Investment volumes rose 143% year-over-year, building on a 70% increase in 2024. Czechia led the growth with €1.5 billion invested - quadruple last year’s figure - while most other CEE markets posted solid gains, except Romania, which saw an 8% decline. This momentum reflects solid, albeit slightly weaker than expected before, regional economic growth amid ongoing global trade tension, reveals Colliers in its recent report “The CEE Investment Scene Q1 2025. Uncertainty in Trade, Resilience in Real Estate?”.
Global trade uncertainty: Real risk or overblown concern?
Grzegorz Sielewicz, Head of Economic & Market Insights | CEE comments: “Rising global uncertainty, especially around U.S. trade policy under Donald Trump, is alarming business professionals. Fears of renewed protectionism are growing, with risks of inflation and economic slowdown. Recent surveys confirm that both European real estate sector and other industries view geopolitical instability as the top threat. Uncertainty indices have surged in both the U.S. and Europe, with Europe’s hitting a record high. Even moderate tariffs – like the 10% on EU exports – pose risks, while the crucial CEE automotive sector faces even higher tariffs”.
CEE countries vulnerable to indirect trade impacts
Despite limited direct US trade ties, CEE countries like Slovakia and Hungary face high indirect exposure through the automotive sector. Global trade tensions are cooling inflation due to falling oil prices and weaker demand, but risks remain as tariffs rise and growth forecasts are cut. Still, lower rates, near-shoring, and strong fundamentals are boosting investor interest in CEE real estate - especially logistics, data centres, and build-to-rent.
Downward revisions for CEE growth forecasts
Amid rising protectionism, CEE growth forecasts have been downgraded, with Romania and Slovakia seeing the largest cuts (–0.7 pp). Poland remains the strongest performer, driven by household spending and investment recovery.
Industrial & Logistics regains top spot among investors
All sectors except residential saw increased investment in Q1 2025. Industrial & logistics led with €800 million-triple last year’s figure-regaining its top spot after 2024. Despite rising wages, CEE
remains cost-competitive, with strong labour quality and growing R&D investment, positioning the region to benefit from global trade shifts and rising capacity utilisation.
Retail sector sees steady growth driven by household purchasing power
Retail ranked second in investment volume, growing 38% year-over-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 the CEE.
Office sector investment surges, led by Bulgaria and Czechia
The office sector also saw a strong rebound, with investment volumes more than tripling year- over-year. Growth was particularly striking in Bulgaria (+806%) and Czechia (+618%). The sector’s
revival is being fueled by evolving work patterns and ongoing modernisation across regional markets, enhancing its appeal to investors.
Hotel sector emerges as a star performer in Q1 2025
The hotel sector was the top performer, with investment volumes up nearly ninefold, well above five-year trends. Czechia and Hungary saw Q1 2025 volumes surpass or match full-year 2024
totals. Growth is fueled by rising tourism, targeted promotions, and CEE cities' growing international recognition, with Warsaw and Bucharest ranking among Europe’s top urban destinations.
CEE-6 leads Q1 2025 with a surge in capital share
Similar to previous years, CEE-6 capital has been the most active in Q1 2025. However, its share in total volumes jumped significantly to 57%, up from 44% recorded in the entire year of 2024.
US investment soars, taking second spot
Other European countries contributed an 18% share, with total volumes below EUR 500 million. However, US investors surged ahead, claiming second place in terms of capital invested in the CEE region. This was driven by nearly six-fold higher US investments than in Q1 2024, reaching levels close to their total investment for the entire year of 2024.
Chinese investment surges to its highest since 2022
The CEE region’s investment appeal was further confirmed by surging Chinese capital flows. In Q1 2025, China invested six times more than in the whole of 2024, marking the highest volume since 2022.
Diverse capital sources boost industrial and retail segments
Beyond the dominant players, there was a noticeable uptick in diversified capital flows targeting the industrial and office sectors, with notable activity from Austrian, Swiss, and UK investors. The UK held a 6% share, contributing across industrial and multiple retail formats.
Colliers
