CPI Property Group Eyes Growth in 2026 Amid Improved Market Conditions

CPI Property Group (CPIPG) presents a promising outlook for 2026 following a modest real estate market rebound in 2025. The Group reports stability in rents and occupancy across Central and Eastern Europe (CEE). Retail performance continues strong, alongside improved office sentiment and limited construction activities. A significant advantage is the high demand for residential properties, offering benefits to landlords and developers. Financial markets are favorable, with ample secured financing and declining pricing margins. Unsecured bond markets have also reopened.

CPIPG exceeded its €1 billion disposal target in 2025, realizing €1.1 billion in gross sales. The company intends to continue offloading non-core assets and expects disposals ranging from €500 to €750 million in 2026. A notable contribution is anticipated from residential developments in Dubai and the Czech Republic, possibly generating €750 million by 2028.

Moody’s downgraded CPIPG’s rating from Ba1 to Ba2, citing interest coverage ratio concerns, even though other metrics showed improvement. Strategies to address this include asset disposals, debt repayments, and operational optimizations. With €378 million in debt maturing by 2026, CPIPG aims to maintain robust liquidity through careful debt management and buyback strategies.