The ECB helped the market
The ECB's gradual reduction in interest rates triggered a wave of gradual easing, with the central bank cutting the base interest rate a total of four times in 2024. Investment activity therefore increased at the end of the year, which was also reflected in the premium real estate market.
"Looking at prime yields within individual sectors, there was no price reduction, which only confirmed the narrative that there is interest in quality real estate even in difficult times," said CBRE.
Strong manufacturing and logistics sector
From a sectoral perspective, logistics and manufacturing real estate accounted for the largest share of investments last year, accounting for 48 percent of the total transaction volume. This segment was also attractive thanks to significant transactions and the sale of one of the greenest logistics projects in Slovakia.
“The year 2024 was extremely interesting for the manufacturing and logistics sector, as we witnessed the sale of one of the greenest projects in Slovakia and at the end of the year, a significant transaction was concluded with the entry of a new investor into the Slovak market in terms of the investment volume,” explains CBRE Slovakia Sales Director Ľubor Procházka.
The second strongest segment was retail real estate with a share of 23 percent, with the same share recorded by the office sector. The remaining six percent of the market was divided between other segments. The residential sector had the largest share.
Bratislava remains the center of investments
The regional distribution of investments confirmed the dominance of Bratislava, which maintained a 75 percent share of the total investment volume in 2024. The capital city thus remains a key center of the real estate market, with investors focusing mainly on office and logistics projects.
In terms of the origin of capital, the largest investors last year were domestic players, who participated in transactions by 33 percent. "It is also positive that Slovakia has long had the highest volume of investments from domestic investors. It was no different in 2024, when domestic investors were responsible for 33 percent of all investments," states Ľ. Procházka. Czech investors came in second place with a 22 percent share, with additional investments also coming from other countries in the region.
Despite the decline in the total investment volume, the end of last year brought positive signals. The gradual easing of the ECB's monetary policy, as well as stable interest in premium real estate, indicate that 2025 could bring a greater revival of the real estate market. However, it is the strong logistics sector that will be the brake on real estate sales.
"This year, we expect a decline in investment in the industrial and logistics sector, mainly because landlords do not want to sell their existing portfolios and rather have an appetite for expansion, but there are a minimum of buildings for sale within the sector," adds CBRE Research Manager Peter Slovák.
