Real Estate Investment Declines in Southeast Europe in 2025

Investment volumes edge lower across SEE

Real estate investment volumes in Southeast Europe declined by 3% in 2025, reaching 868 million euro, according to a new report by global advisory firm CBRE. The data point to a market facing structural constraints despite continued investor interest across the region.

Offices dominate regional investment activity

The office sector remained the backbone of the SEE real estate market throughout 2025, generating more than 470 million euro in transaction volumes. Industrial and logistics assets also recorded an increase in investment, while retail, hotel and alternative segments experienced a noticeable slowdown.

Sharp contraction in fourth-quarter activity

In the final quarter of 2025, real estate investment volumes in Southeast Europe fell by 53% year-on-year to approximately 260 million euro. Office properties accounted for 62% of all transactions during the period, followed by retail assets with a 33% share, while hotel and industrial sectors lagged behind.

Serbia leads regional investment flows

Serbia emerged as the most active market in the fourth quarter, accounting for 61% of total regional transactions, or around 160 million euro. The country’s performance was largely driven by office investments. Bulgaria followed with more than 60 million euro in deals, primarily in the retail sector. Croatia recorded roughly 27 million euro in investments, also led by retail assets, while Slovenia’s most significant transactions were concentrated in the hotel segment.

Investor outlook for 2026

CBRE expects additional investment activity across all asset classes in 2026. Croatia and Slovenia are projected to remain the most attractive and in-demand markets, while Bulgaria is increasingly viewed as an entry point for new investors. Serbia is expected to continue appealing to both local and regional players.

Supply constraints and financing conditions

Limited availability of high-quality assets is likely to remain the main obstacle to stronger investment growth. At the same time, financing conditions are forecast to improve modestly, as interest rates are expected to ease slightly over the course of 2026, making debt financing more attractive.

As experts at International Investment report, Southeast Europe’s real estate market is entering a selective recovery phase, where investor success will depend on asset quality, financing access and long-term market positioning.