Hungary emerged as one of the strongest CEE investment performers in Q1 2026, with investment volumes exceeding EUR 325 million, nearly double the level recorded a year earlier.
The performance also marks the country’s strongest start since 2018, according to Colliers CEE research.
This rebound comes amid a politically significant election year, which has reignited discussions about institutional direction and relations with European partners, says Colliers.
“Rather than deterring investment, this environment has encouraged selective risk-taking. Domestic and regional investors, in particular, have taken a more active role, leveraging long-term strategies to re-enter the market, support price discovery and restore liquidity. Early signs suggest that parts of the market are positioning for medium-term opportunities rather than remaining on the sidelines.”
Total volume for Bulgaria, the Czech Republic, Hungary, Poland, Romania, and Slovakia in the first quarter of 2026 was EUR 2.1 billion, compared to EUR 3 bln for the same period of 2025. Hungarian funds represented EUR 500 mln and Czech capital EUR 460 mln, reflecting the increasing role of domestic and CEE capital in the region’s investment markets.
“The CEE region entered 2026 with continued investor engagement, demonstrating resilience even as headline investment volumes moderated, with a total of EUR 2.1 bln recorded in the first quarter, following an exceptionally strong 2025,” according to Colliers. “Against a backdrop of renewed geopolitical tensions, elevated energy prices and fading expectations of monetary easing, capital has not retreated from the region. Instead, investors have become more selective, increasingly relying on domestic and regional capital to drive transactions and maintain liquidity,” the agency says.
The slowdown is seen as driven primarily by weaker quarterly results in the Czech Republic and Slovakia after last year’s record performance, rather than any meaningful decline in investor appetite.
Poland, meanwhile, reaffirmed its status as the region’s core investment market. First-quarter investment volumes approached EUR 1.1 billion, representing an increase of more than 40% year-on-year and the strongest start since 2022. The market stood out not only for its scale but also for the diversity and quality of transactions, says Colliers.
Robust Retail Interest
Retail assets attracted the strongest investor interest across the region, continuing trends observed in 2024 as recovering household consumption supported economic growth. Nearly EUR 630 mln was invested in retail in the first quarter alone. Despite the continued rise of e-commerce, physical retail remains resilient, with retail parks expanding rapidly while older shopping centers increasingly require repositioning and redevelopment.
At the same time, offices attracted over EUR 600 mln, while industrial and logistics assets accounted for approximately a quarter of total volumes.
The broader macroeconomic environment remains challenging, according to Colliers. Rising energy prices, partly driven by geopolitical instability in the Middle East, are pushing inflation expectations higher and delaying anticipated interest rate cuts in 2026. Central banks have adopted a cautious, wait-and-see approach, with the possibility of modest tightening by the European Central Bank later in the year.
However, current inflation dynamics differ significantly from the post-pandemic period. Demand is more subdued, monetary conditions are already restrictive, and the risk of overheating has diminished. As a result, markets are adjusting rather than stalling.
“A defining feature of the current market cycle is the growing importance of domestic and regional capital. Investors are increasingly focused on long-term fundamentals, income stability and execution certainty rather than short-term market timing. While geopolitical risks and economic uncertainty remain, they have not halted capital flows into CEE commercial real estate, only reshaped them,” Colliers says.
“The region’s ability to adapt to sustained uncertainty is emerging as a key strength. As the year progresses, CEE is expected to remain an attractive destination for investment, supported by resilient market structures, improving liquidity and a more mature, locally anchored investor base. As 2026 unfolds, the region’s attractiveness will depend less on short policy moves and more on its ability to operate under sustained uncertainty. The performance of the first quarter suggests that CEE is increasingly capable of doing exactly that,” the agency concludes.
Faedra Group Concludes Finance for Myra Park M3
The Hungarian Faedra Group has successfully concluded a financing agreement for the Myra Park M3 retail development project. Funding is being provided jointly by OTP Bank and the Faedra II Real Estate Development Fund, managed by Faedra Real Estate Management.
The project involves the development of a nearly 6,000 sqm strip-mall retail center located close to Budapest, at the Bag interchange of the M3 motorway, near Aszód (about 30 km from the capital). The development is expected to accommodate about 10 tenants, providing a one-stop destination for everyday needs.
Construction of the retail park began in late 2025, with an anticipated handover in the fourth quarter of this year. Grant Thornton is serving as the bank’s technical supervisor for the project.
“The financing of Myra Park M3 is an important milestone for Faedra Group: with this project, we are making an active entry into the retail real estate market, while also completing our first collaboration with OTP Bank,” said Bence Boronkay, founder and CEO at Faedra Group.
“Diversified portfolio development is a core part of our strategy: alongside residential and industrial/logistics projects, the retail segment is playing an increasingly prominent role. The strong tenant interest and results to date validate both the market opportunity and the viability of our concept,” he says.
OTP is equally pleased with the news. “Our decision to finance this investment was underpinned by the project’s strong location, well-considered concept, and encouraging pre-leasing activity,” says Melinda Prácser, group leader of the real estate finance division at OTP Bank. “Supporting developments that respond to genuine market demand, rest on solid business foundations, and create lasting value is a priority for OTP Bank. We are confident that this collaboration with Faedra Group marks the beginning of a productive and enduring professional partnership,” she adds.
This article was first published in the Budapest Business Journal print issue of May 8, 2026.
