Skanska to Deliver Major Office Redevelopment in London under GBP 273M Contract

Skanska has signed a contract with British Land and GIC, acting through the Broadgate joint venture, to carry out the full construction and mechanical and electrical services installation for the One Appold Street redevelopment in London. The contract is valued at GBP 273 million, approximately SEK 3.4 billion, and will be recorded in Skanska’s European order bookings for the first quarter of 2026.

One Appold Street, originally completed in 1986 as part of a wider development in the City of London, is set to undergo a comprehensive transformation into a modern commercial office building with updated sustainability and design standards. The project includes a structural refurbishment involving the replacement of the existing façade, the expansion of floorplates on all sides and the addition of six new storeys to the current steel structure.

Upon completion, the scheme will comprise a 14-storey building providing around 33,500 sq m of office accommodation, alongside approximately 4,500 sq m dedicated to amenities including gym and restaurant facilities and a rooftop terrace.

BEOS Sells ‘PIRO Heilbronn’ Commercial Site to Technology Company

BEOS, part of Swiss Life Asset Managers, has sold the partially revitalised commercial site “PIRO Heilbronn” to an industrial end user operating in the technology and security sector. The transaction was concluded while the project was still in its development phase and follows the ongoing repositioning of the former industrial property into a multifunctional commercial campus.

Located in the southern part of Heilbronn, the site comprises approximately 21,000 sq m of usable space on a plot of around 15,000 sq m and benefits from proximity to the Heilbronn Sontheim university campus and established transport infrastructure. The existing buildings have been progressively redeveloped to accommodate a mix of storage, production, research, office and service functions.

According to BEOS, the sale reflects continued investor and occupier interest in adaptable commercial space despite a more cautious market environment. Daniel Schäfer, Head of Real Estate Development Light Industrial & Commercial for the Stuttgart region, said the transaction demonstrates demand for repositioned assets and confirms the appeal of the location and development concept.

Selected construction works are scheduled to be completed in the coming months, after which the buyer will assume responsibility for the final expansion and fit-out of the premises in line with its operational requirements.

BEOS focuses on the development and management of complex commercial properties within the Swiss Life Asset Managers platform, with an emphasis on research and light industrial locations across major German metropolitan regions.

Domoplan plans 190-unit Riva Residence scheme in Brno, with construction set for 2027

Domoplan Real Estate Fund is preparing a new residential development in Brno’s Horní Heršpice district, as it expands its pipeline in regional Czech cities. The project, Riva Residence, is planned on a site near the Svratka river and is positioned to combine residential use with access to green areas and transport links to the city centre.

The scheme is expected to comprise 190 apartments with a total residential floor area of approximately 9,000 sqm. Unit layouts will range from smaller apartments to larger family units. The project has obtained zoning approval, with construction scheduled to begin in the first quarter of 2027.

According to the developer, the architectural concept has been prepared by Zlamal Architects in cooperation with Identity Designers, with a focus on integrating the buildings into the surrounding environment. The design incorporates balconies and terraces, as well as landscaped outdoor areas intended for residents.

The total project value is estimated at close to CZK 2 billion, reflecting both development costs and anticipated sales revenue. The location in Horní Heršpice is part of a wider trend of residential expansion in Brno, where former industrial and underutilised areas are being redeveloped into housing.

Brno continues to attract residential investment due to its economic base, population growth and relative affordability compared with Prague. Developers are increasingly targeting districts with available land and potential for further infrastructure improvements, particularly in areas with access to green space and established transport connections.

Riva Residence adds to Domoplan Real Estate Fund’s portfolio of residential projects in the Czech Republic, as the company continues to focus on mid-scale developments in urban locations outside the capital.

Home Values in Slovakia Continue to Rise Across Most Regions

The cost of residential property in Slovakia moved higher again in the latest reported period, extending an upward pattern that has been visible since the middle of last year. Newly released national data indicate that both newly built and older homes became more expensive compared with the same time a year earlier, with increases recorded in nearly every part of the country.

The overall picture shows steady momentum rather than a sudden surge, with prices climbing from one quarter to the next as well as on an annual basis. Larger cities and their surrounding districts continued to set the tone for national averages, while smaller regions followed with more moderate but still positive changes.

Differences between locations remain pronounced. The capital area continues to command the highest price levels, reflecting strong demand and limited availability of suitable properties. Eastern and central regions also registered noticeable gains, narrowing the gap slightly but still remaining well below the values seen around Bratislava. Only isolated districts reported minimal movement or brief slowdowns before resuming growth.

Market observers link the sustained rise to stable employment conditions and gradually improving access to home loans compared with the previous year. At the same time, they note that affordability concerns are becoming more visible, which could temper the pace of future increases if borrowing costs or economic conditions shift.

Despite these potential constraints, the most recent figures point to a housing market that remains active and broadly upward-trending, with prices higher than a year ago and regional disparities continuing to shape the overall landscape.

Home Prices in Slovakia Climb Sharply Over the Past Year

The cost of buying a home in Slovakia increased markedly over the past year, with nationwide figures showing double-digit growth and a noticeable jump in the average price per square metre. The rise was most visible in the country’s two largest urban areas, which had the strongest influence on overall market levels.

Property listings and banking sector analyses indicate that values strengthened throughout the year after a quieter period earlier in the cycle. Flats accounted for much of the upward movement, while standalone houses also became more expensive, though their increases were generally less pronounced.

Price development varied by location. The capital region remained the most expensive part of the country and continued to pull the national average upward. Košice and its surrounding districts also registered significant gains, reversing softer trends seen previously. Other regions recorded more moderate changes, and in a few cases prices moved little or briefly edged down before recovering.

Economists link the renewed growth to steady employment conditions and improved access to home financing compared with the previous year. However, they also note that the strong pace seen recently may ease if household budgets come under pressure or borrowing conditions change.

Overall, the latest figures suggest that Slovakia’s residential market finished the year with higher asking prices and revived buyer interest, although future increases are expected to proceed at a more measured speed.

Retail Spending in the Czech Republic Edges Higher as Price Growth Slows at Start of Year

Household spending in the Czech Republic increased over the past year, while new data for the opening month of this year show that the rise in living costs has eased to its lowest pace in many years, offering a mixed but generally stable picture of consumer conditions.

Official statistics indicate that the value of goods sold in stores, not including vehicle purchases, was moderately higher than in the previous year. Sales through online channels and purchases of everyday items contributed to the overall improvement, although the final months of the year showed a gentler rhythm compared with earlier periods. Economists say the yearly gain reflects gradually improving purchasing power and continued willingness among households to spend, even if caution remains visible in some segments.

Separate figures released at the same time show that the cost of goods and services in January rose only slightly compared with a year earlier, marking the slowest annual increase seen in nearly a decade. Lower energy-related expenses played an important role in the calmer price environment, while certain services and selected food categories still recorded noticeable increases.

The combination of firmer retail turnover and milder price development suggests that consumers entered the new year under more favourable financial conditions than in recent periods. Analysts note, however, that the moderation in prices does not eliminate all pressures on household budgets, as some areas of spending continue to trend upward. Even so, the latest data point to a more balanced economic backdrop, with spending activity holding steady while overall price growth remains contained.

Czech Central Bank Lifts Economic Growth Outlook as Currency Firms After Inflation Data

The Czech economy is expected to grow faster this year than previously anticipated, according to updated projections released by the country’s central bank, while the national currency strengthened following the publication of January price figures and a decision to leave borrowing costs unchanged.

In its latest assessment of the domestic economy, the central bank indicated that economic activity should expand at close to three percent this year, representing a more optimistic view than it presented late last year. The revised estimate reflects improving household consumption and a gradual recovery in external demand, while price growth is now seen as more subdued than earlier forecasts suggested. The bank also signalled that economic expansion could remain at a similar pace next year, although inflation is expected to move slightly higher compared with this year’s level.

The updated outlook places the central bank among the more confident forecasters regarding near-term economic performance. Government institutions recently adjusted their own expectations upward as well, though their projections remain marginally more cautious.

Financial markets reacted quickly to the combination of new inflation figures and the monetary authority’s decision to keep its main interest rate steady. The Czech koruna strengthened against both the euro and the US dollar during trading, reflecting investor confidence that price pressures remain under control and that policy settings are unlikely to shift abruptly in the near future.

Data released earlier in the day showed that consumer price growth at the start of the year remained relatively low compared with recent historical standards, even though certain service sectors continue to experience higher costs. Central bank officials reiterated that maintaining a prudent policy stance is still necessary to ensure inflation remains close to the target over the medium term.

Equity trading in Prague moved in the opposite direction, with the main stock index easing from recent highs as several large-capitalisation shares declined. Analysts noted that the currency’s appreciation and stable interest rate environment suggest markets currently view the country’s economic trajectory as balanced, combining moderate growth with contained inflation, although future developments will depend on both domestic spending trends and the broader European economic climate.

Panattoni starts next phase of Panattoni Park Warsaw South IV, DZIK signs as first tenant

Panattoni has begun construction of another stage of Panattoni Park Warsaw South IV in Nadarzyn near Warsaw. The new warehouse building will offer approximately 26,300 square metres of space. The first tenant of the facility will be Polish sports brand DZIK, for which this will be the company’s first standalone warehouse.

“We are launching the next phase of Panattoni Park Warsaw South IV in response to the continuing high demand for modern industrial space in the immediate vicinity of Warsaw,” says Michał Samborski, Regional Managing Director & Head of Development at Panattoni. “We are delighted that DZIK – a Polish brand with a strong identity and impressive growth dynamics – has placed its trust in us by choosing the location for its first warehouse.”

DZIK has expanded its sales channels in recent years and decided to centralise logistics and office functions in one location. The company will occupy more than 11,000 square metres of warehouse space and over 700 square metres of offices.

“Everyone who creates DZIK knows that our history is not just a brand – it is a way of thinking, acting and living,” says Maciej Kozik, Logistics Director at DZIK. “This project is more than just a new location – it is a place that is designed to foster people, ideas and everyday work.”

The office part of the scheme is planned with social and relaxation areas and views towards surrounding greenery. Querco Property advised DZIK during the selection and negotiation process.

“It was a collaboration with a brand that knows exactly where it is going,” says Karolina Hałuszko, Property Negotiator at Querco Property. “The choice of Panattoni Park Warsaw South IV was a natural step towards further development.”

The new building is being developed together with investor Griffin Capital Partners. According to Griffin, the decision to proceed with the next phase follows previous deliveries at the site and ongoing tenant interest in the location.

“As part of our strategy, we are consistently developing a portfolio of high-quality, future-proof locations,” explains Łukasz Toczek, Director at Griffin Capital Partners. “We are seeing strong tenant demand for space in this area, which is why we have decided to proceed with the third stage, secured by an agreement with DZIK.”

Panattoni Park Warsaw South IV is located in Nadarzyn near the S8 expressway and the Paszków junction, around 20 kilometres from central Warsaw and 18 kilometres from Chopin Airport. Earlier phases of the park are fully leased, with tenants including Neopak and Prajo. Once completed, the complex is expected to comprise more than 85,000 square metres across three buildings, with delivery of the current stage planned for the second quarter of 2026. The project is intended to obtain BREEAM Excellent certification.

Real Estate Finance Leaders Back ECB’s Decision to Hold Interest Rates Steady

Senior figures from across the German and European real estate finance sector have broadly welcomed the European Central Bank’s decision to leave key interest rates unchanged at the start of 2026, describing the move as a stabilising factor for both property and capital markets. Executives and academics note that while borrowing conditions remain demanding, the predictability of monetary policy is currently seen as more valuable than premature rate cuts, particularly as service-sector inflation and geopolitical uncertainties continue to influence the economic outlook.

Statement by Francesco Fedele, CEO of BF.direkt AG: “The ECB’s decision to keep key interest rates at their current level is correct and consistent. While inflation in the Eurozone has fallen to 1.7 percent compared to January 2025, the lowest level since September 2024, this slight weakening is not yet a reason for the central bank to lower key interest rates, especially since inflation in the services sector remains high at 3.2 percent.

For the real estate industry, the current interest rate level is challenging, but predictable. This predictability is currently more important than rapid interest rate cuts, which would raise false expectations given the renewed rise in inflation. Price pressure remains high, particularly in the service sector and with regard to wage-driven costs.

The real estate market is functioning, albeit selectively. While residential and logistics properties remain relatively stable, other asset classes continue to face pressure to adjust. Financing is still being secured, but only on the basis of viable business models and realistic valuations. Against this backdrop, monetary policy stability is currently the most important contribution of the ECB.” ECB to calm the markets.

Statement by Prof. Dr. Steffen Sebastian, Chair of Real Estate Finance, IREBS Institute for Real Estate Economics, University of Regensburg: “While other central banks have already implemented interest rate cuts, the ECB remains committed to its stability-oriented course. This strengthens its credibility and prevents higher inflation expectations from taking hold in the capital market – a risk that would be particularly problematic for long-term financing. For the real estate and credit markets, the pause in interest rate cuts does not mean relief, but it does mean stability. In the current phase, restraint is the lesser of two evils. Only when the decline in inflation proves to be sustainable will there be room for monetary easing. Until then, discipline is paramount.”

Statement by Michael Morgenroth, Founder and CEO of CAERUS Debt Investments AG: “The ECB’s decision to keep interest rates stable since mid-2025 is not surprising to us. It continues its course of cautious, data-driven normalization and avoids creating new uncertainties for businesses and households. In December 2025, inflation in the eurozone fell below the ECB’s target of 2 percent for the first time in months, at 1.9 percent. Inflation in Germany was also moderate at 1.8 percent. At the same time, the eurozone economy is expanding at a moderate pace of just over one percent per year, which argues against tightening monetary policy. A stable interest rate supports this fragile recovery, stabilizes financing conditions, and simultaneously allows the ECB to react flexibly to a renewed acceleration in inflation or an unexpected slowdown in growth. As long as no new inflation risks emerge, we believe the ECB will continue to prioritize continuity and a longer period of stable interest rates.”

Statement by Prof. Dr. Felix Schindler, Head of Research & Strategy, HIH Invest: “The ECB is continuing its current course at its first meeting in 2026, keeping key interest rates at their current level. This interest rate decision by the ECB was expected by market participants in the capital markets as well as in the real estate markets. Inflation rates in the Eurozone and Germany remain within the ECB’s target corridor at the start of the year. Base effects in energy prices and exchange rate effects are expected to subside over the course of the year. The core inflation rate – driven by the services sector – remains above the target and will continue to be monitored. High geopolitical uncertainties and high volatility in the capital markets are also expected to persist throughout the year. The ECB is therefore currently in a comfortable position to react accordingly if necessary.”

Photo (left to right): Francesco Fedele, CEO of BF.direkt AG, Prof. Dr. Steffen Sebastian, Chair of Real Estate Finance, IREBS Institute for Real Estate Economics, University of Regensburg, Michael Morgenroth, Founder and CEO of CAERUS Debt Investments AG and Prof. Dr. Felix Schindler, Head of Research & Strategy, HIH Invest

Warsaw Office Market Continues to Face Limited New Supply Despite Strong Leasing Activity

Office leasing activity in Warsaw remained robust throughout 2025, even as the amount of newly completed space fell to one of the lowest levels in recent years. Market analysts say the Polish capital is still experiencing a shortage of modern office availability, particularly in central districts, as development activity slows and older buildings are gradually withdrawn from use.

Total tenant demand during the year reached approximately 790,000 square metres, with the final quarter standing out as the most active period, when signed agreements exceeded 300,000 square metres. The high level of leasing was recorded against a backdrop of constrained supply, with less than 100,000 square metres of new offices delivered during the year and under-construction volumes continuing to decline.

A large share of activity consisted of companies extending or renegotiating their existing agreements, while the remainder came from firms entering new locations or modestly expanding their footprint. Central Warsaw and the Służewiec district accounted for the highest concentration of transactions, although their tenant profiles differed. New occupiers were more visible in the city centre, whereas Służewiec saw a greater share of contract renewals. Among the year’s largest deals were major telecom and pharmaceutical tenants choosing to remain in their current buildings while adjusting lease terms and, in some cases, taking additional space.

Sustained demand has placed upward pressure on headline rents in prime central projects, where monthly rates now reach the upper end of the local market, with premium floors in landmark towers achieving even higher figures. By contrast, business zones outside the core continue to offer more affordable options, drawing interest from cost-conscious occupiers seeking modern facilities with good transport links.

Consultants note that the rising cost of relocation and office fit-outs is encouraging many firms to stay in established premises rather than move, a trend that is also contributing to longer lease commitments. Buildings that combine strong technical standards with efficient operating costs are increasingly favoured as companies become more selective in their space requirements.

On the development side, most new projects completed in 2025 were concentrated in central locations, while construction starts slowed further compared with previous years. At the same time, several outdated office properties were removed from the market or earmarked for conversion, gradually improving the overall quality of available stock. This restructuring has been particularly visible in older office districts, where redevelopment and change-of-use schemes are beginning to reshape the local landscape.

By the end of the year, Warsaw’s modern office inventory exceeded six million square metres. However, the pipeline of future projects shrank noticeably, signalling that new additions are likely to remain limited over the next two years. Analysts expect that the combination of steady tenant demand, cautious development and the ongoing withdrawal of inefficient buildings will continue to tighten availability, especially for large, contiguous spaces in prime areas.

Vacancy levels declined further during the year, with the sharpest reductions recorded in the central business zone, where demand for high-quality space remains strongest. Looking ahead, market observers anticipate that selective rent increases and a growing emphasis on refurbishing or repurposing older properties will shape Warsaw’s office sector as companies balance cost considerations with the need for modern, well-located workplaces.

Source: AXI IMMO

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