Electricity remains costly in the Czech Republic compared to V4 peers

According to a new analysis from the Creditas Group, the Czech Republic currently has the highest electricity prices among the Visegrad Four (V4-Czechia, Hungary, Poland, and Slovakia) countries. Unlike its regional neighbors—Poland, Hungary, and Slovakia—which use various forms of price regulation and state intervention to shield consumers from wholesale energy price increases, the Czech market is exposed to full market pricing.

As a result, Czech households pay around €0.33 per kilowatt hour—roughly triple the price paid in Hungary and double that of Slovakia. This pricing is comparable to Germany, one of the most expensive energy markets in Europe. When adjusted for purchasing power, the electricity cost burden is even more severe in the Czech Republic, making it the least favorable among V4 countries.

In contrast, the Czech Republic fares better in terms of fuel prices. It currently has the lowest gasoline prices in the V4 region, supported by a stable tax system and a strong national currency. However, the analysis notes that despite lower nominal prices, fuel remains costly relative to income levels. For comparison, Czech fuel costs are nearly double those in Germany when measured against purchasing power.

Looking ahead, the report warns that upcoming European Union policies—particularly the introduction of the EU ETS 2 emissions trading system for transport and building heating—could significantly affect future energy costs.

The Creditas analysis also examined broader economic trends in the region. While the Czech Republic continues to lead the V4 in terms of GDP per capita, its advantage is narrowing. Economic growth has slowed, and structural issues such as high housing and energy costs and limited investment are dampening the country’s development potential.

In the last 20 years, Poland has made the fastest progress toward the EU average among V4 countries. Rising wages, improved purchasing power, and lower consumer costs have pushed Polish incomes above those in the Czech Republic. In terms of real wages and consumer affordability—especially for housing and food—Poland is now considered more favorable than the Czech Republic.

Petr Dufek, chief economist at Banka Creditas, emphasized that GDP per capita alone does not fully reflect living standards. “Poland has emerged as the economic leader of the region. Although the Czech Republic remains the most advanced, it is losing momentum. Slovakia is stagnating, and Hungary continues to fall behind,” he said. Dufek added that Slovakia’s early adoption of the euro brought only temporary advantages.

While food price inflation in the Czech Republic has been relatively modest, the country still ranks as one of the most expensive in the region for groceries. Poland and Slovakia maintain their positions as the most affordable food markets.

Dufek concluded that unless the Czech Republic identifies new sources of economic growth and actively addresses housing and energy costs, it risks falling behind Poland not only in income but also in overall quality of life.

The Creditas Group specializes in long-term investments in financial services, energy, and real estate. The group is owned solely by its founder, Pavel Hubáček.

Vyšší Brod plans spa and housing project at former hospital site

Vyšší Brod in the Český Krumlov region is planning to transform the long-abandoned pulmonary hospital in Hrudkov into a new district featuring spa facilities, medical services, and housing. The town recently received the 18-hectare site, which includes interconnected pavilions and five apartment buildings, free of charge from the České Budějovice hospital. Local officials aim to fully redevelop the area within five years.

According to Mayor Jindřich Hanzlíček, the town will restore the residential buildings using its own resources and available subsidies. An international architectural competition is planned to generate innovative ideas for the medical complex. Universities will also be invited to participate. Once a winning concept is selected, the city will seek investors to carry out the project. A joint-stock company will be created, with the city contributing the site and the investor providing funding.

The basic investment is currently estimated at CZK 600 million, though the final figure will depend on the number of buildings that require demolition or renovation. A study and project plan will determine the full scope. Initial cleanup efforts, including the removal of overgrown vegetation, are set to begin shortly. Preparatory work on the apartment buildings will follow, with the city intending to allocate CZK 20 million of its own budget over the next two years.

While the site currently has only one road, the town hopes to improve access by constructing sidewalks and additional routes. Revitalizing the area is also seen as a way to support local tourism and employment. Mayor Hanzlíček noted that Vyšší Brod currently has few job opportunities and often functions as a dormitory town for workers commuting to Austria.

The Hrudkov hospital was originally developed in the early 1960s to serve employees working on the Lipno I and Lipno II hydroelectric projects. It opened in 1963 with a capacity of 264 beds and initially focused on treating respiratory illnesses, including asthma and tuberculosis. Over time, it shifted towards long-term care and gained a reputation for quality service, despite its remote location.

The facility closed in 2005 when operations were moved to České Budějovice. Attempts by the South Bohemian Region to sell the property to private investors were unsuccessful. In June 2025, regional authorities approved the transfer of the property to the town of Vyšší Brod, enabling plans for its redevelopment to move forward.

Source: CTK

Prague office market sees increased construction activity in Q2 2025

The Prague office market continued to show signs of growth in the second quarter of 2025, according to data released by the Prague Research Forum. The total volume of modern office stock in Prague reached 3.94 million square meters by the end of the quarter, with 74% classified as Class A buildings and 19% meeting the highest AAA standards.

New completions in Q2 2025 were limited, with just two refurbished buildings—NR7 (4,500 sqm) and VN62 (2,100 sqm), both in Prague 1—delivered during the quarter. Despite the modest completions, construction activity accelerated. Four new projects broke ground: three in Prague 8 (including the refurbishment of Danube House and new buildings for Creditas HQ and Vydrovka) and one in Prague 5 (River Bridge Office Hub). As a result, the total office space under construction rose to 212,600 sqm, marking a 23% increase from the previous quarter. However, only a small portion—approximately 11,300 sqm—is expected to be completed in 2025.

Gross office take-up in Q2 reached 164,800 sqm, reflecting an 87% increase from the previous quarter, although slightly down from the same period in 2024, which had been boosted by a single 75,000 sqm transaction. Owner-occupier deals played a significant role, driving both gross and net take-up. Net take-up totalled 110,300 sqm, with 56% stemming from owner-occupied spaces.

The most active submarkets were Prague 5, accounting for 39% of gross take-up, followed by Prague 8 with 26% and Prague 4 with 11%. The energy and extractives sector was the largest driver of demand, making up 27% of total leasing volume, followed by the finance sector with 19%.

Among the major transactions, ČEZ signed an owner-occupation deal for nearly 44,200 sqm at its planned headquarters in the Smíchov City complex in Prague 5. Creditas also secured over 16,800 sqm for its future headquarters in the Rohan City development in Prague 8. Additional notable transactions included a 6,600 sqm lease renewal by a financial tenant at Zlatý Anděl in Prague 5 and Pure Storage’s lease renegotiation and expansion at Amazon Court in Prague 8.

Net absorption during the second quarter was positive at 23,800 sqm. The vacancy rate declined to 6.57%, a drop of 43 basis points from the previous quarter. Total vacant space across the city stood at 259,000 sqm. Prague 4 and Prague 5 recorded the highest volumes of available space, while Prague 2 and Prague 6 had the lowest. The highest vacancy rates were seen in Prague 3 (13.2%) and Prague 9 (12.6%), with the lowest in Prague 2 (2.0%) and Prague 8 (3.9%).

Prime headline rents in the city centre remained steady at €29.00–30.00 per sqm per month. Rents in inner-city locations rose slightly to €19.50–20.50, while outer-city rents stood at €15.50–16.50. Alongside headline rents, landlords are offering higher fit-out contributions and other incentives to account for rising construction costs.

Simon Orr, Director in A&T-Offices at CBRE, noted that sustained construction in the owner-occupier segment and early signs of speculative development support a positive medium- to long-term outlook. He observed growing rents in several suburban areas and a narrowing gap between prime and new-build projects. Orr expects short-term renegotiations to continue, particularly among larger tenants.

Source: Prague Research Forum

Romania attracts over 40 international retail brands between 2020 and 2025

Romania has emerged as an important destination for international retailers, with more than 40 new brands entering the market between 2020 and 2025, according to a report by Cushman & Wakefield Echinox. The combined annual turnover of these new entrants exceeds €80 billion globally, surpassing the estimated total revenue of Romania’s retail market, which stands at approximately €60 billion.

Bucharest’s major shopping centers served as the primary entry points for most of these brands. Fashion retailers accounted for the largest share of new market entries at 26%, followed by food and beverage operators (17%) and cosmetics and beauty stores (12%). Other sectors, including sports, toys, jewelry, pet shops, and pharmacies, also contributed to the diversification of new entries.

Notable fashion brands establishing a presence in Romania during this period include Primark, Lefties, HalfPrice, Calvin Klein Jeans & Underwear, Funky Buddha, and Bogner. In sports retail, JD Sports, Foot Locker, and Sports Direct entered the market. The beauty segment saw the addition of Kiko Milano, Rituals, and Bath & Body Works. Wittchen, a Polish brand specializing in leather goods and travel accessories, also joined the local market.

International food service operators such as Hesburger, Wendy’s, Popeyes, and Happy Restaurants expanded into Romania, along with Polish convenience store chain Zabka. Other brands currently evaluating market entry include the Dutch discount retailer Action and Malaysian chain MR.DIY.

The arrival of new retailers coincides with significant investment in Romania’s retail infrastructure. New developments between 2020 and 2025 have provided modern spaces for international retailers, with over 70% of new entrants choosing to open in shopping centers. These locations offer high foot traffic, strategic positioning, and a mix of retail and lifestyle services.

Most brands opted to open directly operated stores rather than using franchise models, reflecting a high degree of confidence in the local market and a longer-term strategic outlook. This approach allows companies to adapt their offerings more closely to Romanian consumer preferences.

Retailers from the US, Poland, Germany, Spain, and France have identified Romania as a strategic market, drawn by a combination of economic stability, rising consumer purchasing power, and a well-developed real estate sector. The growing demand for international brands and new retail formats continues to support expansion across fashion, food service, and beauty segments.

Investments in retail real estate remain strong, with both local and international developers supporting geographic and format diversification. This includes large malls in major cities and retail parks in secondary urban areas, creating opportunities for both new market entries and the expansion of existing operations.

Dana Radoveneanu, Head of Retail Agency at Cushman & Wakefield Echinox, noted:
“Romania continues to establish itself as a stable and attractive market for international retailers. The combination of expanding modern retail infrastructure, increasing consumer demand, and consistent investor interest positions Romania among the most promising regional destinations for retail growth.”

According to the report, Romania now offers over 4.7 million square meters of modern retail space, providing a solid foundation for continued development in the sector.

Union Investment sells Munich hotel to Blue Coast Capital for €74.9 million

Union Investment has sold the Courtyard by Marriott Munich City Center to Blue Coast Capital for approximately €74.9 million. The transaction value slightly exceeded the property’s most recent valuation. Located at Schwanthalerstrasse 35-37, the hotel had been held in the UniImmo: Europa open-ended real estate fund since 2006.

The sale was driven by strategic portfolio considerations, particularly due to the asset’s age, and is expected to support the fund’s current liquidity position. Andreas Löcher, Head of Investment Management Operational at Union Investment, noted that the strong performance of Munich’s hotel market in 2024, along with sustained investor interest in key German cities such as Berlin and Hamburg, provided favorable conditions for the disposal.

“The Courtyard by Marriott was held for 19 years, and this transaction reflects investor appetite for hotel assets with value potential, in addition to traditional core properties,” added Madeleine Groß, Head of Investment Management Hotel at Union Investment.

The Courtyard by Marriott Munich City Center, completed in 2006, features 248 rooms and is located near Munich Central Station. Its proximity to popular destinations like Karlsplatz and Theresienwiese has made it a preferred choice for international visitors.

Union Investment was advised on the sale by JLL and legal counsel Hogan Lovells. Following the transaction, the company retains a portfolio of seven hotel properties in Munich, collectively valued at around €500 million.

CPI Europe AG announces executive board changes

CPI Europe AG has announced changes to its Executive Board, effective 31 July 2025. Radka Doehring will step down from her role as a member of the Executive Board following a mutual agreement with the company’s Supervisory Board. The decision was made due to personal reasons.

Although stepping down from her board responsibilities, Radka Doehring will remain with CPI Europe AG in a new capacity. She will continue to contribute to the company as an authorised signatory, allowing the organization to retain her expertise and institutional knowledge.

In the interim, Executive Board member Pavel Měchura will assume Radka Doehring’s duties on the board. He will take over her responsibilities to ensure continuity in strategic leadership and operational oversight during the transition period.

The Supervisory Board has initiated the process of identifying suitable candidates to strengthen the Executive Board and is currently evaluating internal and external options.

CPI Europe AG expressed its appreciation for Radka Doehring’s contributions during her time on the Executive Board and looks forward to her continued involvement in a new role.

Oil discovery off Polish coast raises environmental and policy concerns

A significant oil and gas deposit has been identified off the coast of Poland in the Baltic Sea, with current estimates suggesting reserves of around 200 million barrels. Despite the scale of the find, experts are urging caution regarding its potential extraction.

Claudia Kemfert, Head of the Department of Energy, Transport and Environment at the German Institute for Economic Research (DIW Berlin), notes that the overall impact on Germany’s energy security would likely be minimal. While the Schwedt refinery in eastern Germany has operated below capacity since the Russian oil embargo and continues to seek alternative sources, the newly discovered Polish reserves are expected to meet only 4–5 percent of Poland’s own oil demand in the short term.

Kemfert points out that Poland may use the find to strengthen its energy position, particularly in ongoing negotiations related to oil deliveries via the port of Gdansk. Tensions remain between Germany and Poland, with the latter reportedly tying cooperation to the expropriation of Rosneft’s shares in the Schwedt refinery.

Beyond energy considerations, the potential environmental and social impacts are significant. The presence of drilling infrastructure would be visible from the German island of Usedom, a popular tourist destination that attracts around one million visitors annually. Additionally, the risk of environmental damage, including possible oil spills, poses a threat to marine ecosystems and could lead to cross-border pollution.

Given these factors and the inconsistency of fossil fuel extraction with climate policy goals, DIW Berlin does not recommend moving forward with the project. The institute argues that the environmental risks and potential economic disruption outweigh the limited energy benefits.

Source: DIW Berlin

Upper Silesia’s warehouse market shows steady growth amid strong fundamentals

Upper Silesia continues to be one of Poland’s key warehouse and industrial markets, according to Savills’ latest report. By the end of the first quarter of 2025, the region’s total warehouse stock reached 5.86 million sqm, reflecting a 6% year-on-year increase. New supply during the quarter amounted to 118,100 sqm, nearly twice the volume recorded in the same period of 2024.

Despite the strong quarterly result, Savills notes that this level of new development is not expected to continue throughout the year. Future quarters are likely to see more moderate growth in new supply, which could contribute to a decline in the elevated vacancy rate. The ongoing development of build-to-suit (BTS) projects and high pre-let volumes suggest a stable and mature market.

More than half of the region’s warehouse stock has been built in the past five years, providing a high technical standard. The location’s strategic advantage at the intersection of the A1 and A4 motorways supports its role as a major logistics hub for both domestic and cross-border transport. Additionally, the Sławków Euroterminal strengthens the region’s connectivity within the European-Asian supply chain.

Leasing activity in the first quarter totaled 228,300 sqm, slightly higher than the same period in 2024. The structure of leasing transactions reflected a notable share of renewals, aligning with national trends. In a tight labour market, tenants are cautious about relocating, favouring stability over expansion in new developments.

As of the end of Q1 2025, approximately 270,000 sqm of warehouse space was under construction, with 52% pre-leased. Key ongoing developments include Booster Zabrze LemonTree (108,600 sqm) and Panattoni Park Sosnowiec Expo (62,100 sqm). Recently completed facilities include Prologis Park Ruda Śląska and Fortress Logistic Park Zabrze.

Savills notes that average annual demand over the past three years has approached 1 million sqm, underscoring the region’s long-term appeal. Upper Silesia benefits from its industrial heritage, skilled workforce, and established infrastructure, which continue to attract companies looking to expand their logistics and manufacturing operations.

As of early 2025, base rents for standard warehouse space range from EUR 4.20 to EUR 5.30 per sqm per month, with effective rents typically between EUR 2.90 and EUR 4.75 depending on incentive packages. Prices for investment land range from PLN 200 to PLN 400 per sqm, based on location and infrastructure.

While availability of development-ready land is decreasing, Upper Silesia remains a key region in Poland’s logistics sector, supported by high-quality stock, ongoing investment, and strong transport links.

Panattoni secures €10 million loan for expansion of Warsaw logistics park

Panattoni has obtained €10 million in financing from Santander Bank Polska to support the development of the second phase of its City Logistics Warsaw Airport IV project. The logistics facility is situated near Warsaw’s Southern Bypass, approximately 5 kilometers from Chopin Airport.

The expansion will add approximately 11,500 sqm of space, including 1,600 sqm designated for offices. The new phase has already secured its first tenant, a company specializing in internal logistics solutions, which plans to relocate to the site to benefit from increased space and more modern facilities.

Located near key expressways (S2, S7, S79, and S8), the site offers access to the broader Warsaw region and other parts of Poland. The design accommodates a variety of tenants, offering smaller modular units suitable for e-commerce, courier services, light production, and packaging operations. The building layout also allows for the integration of office or showroom space.

As with other Panattoni developments, the project follows sustainable building standards and will seek BREEAM certification at the Excellent level. The first phase of the project, already completed, includes a 10,000 sqm warehouse that is fully leased to a logistics operator.

When should accountants and CFOs alert management? Recognizing signs of financial strain

In any company, regardless of its size, the finance department is often the first to detect early signs of trouble. Issues typically appear first in financial data, statements, or cash flow. The roles of the accountant and Chief Financial Officer (CFO) should go beyond monthly reporting and tax compliance. Their responsibilities include identifying risks early and alerting management before problems escalate.

Proactive financial oversight is critical. Finance teams should not wait until problems are severe. Instead, they should act when the first indicators emerge. Recognizing and responding to measurable and repeatable warning signs can prevent further deterioration and give management time to implement corrective measures.

Accountants and CFOs should analyze trends, assess the impact of decisions, and flag risks before they materialize. This requires more than technical tools like liquidity ratios and cash flow projections. It also requires clear and timely communication with management—communication that leads to decisions and action.

Key Indicators of Financial Risk

One of the clearest signs of financial distress is deteriorating liquidity. This refers to whether a company has enough cash and expected incoming payments to meet upcoming obligations. A declining current ratio or quick ratio—indicators of liquidity—signals that the company may not have sufficient short-term assets to cover liabilities. If this trend continues, finance staff must raise the issue with management promptly.

Another warning sign is declining profitability. A company may maintain or even grow revenue while its profit margins shrink. Rising costs, ineffective pricing strategies, or operational inefficiencies can erode profitability over time. If margins continue to fall despite efforts to stabilize them, this indicates a structural issue that management should address.

Cash flow concerns are also critical. A company may report profits while struggling to pay its bills. Delayed supplier payments, deferred investments, or reliance on short-term borrowing to cover expenses are symptoms of cash flow problems. If a business cannot fund basic operations without outside financing, it is at risk of insolvency.

Problems servicing debt also point to financial instability. Rising debt levels combined with reduced ability to meet payment obligations signal growing financial strain. In such cases, financing current operations with new debt becomes unsustainable. Management should be informed if debt service becomes a burden on profits or if refinancing options are narrowing.

Operational issues can also foreshadow financial difficulties. Higher employee turnover, an increase in customer complaints, outdated systems, and falling service quality often lead to rising costs and shrinking revenue. These issues may appear non-financial at first but usually show up later in the company’s financial performance.

Communicating with Management

When raising concerns, the finance department must be clear and direct. Timely communication is key, especially when conditions can deteriorate quickly. Management should receive reports or presentations that explain what is happening, why it is happening, what the risks are if nothing is done, and what steps can be taken.

The goal is not to alarm, but to provide a factual assessment. Effective CFOs communicate honestly, even if the message is difficult. Their role is to guide management with accurate insights that help protect the company’s future.

Early intervention is a sign of a well-managed organization. When finance professionals are involved in strategic planning—not just reporting—they can help prevent crises or reduce their impact. However, this is only possible if they speak up when early warning signs appear.

Author: Mateusz Haśkiewicz – qualified restructuring advisor, legal advisor, president of the management board of Haśkiewicz Dyła Restrukturyzacje Upadłości sp. z o.o.

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