The office market in Southeastern Europe enters 2026 under strong pressure from limited supply and very low vacancy rates. Construction of new office buildings during 2025 reached the lowest level in the last decade across four key SEE markets, while leasing activity remained stable, especially in Ljubljana and Zagreb, which recorded historically low vacancy rates, writes Biznis.rs. Belgrade is approaching similar levels, with the central business zone leading in demand due to accessibility, mobility, and abundant amenities.
Companies are rapidly adopting flexible workspace models to remain adaptable amid rapid market changes. Flexible office concepts currently account for about 21% of the total office supply in Europe, expected to rise to approximately 29% over the next two years, indicating a lasting change in tenant behavior.
Simultaneously, employees are returning to offices, with peak-week office attendance approaching maximum levels, confirming that physical space remains crucial for collaboration and corporate culture.
Despite a slight increase in new supply in 2026, the regional market remains under pressure, driving rent growth. Sofia stands out as a market potentially experiencing the highest increase, possibly up to nine percent.
Belgrade’s office market has entered a new development phase, characterized by mild stabilization and a clear “flight-to-quality” trend. After a decade of accelerated expansion, in 2024, 2025, and now 2026, the amount of new supply remains limited — less than 30,000 m² is expected this year, with significant growth anticipated only from 2027.
This situation has intensified quality differentiation. Renewal of existing contracts dominated tenant activity in 2025, while relocations noticeably decreased.
Tenant activity in Belgrade in 2025 / Source: CBRE
The reasons are multiple — from reduced attendance due to hybrid work models, to lack of sufficiently attractive alternative locations, and increased capital investments needed for relocation and adaptation of new spaces.
Large companies, especially in the ICT sector, still target office spaces exceeding 1,000 m², but their focus is not solely on interior features: location, integrated environment, and accessibility are now among the critical factors.
“Projects offering high-quality environment, energy efficiency, and top employee experience will be the tenants’ first choice. The market clearly shows the ‘flight-to-quality’ effect,” says Jana Jovanović, Head of Market Research for Southeast Europe at CBRE.
Meanwhile, rents for new first-class projects already exceed existing market levels, reaching up to €21/m² per month, suggesting continued price growth for the highest quality buildings in the near future.
Serbia’s Hotel Sector: Growth of Luxury Supply and Preparations for EXPO 2027
Serbia, especially Belgrade, continues to strengthen its position on the regional tourism map. In 2024, the city recorded 3.7 million overnight stays (+7% YoY), with the average daily rate rising to €130 and occupancy at 67%.
There is also increasing interest from premium brands in Belgrade, with St. Regis and Bristol opened, Ritz-Carlton and InterContinental under construction, along with more luxury boutique hotels and projects in renovated historic buildings.
The market is preparing for EXPO 2027, with about 15 hotels in different development phases expected to open by 2027, adding 1,500 new rooms.
“EXPO will be a catalyst, but also a test. The sustainability of the hotel sector after 2027 will depend on country promotion, strengthened tourism infrastructure, and development of transport capacities,” emphasizes Jovanović.