CEE-6 RETAIL MARKET Q4 2025
CEE Retail Market Overview: Convenience Formats Lead Regional Growth in Q4 2025
Central and Eastern Europe’s retail market ended 2025 on a constructive footing, supported by resilient macroeconomic conditions, active development, and steady occupier demand. Across the CEE-6, GDP growth remained ahead of the Eurozone, unemployment stayed low, and inflation continued to ease, helping sustain retail activity even as consumer spending became more measured. The result is a retail property market that remains healthy, but increasingly selective in where retailers expand and where landlords can drive rental growth.
CEE Retail Markets
The CEE retail market continues to evolve around convenience, accessibility, and everyday spending. Retail parks are gaining share as retailers prioritize flexible, cost-efficient formats with strong local catchments, while dominant shopping centres continue to attract interest through extensions, refurbishments, and repositioning strategies. Poland remains the largest shopping centre market in the region, and it also accounts for the biggest share of current development activity, underscoring its importance within the wider CEE retail landscape.
Supply growth was a defining theme in 2025. Shopping centre completions more than doubled year on year, while retail parks remained the clear driver of total new openings. This rising pipeline reflects continued confidence in the sector, particularly in formats that align with essential spending patterns and daily convenience. At the same time, occupier demand remained focused on low-vacancy schemes, proven locations, and tenant mixes that support reliable footfall.
Rental performance was strongest where fundamentals were tightest. Prime rents saw upward pressure in leading assets and established destinations, especially where retailer competition met limited availability. By contrast, non-prime stock saw more mixed conditions as affordability and lease flexibility remained central to leasing decisions.
Outlook
-
Convenience-Led Expansion: Retail parks are expected to remain the dominant development and expansion format across Central and Eastern Europe, supported by retailer demand for efficient space and strong day-to-day consumer relevance.
- Selective Leasing Momentum: Retailer activity should remain healthy, but expansion will continue to favour assets with strong catchments, low vacancy, and cost-efficient occupancy. This is likely to reinforce the performance gap between prime and secondary stock.
- Prime Assets Stay Supported: With GDP growth expected to improve further and inflation continuing to moderate, the 2026 outlook remains positive. Prime rents should stay supported in the region’s best-performing schemes, while secondary assets may see greater leasing pressure.
