3 Minute Read
A year of rebound ahead
Despite constrained supply, leasing activity remained strong across the region, with some markets - such as Ljubljana and Zagreb - recording increases of more than 70%. In most SEE markets, however, this heightened activity was driven primarily by lease renewals rather than relocations, as limited availability, particularly in prime assets, restricted tenants’ options.
Vacancy rates remained exceptionally low in Zagreb and Ljubljana at around 2–3%, with Belgrade gradually converging toward similar levels. Meanwhile, Sofia’s vacancy rate also began to decline as new supply remained muted. Rental levels continued to rise throughout the year and are expected to maintain this upward trajectory into 2026. Sofia is forecast to see the strongest rental growth, potentially reaching up to 9%, while other SEE markets are projected to experience more moderate annual increases of around 3%.
Trends to watch
-
Flex solutions
Businesses are increasingly integrating flexible office solutions into their portfolios to stay agile amid rapid market shifts. Flexible space in Europe already accounts for 21% of corporate footprints and is expected to rise to 29% within two years, reflecting a structural shift in occupier behavior.
-
Competitive Leasing
Office usage continues to climb, with peak‑day occupancy already near full. Demand remains strongest in CBD locations, where access and amenities drive attendance. At the same time, ultra‑low vacancy in Zagreb and Ljubljana, with Belgrade approaching similar levels—combined with constrained new supply is sustaining competitive leasing conditions and fueling rental growth.
-
Leasing Dynamics
2025 marked the lowest new supply in a decade across SEE, yet leasing remained robust—especially in Ljubljana and Zagreb, where activity surged largely due to renewals. While supply is expected to improve moderately in 2026, tight conditions persist, pushing rents higher, with Sofia leading rental growth.