Commercial property trade: trends in the CEE region
Savills has analysed the European commercial property market. The company paid special attention to promising areas, with the CEE region standing out in particular. According to forecasts, commercial property trade will grow significantly here by 2025.
Analysts predict that the total volume of investments in commercial property in Europe will grow by 13%. In CEE countries, growth could reach 32%. Poland and the Czech Republic remain the most attractive markets. For example, the volume of investments in commercial property in the Czech Republic amounted to around €1.5 billion in the first quarter of 2025. This was 79% higher than in the same period in 2024.
Commercial property market outlook
Stuart Jordan, a director at Savills, praises the prospects for the commercial sectors in Poland and the Czech Republic. He believes that growing investor interest is linked to favourable macroeconomic forecasts. Poland, in particular, may demonstrate the highest GDP growth of any European Union country. The Czech Republic, in turn, will rank seventh in terms of economic growth.
These countries’ strong performance is particularly notable against the backdrop of global dynamics. For instance, capital inflows into the global property sector in 2024 were the lowest for 14 years. However, domestic investment in commercial property remained strong in Poland and the Czech Republic. This is largely due to attractive financing conditions. Interest rates in these countries are lower than in many other European countries. In addition, their revision is expected in the near future, which may stimulate the growth of the number of transactions.
Analysts also note that local property valuation has become aligned with market requirements. This could encourage trading in commercial properties.
Office sector trends
Jordan was also positive about the Czech office property sector. He noted the following trends:
1. Occupancy rates in Prague are on the rise. This is fuelled by employees actively returning to work in offices.
2. Rental demand in the capital exceeded 630,000 square metres in 2024.
3. The office sector is becoming increasingly attractive to European investors. This type of property is attracting attention due to the growth in rents.
Slow development of the construction sector increases the imbalance between supply and demand. This, in turn, leads to rising rents and, consequently, profitability.
The Czech market remains relatively closed to foreign investors. In 2024, local nationals accounted for 92% of all commercial property transactions. In the first quarter of 2025, they concluded 72% of transactions. As well as investing domestically, Czech investors are active in the markets of other Central and Eastern European (CEE) and Western European countries.