The industrial and logistics real estate sector in Central and South-Eastern Europe continued its strong upward trend in Q3 2025. Demand from manufacturers, solid leasing activity, and sustained investor interest kept the region among the most dynamic industrial locations in Europe. Insights from the latest Industrial CEE & SEE Market Recap for Q3 2025 show confidence across occupiers, developers, and investors, with market fundamentals remaining firmly positive.
Manufacturing Demand Continues to Drive Growth
Manufacturing remains the core engine behind leasing activity across the region. Automotive, electronics, and advanced production companies are expanding their footprints, reinforcing the strategic value of the CEE region within European supply chains. Countries benefiting from nearshoring and shifting production strategies are seeing the strongest demand and consistent interest from global occupiers.
Development Activity Stays Strong Despite Economic Pressures
Even with broader uncertainty across Europe, new completions in CEE remain steady. Developers continue to back the region’s long-term industrial potential, supporting growth in logistics parks, production campuses, and sizable build-to-suit projects. Poland, Czechia, Romania, and Hungary remain the most active construction markets, driven by strong tenant pipelines.
Investors Focus on High-Quality Logistics and Manufacturing Assets
The investment market remains stable, with prime industrial yields holding firm. Investor appetite is strongest for modern logistics centres, advanced manufacturing facilities, and distribution hubs leased to credit-worthy tenants. Long-term income stability and sustained occupier demand continue to support capital inflows into the sector.
Vacancy Rates Stay Moderate, With Tightening in Key Markets
Vacancy across the region remained healthy in Q3 2025. Markets with rapid manufacturing expansion or strong e-commerce logistics growth are experiencing localised tightening as available Class A space becomes more limited. Overall, the balance between supply and demand supports both ongoing development and occupier growth.
CEE Retains Its Position as a Leading European Industrial Hub
The Q3 2025 results confirm the region’s strong momentum. With manufacturing-driven demand, an active construction pipeline, and resilient investor confidence, the industrial and logistics market in CEE and SEE is well-placed for continued growth in the months ahead.
