logistics, and sector allocation diversified with offices leading (35.9%), industrial remaining structurally strong (25.5%), retail resilient (23.7%), and hotels reaching a record 9% share.
The CEE region enters 2026 with pricing clarity and deepening local liquidity. Selected prime office and logistics assets in supply-constrained locations are already seeing tighter pricing, while portfolio transactions and €100 million-plus deals have re-emerged
Occupier fundamentals underpinned the investment backdrop. Logistics vacancy stabilized at approximately 6.8% amid strong take-up and moderated speculative pipelines, while office completions fell to historic lows across capitals, contributing to gradual vacancy compression. The hotel sector delivered one of the region’s strongest operational performances, with RevPAR up 8.9% year-on-year and constrained supply supporting sentiment.
Country-level performance was led by the Czech Republic (€4.2 billion, +155% y/y) with selective prime office yield compression, Poland (€4.5 billion) with industrial leadership and renewed Warsaw office momentum, and Slovakia achieving one of its strongest years on record fueled by industrial portfolios. Bulgaria, Hungary, Romania, and Serbia demonstrated improving liquidity and stable pricing with selective sector strengths.
Cushman & Wakefield expects prime yields to remain broadly stable in 2026, with potential for further compression in offices and logistics where supply is constrained and ESG standards are met. Risks remain manageable, including the pace of rate normalization and evolving demand dynamics.