The Central and Eastern European industrial and logistics markets are seen as an attractive development and investment option, with leading international developers and operators active.
Others, better known for their work in different sectors, are also getting involved. I&L has grown on the back of increasing demand for industrial space to meet significant FDI, notably due to the rise of e-commerce and the electric vehicle and EV-related industries.
“The CEE industrial market is being actively reshaped by nearshoring and a drive for supply chain resilience. While new development is cautious, leasing activity is up, with demand for prime, sustainable space pushing rents higher,” comments Cushman & Wakefield.
“Occupier sentiment has improved across most markets, with Poland, the Czech Republic, Romania, and Hungary all posting robust leasing activity. Manufacturing, logistics and e-commerce remain the key demand drivers,” the consultancy says.
“Hungary and Slovakia expect significant demand from Asian manufacturers and automotive suppliers, while Romania will benefit from diversification into defense-related and advanced manufacturing sectors. Romania has recorded near record leasing activity. Hungary has seen a dramatic recovery with an 86% year-on-year increase in investment, driven by a massive influx of Asian capital from China and South Korea,” Cushman & Wakefield notes.
“The CATL factory in Debrecen and BYD in Szeged, together with the planned Volvo plant in Košice (in neighboring Slovakia), are changing the industrial map of the region and creating a wave of demand for logistics space,” the consultancy adds.
Covering the markets of Bulgaria, the Czech Republic, Hungary, Poland, Romania, and Slovakia, total CEE I&L stock reached the 70 million sqm threshold in 2025, according to Cushman & Wakefield. As of the third quarter of last year, Poland was the dominant player, representing 52% of the regional CEE footprint.
Poland had a total of 36.5 million sqm of industrial and logistics space, followed by the Czech Republic with 12.8 million sqm, Cushman & Wakefield estimates. The rapidly developing Romanian and Hungarian I&L markets achieved 7.7 million sqm and about 6 million sqm, respectively.
With regard to new supply, Poland had around 1.5 million sqm of space under construction, the Czech Republic 1.2 million-plus, and Romania 412,000 sqm. Cushman & Wakefield has traced an average vacancy rate across the six countries of 7.2%. Hungary has the highest, at close to 12%, with the lowest in the Czech Republic at 4%. Poland has an 8.2% rate, and Romania 5.7%.
Trending Lower?
Availability is, in general, expected to moderate as steady demand catches up with waning construction. Logistics vacancy is projected to stabilize before trending lower in 2027.
As is the trend across Europe, CEE developers are prioritizing pre-committed projects over speculative ventures. A move towards a BTS development model gives the developer more opportunities to develop in line with tenant demands and specifications, from consultations in the initial design phase and continuing throughout construction.
Sustainability accreditation is becoming the norm in the upper strata of the I&L sector, with developers and park operators such as Prologis, CTP, Panattoni and HelloParks in Hungary developing more highly specified BREEAM- and LEED-accredited complexes.
HelloParks, part of the Futureal Group, was at the recent MIPIM real estate conference and expo in Cannes, France, to promote its industrial parks to Western European investors.
“HelloParks is developing investment grade industrial buildings that fully meet Western European investor expectations,” says Rudolf Nemes, CEO and co-founder of HelloParks. “Modern buildings are significantly greener and more efficient, which has become a key factor when making relocation decisions,” he adds.
CTP, a regional developer and park operator, has an I&L network of more than 250 locations totaling a gross leasable area of 14.6 million sqm. It also has a strategic land bank of 34 million sqm across 12 markets in Europe, and 2 million sqm under construction. The core markets for CTP are the Czech Republic, Slovakia, Hungary, and Romania, while growth markets are Poland, Serbia and Bulgaria.
“Around two-thirds of our development is with existing customers. In general, around 60% of lettings are undertaken on a pre-lease and 40% speculative, depending on the market. BTS reflects the customization of leases. This is enabled through in-house contractors and designers. Construction periods are from 8-12 months with the land bank allowing steady growth,” comments Jacob Kodr, managing director of CTP in the Czech Republic.
Of the 4.7 million sqm of space in 64 locations in the Czech Republic, around 10% is in the Prague area. In the relatively new Serbian market, CTP has projects in Belgrade, Novi Sad and Nis.
Hungary Catches On
At long last, Hungary has now joined the Central European development model, with I&L hubs being developed by the likes of CTP, Panattoni, Innovinia and inPark developing in secondary cities across Hungary.
“Hungary’s position is a critical multi-modal gateway within the European supply chain. Situated at the crossroads of major TEN-T corridors, the Hungarian industrial market serves as the essential link between Western European consumer markets and the high-growth production zones of the east and southeast,” says Balázs Czifra, director of sales, asset management and business development at Innovinia.
“Our IGParks are strategically located to leverage this ‘nearshoring’ trend, offering a stable and highly connected environment for companies looking to de-risk their global supply chains,” he continues.
“While neighboring markets are also growing, Hungary’s unique advantage lies in its ability to offer seamless transit routes toward the Adriatic and the Balkans, combined with a business environment that is deeply integrated into the German and Central European manufacturing clusters. This makes the Hungarian industrial park system not just a local asset, but a strategic regional hub for continental distribution and high-value assembly,” Czifra adds.
“Structurally, the market has changed considerably. For 2026, I anticipate continued BTS and pre-let activity, with energy capacity and ESG performance becoming critical differentiators,” says Máté Szoboszlay, business development and investment director at Faedra Group.
“The industrial and logistics sector in Hungary and across CEE has been experiencing strong growth for several years, primarily driven by e-commerce expansion and nearshoring. While economic uncertainties and rising costs have introduced a degree of caution among occupiers, the overall demand for modern, well-located facilities remains robust. We at Faedra Group see a slight shift in the pace of inquiries, but not a fundamental drop-off, especially from companies that prioritize quality infrastructure and proximity to major transport routes,” he adds.
This article was first published in the Budapest Business Journal print issue of April 10, 2026.
