Monthly Archives for May 2025

Colliers: Commercial real estate investments returned to growth in CEE in Q1 2025

The first quarter of 2025 ended with real estate investments totaling EUR 175 million in Romania, slightly down by 8% compared to the same period last year but with strong momentum last year’s quarter recording 2.5 times the volume seen in Q4 2024 . According to the Colliers report ”CEE Investment Scene Q1 2025”, total investment volumes more than doubled, supported by a strong rebound in markets like the Czech Republic, Slovakia, and Bulgaria. Colliers experts highlight that there is a significant pipeline of transactions currently in Romania that could push the full-year volume slightly above 2024 levels.

“While most CEE-6 countries, including the Czech Republic (+297%), Slovakia (+344%) and Bulgaria (+273%), saw a significant recovery in investments, Romania recorded similar YoY levels but a strong growth on a quarter-to-quarter basis. This comes at a time when investors are returning to CEE markets, attracted by competitive costs, economic potential, and strong prospects in industrial-logistics, hotel, and office sectors. In Romania, however, fiscal and political uncertainties, high financing costs, and a mismatch between sellers’ and buyers’ price expectations have an effect on market dynamics”, explains Robert Miklo, Head of Capital Markets at Colliers.

Romania remains a point of interest for investors due to its strategic regional position, available workforce, and development potential, particularly in the industrial sector. According to Colliers, the local market could return to an upward trend in the second half of the year, provided that several major ongoing transactions are finalized and price expectations align with market demand and supply. Romania continues to be one of the largest economies in the region, contributing over 18% to the combined GDP of the six countries analyzed. Under these conditions, if the large transactions currently underway are completed, the total investment volume could exceed EUR 800 million for the entire year.

Among the most notable deals in Q1 were the market-entry and flagship acquisition of Victoria Center by Solida Capital and the sale of a retail property portfolio by MAS REI to UK-based fund M Core, and the sale of Shopping City Suceava by Argo Capital, with the same buyer.

“Both retail transactions, similar in size, generated over EUR 100 million in turnover, meaning the retail sector accounted for roughly two-thirds of Q1 investment volume, which reinforces the strong comeback of the this segment starting with 2021”, adds Simina Niculiță, Partner and Head of Retail Agency at Colliers.
“The slight drop in year-on-year investment activity in Q1 in Romania does not reflect a lack of interest from investors but rather a timing and supply and demand reality. Attractive assets are still available, but sellers’ value perception do not easily align with buyers’ return evaluations especially in a strictfinancing context. Nevertheless, Q2 already started strong with landmark office transactions and the pipeline of ongoing deals is strong therefore we expect a robust performance for the investment market by end of the year”, notes Robert Miklo.

Colliers experts remain optimistic about the year’s outlook in Romania’s real estate investment market. Foreign capital inflows into segments such as logistics, hospitality, and mixed-use could drive the performance, but this may depend on realistic pricing adjustments and a sustainable decrease in financing costs. Moreover, political clarity and predictability, now that the presidential elections have concluded, could further strengthen investor confidence.

“Romania has significant strengths: a competitive workforce, strategic geographic position, an attractive stock of assets, and consistent demand in certain sectors. However, to resume a steady pace of transactions, we need both a predictable fiscal and political environment and favorable external conditions”, adds Simina Niculiță, Partner | Head of Retail Agency at Colliers.

CTP extends partnership with eCommerce provider HelpShip to 20,000 sqm in Oradea

CTP has expanded its partnership in Romania with HelpShip, a leading e-fulfillment and logistics solutions provider within the euShipments.com group. HelpShip is growing its operations to 20,000 sqm at CTPark Oradea Cargo Terminal—Romania’s pioneering industrial park featuring an air cargo terminal. The expanded facility will serve as the company’s main fulfilment centre.

In May, the first cargo aircraft landed at Oradea Airport, marking the start of air cargo operations and representing a significant step toward expanding the airport’s activities.

With HelpShip’s expansion, CTPark Oradea Cargo Terminal is now fully leased; however, land remains available for future development.

“HelpShip’s growth from 5,000 sqm to 20,000 sqm at CTPark Oradea Cargo Terminal exemplifies how we support our clients as they scale. CTP is a long-term partner with the flexibility and resources to accommodate growth—both through existing space and new developments. Although the current 65,000 sqm of space at CTPark Oradea Cargo Terminal is fully leased, we have the land available to more than double the park’s footprint to meet future demand,” explains Ștefan Ciocan, Business Developer at CTP in Romania.

Labour market indicator shows minor decline, unemployment rate remains stable

The Labour Market Indicator (LMI), which provides early insights into potential changes in unemployment, declined by 0.4 points in May, returning to its April level. The slight drop does not indicate any major shift in the registered unemployment rate, which has remained stable in recent months.

Monthly changes in the LMI have been minimal, with the various components largely offsetting each other. Similarly, fluctuations in the registered unemployment rate have been minor. As of May, the registered unemployment rate stood at 5.2%, while the Labour Force Survey (BAEL) unemployment rate was 3.4% in the first quarter. These figures suggest a relatively balanced labour market, where the available labour supply meets existing demand.

However, despite this apparent stability, underlying trends point to weakening labour demand in recent years, influenced by slower economic growth, limited investment activity, and rising employment costs. On the supply side, structural challenges such as an ageing population, early retirement, long parental leave, and low birth rates are contributing to a decline in the workforce. These constraints are likely to become more noticeable when the economy enters a period of stronger growth, potentially leading to mismatches between labour supply and demand.

In May, the main factor contributing to potential upward pressure on unemployment was a significant drop in the number of job offers reported to regional employment offices—over 10,000 fewer than in April. This decrease was partly seasonal, linked to reduced recruitment during the extended May holiday period. A similar decline was recorded by the Job Offer Barometer, which tracks online job postings.

Data from the Central Statistical Office (GUS) also suggests mixed employment intentions among companies. In manufacturing, the share of firms planning to reduce staff exceeded those expecting to hire, by nearly 7 percentage points—a pattern consistent with April. The textile and clothing sectors anticipate the largest job cuts, while employment growth is expected in oil processing, computer and optical equipment manufacturing, and the automotive industry.

Meanwhile, April saw a modest increase in the number of unemployed individuals who found jobs—around 4,000 more than in March. This was mainly driven by seasonal hiring in construction, hospitality, catering, and agriculture. At the same time, the number of newly registered unemployed fell by approximately 10,000.

Overall, both the inflow and outflow of unemployed persons remain within typical monthly ranges observed in recent years, suggesting continued stability in the labour market without significant shifts in the unemployment rate.

Prague office market reaches record rental levels amidst limited supply

Office rents in central Prague have reached a new high, crossing EUR 30 per square metre per month for the first time, according to the latest analysis from Colliers. This milestone comes at a time of sustained low vacancy, with the city recording a vacancy rate of just 7.0%, the lowest among Central and Eastern European capitals. The limited availability of new space continues to place upward pressure on prices, particularly in central office zones.

Only one office building was completed in Prague in the first quarter of 2025—E-Factory (Pragovka) with 8,700 sqm of industrial-style space. By the end of the year, just four more projects totaling 17,900 sqm are expected, making 2025 the year with the lowest new supply in more than a decade. However, new activity is anticipated to pick up from the second quarter onward, with nine projects (a combined 160,900 sqm) expected to begin construction by year-end, with completions projected between 2026 and 2028.

The market is also seeing increased refurbishment activity. Two older buildings began modernisation in the first quarter: the Isola project in Pankrác (8,200 sqm) and the reconstruction of the Kotva department store, which will include new office space by late 2027. At the same time, some older office buildings are being converted into residential use, reducing office stock but supporting a more balanced urban development.

Prague currently has 3.96 million sqm of modern office space. With high occupancy in key office hubs—ranging from 93.7% to 96.1%—some companies are delaying or cancelling relocation plans due to lack of available space. Budějovická, with over 99% occupancy, is particularly affected, although changes in ownership, such as Česká spořitelna’s divestments, may alter future availability.

Flexible office space remains a small part of the market, accounting for less than 3%. While new centres by Scott.Weber and IWG are underway, others, such as Regus in Prague City Centre, have closed. The sector continues to cater more to startups and event-based users than corporate clients.

Gross demand in the first quarter reached 87,700 sqm—the lowest since 2020—while net take-up stood at 47,900 sqm. Lease renegotiations made up 40% of activity, and pre-leases fell to just 1%. Limited speculative development has reduced immediate availability, with only around 38,500 sqm currently vacant in newly completed buildings. One notable transaction during the quarter was ČEZ’s acquisition of three additional buildings in the Smíchov City project.

Alongside rising central rents, office space in the wider city centre is now being leased at around EUR 20/sqm/month. In outer districts, rents remain lower at EUR 16.50/sqm/month. Class A office space near metro stations now averages EUR 17.4/sqm/month, reflecting a year-on-year increase of 3.3% and a two-year rise of 6.3%. The continued growth in rents is encouraging longer lease terms, with many tenants and landlords opting for 7- or 10-year agreements to mitigate future fit-out and depreciation costs.

CEVA Logistics pilots AI-Drone System to improve warehouse inventory management

CEVA Logistics has launched a pilot project aimed at improving inventory management processes in its warehouse operations. The company is testing a new system in Chile that combines artificial intelligence with drone technology. The AI-Driven Drone Inventory Management System was developed to address challenges in traditional inventory control methods, aiming to improve accuracy, reduce operational disruptions, and increase overall productivity.

The new system uses drones to capture high-resolution images of inventory stored on high shelves, eliminating the need for manual access via lifts or floor-level rearrangement. These images are then processed using AI algorithms that recognise shelving structures, pallets, and product labels. The software automatically converts visual inputs into inventory data and compares them with warehouse records. Any discrepancies identified can trigger targeted audits, allowing staff to focus on other tasks during the process.

Initial results from the pilot indicate a tenfold increase in productivity compared to traditional inventory methods, along with improved accuracy and reduced costs. The project was one of the winners in CEVA’s internal Contract Logistics Innovation Awards, which recognises practical, employee-driven solutions with potential for broader application across the company’s operations.

The system is part of CEVA’s ongoing efforts to adopt technology that directly addresses operational inefficiencies. Since 2020, the company’s innovation awards programme has supported projects in two categories: “People’s Choice,” decided by employee voting, and “High Impact Innovation,” assessed by a panel of CEVA experts. Winning solutions may be implemented locally or globally, depending on their relevance and effectiveness.

Tenant activity in Warsaw remains steady despite limited new office supply

Warsaw’s office market continued to see stable tenant activity in early 2025, even as the availability of new office space declined. According to BNP Paribas Real Estate Poland’s latest report, Review – Warsaw Office Market in Q1 2025, a slowdown in completed projects and a limited development pipeline are constraining supply. Despite these conditions, demand for centrally located offices has remained consistent, with tenants actively seeking space in the capital.

Between January and March 2025, leasing activity reached 160,000 sqm, marking a 17% increase compared to the same period in 2024. In 2024 overall, tenant activity amounted to approximately 740,000 sqm, a slight decrease year-on-year. Major lease transactions in the first quarter included Enter Air’s 9,800 sqm lease in Bokserska Office Center, CD Projekt’s 5,600 sqm lease in its own office building, and Elanco Polska’s 4,400 sqm renewal in The Warsaw Hub B. Additional notable deals included a 4,200 sqm renewal in Central Tower and a 4,100 sqm new lease in Moniuszki 1a.

Most leasing activity (63%) took place in central office zones, totaling around 101,000 sqm. New leases accounted for 48% of total transaction volume, followed by renewals (26%), leases for own use (17%), and expansions (9%). Pre-leases comprised 5% of all transactions in Q1 2025—slightly higher than the previous year—and reached 15% when viewed across the last four quarters.

New supply, however, remains low. Only 5,600 sqm of new office space was delivered in Q1 2025, a sharp decline of 88% compared to the same period last year. In the past 12 months, just 61,600 sqm of new office stock entered the market, marking a 44% annual decrease. As of the end of March, around 267,000 sqm of space was under construction or renovation, with more than 80% located in central zones. Limited land availability in central districts continues to be a key challenge for new developments.

Upcoming projects expected in late 2025 include Ghelamco’s 47,000 sqm The Bridge and Echo Investment’s 31,000 sqm Office House. Strabag’s Upper One (35,000 sqm) is scheduled for completion in Q4 2026.

With new supply constrained, Warsaw’s office vacancy rate has declined to 10.5%, and just 7.4% in central locations—down 2.1 percentage points year-on-year. At the end of Q1, 657,000 sqm of office space remained vacant, with over 13% of this in buildings over a decade old. Służewiec accounted for 20% of all vacant space.

Rental rates remained stable in Q1 2025. Prime offices in the city centre commanded rents of EUR 22–27 per sqm per month, while non-central areas ranged between EUR 16–18. BNP Paribas Real Estate Poland expects rents in top-tier buildings to rise in the near future due to limited supply and increasing demand for quality space.

Vercom and CyberFolks open new office in Krakow’s Quattro Business Park

Vercom, a provider of cloud communication platforms (CPaaS), and its affiliated company CyberFolks have opened a new office in Krakow, marking the company’s continued expansion in Poland. The nearly 500 sqm space is located in Quattro Business Park, a property owned by Globalworth. The move follows Vercom’s previous office openings in Poznań and Rybnik, and is seen as a step towards consolidating the group’s operations in southern Poland, partly driven by previous acquisitions in the region.

The office was designed with functionality and employee comfort in mind, incorporating open ceilings, biophilic design elements, and a layout that includes open spaces, meeting rooms, a reception with kitchenette, and a large kitchen with a relaxation area. The design, developed by Flamaster studio and implemented by WB Projekt, focused on low carbon footprint materials, reusing existing structures, and enhancing acoustics with a combination of panels and soft furnishings.

The fit-out was managed by Globalworth’s internal Workplaces team and completed over a period of three months. According to project manager Oskar Słup-Ostrawski, the design aimed to create a space that encourages regular office use, responding to shifting workplace trends away from hybrid models in some sectors. The Krakow location was selected for its access to a skilled workforce and strong infrastructure, and the space was customised following consultations with employees.

The lease was facilitated through REDD’s digital office leasing platform. According to REDD founder Tom Ogrodzki, the transaction highlights how digital tools are reshaping commercial real estate, allowing tenants and landlords to streamline office search and leasing processes.

Stay Fit Gym brings their fitness brand to the Sheraton hotel

Stay Fit Gym announces the expansion of its portfolio of locations through a strategic partnership with Sheraton Bucharest Hotel, a five-star hotel, part of the Marriott International group.

“The new location will be a reference point on the map of our centers, both through its ultra-modern facilities and its privileged positioning. We strongly believe that health and well-being should be accessible at any time of the day, whether you are in town for business, on vacation or living nearby. In addition, this project reinforces our strategic direction of developing locations in partnership with top players in the hospitality industry, thus offering added value to the customers of both brands,” says Marius Preodișteanu, Stay Fit Gym co-founder and Head of Expansion

The new Stay Fit Gym Sheraton fitness center will benefit from state-of-the-art facilities, on an area of approximately 1,500 square meters. The investment in this location amounts to over RON 5 million.

IKEA to open store in Cluj-Napoca

IKEA Romania will open a store in Cluj-Napoca, within the RIVUS complex, developed on the old Carbochim platform. Locally, IKEA currently has three stores – two in Bucharest and one in Timisoara.

“We will continue our expansion by developing new formats, in order to remain accessible, convenient and sustainable – both now and in the long term. We are interested in the Iași and Cluj areas,” says Vincent Devloo, Area Retail Manager IKEA SEE .

In Romania, each of the three IKEA stores has its own warehouse, within the store premises. IKEA Romania ended 2024 with a turnover of over EUR 274.2 million, 33% of this amount being generated by online sales.

Source: Profit.ro

The business of the Kastamonu wood processing factory in Reghin increased by 12.5%

Kastamonu Romania, controlled by the Turkish company Kastamonu Entegre, reported a turnover of EUR 148.5 million for 2024, up 12.5% compared to the previous year, when the company had a turnover of EUR 132.7 million.

Kastamonu Romania reduced its loss fourfold last year, to EUR 5.6 million, from a negative result of EUR 24.2 million obtained in 2023. The company reached an average number of 823 employees in 2024.

The Kastamonu factory in Reghin produces HDF boards, door panels, raw chipboard (chipboard) and melamine-faced chipboard, as well as kitchen countertops for DIY networks, furniture manufacturers, distributors of materials and accessories for the furniture industry.

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