Unlocking Value: How Falling Vacancy Is Reshaping CEE Offices
At iO Partners, we go beyond data — we translate market movements into actionable insights. We are introducing iO Insights, a new series of deep-dive analyses exploring the key trends shaping the Central and Eastern European real estate market.
Our latest edition examines how falling vacancy rates across major CEE cities — including Prague, Bucharest, Budapest, Bratislava, and Belgrade — are redefining the regional office market.
Download the full iO Insight (PDF)
With strong tenant demand and limited new supply, the CEE office sector is entering a more balanced and value-driven phase. For both landlords and occupiers, this evolution marks the emergence of a more mature and sustainable market environment across the region.
Vacancy Rates Continue to Fall Across Key Cities
The Central and Eastern European office market is undergoing a major transformation in 2025. Vacancy rates are dropping in Prague, Bucharest, Budapest, Bratislava, and Belgrade, driven by sustained tenant demand and limited new supply.
Tune in to our short podcast featuring Petr Kareš (iO Partners), Jana Prokopová MRICS (Skanska), and Predrag Cvetić (Htec).
Landlords Regain Leverage
- Tenant demand remains strong, even as new completions slow down.
- Prime locations are tightening, giving landlords greater negotiating power.
- CBDs are back in focus, with some nearing full occupancy.
- Overflow demand is shifting to attractive inner-city districts, especially in Prague and Bucharest.
Flight to Quality Defines Tenant Strategies
The development pipeline is scarce, leading to increased competition for modern, ESG-compliant offices.
Tenants are prioritizing:
- High-quality, sustainable buildings
- Flexible layouts and strong amenities
- Energy efficiency and long-term value
Developers remain cautious, focusing on select projects that meet evolving tenant expectations.
Older Stock Finds a New Purpose
A wave of refurbishments and conversions is reshaping city centers:
- Viable assets are being modernized to extend their life cycle.
- Obsolete offices are being converted to residential or hospitality uses, improving market balance.
Outlook: Maturity, Sustainability, and Selective Growth
The coming months will likely bring:
- Declining vacancy rates
- Upward pressure on prime rents
- A larger role for flexible office solutions
The CEE office market is entering a more mature, value-driven phase where sustainability, location, and quality define long-term competitiveness. Those who adapt early will be best positioned to thrive.
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