KINGSTONE Real Estate: Care facility operators face mounting constraints

The market for care facilities in Germany is facing increasing pressure as rising demand driven by demographic change collides with structural limitations affecting operators. Shortages of skilled staff, higher operating costs and regulatory complexity are constraining the sector’s ability to expand, according to participants in a recent webinar hosted by KINGSTONE Real Estate.

The discussion, titled “Care in transition – operators between growth and reality”, brought together Maximilian Radert, Head of Product Development & Research at KINGSTONE Real Estate, Mathias Staudt, Healthcare Expert at KINGSTONE Real Estate, and Christian Nitsche, Chairman of the Board at DOMICIL Senior Residences.

Demand growth supported by families

Germany currently has around 5.7 million people receiving care benefits, most of whom are supported at home or through outpatient services. Only a limited proportion live in inpatient care facilities. Christian Nitsche noted that the current system depends heavily on informal family care. “The system is being supported by the family. The critical question here is what happens when people can no longer be cared for at home. That is when supply will be severely disrupted,” he said.

Maximilian Radert added that demographic change has moved beyond being a social challenge and could develop into a broader structural issue if capacity does not keep pace with demand. He described the situation as potentially becoming a “systemic risk” that requires coordinated attention from policymakers, investors and operators.

Staffing shortages limit expansion

While demand remains strong, operators are constrained in expanding services due to limited resources. According to Nitsche, workforce availability represents the main restriction. “The bottleneck exclusively pertains to the shortage of skilled workers,” he said, adding that the problem increasingly affects support functions such as kitchen and cleaning services.

Participants highlighted the need for more flexible regulatory frameworks and reduced administrative requirements to help operators maintain capacity without compromising quality standards.

Investment and refinancing challenges

Investment conditions were identified as another key issue. Rising construction and operating costs, combined with the need to modernise existing stock, are creating financing challenges for new developments. Nitsche pointed to a gap between political expectations and economic realities, arguing that refinancing frameworks need to reflect actual construction and renovation costs.

Mathias Staudt noted that only a small number of German federal states currently link refinancing mechanisms for new care facilities to construction cost indices. “There are only two German states, Baden-Württemberg and NRW, that have adequate regulation around new-builds and at least base their refinancing on the building cost index,” he said. In many regions, ageing building stock makes private operators and institutional investors essential to sustaining and expanding care capacity.

Digital tools as operational support

Digitalisation was repeatedly cited as a means of improving efficiency within facilities. Staudt emphasised that digital processes can reduce administrative burdens and allow staff to focus more on care delivery.

Christian Nitsche shared examples from DOMICIL Senior Residences, where electronic documentation, AI-assisted speech recognition and digital service planning tools are already in use. “Our aim is to get employees out of the office and working with our residents,” he said.

Outlook

The webinar concluded that while demand for care facilities is expected to continue rising, sustainable growth will depend on workforce availability, viable refinancing structures and stable regulatory conditions. Investors may play an important role in expanding capacity, but participants warned that without reforms and a reduction in bureaucracy, supply constraints could intensify.

Summing up the discussion, Radert said: “It is crucial that we view the care sector as indispensable going forward. This is the only way to reconcile supply and demand long term.”

Bulgarian Cabinet Resigns as Parliamentary Vote Fails to Proceed

Bulgaria’s political crisis deepened on Thursday after Prime Minister Rosen Zhelyazkov announced the resignation of his coalition government following days of large-scale public demonstrations across the country.

The announcement was made shortly before members of parliament were due to vote on a motion seeking to remove the government from office. The initiative, brought forward by opposition parties, did not result in the cabinet’s formal dismissal, as the parliamentary session was unable to secure the necessary participation to complete the procedure.

According to parliamentary proceedings, a vote was initiated after the resignation statement, but it failed to meet the conditions required to move forward decisively. Several lawmakers from the governing coalition did not take part, leaving the chamber without sufficient attendance to sustain the process. As a result, the motion did not obtain the level of support required under parliamentary rules.

The government’s decision to step aside came amid sustained protests in Sofia and other major cities, where demonstrators voiced concerns over governance, economic pressures and institutional accountability. The rallies marked one of the largest waves of public mobilisation in recent months and placed growing pressure on the ruling alliance.

With the resignation submitted, the country now enters a transitional phase. The cabinet is expected to remain in a caretaker capacity until constitutional procedures determine the next steps, which may include efforts to form a new majority or the appointment of an interim government ahead of potential early elections.

The unfolding situation adds further uncertainty to Bulgaria’s political landscape, which has seen repeated changes in government and prolonged periods of instability in recent years.

UK Makes ID Verification Mandatory for Company Directors and PSCs

Identity verification has officially become mandatory for company directors and people with significant control (PSCs) in the UK following the latest implementation phase of the Economic Crime and Corporate Transparency Act 2023. Companies House confirmed that the new requirements came into effect on 18 November 2025, marking one of the biggest compliance changes for UK companies in decades.

The rules apply immediately to all new directors and newly registered PSCs, whether on the incorporation of a new company or through changes to an existing one. For individuals already serving as directors or already registered as PSCs on 18 November, the regime will be phased in over the next 12 months and tied to existing Companies House filing timelines. A PSC is generally defined as an individual owning or controlling more than 25% of company shares or voting rights.

Identity verification is designed as a one-time process. Individuals must prove their identity using approved documents—such as a passport—through a free government service or an authorised third-party provider. Once verified, the individual receives a unique identity number that must be used for all future interactions with Companies House. Individuals holding multiple directorships or PSC roles will only need to verify once, but will face several compliance deadlines across different companies.

Under the new rules, anyone appointed as a director after 18 November 2025 must provide their verified ID number as part of the appointment process. Existing directors must complete verification before filing their next annual confirmation statement (CS01), and Companies House is urging early completion to avoid complications such as mismatched records, expired identification documents, or delays affecting foreign nationals or individuals living overseas.

Individuals becoming PSCs after 18 November must supply their ID number when added to the Companies House register, or within 14 days of the change. Those already registered as PSCs face different obligations depending on whether they also serve as directors of the same company. PSCs who are also directors must submit their ID number twice—once as a director and separately as a PSC—while PSCs who are not directors must submit their ID number within the first 14 days of their birth month.

Failure to comply carries significant legal consequences. The Act introduces new criminal offences for both individuals and companies, including cases where a person continues acting as a director without being verified by the required date. In such instances, not only the individual but the company and its other officers may be held liable. Companies House has published guidance outlining its enforcement approach, signalling that non-compliance will be taken seriously.

Law firms and corporate advisers are now helping clients prepare for the transition, ensuring verification is completed early and assisting with complex cases involving multiple roles or overseas individuals. The shift marks a major step in the UK’s efforts to increase corporate transparency and combat economic crime through tighter scrutiny of those who control and manage companies.

Source: CMS

Poland’s Future Inflation Index Steady as Price Pressures Ease

The Future Inflation Index (WPI), which signals expected movements in consumer prices several months ahead, did not change in December compared with November, according to the latest data. The index has shown virtually no movement for four consecutive months, reflecting a period in which inflation has been steadily declining and moving closer to the National Bank of Poland’s target.

Analysts note that both global and domestic conditions are contributing to price stability. Weak international economic activity has helped keep commodity prices and global demand in check, while slower wage growth in Poland in recent months has eased pressure on household spending, reducing the likelihood of a renewed demand-driven rise in inflation.

Recent surveys of consumer expectations show a clear shift in sentiment. The share of people anticipating price increases in the coming months fell by 6.5 percentage points from October. The number of respondents expecting prices to rise as fast as before—or faster—declined, while more people expect slower price growth. Although consumer expectations tend to mirror recent inflation trends and have limited predictive accuracy, they play a role in spending behaviour. Lower inflation expectations often translate into more cautious purchasing decisions and reduce the tendency to buy in anticipation of further price hikes.

Business sentiment, however, has moved in a slightly different direction. In the latest GUS survey, manufacturing companies reported a modest increase in their expectations for future price changes. For the first time in nearly a year, the share of firms planning price increases exceeded those planning reductions, by 3.5 percentage points. Higher expectations were most common among pharmaceutical producers, electronics manufacturers, and makers of machinery, equipment and transport goods. Some of these anticipated changes are seasonal, such as price adjustments in medicines or certain electronic products. Others may reflect early signs of rising investment demand.

Some firms producing computer equipment also reported upward price pressure linked to a sharp drop in supply and rapidly rising RAM prices—a development partly driven by global investment in artificial intelligence hardware. Despite these pockets of pressure, producer prices overall have been in a strong downward trend for more than two years. Economists note that even a modest improvement in demand may prompt companies to consider raising prices, but this does not necessarily mean such increases will be passed through to consumer goods.

Commodity markets have shown little volatility, with prices generally stable for nearly two years. The IMF’s commodity index rose by 3.5% over the past three months but remains close to its average level for this period. Energy commodities continue to show downward trends, while metals and food commodities remain broadly stable. Geopolitical tensions and subdued global growth have limited the conditions for sustained increases in commodity prices, with the main exceptions being gold and silver, which have benefited from higher demand during periods of uncertainty.

New lease agreements signed at Warsaw’s Oxygen Park

Two companies have recently signed lease agreements at the Oxygen Park office complex in Warsaw. ITPunkt, a provider of IT services for the B2B sector, has leased 460 m² for its new headquarters, while Paszkiewicz Firma Budowlana has expanded its existing office to 300 m².

ITPunkt offers IT management and outsourcing, project financing, audits, consulting, cybersecurity and cloud services. The company, founded in 2009 in Katowice, employs around 100 people and has branches in four Polish cities. At Oxygen Park, ITPunkt leased approximately 460 m² of office space. During the negotiations, the tenant was advised by Mateusz Piotrowicz from ShareSpace. The landlord’s representative during the transaction was Marta Gawęda, Leasing Manager at Golden Star Estate.

Paszkiewicz Firma Budowlana, a company involved in construction, refurbishment and fit-out works, has been a tenant at Oxygen Park since 2018. The firm increased its leased area to 300 m², moving its headquarters to the second building within the complex.

“We are delighted to see Oxygen Park continue to attract companies looking for a modern, friendly and growth-oriented work environment. Welcoming ITPunkt to our tenant community and seeing Paszkiewicz Firma Budowlana expand are clear signals that the consistently developed quality and standards of the complex meet the real needs of the market,” said Marta Gawęda, Leasing Manager at Golden Star Group. “New lease agreements are always a source of great satisfaction and provide the best confirmation of a project’s competitiveness — in this case, Oxygen Park’s strength on the demanding Warsaw office market. Equally important is the trust shown by long-standing partners who choose to stay with us and grow their teams within our properties. It proves that effective management, relationship-building and the unique atmosphere of a place truly matter. Oxygen Park is a space that evolves together with its tenants, and we are proud to accompany them on this journey,” she added.

Oxygen Park consists of two six-storey buildings offering more than 18,000 m² of office space. The complex includes a green patio, relaxation areas, a café, underground parking, bicycle facilities and showers. It holds a BREEAM “Very Good” rating. The site is located along Aleje Jerozolimskie, close to the WKD Raków station, and approximately 7 km from both the city centre and Warsaw Chopin Airport.

Tenants at the complex include Adara, Agfa, Certis Belchim, DiaSorin, ECO3, e-Xim, Eurotronic, Grupa Transportowa, Hamelin, LSI Software, Parker Hannifin, PHINIA, Sodexo, Nieruchomości Plus, Nowy Styl, Trane and Toshiba Global Commerce Solutions. Oxygen Park was designed by JEMS Architekci and completed in 2013.

An increasing number of warehouses with heat pumps are planned in Małopolska. Could Kraków emerge as a leader?

A quiet revolution is underway in Małopolska’s industrial landscape. Developers across the region are increasingly favouring heat pumps and photovoltaic systems over traditional gas boilers in warehouse construction. This shift marks a growing commitment to renewable energy solutions, with investors recognising the dual benefits of environmental responsibility and long-term cost efficiency.

How does Marta Nowik, Director, Industrial and Logistics, AXI IMMO, assess this trend? We invite you to read her commentary on how Małopolska is entering the era of gas-free warehousing.

The warehouse sector in Małopolska is undergoing a significant energy transition. Just a few years ago, facilities heated using ambient energy were a rarity. Today, however, they are emerging as a viable alternative to conventional gas boilers. Heat pumps, supported by photovoltaic systems and energy management technologies, are increasingly setting the standard in modern logistics parks.

Although the Małopolska region — with approximately 1.19 million square metres of modern warehouse stock — does not match the overall scale of Mazovia (7.19 million square metres) or Silesia (6.15 million square metres), developers operating in and around Kraków are increasingly integrating “no-gas-ready” solutions into their projects. In Poland, pioneers in this field include 7R, Panattoni, CTP, and MDC².

Nonetheless, technical constraints must be taken into account. Heat pumps for large-scale warehouses require substantial grid connection capacity, a well-designed heat distribution system, and robust building insulation. In Małopolska, some older parks may require infrastructure upgrades to accommodate such systems. Developers who plan these adaptations at the design stage can significantly reduce implementation costs.

According to current data from industrial developers, over 40% of planned warehouse and production investments in the Kraków region could be delivered with heat pumps as the primary heating source. This figure may increase in the coming quarters or years, depending on tenant demand. For companies leasing space in modern logistics parks, this shift offers not only reduced heating costs but also access to more environmentally friendly solutions — a growing asset in customer and investor relations.

It is worth considering how the buildings in which businesses operate are heated. Heat pumps, which until recently were regarded as a solution primarily for Build-to-Suit (BTS) projects, are now increasingly being planned as standard in new warehouse and production locations. This shift is driven not only by ESG policy requirements but also by economic rationale. With rising carbon emissions and gas prices, renewable energy can deliver tangible savings — up to 50% on heating costs. Naturally, actual savings depend on several factors, including insulation quality, heating system type, and installation efficiency. By choosing facilities equipped with heat pumps, tenants can substantially lower operating costs and reduce exposure to volatile fossil fuel prices.

Carbon dioxide emission costs and gas prices are on the rise, while energy from renewable sources is delivering tangible savings — in some cases, up to 50% on heating expenses. Naturally, the actual level of savings depends on several factors, including the quality of insulation, the type of heating system, and the efficiency of the installation itself.

By choosing facilities equipped with heat pumps, tenants can significantly reduce their operational costs and shield themselves from the volatility of fossil fuel prices.

In practice, it can be expected that over the next few years, the majority of new Class A warehouses in the Kraków metropolitan area will be offered in a “no-gas” configuration, with heat pumps and photovoltaic systems included as standard.

All signs point to Małopolska having the potential to become a leader in the green transformation of the warehouse sector — particularly in percentage terms, given the market’s size and growth dynamics. However, final investment decisions often hinge on the preferences of future occupiers. Their active engagement in selecting sustainable solutions will play a crucial role in shaping the future direction of the market.

Author: Marta Nowik, Director, Industrial and Logistics Department, AXI IMMO

Slovakia’s construction output continued to grow in October 2025, but growth slowed

Construction activity in Slovakia continued to expand on an annual basis in October, though the pace of growth eased compared with earlier months, according to data published today by the Statistical Office of the Slovak Republic.

Preliminary figures show that total construction output in October exceeded EUR 800 million, marking the sixth consecutive month of year-on-year increases. The volume of work was up 3.7 % compared with October 2024, after adjusting for price changes.

Despite the ongoing annual rise, the rate of growth was significantly lower than in previous months, making October one of the slowest months for expansion this year. On a seasonally adjusted basis, construction output was 3.6 % lower than in September 2025.

Within the sector, building construction continued to drive overall growth, with work in this segment up on the previous year. In contrast, civil engineering activities — including road and highway projects — declined compared with October 2024.

Domestic construction work accounted for the bulk of activity, representing 88 % of total output. Both new building work and repairs/maintenance operations contributed to the year-on-year increase.

Slovak construction firms also reported higher output abroad, where their work volume was up significantly compared with a year earlier.

For the first ten months of 2025 overall, construction output in Slovakia is estimated at EUR 6.6 billion, up 7.1 % year-on-year.

The Statistical Office publishes these monthly figures around 40 days after the end of the month, with revisions applied quarterly to ensure accuracy.

More Poles See Late 2025 as a Suitable Time to Buy Property, Though Caution Remains

A recent nationwide survey shows that attitudes toward buying a home improved in the final months of 2025, although many people remain hesitant. According to the research, around one-third of respondents believe that the end of the year offers favourable conditions for purchasing a flat or house. Earlier in 2025, that view was held by noticeably fewer people.

Despite this shift, a slightly larger share of respondents still feel that the final quarter is not the right moment to enter the market. Researchers point out that although interest rates have come down and prices in some cities have steadied or dipped, buyers remain careful.

The study indicates that perceptions in the first half of the year were particularly pessimistic, with only a small share of respondents seeing the market as supportive for buyers. Sentiment improved over the summer and autumn as conditions became somewhat more predictable.

The findings also highlight a persistent concern: the high cost of homes. A large majority of those surveyed continue to describe prices as elevated, which remains the main obstacle for would-be buyers.

Views on selling also shifted. In previous months, more people felt it was a good time to sell property, but that number declined in the fourth quarter. Analysts suggest that many sellers have yet to see a noticeable rise in buyer activity, despite lower interest rates, and may feel that the most advantageous period for listing a property has passed.

Concerns about affordability remain widespread. More than two-thirds of respondents said that few people in their social circles could currently buy a home. This sentiment is strongest among residents of Poland’s largest cities and among younger adults.

The survey was carried out in November 2025 on a representative sample of more than 1,000 adults.

Source: Nieruchomosci

Ballymore and Penta form joint venture to deliver more than £700m in London housing projects

Ballymore and Penta Real Estate have established a 50/50 joint venture to develop more than 680 new homes across two London sites, with a combined gross development value exceeding £700 million.

The partnership will focus on two schemes: the 52-storey Cuba Street residential tower next to Canary Wharf, which will deliver 434 homes, and The Capston at Ballymore’s Embassy Gardens development in Nine Elms, which will add 247 homes. Both projects have planning consent, and construction is underway.

The joint venture marks Penta’s first investment in the UK real estate market. The company has stated its intention to expand its presence in the sector.

“We are excited to be entering the world-leading UK real estate market backing these unique and prominent London residential projects. Ballymore shares our dedication to delivering inspiring homes and creating a positive impact through high quality development projects. We look forward to working together to create a series of fantastic living opportunities for Londoners,” said Pavel Streblov, UK managing director and board member of Penta Real Estate.

John Mulryan, group managing director of Ballymore, said: “Securing this funding in today’s challenging environment represents a significant achievement, and we are excited to work with Penta Real Estate on its first investment in the UK. At a time of constrained supply, it is vital to bring forward projects at pace, and we look forward to building a successful partnership founded on aligned interests and a shared commitment to delivery.”

Kellnerová announces plan to move PPF Group headquarters from the Netherlands to the Czech Republic

Amalar Holding, which manages the joint assets of Renáta Kellnerová and her daughters, has announced its intention to transfer the registered office of PPF Group from the Netherlands to the Czech Republic. PPF Group is the main holding entity of the wider PPF investment group, active in 25 countries across multiple sectors. According to Amalar, the relocation process is expected to be completed in the first half of 2026, after which PPF Group will become a Czech tax resident.

PPF operates in Europe, Asia, North America and South Africa, with investments in telecommunications, media, financial services, real estate, e-commerce, biotechnology and engineering. At the end of last year, the group held assets valued at €41.722 billion (approximately CZK 1.024 trillion) and employed 45,000 people worldwide. In 2024, it reported a record net profit of €3.2 billion (CZK 78.7 billion).

The group’s majority owner was Petr Kellner, the Czech Republic’s wealthiest businessman, who died in a helicopter accident in March 2021.

Source: CTK

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