Prices of older apartments in the Czech Republic rise 19% year on year

Prices of older apartments in the Czech Republic increased significantly at the end of 2025. According to an analysis by FérMakléři.cz, the average price of older flats rose by 19% year on year to CZK 81,104 per sq m in the fourth quarter. Compared with the third quarter of 2025, prices were on average 3% higher.

The analysis shows that prices increased both year on year and quarter on quarter in all major cities. The strongest annual growth was recorded in Ústí nad Labem, where prices of older apartments rose by 29% compared with the fourth quarter of 2024. In quarter-on-quarter terms, prices in most cities increased by between 1% and 4%.

As in previous years, the highest prices were recorded in Prague. At the end of 2025, the average price of older apartments in the capital reached CZK 151,085 per sq m, representing an 11% increase year on year. This means that an 80 sq m apartment cost around CZK 12.1 million, approximately CZK 1.2 million more than a year earlier. Brno remained the second most expensive market, with an average price of CZK 118,040 per sq m, up 10% year on year. An 80 sq m flat in Brno was priced at roughly CZK 9.44 million, almost CZK 900,000 more than at the end of 2024.

The fastest growth was observed in traditionally more affordable regional markets. In addition to Ústí nad Labem, prices rose sharply in Ostrava, where older apartments increased by more than 20% year on year to CZK 64,697 per sq m. By contrast, the smallest annual increases, aside from Brno, were recorded in České Budějovice and Olomouc, where prices rose by around 10%.

In Hradec Králové, the average price reached CZK 93,190 per sq m, marking a year-on-year increase of 16%. In Plzeň, prices rose by 14% to CZK 83,956 per sq m.

Quarter-on-quarter growth at the end of 2025 was generally moderate. Prices in Prague, Brno, Plzeň and Olomouc increased by around 1% compared with the third quarter. Hradec Králové recorded a 3% rise, while České Budějovice saw prices increase by 2%. The strongest quarterly growth was again seen in Ústí nad Labem and Ostrava, where prices rose by 4%.

Overall, the data indicate that the upward trend in prices of older apartments continued across the Czech housing market in late 2025, with particularly strong momentum in regions that had previously been among the more affordable.

Source: CTK/FérMakléři.cz

Corporate bankruptcies in the Czech Republic rise to highest level since 2017

Courts in the Czech Republic declared bankruptcy for 751 companies in 2025, representing a year-on-year increase of 9% and the highest annual total since 2017. Over the same period, 1,164 insolvency petitions were filed, up 8% compared with the previous year, according to an analysis by CRIF – Czech Credit Bureau, based on data from the Information about Companies portal.

The number of corporate bankruptcies has now risen for the third consecutive year. At the same time, business formation activity also increased in 2025, with the number of newly established companies growing by more than 10% year on year. The number of companies leaving the market also rose, although at a slower pace than new formations, according to CRIF analyst Věra Kameníčková.

Financial indicators for companies showed mixed trends during the year. Growth in corporate lending slowed towards the end of 2025, while the volume of company deposits remained broadly stable and continued to exceed the level of corporate loans. Payment discipline improved slightly, with the share of non-performing loans in total corporate borrowing declining. However, Kameníčková noted that insolvency trends varied considerably by sector and region, both in terms of growth dynamics and overall bankruptcy rates.

In the final months of 2025, the gap widened between the number of insolvency petitions filed and the number of bankruptcies declared. This suggests that courts may have dismissed a growing number of petitions due to insufficient debtor assets. On average, 17 corporate bankruptcies were declared per 10,000 active companies nationwide, corresponding to a bankruptcy rate of 0.17%.

As in previous years, the highest number of corporate bankruptcies was recorded in Prague, where courts declared 340 cases. The second-highest total was reported in the South Moravian Region. Year-on-year increases in bankruptcies were observed in eight of the country’s 14 regions. The most pronounced rise occurred in the Pilsen Region, where bankruptcies increased by 64%. By contrast, the number of bankruptcies declined in the South Bohemian Region by 29%, and by 17% in both the Karlovy Vary and Zlín regions.

Sectoral data show that bankruptcies rose most sharply in information and communication activities, where the number increased by 46% year on year. Construction recorded a 25% increase, while wholesale and retail trade, including vehicle repair and maintenance, saw a rise of 14%.

In relative terms, the highest bankruptcy rate in 2025 was recorded in the water supply sector, with 26 bankruptcies per 10,000 registered entities. Transport and storage followed with 21 bankruptcies per 10,000 companies, while construction and manufacturing each recorded 18. The lowest relative risk of bankruptcy was observed in information and communication activities, with seven bankruptcies per 10,000 companies, followed by professional, scientific and technical activities with eight.

Source: CTK

Geopolitical tensions add to economic risks for Germany

At the beginning of 2026, international political developments are adding another layer of uncertainty to the global economic environment. Tensions involving major powers, unrest in politically sensitive regions and unresolved sovereignty disputes are increasingly shaping the conditions under which companies operate. For export-oriented economies such as Germany, these developments are becoming an additional risk factor alongside existing structural challenges.

Rapid political decisions and unexpected escalations are making long-term planning more difficult for businesses. Global supply chains, energy markets and cross-border investment flows are particularly exposed to sudden changes in political relations. German companies with international operations or dependencies are therefore facing a business environment in which stability can no longer be assumed.

Energy markets are one area where geopolitical developments can have indirect but noticeable effects. Even when Germany has limited direct economic ties to a particular region, instability in resource-producing countries can contribute to price volatility and uncertainty. For companies with high energy consumption or significant logistics costs, fluctuating prices complicate cost planning and weaken margins. While short-term disruptions may be manageable, prolonged uncertainty tends to discourage investment and increases the risk of miscalculation.

Industrial sectors are especially vulnerable to disruptions linked to global political tensions. Advanced manufacturing depends heavily on complex international supply networks, particularly for key components such as semiconductors. These components are produced within a highly concentrated global system, meaning that even limited disruptions can have cascading effects across multiple industries. Automotive manufacturing, mechanical engineering and electronics are among the sectors most exposed to such risks, as supply interruptions can quickly affect production schedules, delivery commitments and profitability.

Beyond operational challenges, geopolitical instability is also influencing financial conditions. Increased uncertainty tends to make lenders and investors more cautious, tightening access to financing and raising sensitivity to payment delays. Medium-sized companies with limited financial buffers are particularly exposed to these dynamics, as higher costs and delayed revenues can quickly affect liquidity.

Taken together, these developments suggest that geopolitical risk is becoming a permanent feature of the economic landscape rather than an occasional disruption. For German companies, this implies a growing need to strengthen resilience through diversified supply chains, flexible sourcing strategies and more active risk management. While international partnerships and open markets remain essential, reliance on predictability alone is no longer sufficient in an environment shaped by persistent political uncertainty.

In this context, economic stability increasingly depends on a company’s ability to adapt to external shocks. The changing geopolitical environment is reinforcing the importance of strategic preparedness, not only at the political level but also within corporate decision-making.

Source: Atradius

Leroy Merlin joins the Góraszka Project

Nhood Services Poland, acting on behalf of Ceetrus Polska, has completed the sale of land in Góraszka to Leroy Merlin. The transaction will enable the development of a large-format DIY store that will form part of the multifunctional Góraszka Project and expand the commercial and service offering of the area.

The land purchase agreement was signed on 29 December 2025 between Leroy Merlin Inwestycje and Ceetrus Polska, with Nhood Services Poland acting as broker. Under the agreement, Leroy Merlin will develop a modern, single-storey DIY store providing home, flat and garden solutions. The store will have a built-up area of approximately 12,000 sq m and will be located in the northern part of the Góraszka Project, on a site covering more than 55,000 sq m.

Anna Będkowska, Project Manager at Nhood Services Poland responsible for the Góraszka Project, said that finalising the transaction represents an important step in the development of the scheme and reflects the potential of the location as a multifunctional destination serving local communities.

Marcin Witos, Development Director at Leroy Merlin, said that Góraszka is a strategic location for the company and aligns with its aim to remain close to customers. He noted that the new store will provide access to a wide product range as well as professional advice, workshops and tailored solutions for customers’ home and garden projects.

Leroy Merlin plans to start construction works in the third quarter of 2026. The investment will include a modern retail facility with a sales area, exhibition space and outdoor zones dedicated to garden inspiration. The development will also include unloading areas for suppliers, customer collection zones, full technical infrastructure, internal roads and a car park, integrated with the wider Góraszka Project.

Dominik Krupa, Project Manager at Leroy Merlin, said that the preparation and completion of the transaction required close cooperation with Nhood Services Poland and careful coordination of due diligence, contractual and planning processes. He added that the project is now ready to move into the construction phase.

According to Nhood Services Poland, public consultations carried out for the Góraszka Project highlighted demand from local residents for an expanded retail and service offer, including a DIY and home improvement store. The presence of Leroy Merlin is intended to address this need.

The Góraszka Project is being developed on the site of the former airport in Góraszka, near Warsaw, close to the junction connecting the S17 expressway with the Warsaw Southern Bypass (S2). The main retail and service complex within the project will offer nearly 40,000 sq m of retail space. Together with neighbouring developments, including the Leroy Merlin store and the existing Majaland Warsaw amusement park, the project is intended to create a combined shopping and leisure destination.

The total usable area of the investment, including facilities developed by partners, is expected to reach approximately 65,000 sq m GLA. In addition to retail and service space, the wider complex will include a water park, drive-through restaurants and a petrol station. Construction will be carried out in stages, beginning in 2026 with the development of technical infrastructure, followed by retail, service and partner facilities.

Ceetrus Polska is the main investor in the commercial component of the project. The development is being implemented in line with sustainable development principles. The Góraszka Project received a BREEAM Communities certificate in 2024, and the investor plans to seek BREEAM New Construction certification. The project is also participating in the MUQI certification process, which assesses the quality of mixed-use developments.

Peakside Capital Advisors appoints Steven Davis as Managing Director for CEE

Peakside Capital Advisors announces a change in its senior management structure. Steven Davis has been appointed Managing Director, Central and Eastern Europe (CEE), assuming responsibility for the company’s activities across the region.

In his new role, Steven Davis will oversee Peakside’s investment and development platforms across CEE, including Poland and other key regional markets, while working closely with local management teams to drive further growth and operational excellence.

Steven Davis is an experienced property developer with broad market expertise spanning acquisitions, financing, planning, construction, sales, marketing and leasing. Over the course of his career, he has delivered more than 20,000 residential units, developed in excess of 400,000 sqm of commercial office space and 100,000 sqm of retail space, as well as projects within the logistics and industrial real estate sector.

His professional experience covers all major sectors of commercial real estate, including residential, office, retail, hotel and industrial assets. Steven Davis has delivered projects both through ground-up development and via the acquisition of portfolios or individual assets.

He previously served as Chief Operating Officer of a publicly listed company with approximately EUR 2.5 billion of assets under management, and also worked alongside leading institutional partners including Goldman Sachs, GE, Pirelli Real Estate and Grove Investment Fund. Throughout his career in Central and Eastern Europe, he has built and expanded development platforms across multiple markets, including Poland, the Czech Republic, Slovakia, Hungary, Germany, Croatia and Serbia.

Steven Davis is recognised as an experienced leader with a strong ability to build effective teams, foster collaboration and support long-term value creation through clear direction and operational discipline.

“Steven brings a unique combination of international development experience and deep operational expertise across all commercial real estate sectors, including logistics and industrial assets. His leadership approach and regional perspective will strongly support Peakside as we continue to grow our platforms across Central and Eastern Europe in line with our long-term strategy” – said Stefan Aumann, Founding Partner at Peakside Capital.

Steven Davis succeeds Roman Skowronski, who has led Peakside Poland’s operations since 2019.

Stuttgart logistics real estate market stabilises as signs of recovery emerge

The logistics and industrial property market in the Stuttgart region recorded total take-up of 113,700 sq m in 2025. According to REALOGIS Immobilien Deutschland GmbH, the decline seen in recent years continued but at a slower pace. Compared with 125,200 sq m in 2024, take-up fell by 11,500 sq m, or 9%.

While 2022 marked the strongest year on record since 2011 with 316,000 sq m, 2025 was the weakest overall. The five-year average was undercut by 47%. The three largest transactions, concluded by LIDL, Klauss GmbH and a logistics service provider, accounted for a combined 21,000 sq m, representing 18% of total take-up.

Joel Adam, Managing Director of Realogis Immobilien Stuttgart GmbH, said: “Against the backdrop of the overall economic environment and structural challenges, particularly in the automotive industry, demand for space remains selective. At the same time, the Stuttgart region benefits from strong industrial expertise, advanced technological know-how, and well-established innovation structures. These factors provide a stabilising effect and lay the foundation for a moderate recovery in take-up over the course of 2026.”

Rents stabilise after years of growth

Prime rent remained unchanged at €8.50 per sq m, ending an upward trend that had continued since 2020. Average rent was also stable at €7.00 per sq m. Both figures remain above their respective five-year averages by 6% and 7%. The gap between prime and average rents has held steady at €1.50 per sq m for the past five reporting periods. Despite ongoing shortages of modern space in sought-after locations and rising construction and financing costs, weaker demand limited further rental growth.

Existing stock dominates activity

Existing properties accounted for 98,200 sq m, or 87% of total take-up. New-build lettings amounted to 15,500 sq m, representing 13% of the market. Of this volume, 12,900 sq m, or 83%, was delivered on brownfield sites. A transaction by LIDL in the Esslingen district represented around 9,000 sq m, or approximately 70% of total brownfield take-up. Greenfield developments remained marginal, contributing just 2,600 sq m, or 17%, of new-build lettings.

Esslingen leads submarket rankings

With 44,300 sq m, equivalent to 39% of total take-up, Esslingen emerged as the strongest submarket, overtaking Ludwigsburg. Böblingen ranked second with 23,500 sq m, recording the largest year-on-year increase, up by 17,100 sq m. Take-up there more than tripled. Ludwigsburg fell to third place with 20,600 sq m, as activity declined again due to the absence of large transactions. Göppingen followed with 13,000 sq m, or 11%, while the city of Stuttgart itself accounted for 8,700 sq m, or 8% of total take-up.

Sector performance mixed

Manufacturing remained the largest occupier group with 39,500 sq m, representing 35% of total take-up, although this was 26% lower year-on-year due to the lack of major deals. Retail and wholesale followed with 27,900 sq m, or 24%. Within this segment, traditional retailers dominated, accounting for 82% of retail take-up, compared with 18% for e-commerce. This contrasts with 2023, when e-commerce accounted for 75% of retail take-up, and 2024, when the split was 61% to 39%.

Logistics and distribution ranked third with 23,900 sq m, or 21% of total take-up. It was the only sector to record a significant increase, rising by 546% year-on-year and partially offsetting declines elsewhere.

Smaller units dominate

No transactions were recorded above 10,001 sq m in 2025, marking the second consecutive year without activity in this size category. Units between 1,000 sq m and 3,000 sq m led the market with 45,100 sq m, or 40% of total take-up, up 47% year-on-year. The 3,001 sq m to 5,000 sq m segment followed with 34,000 sq m, or 30%. Overall, units of up to 5,000 sq m accounted for 86% of total take-up, compared with 56% a year earlier.

Key figures

Total take-up reached 113,700 sq m. Prime rent stood at €8.50 per sq m and average rent at €7.00 per sq m. Existing space accounted for 98,200 sq m, while new-builds totalled 15,500 sq m. Tenants represented 104,700 sq m of take-up, with owner-occupiers accounting for the remaining 9,000 sq m.

Théa Polska becomes a new tenant of LIXA C

Laboratoires Théa has leased new office space at the LIXA C office building in Warsaw. The company’s Polish subsidiary, Théa Polska, has taken nearly 1,000 sq m on the first floor of the building, which is owned by Yareal Polska. With this transaction, LIXA C has reached full occupancy.

Théa is an independent, family-owned pharmaceutical company specialising in the research, development and commercialisation of ophthalmic products. Founded in 1994 by Henri Chibret, a member of the fourth generation of the Chibret ophthalmology family, the group has developed a portfolio of preservative-free products across multiple therapeutic areas. Théa operates through subsidiaries and distributors in more than 70 countries. In Poland, its products have been present on the market for around 20 years and are widely used by ophthalmologists, pharmacists and patients.

“This year, Théa Polska is celebrating its 20th anniversary,” said Wojciech Tracz, Country Manager at Théa Polska. “It is a unique and important moment in the history of our Polish operations – closing one chapter while opening up space for new challenges and further growth. Our new office symbolizes the journey we have taken and how much we have achieved. Through all these years, Théa has remained true to its mission ‘to be a partner to every ophthalmologist and pharmacist in their daily practice,’ while serving patients every day. We do so by maintaining a consistent organizational culture and operating in the spirit of corporate social responsibility. We are therefore particularly pleased that our new headquarters are located in a building owned by Yareal Polska, a company guided by the principles of CSR and sustainable development, and that the office itself meets high standards in this respect. I am very pleased that Yareal will accompany Théa Polska in the next stages of its development and in strengthening its market position.”

The new headquarters of Théa Polska at LIXA C comprises close to 1,000 sq m of office space. During the negotiation and conclusion of the long-term lease agreement, the tenant was advised by Brochocki Law Firm, represented by Paweł Pamięta and Rafał Buda.

Paulina Petynka, Leasing Director at Yareal Polska, commented: “We are very pleased that another company whose innovative solutions contribute to the development of such a vital area of life as medicine, and thus tangibly improve the lives of many people worldwide, has joined the group of LIXA tenants. When developing our office campus, our goal was to create a functional and friendly working environment that fosters creativity and growth, while offering numerous amenities essential for running a modern business. We are satisfied that we have achieved these objectives, as evidenced by the trust shown by our tenants and the full commercialization of office space at LIXA C.”

LIXA C is part of the LIXA office campus located near Rondo Daszyńskiego in Warsaw. The building was completed in early 2022 and delivers approximately 19,400 sq m of modern office space. It is located on the eastern side of the publicly accessible LIXA City Gardens passage, which connects the entire campus.

The LIXA campus was developed in stages and consists of five office buildings with a total area of 77,000 sq m, designed by HRA Architekci. The project includes more than 5,500 sq m of green areas, including courtyards and terraces, and is designed as an open campus accessible to office users and the wider public. The buildings incorporate a range of technological and environmental solutions and hold several international certifications, including BREEAM Excellent, WiredScore Platinum, WELL Health-Safety, ActiveScore and AirRated.

Hahn Group and Sonae Sierra launch Southern European food retail fund

Sonae Sierra and the Hahn Group have launched the Hahn Sierra Food Retail Fund as part of a cooperation agreement. The open-ended special AIF, established in accordance with the German Investment Code (KAGB), has a target investment volume of around €600 million and focuses on food retail assets in Southern Europe, specifically in Portugal, Spain and Italy. At the first closing, six institutional investors subscribed equity of approximately €150 million. The target equity volume is around €300 million.

The fund focuses on supermarkets, consumer markets and hypermarkets with long-term leases to leading food retailers. It provides German professional investors with access to high-quality, strategically located assets outside Germany. The partnership between the Hahn Group and Sonae Sierra combines the expertise of both companies. Sonae Sierra contributes decades of experience in Southern European markets and a proven track record in value creation within the real estate sector. The company currently manages 24 investment vehicles in partnership with blue-chip investors. The Hahn Group brings extensive experience in the investment and management of food-anchored assets, supported by long-standing relationships with institutional investors. This joint framework enhances the ability to identify suitable investment opportunities and to build a resilient and sustainable portfolio.

€130 million initial portfolio in preparation

Approximately 20 food retail assets in Spain and Portugal, with a total investment volume of around €130 million, are currently at an advanced stage of due diligence. The first acquisitions are planned for the first quarter of 2026. The objective is to reach a total investment volume of €300 million by the end of 2026.

“With the launch of the fund in partnership with the Hahn Group, we are consistently pursuing our expansion strategy in investment management. We bring 35 years of international experience in cooperation with institutional investors, as well as in-depth market knowledge of Southern Europe. The high resilience of the food retail sector—characterised by long-term leases, stable cash flows and high purchase frequency—forms the basis for a sustainable income portfolio. Together with our partner Hahn, we are pleased to offer investors such an attractive and distinctive investment opportunity,” said Dr Christoph Billwiller, Head of Investment Management at Sonae Sierra in Germany and member of the Executive Board.

7 per cent target return for professional investors

The open-ended special real estate fund is aimed at German professional investors. Classified in the Core/Core-Plus risk category, the fund targets an annual return of more than 7 per cent (IRR). Following the first closing, the Hahn Sierra Food Retail Fund remains open for further subscriptions. With a minimum investment of €30 million, the special AIF is aimed primarily at insurance companies, pension funds, pension schemes and church institutions.

Thomas Kuhlmann, CEO of the Hahn Group, said: “Our investors have been successfully investing in the German food retail sector for over 40 years. These investments traditionally offer high resilience and an excellent risk-return profile. We are pleased to now offer investments in the European food retail sector for the first time, enabling our institutional investors to achieve broader geographical diversification. Spain, Portugal and Italy are highly attractive markets with above-average growth rates in Europe. In Sonae Sierra, we have selected a cooperation partner with extensive industry expertise and in-depth regional market knowledge. Combined with our capital markets expertise, this provides a strong foundation for the fund’s success.”

Photo: Thomas Kuhlmann, CEO of the Hahn Group

Deka Immobilien sells five-star hotel in Mallorca

Deka Immobilien has completed the sale of the Jumeirah Port Sóller Hotel & Spa on the Spanish island of Mallorca. The buyer is Dubai Holding LLC, which acquired the property from the portfolio of the WestInvest InterSelect. The parties did not disclose the purchase price.

Located on the island’s northwest coast, the asset comprises a hotel with 121 rooms, including 15 suites, as well as 58 parking spaces. The transaction also includes an adjacent undeveloped plot that may be designated for local recreation and nature conservation, or used to a limited extent for agricultural purposes. Deka Immobilien acquired the property in 2007. It is fully leased on a long-term basis to Jumeirah Port Soller Mallorca, S.L.. The hotel holds Leadership in Energy and Environmental Design (LEED) Platinum certification.

According to Deka Immobilien, the disposal reflects active portfolio management and takes advantage of continued investor demand for hotel assets in Mallorca. The transaction is expected to contribute positively to the performance of the WestInvest InterSelect fund.

Czech producer prices fall for industrial output in December 2025

Producer price data released by the Czech Statistical Office show mixed trends in December 2025 across different sectors of the Czech economy.

Industrial producer prices, which reflect changes in the prices of goods sold by manufacturers, decreased both compared with a year earlier and month on month in December. The index for industrial output was down on the year, continuing a period of price declines in this segment. Agricultural producer prices also fell in December, showing lower average levels compared with both the preceding month and the same period in 2024.

In contrast, prices in other parts of the economy rose on an annual basis. Market services provided to businesses recorded higher producer price levels than a year earlier, as did construction work. These sectors saw moderate increases in producer prices in comparison with December 2024.

Over the full year 2025, the patterns in producer price changes diverged across sectors. Industrial producer prices declined on average compared with 2024, while prices for agricultural producers, construction work and business services were higher over the same period.

The data suggest that while cost pressures in manufacturing eased towards the end of 2025, price developments in services and construction continued to reflect upward trends. Changes in producer prices can influence inflationary dynamics and business cost structures, and this mixed performance across sectors points to varying cost pressures in the Czech economy heading into 2026.

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