CEE Office MarketBeat Reports

CEE-6 OFFICE MARKET Q2 2025

• The CEE-6 region maintained steady momentum in Q2 2025, with GDP growth averaging 2.1% year-on-year. Inflation remains a key challenge, averaging 3.8% in Q2 and projected to reach 4.3% by year-end. Romania and Hungary recorded the highest inflation levels. Despite this, unemployment remains low at 4.3%, with Czechia (2.7%) and Poland (3.0%) leading. A slight population decline (–0.4%) is offset by stable employment and business confidence, supporting continued demand for office space.
  
  
• The office market across CEE-6 is increasingly shaped by a focus on quality. Occupiers are seeking Grade A buildings with strong ESG credentials in central business districts. Prime rents rose by 3.8% year-on-year, reflecting strong demand for modern, well-located properties. Investment activity is improving, with pricing adjustments creating opportunities for capital deployment in sustainable assets.
  
  
• Gross take-up across CEE-6 capital cities reached 1.07 million sq m in H1 2025, down 12% year-on-year. However, net absorption turned positive in all markets, increasing by 23.5%. Lease renewals dominated activity, as occupiers focused on optimizing existing locations. Warsaw led regional leasing with 301,400 sq m, while demand accelerated in Bucharest during Q2.
  
  
• New supply reached just 99,200 sq m in Q2 2025—less than half the 2015–2021 quarterly average. H1 completions totaled 125,800 sq m, marking a 43.5% year-on-year decline. Development is increasingly focused on built-to-suit and pre-leased projects. Prague recorded its highest construction activity in five years. Speculative development remains limited due to high construction costs and cautious investor sentiment.
  
  

Outlook