14:30 29 March 2025
Limited Supply and Rising Rents Drive CEE Office Market Growth
The office market in Central and Eastern Europe (CEE) is showing solid growth, fueled by robust economic fundamentals and rising investor confidence, according to the latest report by JLL and iO Partners. Despite global uncertainties, the region’s economic outlook remains strong, with GDP growth expected to range from 1.6 percent in Hungary to 4.0 percent in Serbia in 2025 – significantly outpacing the Eurozone's projected 0.9 percent.
Despite limited new office supply, investment dynamics are strengthening, and tenant demand is stabilizing, particularly in cities like Prague and Warsaw.
“The tightening availability of high-quality office space, coupled with corporate efforts to encourage employees' return to offices, is pushing prime rents higher. These market fundamentals indicate continued resilience despite global uncertainties,” Mateusz Polkowski, Head of Research JLL Poland, said.
The investment market in the CEE region has also rebounded, with office transaction volumes reaching nearly €45 billion in the EMEA region in 2024 – a 9 percent increase from 2023. The CEE region outperformed with a 15 percent increase in turnover, especially notable in Poland and the Czech Republic, where capital allocation remained consistently high. This renewed investor focus highlights the region’s growing appeal as a stable and profitable market.
(WBJ)
