The hybrid work model has become the norm, with demand for high-quality, ESG-compliant, and well-located space predominant across CEE capitals.
“The office in 2026 is seen as functioning primarily as a collaboration and engagement hub rather than a default place for individual work. It is designed to support team interaction, company culture, innovation, and client-facing activities, while focused work is often done remotely. As a result, the office has become a strategic tool for talent retention and productivity rather than just a physical workspace,” says Valter Kalaus, managing partner of Newmark VLK Hungary.
“The CEE-6 [Bulgaria, the Czech Republic, Hungary, Poland, Romania, and Slovakia] office markets are expected to continue their adaptation to new workplace dynamics and market requirements. Prime, well-located, ESG-compliant buildings will see continuous growth, continued strong demand and potential rental growth, while secondary assets and peripheral locations may face challenges requiring significant investment and repurposing,” says Colliers.
“The CEE-6 region demonstrates divergent office development trends, with Sofia experiencing robust growth, with significant class ‘A’ construction, while Prague, Warsaw, Bucharest and Budapest show markedly reduced development activity,” the consultancy adds.
There is a clear structural shortage of premium, contiguous office spaces that meet modern ESG standards. However, the definition of “quality” has evolved: today, it is no longer only about technical specifications, but also about the integrated operational and service model behind the asset.
For speculative development to return, a stable financing environment alone is not sufficient; there also needs to be a wider shift toward “Real Estate as a Service” and a genuine “partnership” approach between tenant and landlord, comments Zita Kovács-Bertók, office development director of CPI Hungary.
“Projects that integrate a community-based concept, such as a CPI Club-type platform, from the outset are significantly more viable, as they enable faster absorption by meeting the expectations of today’s modern occupiers,” she adds.
In Warsaw, the region’s largest market, only 120,000 sqm of office space is under construction. According to the consultants AXI IMMO, the Polish capital’s total modern office stock stands at approximately 6.28 million sqm, with an average vacancy rate of 9.5%. As is the pattern in other Central European capitals, vacancy in central zones amounted to just 6.5%, compared with 12.2% outside the city center. Such low development activity means that the availability of modern office space, particularly in central Warsaw, will remain limited in the coming years.
In 2025, only 26,600 sqm of office space was completed in Prague, historically the lowest annual new supply to date. However, construction activity has increased to 263,000 sqm, with more than 60% of this space already pre-leased according to the Prague Research Forum (consisting of CBRE, Colliers, Cushman & Wakefield, iO Partners, Knight Frank, and Savills). A consistently popular CEE market, Prague has maintained vacancy rates of 7-8% over the last five years.
Meanwhile, in Bucharest, office development has been low, with the total stock standing at about 3.4 million sqm. “Following the ‘zero’ year of 2025, office deliveries are set to resume gradually, albeit at a subdued level. Around 50,000 sqm of new space is expected in 2026 and less than 100,000 sqm in 2027, well below the annual volumes of over 150,000 sqm delivered before the pandemic. A pace similar to that growth period may only be reached in 2028,” comments Colliers Romania.
Rental trends reflect a widening gap between ESG-compliant class “A” buildings and older stock, driven by indexation effects and growing sustainability premiums.
“ESG has moved from narrative to measurable. With EU taxonomy and disclosure rules like CSRD, there’s now a real need for solid, verifiable data on energy use, carbon emissions, and materials, and that’s changing how developments are planned and financed,” says Aurelia Luca, executive vice-president of Skanska’s commercial development business unit in Hungary and Romania.
Green certification has become a standard expectation across CEE capitals, prioritizing energy efficiency and sustainability features. Simultaneously, a move towards quality is evident.
“Prime, well-located, ESG-compliant buildings will likely see continued strong demand and potential rental growth, while secondary assets and peripheral locations may face challenges requiring significant investment or repositioning,” Colliers warns.
“The next wave of office development will be driven by clear demand for spaces that combine efficiency, sustainability, and human experience, buildings that genuinely support productivity and well-being,” reckons Luca. “Redevelopment will also play a growing role as owners upgrade existing stock to meet modern expectations. With solid tenant interest and a proven development pipeline, we see strong potential for Budapest’s office market to continue evolving through quality-led, people-centered projects that create long-term value for the city,” she adds.
The role of landlords is evolving from traditional rent collection to that of strategic partners supporting tenants’ talent management and employer branding objectives. The new benchmark for the region will combine high-level ESG performance with a hospitality-driven approach, argues Zita Kovács-Bertók.
“The focus of ESG has gradually shifted from purely environmental metrics toward the ‘Social’ pillar. Today, having an energy-efficient building alone is no longer enough; landlords are expected to actively contribute to the well-being of the people working within their buildings. Managed community concepts are the physical manifestation of this social responsibility. By 2026, transparency of energy consumption data and measurable tenant well-being strategies will become key drivers of asset value,” she concludes.
In the post-COVID era, offices have shifted their purpose from being production centers to brand, community and innovation hubs, says Balázs Agócs, head of workplace services for CEE & SEE at iO Partners. With the launch of hybrid work models, offices need to serve a changing population every day, which requires class “A” office buildings that offer an increasing variety of tenant and community services too.
This article was first published in the Budapest Business Journal print issue of May 22, 2026.
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