Industrial segment: Recovery and investment attractiveness
The Slovak industrial market experienced dynamic development in 2024. After a slower start in the first half of the year, a turnaround came and the second half saw a significant recovery. The fourth quarter even became the strongest of the entire year, which signals the return of investment activity and growing confidence in the sector.
Although tenants still focus on cost efficiency and the amount of rent remains a key factor in decision-making, increasing emphasis is being placed on ESG criteria. Companies are realizing that sustainability and effective building management are not just a trend, but also a path to long-term competitiveness. The industrial segment remains a magnet for investors, as confirmed by several significant transactions in 2024 and declining prime yields. This development indicates that industrial real estate will continue to maintain a strong position on the market in the coming years.
Offices: Declining vacancy and rising rents in premium locations
The office market in Slovakia was marked by strong demand and limited supply in 2024. With no new office buildings launched in the last quarter and demand high, the vacancy rate fell for the fourth consecutive quarter. This indicates that quality premises are increasingly in demand. Companies are increasingly focusing on modern, energy-efficient offices, with up to 82% of total demand going to class A and A+ buildings. The greatest interest is for premises in central business districts (CBDs), where the advantages of accessibility, prestige and comfort are undeniable. This trend was also reflected in the growth of prime rents - prices for premium offices in the CBD reached €19.50/m2, surpassing previous expectations. With the growing emphasis on the quality of the work environment, the demand for flexible and technologically advanced offices can be expected to continue in 2025.
Retail: End of the shopping mall development cycle and expansion of retail parks
The Slovak retail market underwent a significant transformation in 2024. After years of active shopping mall development, this development cycle ended with the expansion of Bratislava’s Aupark, but on the contrary, the retail park segment continued its dynamic expansion. Four new retail parks were added to the market in the fourth quarter, confirming their growing popularity.
Retail parks are becoming increasingly popular due to their accessibility, efficient use of space and flexibility for tenants. In addition, 2024 also brought a wave of new international brands to the Slovak market – as many as 15 foreign brands opened their stores, including Ochnik, Hebe, Dnipro M, DIVR, MG Motor, Aida and EL&N. This growing interest from global players confirms that Slovakia is becoming an attractive destination for expansion, with more foreign brands expected to arrive in 2025.
Source: Cushman & Wakefield
