Slovak industrial production declines for third consecutive month in April

Industrial production in Slovakia fell by 3.2% year-on-year in April 2026, marking the third consecutive month of decline and a significant deterioration compared with the 0.8% decrease recorded in March, according to data from the Statistical Office of the Slovak Republic.

The weaker performance was driven by declining output in two-thirds of the country’s industrial sectors. Ten of the 15 monitored industrial branches recorded lower production levels than a year earlier.

The largest negative impact came from the manufacture of transport equipment, Slovakia’s key industrial sector, where output fell by more than 5% year-on-year. The sector reduced overall industrial production by 1.47 percentage points, making it the single largest contributor to the decline.

The manufacture of basic metals also weighed heavily on industrial performance, with production decreasing by more than 8% compared with April 2025. The sector contributed a negative 1.41 percentage points to the overall result.

Further pressure came from the manufacture of coke and refined petroleum products, where output declined by more than 11% year-on-year. The sector has now recorded double-digit decreases for three consecutive months.

Some industries provided partial support to overall production. Output in the manufacture of electrical equipment increased by more than 5%, while machinery and equipment production rose by over 3%, helping to offset some of the broader decline.

On a seasonally adjusted basis, industrial production remained unchanged compared with March 2026.

Industrial output remains weaker in 2026

For the first four months of 2026, Slovak industrial production declined by 1.2% year-on-year.

Eight of the 15 monitored industrial sectors recorded lower output compared with the same period of 2025. The manufacture of transport equipment remained the largest drag on performance, with production down nearly 4% year-on-year and contributing a negative 1.06 percentage points to overall industrial growth.

The manufacture of basic metals also continued to weaken, falling by almost 4% during the January-April period and reducing overall industrial output by 0.61 percentage points.

The steepest decline among major sectors was recorded in the manufacture of coke and refined petroleum products, where production dropped by more than 18% year-on-year.

The negative performance was partly offset by growth in the energy sector. Electricity and gas supply increased by more than 5% during the first four months of the year, contributing 0.55 percentage points to overall industrial production.

The latest figures indicate that Slovakia’s industrial sector continues to face challenges from weaker manufacturing activity, particularly in automotive production and heavy industry, despite resilience in selected energy and engineering-related sectors.

Source: SOSR

Slovak tourism records strongest April on record for visitor numbers

Tourist accommodation establishments in Slovakia welcomed a record number of guests in April 2026, with both domestic and international visitor numbers reaching their highest levels for the month, according to data published by the Statistical Office of the Slovak Republic.

A total of 464,000 guests stayed in hotels, guesthouses and other accommodation facilities during the month, representing a 10% increase compared with April 2025 and exceeding the previous April record set in 2019 by 5%.

While visitor numbers reached a new high, the total number of overnight stays remained slightly below pre-pandemic levels. Guests spent more than 1.1 million nights in accommodation establishments across the country, up nearly 10% year-on-year but still around 2% lower than in April 2019. The average length of stay was 2.4 nights.

Domestic travellers continued to account for the majority of tourism demand, representing almost two-thirds of all guests. Nearly 284,000 domestic visitors used accommodation services in April, an increase of almost 9% compared with the same month last year and nearly 5% above the previous April record from 2019.

International tourism also continued to strengthen. The number of foreign visitors rose by almost 14% year-on-year to approximately 180,000 guests, surpassing the previous April record from 2019 by nearly 6%.

Visitors from the Czech Republic remained the largest international source market, accounting for 26.4% of all foreign guests, or nearly 43,000 visitors. Poland ranked second, contributing almost 16,000 visitors and representing 9.7% of all foreign arrivals.

Regional performance varied, with seven of Slovakia’s eight regions recording year-on-year growth in visitor numbers. The strongest increase was reported in the Žilina Region, where guest numbers rose by 16.2%, while the Trnava Region was the only area to record a decline, with visitor numbers falling by 2%.

Bratislava Region remained the country’s most visited destination, attracting 133,000 guests during April. It was followed by the Žilina Region with 94,000 guests and the Prešov Region with 71,000 visitors. Together, Bratislava and Žilina accounted for around half of all accommodation guests in Slovakia.

Bratislava, Žilina, Prešov and Košice regions all recorded their highest-ever April visitor numbers as well as record levels of overnight stays for the month.

Bratislava Region also remained the leading destination for foreign tourists, welcoming approximately 88,000 international visitors. It was the only Slovak region where foreign guests accounted for the majority of visitors, with almost every second foreign tourist visiting Slovakia choosing accommodation in the capital region.

The positive trend continued throughout the first four months of the year. Between January and April 2026, accommodation establishments hosted more than 1.8 million guests, an increase of 10% compared with the same period of 2025 and 9% above the corresponding period in the pre-pandemic year of 2019.

Growth in international tourism outpaced domestic demand during the period, with foreign visitor numbers increasing by 15% year-on-year compared with a 6% rise among domestic travellers.

Source: SOSR

AFI strengthens management team with two senior appointments

Real estate investment and development company AFI has expanded its management team with the appointment of Jan Baxa as Head of Office Asset Management and Lucie Mašínová as Head of AFI Home Leasing and Tenant Relations.

In his new role, Jan Baxa will be responsible for the strategic management and development of AFI’s office portfolio in the Czech Republic. The company currently owns and operates five office buildings in Prague with occupancy levels close to full capacity and is in the process of completing the acquisition of the Port7 office complex in Prague’s Holešovice district.

Baxa brings more than 20 years of experience in the real estate sector. Prior to joining AFI, he spent 15 years at CA Immo Real Estate Management, where he held the positions of Head of Property Management and later Head of Asset Management. He began his professional career at Knight Frank while completing his studies.

He holds a doctoral degree in Regional Geography from Charles University in Prague.

Lucie Mašínová joins AFI as Head of AFI Home Leasing and Tenant Relations. She will oversee leasing activities and tenant relations across the AFI Home residential platform, which currently comprises four residential schemes with nearly 900 apartments and serviced units. A further 810 apartments are currently under development.

Her responsibilities will include enhancing customer service standards, improving leasing processes, implementing new technologies and strengthening tenant satisfaction and retention.

Mašínová joins AFI from Kaufland Czech Republic, where she served as Head of CRM for the past five years. Previously, she worked as Marketing Manager for the Czech and Slovak markets at OBI and spent nearly 11 years at OMV in a range of management and marketing positions.

She holds a master’s degree in Economic Policy and Administration from the Silesian University in Opava.

The appointments come as AFI continues to expand both its office and residential operations in the Czech market, with growth planned across its AFI Home rental housing platform and Prague office portfolio.

BSH begins production at new PLN 600 million factory near Rzeszów

BSH, the manufacturer of Bosch and Siemens household appliances, has started production at its new small domestic appliances factory in Rudna Wielka near Rzeszów, Poland, following the completion of a nearly PLN 600 million investment.

Developed by Panattoni, the facility spans 73,000 sqm and includes production, warehouse and office space. The project was completed on schedule after construction began in early 2025, and BSH has now completed the transfer of production equipment from its previous nearby location.

The new factory consolidates the company’s operations in the Rzeszów area into a single site, a move expected to improve operational efficiency and support future growth.

“The move to a new, larger factory is another step on the path to our company’s development and the best confirmation that BSH feels very much at home in Poland, in Rzeszów,” said Konrad Pokutycki, CEO of BSH in Poland.

BSH has operated in Poland for 33 years and currently employs nearly 8,000 people across six manufacturing plants, logistics centres, research and development facilities and shared services operations. The company has invested more than €1.5 billion in Poland to date, primarily in Łódź, Wrocław and Rzeszów.

According to Michael Baumeister, Member of the Management Board of BSH’s Small Domestic Appliances Division, the facility will continue producing Bosch Unlimited cordless vacuum cleaners, bagless vacuum cleaners, wet-and-dry cleaning appliances and capsule coffee machines. He also announced that production of a new espresso machine platform will begin at the factory next year.

The site is located within the Rzeszów-Dworzysko Special Economic Zone and benefits from direct access to motorway, expressway and rail infrastructure.

Panattoni delivered the project as a build-to-suit development tailored to BSH’s production requirements.

“The opening of the new BSH factory is a special project not only because of its scale, but above all because of the level of sophistication and the pace of implementation,” said Marek Dobrzycki, Partner at Panattoni. “In less than a year, we delivered a modern production facility designed practically in every detail to meet the needs of one of the most advanced small household appliances factories in the BSH Group.”

The project required coordination between construction works, installation of production lines and relocation of manufacturing operations without interrupting production activities.

The investment is expected to create approximately 1,000 jobs in the Podkarpacie region. In addition to manufacturing operations, BSH also operates a research and development centre in Rzeszów, where engineers and designers work on new small domestic appliance products. The company opened a new R&D facility in the city centre in 2025.

Rzeszów Mayor Konrad Fijołek said the investment strengthens the city’s position as a centre for advanced manufacturing and innovation while creating employment opportunities and supporting regional economic growth.

Garbe Industrial starts construction of logistics park in Soest

Garbe Industrial has commenced construction of a new logistics and light industrial development in Soest, North Rhine-Westphalia, with completion scheduled for the fourth quarter of 2026.

The project, known as Garbe Industrial Park Soest, will provide approximately 19,200 sqm of space for tenants from the production, industrial, logistics, e-commerce and commercial sectors. The development is being built on a 28,700 sqm site located near the A44 motorway, offering direct access to the Ruhr region and eastern Germany.

The property will comprise around 17,000 sqm of warehouse space, 1,700 sqm of mezzanine areas and approximately 500 sqm of office and social space. The facility will include 17 loading docks, two ground-level loading doors, parking for 40 cars and three truck spaces.

The site was previously occupied by a wholesaler of agricultural machinery spare parts. Existing buildings have been demolished to make way for the new development.

According to Garbe Industrial, the location benefits from strong transport connectivity and access to an established industrial base in the region.

“Soest’s location on the eastern edge of the Ruhr region, with excellent connections to the motorway network and a well-established economic structure with a diverse mix of industries, make it an important location in North Rhine-Westphalia,” said Frank Soppa, Regional Head West / Development at Garbe Industrial.

The company is targeting DGNB Gold certification for the project. Sustainability measures will include a rooftop photovoltaic system and heating provided by heat pumps, enabling fossil fuel-free operation.

The acquisition of the site was brokered by Leben+Raum Immobilien.

Headquartered in Hamburg, Garbe Industrial is active across Germany and Europe as a developer, investor and asset manager of logistics and light industrial real estate. As of the end of 2025, the company managed approximately 7.1 million sqm of lettable space and a development pipeline of around 1.8 million sqm, representing assets with a combined value of approximately €10.9 billion.

Sirowa Poland leases office space at Centrum Praskie Koneser in Warsaw

Sirowa Poland, an international distributor of cosmetics and pharmaceutical brands, has leased 958 sqm of office space in Building P at Centrum Praskie Koneser, the mixed-use redevelopment complex located in Warsaw’s Praga-Północ district.

The company selected the location following a review of office options across Warsaw, supported by Savills, which advised on market analysis, location selection and lease negotiations.

According to Sirowa Poland, the decision was influenced by the development’s post-industrial character, extensive amenities and convenient transport connections. The company said the new office will support its organisational culture while providing room for future growth.

“We were looking for a headquarters that would support our organisational culture and encourage team creativity,” said Anna Stupkiewicz-Ostrowska, General Manager of Sirowa Poland. “Centrum Praskie Koneser combines an industrial heritage with modern office standards and a wide range of services that enhance everyday working conditions. The selected space also supports our long-term development plans.”

Building P forms part of the wider Centrum Praskie Koneser complex, a mixed-use scheme developed on the site of the former Warsaw Vodka Factory. The project combines office, retail, hospitality, cultural and entertainment functions within a restored industrial setting.

Existing office occupiers at Koneser include Campus Google for Startups, PepsiCo and WPP.

Ilona Koski-Lammi, Deputy Sales Director at Liebrecht & wooD Poland, said the transaction reflects the continued growth of Praga-Północ as a business destination.

“The choice of Centrum Praskie Koneser by Sirowa Poland confirms the vision behind the project from the outset. We have consistently developed Koneser as a multifunctional urban destination where office, cultural, retail and hospitality functions coexist. The growing popularity of the complex demonstrates the strengthening position of Warsaw’s right-bank districts as important business locations,” she said.

Opened in 2018, Centrum Praskie Koneser comprises nearly 75,000 sqm of office, retail, service, cultural, entertainment, hospitality and hotel space. The complex is jointly owned by Liebrecht & wooD and BBI Development and is managed by Liebrecht & wooD.

DIW Berlin cuts German growth forecast as energy price shock weighs on economy

Germany’s economic recovery has lost momentum following a sharp rise in energy prices triggered by the conflict involving Iran, prompting the German Institute for Economic Research (DIW Berlin) to significantly lower its growth outlook for the country.

In its Summer Economic Forecast 2026, DIW Berlin reduced its projection for German GDP growth this year to 0.5%, down by around half a percentage point from its spring forecast. Growth is expected to reach 0.8% in 2027.

According to the institute, higher oil and gas prices are driving inflation, reducing household purchasing power and increasing economic uncertainty. As a result, Germany is expected to experience slight contractions in both the second and third quarters of 2026, meeting the technical definition of a recession before stabilising towards the end of the year.

“The energy price shock is noticeably slowing the recovery, but we are not experiencing a repeat of 2022 or 2023,” said Geraldine Dany-Knedlik, Head of Forecasting at DIW Berlin. “The shock is smaller, energy supplies remain secure, and Germany is less dependent on fossil fuel imports than it was after the outbreak of the war in Ukraine.”

DIW forecasts inflation of 2.9% in 2026 and 3.0% in 2027, remaining above the European Central Bank’s target. The unemployment rate is expected to rise slightly from 6.3% in 2025 to 6.4% this year before easing to 6.2% in 2027.

The institute expects government spending to remain the primary driver of economic growth. Increased defence expenditure and investment from Germany’s infrastructure and climate transition funds are projected to support activity over the forecast period. However, private consumption is expected to recover only gradually, while export-oriented industries continue to face structural challenges and external uncertainties.

DIW estimates that the fiscal stimulus will push Germany’s public sector deficit to 3.9% of GDP in 2026 and 4.3% in 2027.

Beyond the immediate impact of higher energy prices, the institute highlights longer-term challenges including declining industrial competitiveness, elevated production costs and demographic pressures, all of which continue to weigh on Germany’s growth potential.

DIW President Marcel Fratzscher urged policymakers to focus on targeted support measures for low-income households rather than broad fuel subsidies.

“An energy cost allowance similar to the scheme introduced in 2022 would be the right instrument,” Fratzscher said. “The fuel discount is expensive, poorly targeted and also benefits oil companies. The government should not repeat that mistake.”

Despite the weaker outlook, DIW noted that structural reforms and accelerated public investment could improve business confidence and stimulate private-sector investment.

Global growth outlook remains resilient

The institute also revised down its global growth forecast, citing the impact of higher energy prices on inflation and consumer spending. Nevertheless, the world economy is expected to continue expanding at a moderate pace.

Global GDP growth is forecast at 3.1% in 2026 and 3.3% in 2027, representing a reduction of 0.2 percentage points compared with DIW’s spring forecast.

The United States is expected to maintain growth rates above 2%, supported by its position as a major energy producer. The eurozone, however, is projected to grow by only 0.3% this year, reflecting its continued reliance on energy imports and exposure to price shocks.

China is expected to continue expanding at a moderate pace despite challenges in its property sector, supported by exports and investment in future technologies.

According to DIW, risks to the outlook remain tilted to the downside, including a potential escalation of geopolitical tensions, persistently high energy and food prices, tighter monetary policy in response to inflationary pressures and labour market disruptions associated with the growing adoption of artificial intelligence.

Source: DIW Berlin

GXO leases entire 7R Park Lavičky in Czech market debut for 7R

7R has signed its first leasing transaction in the Czech Republic, securing a long-term agreement with GXO Logistics for the entire 7R Park Lavičky development. The contract covers approximately 26,000 sqm of warehouse space in a logistics park being developed through a joint venture between 7R and Czech investment fund WOOD & Company.

Located alongside the D1 motorway connecting Prague and Brno, the facility will serve as a dedicated logistics centre for L’Oréal. GXO’s Czech operations will provide third-party logistics (3PL) services supporting the cosmetics group’s European supply chain.

The transaction marks a significant milestone for 7R’s expansion into the Czech market and represents the full pre-leasing of the project ahead of completion.

7R Park Lavičky is being developed as a build-to-suit facility tailored to GXO’s operational requirements. The warehouse will incorporate a range of energy-efficient solutions, including LED lighting with intelligent controls and a rooftop photovoltaic installation aimed at reducing both carbon emissions and operating costs.

Given the nature of GXO’s operations for L’Oréal, the development will also include a dedicated area for the storage of hazardous materials equipped with specialised fire protection and safety systems.

Infrastructure improvements form part of the wider development. 7R has designed a new roundabout to improve access to the site and increase traffic safety in the area. A new public bus stop will also be delivered as part of the project.

The developer intends to achieve a BREEAM Excellent certification for the facility.

“Signing the lease with GXO is a very important step in the development of our business in the Czech market and confirms the effectiveness of our long-term strategy in the region,” said Jiří Duchoň, Head of 7R Czechia. “Securing such a renowned global partner is the result of the work carried out by our Czech team over the past two years, from building local expertise to delivering a high-quality logistics product.”

The project benefits from a strategic location approximately 50 km from Brno and 135 km from Prague, providing direct access to the Czech Republic’s main transport corridor. The site also offers access to labour markets around Jihlava and Velké Meziříčí.

According to 7R, demand for logistics space in the Czech Republic remains strong. The company cited market data showing that the country’s modern warehouse stock reached approximately 13.3 million sqm at the end of 2025, while net take-up totalled 1.2 million sqm, representing year-on-year growth of nearly 36%.

“The transaction with GXO confirms that, thanks to the quality of our projects, a flexible approach to occupier requirements and the excellent location of the development, we are able to compete effectively with long-established market participants,” said Štefan Bohoš, Leasing Manager at 7R Czechia.

Jan Jandík, Investment Manager at WOOD & Company, added that the lease agreement demonstrates continued demand for modern logistics assets in prime Czech locations.

Construction is progressing according to schedule, with completion and handover of 7R Park Lavičky planned for the first quarter of 2027.

Catella sees growing divide across Europe’s office markets as supply constraints drive rental growth

Europe’s office sector is entering a period of increasing divergence, with modern office buildings in central business districts expected to outperform ageing secondary stock as limited supply and rental growth support value recovery, according to Catella’s latest Office Outlook report.

The research highlights a widening gap between prime assets in core locations and older buildings facing rising obsolescence risks. While uncertainty remains around hybrid working patterns and the long-term impact of artificial intelligence on office demand, Catella argues that the sector continues to offer investment opportunities for investors focused on asset quality and location.

According to the report, constrained development pipelines, elevated construction costs and financing challenges are limiting the delivery of new office space across Europe. At the same time, increasingly complex refurbishment requirements are reducing the ability of older buildings to compete with modern stock.

As a result, the supply of high-quality office space in many central business districts is becoming increasingly scarce, supporting occupancy levels and rental growth. Catella notes that prime office rents across Europe have increased by an average of 6.5% annually since hybrid working became widespread in 2020.

“The office market is no longer moving as one asset class. We are seeing a structural divergence between assets that can deliver durable income growth and those facing growing obsolescence risk,” said Petra Blazkova, Head of Group Research and Strategy at Catella Group.

Catella argues that this divergence has created pricing inefficiencies across the market. While modern CBD offices generally benefit from stronger fundamentals, they have experienced value declines similar to those of secondary assets in recent years, creating potential opportunities for investors seeking exposure to prime locations.

The report suggests that as market conditions stabilise, prime office assets in central locations could benefit from improving values and stronger liquidity, while secondary offices continue to face pressure from weaker tenant demand, higher vacancy rates and increasing capital expenditure requirements.

“Investors should focus less on the question of whether to invest in offices and more on which offices to invest in,” said Daniel Gorosch, Head of Corporate Finance Europe at Catella Group. “Success will depend on identifying assets that can benefit from supply constraints, occupier demand and active asset management.”

The report also points to improving investment activity across the sector. Office transaction volumes increased by 19.5% over the past 12 months, reflecting a gradual return of investor confidence. Activity has been particularly concentrated in central business districts, where liquidity remains strongest and pricing has become more transparent.

According to Catella, the combination of constrained supply, rental growth and improving transaction activity is creating selective opportunities for investors, particularly within value-add and refurbishment strategies focused on prime urban locations.

Central Parx reaches construction milestone with topping-out ceremony in Frankfurt

ABG Real Estate Group and HanseMerkur Grundvermögen have celebrated the topping-out ceremony for Central Parx, their major office redevelopment project in Frankfurt’s banking district, marking just over a year since construction began.

Around 300 guests from politics, business and civic society attended the event on Bockenheimer Landstrasse, including Frankfurt Lord Mayor Mike Josef, ABG Real Estate Group Managing Partner Ulrich Höller, and HanseMerkur Grundvermögen board members Malte Andes and Ulrich Haeselbarth.

The project involves the transformation of a listed office complex into a modern workplace destination with approximately 25,650 sqm of lettable office space. The redevelopment represents a total investment of around €370 million and is already almost fully leased. Confirmed tenants include international law firms White & Case and Noerr.

Originally designed by renowned architect Sep Ruf and completed in 1965, the complex comprises the Tower, Studio and Pavilion buildings. The property served as the headquarters of BHF Bank for more than 50 years before being acquired by ABG Real Estate Group and HanseMerkur Grundvermögen in 2020.

The refurbishment is being carried out in collaboration with Frankfurt-based architect Prof. Christoph Mäckler and aims to bring the building to modern standards while preserving its architectural heritage. The redevelopment includes a comprehensive upgrade of building systems, improved internal connectivity, redesigned floorplates and stronger integration with the neighbouring Rothschild Park.

The project is targeting DGNB Platinum and WiredScore Platinum certifications, reflecting its focus on sustainability, digital infrastructure and energy efficiency. The existing façade structure will be retained while being upgraded to meet contemporary environmental standards.

“Central Parx exemplifies how architecturally significant existing buildings can be developed in a sustainable manner,” said Frankfurt Lord Mayor Mike Josef. “Its redesign not only strengthens the banking district but also enhances Frankfurt’s appeal as a business and employment hub.”

Ulrich Höller, Managing Partner of ABG Real Estate Group, described the project as an example of the growing importance of repositioning existing assets. “With great respect for the original architecture, we are developing a workplace that combines identity, quality and sustainability,” he said.

Malte Andes, Deputy Chairman of the Board of HanseMerkur Grundvermögen, said the high level of pre-leasing demonstrates continued demand for premium office space in prime city-centre locations.

Construction is being carried out by Adolf Lupp GmbH + Co. KG in a joint venture with Medicke GmbH. The project combines high-rise modernisation with heritage conservation requirements, creating additional complexity in both planning and execution.

Completion of Central Parx is scheduled for mid-2028.

Copyright: ABG Real Estate Group From left to right: Ulrich Haeselbarth, Member of the Executive Board, HanseMerkur Grundvermögen; Ulrich Höller, Managing Partner, ABG Real Estate Group; Prof. Christoph Mäckler, architect; Mike Josef, Lord Mayor of Frankfurt; Malte Andes, Deputy Chairman of the Board, HanseMerkur Grundvermögen; Guido Wiese, Spokesman for the Management Board, Development, ABG Real Estate Group

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