Slovakia’s Property Investment Market Breaks Records Despite Softer Demand in Warehousing

Slovakia’s Property Investment Market Breaks Records Despite Softer Demand in Warehousing

Slovakia’s commercial property sector is enjoying its strongest investment activity in years, even as parts of the market show signs of slowing. Figures for the first half of 2025 indicate that deals worth more than half a billion euros were completed, already above the full-year total for 2024.

The bulk of the money has gone into storage and manufacturing properties, which continue to be the most attractive class of asset for investors. Retail centres followed, while office buildings represented only a small share of activity.

At the same time, the warehouse market is adjusting. In the second quarter, companies leased just over 100,000 square metres of new space, but the share of vacant facilities has climbed to just above six percent. Developers continue to add to supply, with more than 300,000 square metres of new halls under construction and close to 80,000 square metres delivered between April and June.

The added capacity and a more cautious stance among occupiers are putting pressure on landlords, who are offering more flexible conditions to secure tenants. Rents in top locations remain broadly steady, though incentives are becoming more common.

Analysts point out that Slovakia’s performance contrasts with some neighbouring countries where investment has slowed more sharply. They also note that the long-term prospects remain positive, as demand from e-commerce, manufacturing projects, and the trend of shifting supply chains closer to Europe continue to support development.