CEE-6 RETAIL MARKET Q2 2026

Prague's Na Prikope Posts Highest Prime Rent in CEE-6

CEE-6 GDP growth accelerated to 2.5% year-on-year in Q2 2026, up from 2.0% in Q1, supported by resilient domestic demand and a still-tight labor market. Inflation remained elevated at 4.4%, up slightly from 4.0% in Q1, keeping room for monetary easing limited across the region. Real retail sales growth moderated to 1.2% year-on-year, down from 2.5% in Q1, as persistent price pressures weighed on household spending. Country performance diverged sharply, with Poland posting the strongest momentum while Romania recorded a GDP contraction alongside double-digit inflation.

Retail markets across CEE-6 continued to favor tenants able to secure efficient units in dominant, high-footfall schemes, while landlords in supply-constrained prime high streets retained stronger pricing power. The Czech Republic exemplified this dynamic, attracting 16 new international entrants in the first half of the year, led by food and beverage, alongside further flagship and cafe openings on Prague's Na Prikope. Retail parks remained the format of choice regionally for both occupiers and developers, reflecting lower delivery costs and faster time to market, as brand entry activity broadened beyond fashion into discounters, health and beauty, and F&B.

CEE-6 ended Q2 2026 with 19.6 million sq m of shopping center space and 10.3 million sq m of retail park space, with space under construction reaching 1,288,400 sq m, up 15% versus mid-2025. The Czech Republic's retail park stock stood at 1,415,000 sq m, with 146,800 sq m under construction domestically, representing 11% of the regional pipeline. Investment activity picked up materially, with CEE-6 volumes reaching approximately €860 million, up close to 40% quarter-on-quarter and led by Poland, while prime yields held stable across all formats and markets.

Outlook