Skanska sells Gothenburg rental housing project for SEK 500 million

Skanska has agreed to sell a self-developed rental housing project in Gothenburg, Sweden, to the Folksam Group through KPA Pension for approximately SEK 500 million.

The transaction will be recognised by Skanska Commercial Development in the second quarter of 2026. The buyer will take possession of the property upon completion of the project, which is scheduled for the second quarter of 2029.

The development is located in the Sankt Jörgens Park area on Hisingen, Gothenburg, and will comprise 142 rental apartments with a total leasable area of just over 10,100 sqm. The residential scheme will consist of buildings ranging from six to ten storeys in height, with underground parking facilities.

According to Skanska, the apartments are being designed with a focus on functionality and quality of living, while residents will have access to nearby services and recreational amenities.

Beauty and wellness operator to open at Frankfurt’s THE SQUAIRE

A new beauty, wellness and lifestyle concept is set to open at THE SQUAIRE, the mixed-use complex connected to Frankfurt Airport, following a lease agreement between asset manager Sonar Real Estate GmbH, property manager Fraport AG and Rubin Beauty and Hair Studio Airport.

The new operator will offer a range of services including hairdressing, colouring, hair extensions, keratin treatments, skincare and cosmetic treatments, massages, manicures and pedicures. The concept will also feature a lounge and bar area, targeting travellers, airport employees, hotel guests and office workers based in the building.

The opening is scheduled for 15 June following the completion of refurbishment and fit-out works.

According to Fraport AG, the addition forms part of ongoing efforts to strengthen the service offering and tenant mix at THE SQUAIRE.

“Our aim is to tailor the tenant mix at THE SQUAIRE specifically to the needs of those who use the building. With this latest letting, we have brought in a range of services that sit well alongside what is already here and add further appeal to the location,” said Vera Steinmüller, Property Management Manager for THE SQUAIRE at Fraport AG.

Jana Rubin, Managing Director of Rubin Beauty, said the company aims to combine beauty, haircare, wellness and hospitality services in a single location. She added that tenants of THE SQUAIRE, hotel guests and airport employees will receive a 15% discount on services.

Located directly above Frankfurt Airport’s long-distance ICE railway station and connected to Terminal 1 via a pedestrian walkway, THE SQUAIRE combines office, retail, hospitality and service functions within a single complex. The building stretches 660 metres in length and houses tenants including Atos, Hilton Hotels, Michelin, Regus, Porsche Consulting and Haferkater.

Sonar Real Estate manages approximately €3 billion of assets and operates from offices in Hamburg, Berlin, Düsseldorf, Frankfurt and Munich. Fraport AG, which manages Frankfurt Airport and interests in 29 airports worldwide, reported revenue of €4.2 billion and net profit of €468.1 million in 2025. Frankfurt Airport handled approximately 63.2 million passengers and 2.1 million tonnes of cargo during the year.

Hungary closes guest worker permit route to new applicants

Hungary has effectively closed its guest worker residence permit scheme to new applicants following the entry into force of Government Decree No. 92/2026 (VI. 5.) on 6 June 2026.

The amendment to Government Decree No. 450/2024 (XII. 23.) removes the possibility of obtaining new guest worker residence permits by eliminating all currently eligible source countries from the programme. At the same time, the government withdrew the Ministry of Foreign Affairs and Trade (KKM) notice that had previously allowed citizens of the Philippines to be employed under the guest worker permit framework.

The move forms part of the Hungarian government’s broader effort to reduce reliance on foreign labour and prioritise the employment of Hungarian workers.

While the guest worker route has been closed to new applicants, the regulation does not prohibit the employment of third-country nationals in Hungary. Other employment-related residence permit categories remain available under existing legislation, allowing eligible foreign nationals to continue applying for work and residence authorisations through alternative channels.

Existing applications remain valid

The new rules do not affect applications for guest worker residence permits that were submitted and paid for before 6 June 2026. These applications will continue to be processed under the previous legal framework.

This transitional provision provides certainty for employers and employees who had already initiated the permit process before the regulation entered into force.

Extensions still permitted

Foreign nationals holding valid guest worker residence permits issued before 6 June 2026 retain the right to apply for extensions or reissuance of their permits in accordance with the previous regulations.

As a result, businesses currently employing workers under the guest worker scheme can continue to rely on those employees, provided permit renewals are submitted within the required deadlines.

Other employment permits unaffected

The amendment applies specifically to the guest worker residence permit category and does not alter the requirements for other residence permits issued for employment purposes.

Third-country nationals who qualify for alternative work-related residence permits remain eligible to work in Hungary under the applicable immigration rules.

Further changes expected

The latest amendment follows Government Decision No. 1153/2026 (V. 18.), which ordered a comprehensive review of legislation governing the employment of third-country nationals in Hungary.

The review signals that additional changes to Hungary’s immigration and employment framework may be introduced in the coming months as the government reassesses the role of foreign labour in the domestic economy.

For employers, the immediate impact is the closure of the guest worker permit route for new applicants. Companies relying on foreign labour will need to review recruitment strategies, monitor permit expiration dates for existing employees and stay alert to further legislative developments that could affect workforce planning.

Source: CMS

Prague Office Market Faces Supply Constraints as Companies Prioritise Lease Renewals

The Prague office market is experiencing increasing pressure from a shortage of modern office space, with many occupiers choosing to extend existing leases rather than relocate, according to Savills.

The property consultancy reports that only three of the twenty largest office transactions completed during 2024 and 2025 involved companies moving to new premises. The remaining transactions were predominantly lease renewals, reflecting limited availability in Prague’s prime office market.

According to Savills, the trend is linked to historically low levels of new office development. In 2025, just 26,600 sqm of office space was completed in Prague, representing the lowest annual delivery volume recorded in the market. A modest increase to approximately 36,700 sqm is expected in 2026, but this remains significantly below the 150,000–200,000 sqm of annual completions typically delivered during previous development cycles.

As new supply remains limited, vacancy rates in Prague’s key office districts have fallen below 5%, restricting options for companies seeking high-quality space.

Savills notes that relocation decisions are increasingly influenced by the costs associated with moving and fitting out new offices. While rental levels remain an important consideration, the investment required to relocate often encourages occupiers to commit to longer lease terms, typically ranging from eight to ten years. This can make relocation decisions more complex, particularly as companies face changing business requirements and evolving workplace strategies.

The market currently has 16 office projects under construction, representing approximately 312,900 sqm of space. However, a substantial portion of this pipeline will not be available to the wider leasing market. Six projects, accounting for around 54% of the total construction pipeline by floor area, are being developed for owner occupation.

Notable examples include the future headquarters of ČEZ, Erste Group and Creditas Group.

After excluding owner-occupied developments, approximately 108,800 sqm of office space remains available within projects currently under construction. Most of this supply is not expected to be delivered until 2028.

The shortage of modern office space is also contributing to rental growth. Prime office developments in central Prague are now targeting rents above €33 per sqm per month, while negotiations in selected projects are reportedly taking place at levels exceeding €35 per sqm per month.

Savills attributes this trend to a combination of rising construction and development costs and the limited availability of high-quality office buildings.

At the same time, the consultancy highlights a growing challenge within Prague’s existing office stock. More than 30% of the city’s office buildings are now over 20 years old, while refurbishment activity remains limited. Savills identified only seven major refurbishment projects currently planned, compared with 43 new development projects.

This creates increasing pressure on older properties, many of which face higher operating costs, lower energy efficiency and the need for future capital investment to remain competitive.

According to Savills, maintaining Prague’s attractiveness as a business location will require a combination of faster permitting procedures, renewed development activity and greater investment in the modernisation of existing office buildings.

Without additional supply entering the market and a broader programme of refurbishment, Prague’s office sector is likely to face continued upward pressure on rents and increasing competition for high-quality space in the coming years.

Developers Take Construction In-House as Industry Pressures Mount

A growing number of developers are reconsidering their reliance on traditional general contractors and exploring the creation of in-house construction teams as they seek greater control over project delivery, costs and timelines.

The trend, already visible in several international markets, reflects broader challenges facing the construction industry, including contractor shortages, rising costs and increasing project complexity. In some markets, developers report a significant decline in the number of bidders participating in construction tenders, reducing competition and limiting their ability to negotiate favourable terms.

While the Czech market continues to attract multiple participants in most tenders, similar pressures are beginning to emerge. Fluctuating contractor capacity, cost inflation and less predictable delivery schedules are encouraging developers to examine alternative project delivery models.

According to Adam Heres Vostarek, Regional Manager at PlanRadar, the shift towards internal construction capabilities is driven by a desire to improve visibility over project execution and address long-standing inefficiencies within the traditional development model.

Under the conventional approach, developers provide financing and oversee projects, while general contractors maintain primary control over day-to-day site operations. As a result, critical issues such as schedule delays or budget overruns may only become visible once corrective action becomes difficult and costly.

Industry studies estimate that construction delays, rework and project inefficiencies result in substantial financial losses globally each year. Cost overruns on large projects are also a persistent challenge across many markets.

Supporters of in-house construction teams argue that bringing project delivery under direct developer control can improve decision-making, accelerate responses to problems and better align construction activities with long-term investment objectives.

When developers manage construction internally, project teams share responsibility for the overall success of the development rather than focusing solely on meeting contractual obligations. This can help identify risks earlier and enable faster implementation of corrective measures.

However, industry experts caution that internalising construction activities also transfers significant operational responsibilities to developers. Managing subcontractors, coordinating logistics, ensuring workplace safety and controlling project changes require specialised expertise and robust management structures.

Without effective systems and processes, developers may encounter many of the same challenges they were attempting to avoid. Delays, budget deviations and communication breakdowns can occur regardless of whether construction is managed internally or by an external contractor.

According to Vostarek, the core issue often lies not in the organisational structure itself but in the flow of information between construction sites and decision-makers.

As a result, some industry observers argue that digitalisation may offer a more practical solution than fully internalising construction activities. Modern project management platforms allow developers, contractors and consultants to access the same project information in real time, improving transparency and supporting faster decision-making.

Digital tools can provide continuous visibility into project progress, change requests, budgets and schedules, enabling stakeholders to address issues before they escalate. Technologies such as 360-degree site documentation and digital project records also help improve quality control and reduce disputes during construction and operation.

For general contractors, these developments are creating new expectations from clients. Developers increasingly expect real-time project data, comprehensive documentation and greater transparency throughout the construction process rather than relying solely on periodic reports.

The trend suggests that the future competitive advantage for contractors may depend less on traditional project delivery capabilities and more on their ability to provide transparent, data-driven project management.

Although in-house construction teams remain relatively uncommon among Czech developers, growing demands for greater control, accountability and project visibility are likely to accelerate discussions around alternative delivery models. Whether projects are managed internally or through external contractors, industry experts increasingly agree that success will depend on the quality of information, documentation and decision-making processes rather than on the organisational structure alone.

Horoz Logistics Leases 9,100 sqm at Prologis Park Alzenau

REALOGIS Immobilien Frankfurt has arranged the lease of approximately 9,100 sqm of logistics space at Prologis Park Alzenau in Germany’s Bavaria region.

The facility, located within the Süd B30 industrial area, has been leased by Horoz Logistics International, which will use the site as its central warehouse operation for the German market. The company plans to provide logistics and fulfilment services for customers from the new location.

The property is owned by Prologis, one of the world’s largest logistics real estate developers and operators.

According to REALOGIS, the immediate availability of the space played an important role in the transaction. The company noted that occupiers continue to prioritise flexible logistics solutions and rapid occupancy options amid ongoing economic and geopolitical uncertainty.

The lease further strengthens occupancy levels at Prologis Park Alzenau, which remains an established logistics location within the Rhine-Main region. Following the transaction, approximately 16,000 sqm of warehouse space remains available within the park.

REALOGIS is marketing the remaining space as co-lead leasing agent for the development.

The transaction reflects continued demand for modern logistics facilities in strategically located industrial parks, particularly among companies seeking to consolidate distribution activities and improve supply chain efficiency within Germany’s largest consumer markets.

Private Investor Acquires Fully Leased Logistics Asset Near Prague

Colliers has advised on the sale of the Orifarm Hostivice logistics and office complex, located on the western outskirts of Prague. The transaction involved the sale of the fully leased property by CHS – Immobilien to a private investor.

The asset comprises a total leasable area of 6,052 sqm, including approximately 4,818 sqm of warehouse space and 1,234 sqm of office and administrative facilities. The complex is fully occupied by Orifarm Supply, part of the international pharmaceutical company Orifarm Group.

Situated in Hostivice, the property benefits from direct access to Prague’s road infrastructure, including the Prague Ring Road and the D6 and D7 motorways. The location provides efficient connections to Prague city centre as well as key transport corridors across the Czech Republic.

According to Colliers, the transaction reflects continued investor demand for smaller logistics assets with stable cash flow and established tenants. The sale follows another industrial property transaction completed by the advisory firm in Prague earlier this year.

Tomáš Szilágyi, Associate Director at Colliers, noted that the deal highlights the ongoing strength of domestic capital in the Czech investment market. He added that the combination of a strategic location and a long-term tenant contributed to the property’s attractiveness as an investment opportunity.

The transaction was supported by PDP Property Development Partners. Legal advice for the seller was provided by law firm bpv Braun Partners.

The acquisition reflects a broader trend in the Czech industrial investment market, where private and local investors continue to target income-producing logistics properties, supported by strong occupier demand and limited availability of quality assets in established locations around Prague.

Reconstruction of Karlovy Vary’s Imperial Spa Highlights the Importance of Design Details

The restoration of the historic Imperial Spa building in Karlovy Vary demonstrates how the success of heritage renovation projects often depends not only on major architectural interventions but also on carefully selected technical and design elements.

Completed in 2023, the renovation returned one of the Czech Republic’s most significant spa buildings to active use while preserving its historical character. Originally constructed in the late 19th century, the Neo-Renaissance landmark is now used as a cultural and social venue following a comprehensive modernisation programme carried out between 2019 and 2023.

As part of the project, planners faced the challenge of integrating modern building systems into a protected historical environment. The selected heating solution needed to meet contemporary performance standards while remaining visually consistent with the building’s original architecture.

To achieve this, sectional steel radiators from Zehnder’s Charleston range were installed throughout the property. According to the company, the radiators were chosen for their ability to blend naturally with the proportions, colours and decorative features of the historic interiors.

The project illustrates a broader trend in heritage restoration, where technical infrastructure is increasingly expected to contribute to the overall architectural experience rather than remain purely functional. In protected buildings, elements such as lighting, ventilation, heating systems and interior fittings often play a significant role in maintaining authenticity while ensuring modern usability.

Beyond aesthetics, the heating system also needed to address the operational requirements of the building. The Imperial Spa uses heat recovered through its ventilation system, with the radiators providing supplementary heating when necessary. The solution was designed to efficiently serve large spaces with high ceilings, a characteristic feature of historic spa architecture.

Project stakeholders emphasised that long-term reliability and energy performance were key considerations alongside visual integration. After several years of operation, the heating system has continued to support both visitor comfort and the building’s day-to-day functionality.

The renovation of the Imperial Spa has become one of the most prominent examples of heritage-led regeneration in the Czech Republic in recent years. The project demonstrates how the preservation of historic architecture increasingly relies on balancing conservation requirements with modern technical standards, ensuring that landmark buildings remain both functional and relevant for future generations.

The restoration also highlights how seemingly minor details can influence the perception of a space. While visitors may focus primarily on grand staircases, decorative ceilings and restored facades, carefully integrated technical elements often play an equally important role in shaping the overall atmosphere and user experience within historic buildings.

NEPI Rockcastle Highlights CEE Retail Growth at Annual Retailers Day in Zagreb

More than 150 representatives of international retail brands gathered in Zagreb for NEPI Rockcastle’s annual Retailers Day, where the retail property owner outlined its expansion plans and presented the latest trends shaping consumer markets across Central and Eastern Europe.

Held under the theme “Spreading Our Wings, Elevating Retail Together”, the event focused on the role of collaboration between landlords, retailers and local communities in supporting the next phase of retail growth across the region.

NEPI Rockcastle owns and manages a portfolio of 60 retail properties across eight countries with a total value of approximately €8.2 billion. The company highlighted the continued strength of consumer spending in Central and Eastern Europe, noting that purchasing power across the region increased by 13.2 percent in 2025, significantly outpacing the European Union average.

Opening the event, CEO Marek Noetzel said the company continues to pursue growth through both development activity and potential acquisitions.

The company’s ongoing investment programme includes €845 million of development and refurbishment projects. Among the most significant is the transformation and extension of Promenada Mall in Bucharest, a mixed-use project with a total investment of approximately €300 million scheduled for completion in April 2027.

According to NEPI Rockcastle, the existing Promenada Mall currently comprises 39,000 sqm of retail space and 166 tenants. The extension will increase the retail area to 69,000 sqm while introducing office and hospitality components within a broader mixed-use destination.

The company also reported strong operational performance across its portfolio during 2025, recording 354 million visits and an increase of more than 8 percent in average customer spending while maintaining stable visitor numbers.

Economic experts participating in the event noted that consumer demand in Central and Eastern Europe has remained resilient despite geopolitical uncertainty and slower growth in some Western European markets. They pointed to rising household incomes, relatively low unemployment and continuing wage growth as factors supporting retail spending across the region.

NEPI Rockcastle said retailer expansion remains a key focus across its platform. The company reported a portfolio vacancy rate of just 1.2 percent and nearly 1,500 lease agreements signed during 2025. Management highlighted the importance of early collaboration with retailers when planning future store openings and expansions.

One example of the company’s asset management strategy is Arena Centar in Zagreb. Since acquiring the shopping centre in 2016, NEPI Rockcastle has overseen a significant expansion and repositioning of the asset. The centre now comprises approximately 66,000 sqm of gross leasable area and has recorded substantial growth in both sales and visitor numbers. Further expansion is planned later this year through the addition of new retail units.

Marketing and customer engagement also remain a priority for the group. NEPI Rockcastle organises more than 1,200 events and promotional campaigns annually across its portfolio and continues to invest in digital marketing initiatives aimed at strengthening customer communities around its shopping centres.

The event concluded with discussions on the future of retail and the growing role of artificial intelligence in shaping customer experiences. Speakers suggested that advances in personalisation technologies are likely to strengthen the role of physical retail by creating more engaging and experience-driven shopping destinations.

Alongside the business programme, NEPI Rockcastle continued its community support initiatives by making a €5,000 donation to the Croatian Music Institute, a historic cultural institution currently undergoing restoration following earthquake damage.

Retailers Day 2026 highlighted the continued attractiveness of Central and Eastern Europe’s retail markets, with industry participants pointing to strong consumer fundamentals, ongoing investment and active cooperation between landlords and retailers as key drivers of future growth.

Deka Immobilien Achieves Full Occupancy at Berlin Office Property Following New Lease

Deka Immobilien has signed a long-term lease agreement for approximately 7,400 sqm of office space at the WYSE OFFICES property in Berlin-Mitte.

The space has been leased to a public-sector occupier, which is expected to relocate to the building in early 2027 following refurbishment and tenant fit-out works.

The transaction brings the office property to full occupancy. WYSE OFFICES is held within the portfolio of WestInvest ImmoValue, Deka Immobilien’s open-ended real estate fund for institutional investors.

Located at Schellingstraße 1 in Berlin-Mitte, the property has been awarded a BREEAM In-Use “Very Good” sustainability certification, reflecting its environmental and operational performance.

The lease highlights continued demand for well-located and sustainable office space in central Berlin, particularly from public-sector tenants seeking modern and energy-efficient workplaces.

Savills advised Deka Immobilien on the transaction through its Berlin office.

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