A Market at a Crossroads: Rethinking CEE Real Estate
The Central and Eastern European real estate market has entered a period of recalibration. After two decades of rapid growth driven by foreign direct investment, EU integration, and the globalization of supply chains, the region, especially Poland, now faces a new era shaped by macroeconomic volatility, capital scarcity, and shifting investor expectations. Inflation and interest rate pressures are reshaping underwriting models. Rising construction costs and power constraints are limiting supply. Meanwhile, geopolitics continues to weigh heavily on investor sentiment, even in markets like Poland that remain fundamentally stable.
Yet amid these pressures, institutional interest in sectors like logistics, operational living, and prime office remains high. Investors are watching carefully. What they need is clarity: on capital access, legal frameworks, and the sustainability of rental growth. That’s why the panel discussion at the recent CEE Summit in Warsaw was both timely and necessary. Under the banner “What Does the Future Hold for CEE Real Estate?”, industry leaders unpacked the region’s core challenges and explored where institutional capital is most likely to flow next.
These questions framed the recent panel discussion at the CEE Summit in Warsaw, where senior decision-makers took a hard look at market challenges, investment preferences, and policy gaps. Their insights offer a grounded and strategic view of the region's future.
Panelists consisted of:
Dorota Latkowska Co-Founder of REINO Group
Peter Heckelsmüller, Deka Immobilien
Ulrich von Creytz, CIO Real Estate Europe, DWS Group
Janusz Dzianachowski, National Managing Partner, Addleshaw Goddard Poland
Moderated by: Richard Stephens, Founder, The Poland Observer
Warsaw, Poland — The Central and Eastern European real estate market is undergoing a quiet transformation. For years, the region has been defined by its post-EU accession momentum, investor-fueled development booms, and consistent yield premiums over Western Europe. But that formula is wearing thin.
A Market Starved for Domestic Capital
The discussion opened with a critical structural weakness: liquidity. Poland, despite its size, economic stability, and institutional-grade assets, still lacks a robust layer of domestic capital. “This country needs to change,” said Ulrich von Creytz, CIO of Real Estate Europe at DWS Group. “Institutional capital, especially domestic, is barely participating. That creates serious liquidity constraints.” His sentiment was echoed by Peter Heckelsmüller of Deka Immobilien, who underlined the challenge of exits in a foreign-dominated market. “In the Czech Republic, we see more local players, more competition. Poland lacks that depth.” According to Janusz Dzianachowski, legal advisor to some of the largest global real estate investors, the issue is structural—and political. “We’ve been discussing REITs for 15 years. Pension funds still can’t invest in real estate. Without structural tools to democratize access to investment, local money stays sidelined.” The impact is tangible. Fewer local buyers means less liquidity and more difficult exits, even for top-tier assets.
Poland Is No Longer Just CEE
Beyond capital flows, a broader identity shift is underway. Poland, once the poster child of emerging Europe, is now outgrowing the “CEE” label. “Poland should be treated as continental Europe, not just CEE,” said Dorota Latkowska, co-founder of REINO Group. “Investors from Romania, Hungary, the Nordics—they’re all seeing Poland differently now.” This shift is backed by fundamentals. Poland has developed a deep, modern office stock (over 6.5 million sqm in Warsaw alone), is a critical node in European logistics, and has achieved economic stability enviable across the bloc. Yet, paradoxically, that same stability is now seen as a bottleneck. “We’re too stable,” said Dzianachowski. “There are no distressed opportunities. No yield premiums to entice opportunistic capital.” Von Creytz was unbothered by that dynamic. “I love the stability. As a core investor, Poland is exactly the place I want to be right now.”
Where Capital Is Flowing: Logistics Leads, Offices Rebound
If there’s one sector that commands consensus, it’s logistics. “We see strong rental growth in logistics,” said von Creytz. “BTS is increasing. Demand is outpacing supply. It’s a yield story, and it’s a supply-chain story.” Heckelsmüller added: “Even in a tighter capital environment, logistics remains our most liquid segment. We have a lineup of tenants ready to go.” Prime office space in Warsaw also drew praise, especially due to the reduced pipeline and rising rents. “Back-office demand in secondary cities is gone,” said von Creytz. “But prime office in Warsaw is underbuilt. That creates pricing power.” Retail parks emerged as a rising star. “We’re seeing more transactions and growing scale,” said Dzianachowski. “Retail parks are becoming investable. Shopping centers? Still limited, due to sentiment.” Residential, however, remains constrained—primarily by currency volatility. “We’d love to go deeper into PRS,” said von Creytz. “But currency hedging makes the returns unworkable. Unless Poland joins the Euro, it’s very hard to justify.”
Power Shortages, Policy Gaps, and the Rise of Alternatives
Emerging asset classes such as data centers and life sciences were also on the table, but not without complications. “There are only five viable sites for hyperscale data centers in Poland,” said Latkowska. “Power access is the constraint, not land.” That sentiment extended to life sciences—a sector seen as a long-term play. “Poland can build clusters, especially with UK universities,” she said. “We already have professors and pharma firms exploring options. But it needs support.” Senior living, while discussed, faced both cultural and financial barriers. “Poland is a conservative society,” said Dzianachowski. “Families aren’t ready to place their parents in care homes. And euro-denominated investors won’t touch zloty cash flows.”
What Needs to Change?
Across the conversation, one message stood out: the fundamentals are solid, but structure is lacking. Without local REIT legislation, open investment channels for pension funds, and better infrastructure for future-facing sectors, growth will remain uneven. “Poland is stable, investable, and increasingly central to Europe’s supply chain,” Latkowska concluded. “But we need the right capital structures to sustain that growth.” The market is no longer “emerging.” It’s emerged. What it needs now is a financial and regulatory system that matches its economic maturity.
Will Poland seize this opportunity to redefine its place in Europe’s real estate ecosystem? Or will capital continue to bypass the region in search of more fluid markets?
The answers will shape not only Poland’s real estate trajectory but the investment narrative for all of Central and Eastern Europe.
SINGU would like to give thanks credit to all participants and organizers of this great event.
CEE Summit
Richard Stephens - The Poland Observer
Richard Betts - Real Asset Media
Courtney Fingar - Real Asset Media
About SINGU
SINGU is a cutting-edge cloud-based CAFM platform transforming commercial, retail, and logistics property management. By integrating facility management, maintenance, and ESG solutions into a single ecosystem, SINGU enables clients to enhance operational efficiency, meet regulatory compliance, and drive sustainable impact.
