CEE-6 INDUSTRIAL MARKET Q1 2026
CEE Industrial Market Overview: Take-Up Sets a Solid Start as New Deliveries Increase in Q1 2026
Central and Eastern Europe entered 2026 with a more supportive growth profile. GDP growth increased to 2.7% in Q1 2026, while inflation eased to 3.5% and unemployment averaged 4.4% across the CEE-6. Industrial production, however, remained softer, with the industrial production index down 0.8% year-on-year.
Against this macro backdrop, the CEE-6 industrial and logistics market continued to expand, with total stock reaching 72,707,477 sq m at end-Q1 2026. Vacancy averaged 6.9% across the region, signaling broadly balanced conditions, but with material country-level differences. Reported vacancy was 4.7% in the Czech Republic and 12.9% in Hungary, while Bulgaria’s 0.8% reflects the fact that only Sofia is included in the regional dataset.
Supply accelerated at the start of the year. New deliveries totaled 1,333,900 sq m in Q1 2026, while the construction pipeline stood at 4,050,200 sq m. Poland and the Czech Republic accounted for the largest shares of space under construction, and Romania recorded a notable increase in activity, with more than 500,000 sq m under development. On the demand side, gross take-up reached 2,691,300 sq m, reflecting typical first-quarter seasonality but still marking the strongest Q1 outcome since 2022.
In leasing terms, market conditions continue to favor modern, efficient space in established corridors, where occupiers can manage operating requirements and future-proof facilities. As vacancy becomes more market-specific, negotiation dynamics are increasingly shaped by asset quality, location, and the depth of local availability.
Outlook
- Growth backdrop: GDP is forecast at 2.5% for 2026 and 2.8% for 2027, supporting a constructive base case for occupier confidence, even as industrial output trends remain a key variable.
- Demand direction: Leasing demand is expected to remain active but selective, with occupiers prioritizing locations that support network resilience, labor access, and operational efficiency. Market outcomes are likely to continue diverging by country and submarket, in line with available supply and existing vacancy.
- Supply and pricing: With completions rising in Q1 and a sizable pipeline still in progress, overall conditions point to a more normalized market. Landlord pricing power is expected to remain most evident in prime, well-located space, while incentives and flexibility are likely to play a larger role where availability is higher or stock is older.
