“This momentum reflects solid, albeit slightly weaker than expected, regional economic growth amid ongoing global trade tension,” says Colliers in its report “CEE Investment Scene Q1 2025: Uncertainty in Trade, Resilience in Real Estate?”
Lower interest rates, near-shoring, and strong fundamentals are boosting investor interest in CEE real estate, especially in logistics, data centers, and build-to-rent projects.
According to the consultancy, all sectors except residential saw increased investment in the first quarter of 2025. Industrial and logistics led with EUR 800 million, tripling last year’s figure and regaining its top spot after 2024. Despite rising wages, CEE remains cost-competitive, with strong labor quality and growing research and development investment, positioning the region to benefit from global trade shifts and increasing capacity utilization.
Retail ranked second in investment volume for the period, growing 38% year-on-year, slower than in 2024. While rising purchasing power supports the sector, shifting consumer habits, price sensitivity, and high interest rates are reshaping retail investment trends in CEE.
The office sector also saw a strong rebound, with investment volumes more than tripling year-on-year. Growth was particularly striking in Bulgaria (plus 806%) and the Czech Republic (plus 618%). The sector’s revival is being fueled by evolving work patterns and ongoing modernization across regional markets, enhancing its appeal to investors.
The hotel sector was the top performer, with investment volumes up nearly ninefold, well above five-year trends. The Czech Republic and Hungary saw first-quarter 2025 volumes surpass or match full-year 2024 totals. Rising tourism, targeted promotions, and the growing international recognition of CEE cities are fueling the growth.
Giant Bicycles, one of the world’s leading cycle manufacturers, has officially opened its first Hungarian concept store at Promenade Gardens, on Váci út, the main office corridor of Budapest. The opening marks a significant milestone for the brand’s retail presence in Central and Eastern Europe and the Balkan states.
Giant established its second European production facility in Gyöngyös (80 km northeast of Budapest by road), commencing operations in 2020. This EUR 48 mln investment spans 228,000 sqm, aiming to produce up to one million bicycles annually, including a significant number of e-bikes.
“The CEE region, and especially the Hungarian market, has always been a priority for us, so we want to establish as direct a relationship as soon as possible with our customers and parties interested in cycling,” said Phoebe Liu, CEO of Giant Global Group.
“The location at Promenade Gardens was carefully selected for its accessibility, visibility, and premium urban environment,” said Valter Kalaus, managing partner at Newmark VLK Hungary. “We are thrilled that we could assist Giant in opening its first concept store in one of Budapest’s most modern and sustainable office buildings, as we are ourselves avid cyclists and missed a store of this nature and offering from the local market.”
CA Immo has sold the 32,000 sqm IP West office complex to the Chinese automaker BYD, which will establish its regional headquarters for European operations, including R&D development and high value-added services, in the building, employing 2,000 plus people. Colliers represented the buyer and CBRE the vendors on the deal. The transaction is seen as a key step in the withdrawal of CA Immo from the Hungarian market.
Indotek has purchased three retail assets in Greece, comprising 67 stores, reflecting the investor’s strategy to diversify its portfolio from geographical and sectoral perspectives. “The acquisition supports our strategy of investing in resilient, high-performing assets with strong fundamentals and long-term value potential. In parallel with our retail activity, we continue to pursue growth in the Greek hospitality sector, including the regeneration of a hotel in central Athens,” the investor says. Indotek operates in 12 countries, with 2.5 million sqm of space in 350 properties and substantial investments in Croatia, Greece, and Spain.
Lightware, a principal player in the audiovisual technology market, has moved to its new headquarters in the HOP Technology Office Park, developed by Wing. The company has taken occupancy of a 7,000 sqm building.
“Build or renovate? This question is one of the greatest dilemmas in today’s office market, and Lightware’s new headquarters provides an exemplary response to this issue,” Wing says of the deal.
“With the renovations, Building 7 of HOP is moving towards carbon neutrality, taking into account ESG principles, while providing a multifunctional contemporary home for a tech company that is a leader in its industry with products in more than 30 countries, serving complex needs,” the firm adds.
“Lightware’s arrival to the Office Park confirms the success of the unique concept of the HOP Technology Office Park: the park is currently operating with a 98% occupancy rate, which is strong market feedback,” adds Gábor Angel, deputy CEO of Wing responsible for offices.
“Therefore, Wing plans to develop an additional 40,000 sqm in several phases to provide an advanced and sustainable working environment for even more companies operating in innovative technology industries,” Angel concludes.
Atenor has disposed of its BakerStreet I office complex, consisting of 16,000 sqm of fully leased office space and 2,000 sqm of retail, to an un-named international investor. In a further move to mitigate the developer’s exposure to Central European office markets, the firm has applied for permits to change the 20,400 sqm BakerStreet II to a mixed-use project with residential supported by retail elements and office space.
This article was first published in the Budapest Business Journal print issue of May 30, 2025.
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