CEE-6 RETAIL MARKET Q1 2025
The CEE-6 retail market maintained solid momentum in Q1 2025, with retail park development continuing to drive new supply across the region as developers capitalized on consumer preferences for convenient, car-accessible shopping formats. International brand expansion accelerated, particularly in secondary and tertiary markets, while established shopping centres focused on tenant mix optimization and experiential offerings to maintain competitiveness. Consumer spending demonstrated resilience despite economic pressures, with sectors such as pharmaceuticals, cosmetics, and essential goods showing consistent growth.
- Retail park development dominates new supply across the region, with Poland delivering 47,000 sq m in Q1 and maintaining the highest development pipeline since 2019 at 515,000 sq m (76% retail parks), Czech Republic adding 26,900 sq m entirely from retail park completions, and Slovakia completing five retail parks totaling 20,000 sq m with 58,000 sq m additional pipeline scheduled for year-end.
- Major completions accelerate from Q2 with significant regional impact, as Romania prepares for substantial delivery acceleration starting April with ~145,000 sqm of new schemes, including the super-regional Mall Moldova in Iasi, while Bulgaria delivered solid 17,000 sqm in Q1, including XOPark Sofia expansion, bringing retail park stock growth of 13% year-on-year. Hungary’s shopping centre stock, with limited recent growth, will expand by 11,000 sq m with Zenit Corso’s Q3 completion.
- International retail expansion gains momentum in secondary markets, with notable new entries including Biedronka's Slovak market debut, Victoria's Secret opening its first standalone Slovak store, and continuing expansion of established brands like Müller and Adidas preparing market returns, reflecting the region's continued attractiveness for retail investment compared to saturated Western European markets.
- Rental performance varies significantly reflecting market maturity levels, with Czech Republic achieving first prime rent increases since Q2 2022 to €235/sq m for high street and €145/sq m for shopping centers, Poland and Hungary maintaining stable headline rents with inflation-linked indexation, and Slovakia holding at €65/sq m for shopping centers while expecting increases throughout 2025.
- Consumer behaviour adaptation drives tenant mix evolution, as shopping centres increasingly emphasize experiential offerings, food & beverage concepts, and entertainment to counter e-commerce competition. At the same time, retail parks benefit from convenience-focused shopping patterns and the purchase of essential goods, with sectors such as pharmaceuticals and cosmetics maintaining strong performance across all formats.
