South Bohemian region ranked best place to live in the Czech Republic

The South Bohemian Region has been named the best place to live in the Czech Republic, according to the latest results of the “Place for Life” comparative study conducted by the Datank agency. The findings, presented in Prague, mark the first time in three years that the capital city of Prague did not top the ranking. Hradec Králové Region, last year’s runner-up, placed second this year, while the Zlín Region moved up to third place.

Now in its fifteenth edition, the study combines data analysis with a public satisfaction survey to assess living conditions across the country’s regions. This year’s assessment drew on data from 23 sources, unified and evaluated by analysts, and included the responses of 1,600 residents representing all Czech regions. Data collection took place in March 2025.

Regions were evaluated across 88 indicators within eight categories: safety, leisure and tourism, civil society and tolerance, childcare and education, infrastructure development, employment, healthcare and social services, and environmental quality.

The South Bohemian Region scored highly in several areas, including a high number of beds in social facilities, a low number of traffic accidents, strong residential construction figures, and a relatively large number of grammar schools. Governor Martin Kuba expressed his pride in the achievement, stating that the region offers a strong future for younger generations and continues to be one of the most beautiful parts of the country.

Hradec Králové Region earned second place thanks to factors such as the highest number of pharmacies, a low student-to-teacher ratio, ample hospital bed availability, and low levels of waste production. The Zlín Region, in third place, was recognized for having the fewest children per primary school class, the lowest municipal waste output, high enrollment in primary art schools, strong crime resolution rates, and low youth unemployment.

At the bottom of the rankings were the Ústí nad Labem Region and the Karlovy Vary Region, which swapped positions compared to last year. Prague, which had topped the list for the past two years, fell to seventh place. The study attributed the capital’s decline mainly to safety concerns, including the highest crime rate per 1,000 residents, the lowest crime resolution rate, and a high number of traffic accidents per road distance. Other issues included limited urban green spaces, unaffordable housing relative to income, a shortage of social care beds, overcrowded primary school classrooms, and the country’s largest gender pay gap.

According to the study’s authors, the purpose of the annual comparison is to inspire governments, non-profits, businesses, and residents to improve factors that influence overall quality of life.

Source: CTK and Datank

President von der Leyen attends G7 Summit focused on Global Economic Security and Geopolitics

President Ursula von der Leyen participated in this year’s G7 Summit in Kananaskis, Canada, where global economic security, geopolitical tensions, and strategic partnerships dominated the agenda. The summit took place amid heightened global instability, including Russia’s ongoing war against Ukraine, growing tensions in the Middle East, and increasing concerns over China’s role in the global economy.

At the opening press conference alongside European Council President António Costa, von der Leyen outlined the EU’s key priorities, including reducing economic dependencies, addressing aggressive trade practices, and responding to global conflicts. She emphasized the interconnected nature of current crises, noting that Iranian-designed drones and missiles are now being used in both Ukraine and Israel, illustrating the link between European and Middle Eastern conflicts.

Von der Leyen also held a bilateral meeting with U.S. President Donald Trump, where both leaders discussed the state of EU-U.S. trade negotiations and instructed their teams to intensify efforts toward a fair agreement.

During summit discussions, von der Leyen led debates on the global economic outlook and called for more stability in trade relations among G7 members. She warned of China’s continued distortion of global markets, criticizing its reliance on subsidies and disregard for intellectual property protections. While she rejected the idea of full decoupling from China, she advocated for a strategy of “de-risking” by reducing dependencies in critical sectors such as rare earths.

She highlighted how China’s strategic investments in mining and manufacturing since the 1980s enabled it to dominate global supply chains, especially in key materials like magnets. Von der Leyen stressed that no single country should control such a high share of essential raw materials.

The summit concluded with G7 leaders adopting a series of joint statements on topics ranging from wildfire management and critical minerals to AI, quantum technologies, and countering migrant smuggling and transnational repression. These principles will guide future cooperation among member states.

On the geopolitical front, the leaders reiterated their support for Ukraine, with von der Leyen noting that the EU has contributed nearly €150 billion in aid. She called for continued pressure on Russia and discussed the EU’s proposed 18th sanctions package. Regarding the Middle East, the G7 issued a statement supporting regional peace, Israel’s security, and efforts to prevent Iran from acquiring nuclear weapons. The leaders also called for de-escalation in Gaza.

Von der Leyen’s bilateral engagements included meetings with Canadian Prime Minister Mark Carney to prepare for the upcoming EU-Canada summit, and with UN Secretary-General António Guterres to reaffirm EU support for the UN’s global role. She also met with South Korea’s President Lee Jae-myung to reaffirm their Security and Defence Partnership, and with Mexican President Claudia Sheinbaum to discuss climate cooperation and progress on a modernised EU-Mexico Global Agreement.

Further talks with Indian Prime Minister Narendra Modi reaffirmed a shared ambition to strengthen EU-India trade ties, while a meeting with Australian Prime Minister Anthony Albanese led to the announcement of negotiations for a new Security and Defence Partnership. The EU and Australia also renewed their commitment to concluding a bilateral trade agreement, underscoring the strength of their longstanding relationship.

CapMan acquires stake in CAERUS to launch real asset debt investment platform

CapMan Plc has entered into a strategic partnership with CAERUS Debt Investments AG by acquiring a 51% stake in the German real estate debt manager. The move marks the launch of CapMan’s new investment area, CapMan Real Asset Debt, as part of its broader focus on expanding real asset investment strategies.

Founded in 2014, CAERUS is a specialist in private real estate debt with a strong presence in Germany and the wider DACH and Benelux regions. The firm has raised €2.6 billion to date and currently manages around €700 million in assets across seven active funds. Its 12-member investment team structures tailored financing solutions across a broad range of real estate segments, often in cases where traditional bank financing is limited.

CapMan, a Nordic private asset management firm with €6.4 billion in assets under management, aims to reach €10 billion through growth across its real estate, infrastructure, and natural capital platforms. The addition of Real Asset Debt complements CapMan’s portfolio and aligns with its strategy of launching new products and entering new markets. CapMan’s real estate division alone manages €3.5 billion and includes over 80 professionals across multiple markets.

The private real estate debt sector continues to grow as borrowers seek alternative financing options and institutional investors look for stable, risk-adjusted returns. Through this acquisition, CapMan gains a foothold in the German market while CAERUS benefits from CapMan’s broader platform and Nordic asset management capabilities.

CapMan CEO Pia Kåll highlighted the strategic value of the partnership: “This is a significant step that strengthens our real asset platform and opens up new opportunities in Germany. CAERUS’ track record and entrepreneurial spirit align well with CapMan’s values and ambitions.”

Michael Morgenroth, founder and CEO of CAERUS, added: “We are excited to join forces with CapMan. Their presence in the Nordics and our expertise in DACH and Benelux will allow us to grow together and provide clients with stronger market access.”

Upon completion of the deal, expected in Q3 2025 pending standard closing conditions, Morgenroth will join CapMan’s Management Group as Managing Partner of the new Real Asset Debt division.

Photo: Michael Morgenroth, founder and CEO of CAERUS

Top destinations for Polish workers: Highest earnings abroad revealed

Economic emigration remains a strong trend among Polish workers, with around 1.55 million citizens living temporarily abroad, according to the latest data from Poland’s Central Statistical Office. Personnel Service experts have examined where Poles can expect the highest wages and which sectors offer the best employment prospects.

Construction continues to be the most lucrative industry, particularly in Scandinavian countries. In Norway and Sweden, Polish workers in this field can earn up to €3,800 net per month. In Germany, wages in the construction sector range from €2,600 to €2,700 gross per month, while in the Czech Republic they reach around €2,100 gross.

The report also highlights high earnings in healthcare and welding. Welders in Scandinavia can earn as much as €4,200 net monthly. In Germany, their salaries are about €2,900 gross, while in the Czech Republic, they range from €2,100 to €2,200 gross. Healthcare workers, particularly elderly carers, are in high demand across Europe. In Sweden, monthly earnings range from €2,600 to €3,000 net, followed by €2,300 in Germany and €2,100 to €2,200 gross in the Czech Republic.

According to Personnel Service founder and labour market expert Krzysztof Inglot, interest in working in Scandinavian countries has risen significantly over the past two years. He attributes this to both the high earnings and the strong work culture in the region. Norway and Sweden have become especially attractive not only for their wages but also for their professional environments.

Sectors that require fewer qualifications, such as hospitality, catering, and cleaning, also offer solid earning potential, particularly for students and seasonal workers. In Germany, hospitality workers can earn about €2,300 gross per month, while the Czech Republic offers around €2,000. Cleaning jobs in Germany are especially well-paid, reaching up to €3,100 gross per month. In Scandinavia, similar roles offer about €2,500 net per month, and the Czech Republic again offers around €2,000 gross.

Higher salaries are typically linked to specialized qualifications and professional experience. In industries like welding and construction, employers often require official certifications and experience in handling specific techniques or machinery. Similarly, in the healthcare sector, especially for positions involving elder care, language skills and formal training are often necessary.

While Scandinavia remains the leading destination in terms of salary and working conditions, Inglot notes that other countries are gaining in popularity. Austria, Belgium, and Spain are becoming viable alternatives, not only because of competitive pay but also due to their climate, lifestyle, and niche job opportunities. He adds that Polish workers are now placing greater emphasis on job stability, social benefits, and career development, not just salary figures—a shift that could shape migration trends in the years ahead.

Real Estate Monitor: Slower growth and cost pressures increase negative outlook for U.S. Sector

S&P Global Ratings has warned that persistent cost pressures and weaker economic growth could result in a higher negative rating bias across the U.S. real estate sector. The agency recently lowered its baseline forecast for U.S. GDP growth to 1.5% in 2025 and 1.7% in 2026, citing elevated tariffs, policy uncertainty, and continued high interest rates that are reducing consumer demand and investor confidence.

Housing Market Softens, Margins Under Pressure

The U.S. housing market continues to cool, particularly for first-time buyers, as affordability remains strained. The 30-year mortgage rate hovers near 7%, and with unemployment projected to peak at 4.7% by mid-2026, consumer sentiment is likely to remain cautious. In markets like Florida and Texas, a growing supply of resale homes is outpacing demand, leading to increased use of sales incentives by homebuilders and putting further pressure on margins.

Builders have slowed the pace of new starts and are focusing on reducing inventory, often prioritizing sales volume over pricing. As a result, while overall revenue and deliveries may see modest year-over-year growth in 2025, S&P anticipates a 2% decline in EBITDA across its rated homebuilder portfolio due to shrinking gross margins.

Despite this, positive rating actions among homebuilders have outnumbered downgrades in 2025, with several companies—including Toll Brothers, Five Point Holdings, and Brookfield Residential—receiving upgrades. Conversely, Adams Homes and LGI Homes have seen their ratings lowered due to weaker financial results.

Building Materials Sector Feels the Squeeze

High interest rates, softening housing starts, and persistent cost pressures are also weighing on the building materials sector. S&P forecasts a modest decline in housing starts to 1.35 million units in 2025, with both residential and nonresidential construction activity expected to contract slightly.

While companies are attempting to offset tariff-related costs through price adjustments and operational efficiencies, the outlook remains cautious. The agency expects negative rating pressure to increase, especially for companies that undertook debt-financed acquisitions in 2024. Currently, 17% of issuers in this segment carry negative outlooks.

Recent rating actions reflect this trend, including a downgrade for Oscar AcquisitionCo and a negative outlook revision for BlueLinx Holdings. QXO Inc. received a ‘BB-’ rating after its acquisition of Beacon Roofing Supply.

Commercial Real Estate Services Show Signs of Recovery

CRE services companies benefited from a steady rebound in transaction activity during the first quarter of 2025, supported by improved financing conditions. Leasing activity, particularly in the office segment, has seen notable growth as companies continue to return to the office. The industrial and multifamily sectors led transaction volumes, and new mandates in property and project management contributed to stable revenue.

While S&P upgraded Cushman & Wakefield’s outlook to stable due to improved credit metrics, it maintained a negative outlook on Avison Young, reflecting ongoing liquidity concerns. Merger and acquisition activity may accelerate as companies take advantage of improved balance sheets to expand capabilities.

CRE Finance Firms Stabilize, But Caution Remains

Commercial mortgage REITs showed stable performance in early 2025, supported by a recovery in CRE markets and increased loan originations. Although high interest rates continue to impact legacy loans, loan losses were contained within the 2%–6% range across rated lenders.

S&P does not expect widespread deterioration in CRE portfolios, but warns that lenders will remain selective with new originations while focusing on asset resolution and liquidity preservation.

Equity REITs Maintain Resilience Across Property Types

Operating performance for equity REITs generally met expectations in the first quarter. Leasing activity picked up across most sectors, with the exception of West Coast office markets, which remain under pressure. East Coast and Sun Belt office markets are showing stronger signs of recovery, and net effective rents are rising despite continued incentives.

Multifamily REITs remain supported by favorable rental dynamics, as high mortgage rates continue to make renting more affordable than buying. Retail REITs are showing resilience, with tenants increasingly focused on physical store expansion. Meanwhile, industrial REITs may face some near-term softness due to tariff uncertainty and economic slowdown, but stable credit metrics are expected to hold, supported by tenant retention and rent growth potential.

Among recent rating actions, Sun Communities was upgraded to ‘BBB+’ following a divestment and debt reduction. Hudson Pacific Properties was downgraded due to continued deterioration in credit metrics and refinancing challenges. The outlooks for Invitation Homes and American Homes 4 Rent were revised to positive, reflecting the favorable prospects for the single-family rental market.

Outlook

Across the U.S. real estate landscape, high financing costs, persistent inflationary pressures, and cautious consumer sentiment are creating mixed conditions. While homebuilders and materials companies face mounting margin pressure, commercial real estate and REITs are proving more resilient. Nevertheless, S&P warns that elevated refinancing risk and weaker macroeconomic indicators could lead to a broader increase in negative rating actions throughout 2025.

Fitch revises 2025 outlooks for key corporate sectors amid global trade war

Fitch Ratings has downgraded its 2025 outlooks for global leveraged finance, North American corporates, and 12 industry sectors—mostly global or North America-focused—from ‘neutral’ to ‘deteriorating’ in its latest mid-year update. The revisions are primarily driven by the ongoing global trade war and expectations of weakening macroeconomic conditions in the second half of the year.

According to Fitch, persistent trade tensions, uncertainty around future U.S. policy direction, and the risk of retaliatory measures from other regions are expected to exert significant pressure on various corporate sectors. The challenges are particularly acute in industries with high international exposure, cross-border trade reliance, or complex supply chains.

Notable downgrades include sectors tied to consumer spending, such as global alcoholic beverages and U.S. retail, restaurants, and consumer products. Fitch also lowered its outlook for sectors tied to natural resources, including global oil and gas, as well as chemicals. In healthcare, the global medical devices and diagnostic products sector, along with pharmaceuticals and biotech, also saw outlooks move to ‘deteriorating.’

The outlook for global leveraged finance was revised downward due to increasing risk for lower-rated companies. However, Fitch noted that most corporate sector outlooks remain ‘neutral’ for now, as the impact of higher tariffs has been gradual and partially mitigated by corporate responses. Still, the agency warned that additional downgrades could follow in the second half of 2025 if tariffs rise further or policy instability continues to weigh on profitability and revenue growth.

Source: Fitch Ratings

Wide disparities in household consumption and GDP per Capita across EU in 2024

In 2024, material living standards across the European Union showed significant differences, as indicated by newly released data on Actual Individual Consumption (AIC) per capita, expressed in purchasing power standards (PPS). AIC per capita ranged from 72% to 141% of the EU average among the 27 member states.

Nine EU countries recorded AIC levels above the EU average. Luxembourg led the group at 41% above average, followed by the Netherlands at 20% and Germany at 18%. In contrast, eighteen countries fell below the EU average, with Hungary registering the lowest level at 28% below average, and both Bulgaria and Estonia at 26% below.

The data, part of the European statistical system’s regular assessment of purchasing power parities, also highlighted even greater variation in GDP per capita among member states. Ten countries recorded GDP per capita levels above the EU average, with Luxembourg again leading at 242%, followed by Ireland at 211% and the Netherlands at 136%. The lowest GDP per capita levels were observed in Bulgaria (66% of the EU average), Greece (70%), and Latvia (71%).

While GDP per capita reflects overall economic output, AIC per capita provides a better indication of the material welfare experienced by individuals, as it accounts for both private consumption and public services provided to households. The figures underscore continuing disparities in living standards and economic development across the EU.

Source: EUROSTAT

Catella APAM completes full-floor letting at Arlington Park to Ridge and Neuraxpharm

Catella APAM has secured a full-floor letting at Arlington Park in Reading, marking another leasing success for the business campus. The latest agreements further reinforce the appeal of the park to companies seeking scalable and well-connected office space.

Ridge and Partners LLP, a built environment consultancy, has signed a 10-year lease for the remaining 9,058 sq ft on the first floor of Building 1410. The firm cited both the location and the quality of the office environment as key factors in their decision. Ridge Partner Adrian Goulding noted that the surrounding green space, lake, on-site café, and gym played a significant role in creating an appealing workplace for staff.

Sharing the floor with Ridge is Neuraxpharm, a European pharmaceutical company specializing in treatments for central nervous system disorders. Neuraxpharm has committed to a five-year lease for 2,300 sq ft. The company will remain in its current space until December 2025 under a short-term extension before relocating to its new headquarters, which will be delivered with a landlord-provided Category B fit-out.

Commenting on the new agreements, Max Bingham, Asset Manager at Catella APAM, stated that the lettings reflect the park’s capacity to support tenants from initial occupancy through to larger-scale expansion.

Arlington Park continues to see consistent interest from both flexible and traditional office occupiers, bolstered by its connectivity and amenities.

Harmonized inflation in Slovakia reaches 4.3% in May 2025

Inflation in Slovakia, measured using the harmonized index of consumer prices (HICP) under the common European methodology, rose to 4.3% in May 2025 on a year-on-year basis. Month-on-month inflation stood at 0.5%. The annual HICP inflation figure exceeded the national inflation rate previously published on June 13.

Price increases were recorded across all 12 consumption divisions compared to May 2024. The smallest annual increase was observed in the transport division, where prices rose by just 0.1%, while the most significant rise occurred in the education sector, with prices up by 10.2%. On a monthly basis, nine of the twelve divisions saw price growth. The largest upward pressure came from the food and non-alcoholic beverages division, where prices increased by 1.3%. However, the overall monthly inflation rate was partly offset by a 1.2% decrease in transport prices.

The average annual HICP inflation rate for the period from June 2024 to May 2025, compared with the same period a year earlier, was 3.6%.

The Statistical Office of the Slovak Republic has also implemented changes in its data collection methodology. Since January 2024, the prices for food and non-alcoholic beverages have been collected from scanner data—transaction records from retail chains—replacing traditional field surveys. Starting January 2025, this approach will also be used for the alcoholic beverages and tobacco division. The use of scanner data is part of a broader effort to modernize price statistics and improve data quality.

Source: Statistical Office of the SR

Average employment and wages in Poland rose in 2024

According to preliminary data from Statistics Poland, the average paid employment in the national economy in 2024 reached 11 million full-time equivalents, reflecting a modest increase of 0.3% compared to 2023. The manufacturing sector remained the largest employer, accounting for 22.5% of total employment.

Notable employment growth was observed in the accommodation and catering sector, which increased by 3.1%, and in human health, social work, arts, entertainment, and recreation sectors, each recording a 2.1% rise. Conversely, employment declined in five sectors, with the sharpest drops in electricity, gas, steam and air conditioning supply (-3.2%) and administrative and support services (-2.6%).

The average gross monthly wage and salary in Poland increased by 13.6% year-on-year, reaching PLN 8,181.72 in 2024. This growth outpaced the 13.1% increase recorded in 2023. Wages varied significantly across sectors, ranging from PLN 5,516.44 in accommodation and catering to PLN 13,459.50 in information and communication—about 32.6% below and 64.5% above the national average, respectively.

All economic sectors experienced wage growth, with education seeing the highest increase at 24.2%. The lowest wage growth, at 2.3%, was recorded in the mining and quarrying and other service activities sectors.

In terms of minimum wages, the gross monthly minimum wage was PLN 4,242.00 in the first half of the year and rose to PLN 4,300.00 in the second half. These figures represented 53.4% and 51.8% of the national average gross wage (excluding annual bonuses), respectively. By December 2024, approximately 402,700 employees earned the minimum wage or less.

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