House prices and rents continue upward trend across the EU in early 2025

House prices and rents continued to climb across the European Union in the first quarter of 2025, according to data released today by Eurostat.

Between January and March, house prices rose by 5.7% compared to the same period in 2024, while rents increased by 3.2%. On a quarterly basis, house prices were up by 1.4% and rents by 0.9% compared with the fourth quarter of 2024.

Since 2010, house prices in the EU have risen by a cumulative 57.9%, while rents have grown by 27.8%. Although rents have shown steady growth over the past 15 years, house prices have experienced more pronounced fluctuations, with a sharp surge between early 2015 and the third quarter of 2022, a brief dip and period of stabilization, followed by renewed growth since 2024.

Over the period from 2010 to the first quarter of 2025, house prices increased more than rents in 21 of the 26 EU member states for which data are available. The most significant gains were recorded in Hungary, where house prices surged by 260%, and in Estonia, where they rose by 238%. House prices at least doubled in nine other countries, including Lithuania (+194%), Latvia (+154%), Czechia (+147%), Portugal (+130%), Bulgaria (+125%), Austria (+113%), Luxembourg and Poland (both +102%), and Slovakia (+100%). Italy was the only EU country to see a decline in house prices over this period, with a drop of 4%.

During the same timeframe, rents increased in all 26 EU countries except Greece, where they fell by 11%. The strongest rises in rental costs were recorded in Estonia (+220%), Lithuania (+184%), Hungary (+124%), and Ireland (+115%).

Eurostat’s full dataset and further details can be accessed via the Statistics Explained article on housing price statistics.

Slovakia’s retail turnover continues to decline in May, while wholesale and hospitality sectors grow

Retail turnover in Slovakia fell for the fourth consecutive month in May 2025, declining by 1.8% year-on-year after adjusting for inflation. The drop reflected persistent weakness across several smaller segments of the retail sector, though the overall decline was partly offset by gains in the two largest retail categories, including hypermarkets and supermarkets.

Compared to April, seasonally adjusted retail turnover slipped by 1.3%.

Six out of nine retail segments reported lower turnover in May compared to the same month last year. Among the hardest-hit categories were hobby markets, furniture, and electrical goods stores, where turnover fell by 10.6%. E-commerce and mail-order businesses also saw a 4.6% decline, while specialized stores selling sporting goods, books, and toys registered a steep drop of 23.2%.

Despite these declines, turnover increased by 3.1% in hyper- and supermarkets and by 1.6% in specialized stores selling items such as footwear, textiles, drugstore goods, and pharmaceuticals.

Over the first five months of 2025, total retail turnover in Slovakia was down 1.3% year-on-year, with six of nine retail segments showing declines.

In contrast to retail, other areas of internal trade posted stronger results in May. Turnover rose in the sale and repair of motor vehicles by 2.1% year-on-year and grew significantly in wholesale, which recorded an 11.4% increase. The accommodation sector saw a 2.1% rise, while turnover in food and beverage service activities increased by 3.4%.

On a month-on-month basis, accommodation turnover grew by 11.5% in May after seasonal adjustment. Food and beverage services also recorded a smaller monthly increase of 2%. However, turnover declined by 1% in the sale and repair of motor vehicles and by 0.8% in wholesale.

For the first five months of 2025, turnover rose by 0.5% in the sale and repair of motor vehicles, by 9% in wholesale, by 1.2% in accommodation, and by 1.9% in food and beverage service activities.

Data for this report were provided by the Statistical Office of the Slovak Republic, based on monthly surveys. Retail and most service figures reflect constant prices, while wholesale figures are presented in current prices.

Residential property prices in Poland: Regional trends in Q1 2025

Statistics Poland has released data on price indices for residential premises across Poland’s voivodships for the first quarter of 2025. The detailed figures are available in the annex accompanying the official announcement.

The report provides insights into regional differences in the residential property market, highlighting where prices have increased or decreased compared to previous periods. While the national average has shown moderate growth, certain regions stand out for stronger upward trends driven by local demand, economic factors, and investment activity.

Major urban centres like Warsaw, Kraków, and Wrocław continue to report higher price levels, sustained by strong demand for both new developments and existing housing stock. In contrast, some smaller voivodships have seen more stable or even slightly declining price trends, reflecting localized market dynamics and varying economic conditions.

The data serve as an important tool for prospective buyers, developers, and investors assessing opportunities in the residential real estate market. Analysts note that factors such as interest rate movements, wage growth, and government housing initiatives are likely to influence price trends throughout 2025.

Czech industrial production rises 2.2% in May despite monthly dip

Industrial production in the Czech Republic rose by 2.2% year-on-year in May 2025, though it fell by 1.6% compared to April. New orders increased by 5.0% year-on-year.

“The growth in May was partly influenced by a low base of comparison from the previous year, especially in electricity, gas, steam and air conditioning supply. Additionally, output in the manufacture of other transport equipment, driven by the completion of significant long-term orders, and the manufacture of electrical equipment contributed to the rise,” said Veronika Doležalová, Head of the Industrial Statistics Unit at the Czech Statistical Office (CZSO). However, production decreased year-on-year in the manufacture of computer, electronic and optical products. Overall, manufacturing output grew by 1.5% compared to May 2024.

The value of new industrial orders in current prices rose by 5.0% year-on-year in May. Non-domestic orders increased by 7.2%, while domestic orders were up by 1.0%. Month-on-month, however, the value of new orders fell by 3.9%. “Growth in new orders was led by the manufacture of motor vehicles, trailers and semi-trailers, also supported by last year’s lower base. There was also an increase in orders for fabricated metal products and electrical equipment,” noted Irena Stupňánková from the CZSO.

Employment in the industrial sector declined by 2.0% year-on-year in May.

According to Eurostat, industrial production across the EU27 rose by 0.6% in April 2025 compared to the previous year. Ireland and Finland saw the strongest growth, with increases of 18.4% and 10.2%, respectively. Czech industry grew by 2.0%, while Germany’s output dropped by 2.4%. The largest decreases were observed in Denmark (11.6%) and Bulgaria (10.5%). Among specific industries, EU27 production of basic pharmaceutical products rose by 7.7%, while the manufacture of wearing apparel declined by 6.7%. Eurostat is scheduled to release data for May 2025 on 15 July 2025.

Czech trade surplus grows in May 2025

The Czech Republic recorded a trade surplus of CZK 13.3 billion in May 2025, an increase of CZK 2.1 billion compared to the same month last year, according to preliminary figures released by the Czech Statistical Office (CZSO).

The improvement in the trade balance was driven largely by higher surpluses in motor vehicles, which rose by CZK 6.0 billion year-on-year. Additionally, the trade deficits in computer, electronic and optical products and in refined petroleum products both narrowed by CZK 2.8 billion.

However, the overall surplus was partly offset by lower surpluses in fabricated metal products and electrical equipment, which declined by CZK 3.4 billion and CZK 2.5 billion respectively. The trade deficit in crude petroleum and natural gas also widened by CZK 2.1 billion.

Trade with European Union member states contributed positively to the balance, increasing by CZK 4.2 billion year-on-year, while the deficit with non-EU countries narrowed by CZK 0.7 billion.

Exports in May rose by 2.0 percent year-on-year to CZK 389.8 billion, while imports grew by 1.5 percent to CZK 376.5 billion. May 2025 had one fewer working day compared to the same month last year.

“After three consecutive months where imports outpaced exports, May saw a reversal in favour of exports. The strongest growth was recorded in exports of motor vehicles and their parts, up CZK 5.2 billion, and electrical equipment, which increased by CZK 2.2 billion,” said Miluše Kavěnová, Director of the CZSO’s International Trade Statistics Department.

On a month-to-month basis, seasonally adjusted exports fell by 0.2 percent, while imports declined by 1.0 percent.

For the first five months of 2025, the trade surplus stood at CZK 116.2 billion, which is CZK 8.0 billion lower than in the same period last year. Over this period, exports rose by 3.7 percent, while imports increased by 4.4 percent.

Czech construction sees double-digit growth in May 2025

Construction activity in the Czech Republic rose sharply in May 2025, with output increasing by 11.6 percent compared to the same month last year, according to figures released by the Czech Statistical Office (CZSO). Compared to April, output was up by 2.3 percent.

Petra Kačírková from the CZSO’s Construction Statistics Unit noted that both civil engineering and building construction contributed to the year-on-year growth, which was partly influenced by a low base from the previous year. Specifically, production in building construction increased by 10.8 percent year-on-year, while civil engineering construction grew by 13.1 percent.

Despite the growth in construction activity, the value of building permits issued in May fell to CZK 32.0 billion, representing a decline of 39.6 percent compared to the same month in 2024.

In terms of housing, construction began on 2,673 new dwellings in May, a decrease of 5.2 percent year-on-year. However, the number of completed dwellings rose to 3,051, an increase of nearly 5 percent. Petra Cuřínová, Head of the Construction Statistics Unit at the CZSO, explained that this growth was largely driven by modifications and alterations to existing buildings, while new construction remained subdued.

Across the European Union, construction output increased by 2.5 percent year-on-year in April 2025, according to Eurostat data. Eurostat is expected to release figures for May 2025 on 18 July.

German residential investors look abroad as domestic challenges persist

German residential property investors are increasingly shifting their focus to foreign markets due to persistent challenges in the domestic sector. High construction costs, lengthy approval processes, regulatory uncertainties, and changing political requirements are making it more difficult to develop new housing projects in Germany. These issues were discussed during the online press conference “Beyond Germany: Why residential investors are shifting their focus abroad.”

Industry experts Pepijn Morshuis (CEO of Trei Real Estate), Felix Meyen (Managing Director of HIH Invest Real Estate), Michael Keune (Managing Director at Catella Investment Management), and Gerhard Lehner (Head of Germany at Savills Investment Management) shared insights into current market trends and their international strategies.

Germany Faces Approval Delays

Pepijn Morshuis highlighted how prolonged approval procedures hinder residential development in Germany. He described how development plans, particularly in Berlin, can face delays of over a decade, with standard projects often taking six to eight years from planning to completion. Authorities, he said, frequently proceed cautiously out of fear of making errors, while shifting political priorities further complicate the process.

By contrast, Morshuis noted that in Poland and the United States, comparable approvals are completed within months. Trei Real Estate has therefore increased its focus on regions like southeastern U.S. cities, including Charlotte, and Polish cities such as Poznan, where development timelines are considerably shorter.

“In the U.S., projects can be completed in under five and a half years, including planning and approvals—a timeframe in which you might not even secure a permit in Germany,” Morshuis explained.

Investors Seek Stability and Returns Abroad

Felix Meyen described how institutional investors remain interested in residential projects but are finding fewer viable opportunities in Germany’s major cities due to supply shortages, rising costs, and limited returns. HIH Invest Real Estate is expanding its focus to other European capitals known for regulatory clarity and stable conditions.

Meyen pointed to Vienna’s “Quartier 11” as an example of a project that combines clear regulatory guidelines with moderate costs and sustainable living features. HIH Invest is also exploring opportunities in cities like Amsterdam, Copenhagen, London, and Dublin, where stable demand and positive demographic trends offer strong fundamentals for residential investments.

Scandinavia and Ireland Offer Attractive Alternatives

Michael Keune highlighted the advantages of Nordic and Irish markets. Catella assesses European markets based on regulatory factors, price dynamics, and ownership structures. Finland, in particular, has limited regulatory intervention, contributing to market transparency and stability.

“Ireland currently presents unique opportunities, especially in student housing,” Keune said. “Demand in Dublin is outpacing supply, creating potential yields exceeding eight percent.”

Japan Stands Out for Stability

Gerhard Lehner discussed Savills Investment Management’s investments in Japan. He noted Tokyo’s stable housing demand, low vacancy rates, and limited regulatory complexity as attractive features for investors seeking steady returns. Savills manages 56 properties in Tokyo, maintaining high occupancy rates under its Residential Evergreen Fund, targeting annual distributions above four percent.

“Tokyo combines stability and strong demand, making it one of the world’s most reliable metropolitan markets,” Lehner said.

Call for Political Action in Germany

The speakers agreed that substantial reforms are necessary to restore Germany’s attractiveness for residential investment. They emphasized the need for faster, digitalized approval processes and a reassessment of building standards that drive costs without proportional benefits. They also urged increased investment in social housing and more active cooperation between public authorities and private developers.

“It’s not enough to acknowledge the housing shortage,” Morshuis stated. “The public sector must take responsibility, including financial support and direct involvement in housing construction.”

While Germany remains significant for residential investors, ongoing challenges are prompting greater international diversification as firms seek stability, predictability, and viable returns in other markets.

Photo: Pepijn Morhsuis, CEO, Trei Real Estate, Felix Meyen, Managing Director, HIH Invest Real Estate, Michael Keune, Managing Director, Catella Investment Management and Gerhard Lehner, Head of Germany, Savills Investment Management

GARBE Industrial and WOOD & Company plan industrial park development in Poland

GARBE Industrial Real Estate Poland, a specialist in logistics and industrial properties across Central and Eastern Europe, has announced a partnership with the WOOD & Company Logistics Sub Fund to develop GARBE Park Gliwice. The planned industrial park will span 75,000 square meters of leasable space and will be constructed to BREEAM Excellent certification standards. The site, which will be adjacent to an existing retail park, is expected to benefit from strong transport connections. The total investment is projected to exceed EUR 50 million.

Jan Jandík, Investment Manager at WOOD & Company, described the partnership as a strategic fit, noting GARBE’s track record of delivering industrial projects across Europe and the anticipated returns for investors.

GARBE Park Gliwice is positioned to take advantage of Poland’s economic growth and changes in global supply chains. The Silesian region, where the park will be located, has a long industrial tradition, a skilled workforce, and well-developed infrastructure. The site’s location along the A4 motorway is seen as a key logistical advantage, particularly in light of shifting geopolitical dynamics that are increasing demand for sustainable industrial assets.

Michał Stachura, Co-Managing Director at GARBE Industrial Real Estate Poland, said the project reflects the company’s strategy of developing industrial parks that maximise locational advantages and provide modern facilities with advanced technologies.

Adrian Biesaga, also Co-Managing Director at GARBE, added that collaborating with WOOD & Company brings institutional expertise, regional insights, and financial stability, which are important factors for the project’s success.

ZEITRAUM opens new student residence in Krakow’s Krowodrza district

A new student residence, ZEITRAUM Racławicka, has opened in Krakow’s Krowodrza district, offering single rooms and communal spaces designed to support both study and leisure. The facility, located a few minutes from the city centre, aims to meet the evolving needs of students balancing education, work, and personal interests.

Zdena Noack, CEO of ZEITRAUM Student Housing, noted that the concept behind Racławicka was developed in response to changes in student lifestyles over the past five years. Many students now work while studying and seek accommodation that combines privacy with opportunities for social engagement.

The residence at 58 Racławicka Street is close to Kraków Główny station and includes individual rooms with private bathrooms and kitchens, along with communal spaces such as a yoga room, a games room, and shared kitchens. The average monthly rent for a single room is approximately PLN 1,800.

The building features 249 rooms (289 beds) and also houses serviced apartments in a separate wing. The interior design incorporates custom-made furniture and neutral colours to create a calm environment. Residents receive starter packs including bedding and kitchen essentials.

The common areas are built around the “Chill & Thrill” concept, offering both quiet spaces for relaxation and more active social zones. Amenities include a gym, laundry facilities, and an “adventure board” in the lobby to encourage students to explore Krakow and connect with peers.

ZEITRAUM Racławicka offers flexible leasing options, allowing students to book accommodation for varying periods and complete all formalities online. Staff are available around the clock, both on-site and through digital communication channels.

Located near major universities such as AGH, the University of Economics, Jagiellonian University, and the Krakow University of Technology, the residence offers convenient transport links, including nearby Łobzów railway station.

Noack emphasised that the residence is intended to serve as a space where students can rest, study, and live independently while enjoying the cultural offerings of central Krakow.

The project was developed by ZEITGEIST Asset Management, the parent company of ZEITRAUM.

Hybrid workers seek more flexibility and fewer days in the office

A growing divide is emerging between employees’ expectations and the current reality of hybrid work in Poland, according to the latest Colliers Define report “Hybrid Work Insights 5.” The report reveals that office workers in both the private and public sectors would prefer to spend, on average, one day less in the office than they currently do. However, only about one in three employees say they have meaningful control over their work schedules.

The survey data indicates that employees are now working from the office an average of 3.6 days per week, with the highest proportion of respondents (44%) working in the office four to five days weekly. In contrast, employees’ preferred average would be 2.6 days. Those working in the public sector and manufacturing spend the most time in the office, averaging around four days per week, while employees in IT, business services, and product sectors report the lowest in-office presence, averaging roughly 2.3 to 2.7 days weekly.

Despite the general desire for fewer office days, many employees lack autonomy in determining where they work. Only 32% of respondents said they can independently decide whether to work remotely or from the office. IT and business services professionals enjoy the greatest flexibility, with over 40% able to set their own schedules, while employees in manufacturing report the least control, with just one in five able to independently choose their work location.

Dorota Osiecka, partner and director at Colliers Define, noted that increased flexibility introduces greater unpredictability and management complexity, while rigid schedules can undermine employee engagement and the sense of ownership that impacts various aspects of organisational performance.

The report highlights significant differences between industries regarding working conditions both in-office and remotely. Employees in IT and business services sectors gave the most positive evaluations of their work environments, citing ergonomic office setups, good access to daylight and air quality, and well-designed workspaces. For remote work, they valued stable internet connections, appropriate equipment, and access to company resources.

Conversely, public sector employees and those in customer service roles reported challenges such as poor ergonomics in home workspaces, limited technical support, and inadequate access to company systems, making effective remote work difficult. Office location and surrounding infrastructure were rated highest by employees in banking, insurance, and investment sectors, where 90% expressed satisfaction, while production workers reported the lowest satisfaction, with only 47% rating office surroundings positively.

These contrasts, according to Osiecka, underscore that industry-specific considerations are crucial when planning hybrid work strategies.

The findings suggest that there is no one-size-fits-all approach to hybrid work. Effective hybrid models require a personalised strategy built on detailed analysis of company culture, working conditions, and employee needs. Without such understanding, organisations risk adopting solutions that fail to deliver the expected outcomes or may even create new problems.

While employees increasingly seek flexibility and autonomy, companies must also ensure operational efficiency, consistent organisational culture, and optimal use of office space. Osiecka stressed that navigating these challenges requires expert support in both assessing needs and designing work environments that promote collaboration, innovation, and employee engagement.

The Colliers Define survey was conducted in 2024 and included over 1,000 office workers from major cities across Poland.

Photo: Dorota Osiecka, partner and director at Colliers Define

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