Slovak Commercial Real Estate Reaches Half-Billion Mark by Mid-2025

Slovakia's commercial real estate sector has experienced a dynamic start to 2025, with investments surpassing €500 million by the end of the first half. This significant volume has already exceeded the total transaction value for the entire previous year, underscoring a rapid and clear revival of the market, as reported by analysts at Cushman & Wakefield. The current pace suggests that annual investment could even reach an impressive €1 billion.

Logistics and Industrial Properties Lead the Way

The lion's share of these investments, a staggering 57%, was directed towards logistics and industrial properties. This highlights the strong and continuous demand for warehouse space and manufacturing facilities, which are increasingly seen as stable and highly profitable assets. For businesses seeking prime industrial locations or efficient distribution hubs, this robust investment flow indicates a healthy and expanding market with ample development and rental opportunities.

While logistics dominated, shopping centers accounted for 34% of investments, and office buildings represented 8%. Although office investments currently form a smaller percentage of the overall capital flow, the market's general resurgence and the strategic acquisitions in this segment (like VIVO! Bratislava) suggest a growing confidence that bodes well for companies looking for modern office spaces in Slovakia.

Domestic and International Investors Fuel Growth

The confidence in the Slovak market is broad-based, with both domestic and regional investors contributing 53% of the investment volume. International institutional entities made up a substantial 47%, demonstrating global trust in Slovakia's economic stability and growth potential. This blend of local expertise and foreign capital is a positive indicator for businesses considering relocation or expansion within the country.

Positive Outlook for the Remainder of 2025

The positive momentum is expected to continue into the second half of 2025, with projections of an additional €800 million to €1 billion in investments. This continued growth is anticipated to be further bolstered by decreasing interest rates, making financing more accessible and encouraging even more development and transactions. For businesses, this translates into a dynamic market with a widening array of available properties and competitive rental terms.

Key Transactions Shaping the Market

The first half of 2025 saw several landmark transactions that exemplify the market's vibrancy:

The sale and leaseback of five Tesco retail galleries. REICO's acquisition and leaseback of the DSV logistics center in Senec. Wood & Company's acquisition of the VIVO! Bratislava complex, including its office buildings. The Lindner family's acquisition of the OBI portfolio. Blackstone's acquisition of the Contera Parks industrial portfolio.

These high-profile deals underscore the attractiveness of Slovak commercial properties and the active participation of major players, signaling a robust and mature market ready to accommodate growing business needs.

Source: systemylogistiky.sk