New Prague apartment requires 15.5 years of wages, Up from 14.5 six months ago

Purchasing a new 70-square-metre apartment in Prague now requires 15.5 years’ worth of gross wages, up by one year compared to six months ago, and five years more than in 2015. Prague continues to have the least affordable housing market in Central Europe, according to an analysis by Central Group presented to journalists today.

The supply of new apartments in Prague has declined by 1% since the start of the year. Persistent demand exceeding supply has driven the price of new apartments up by 10% year-on-year — the highest rate among major cities in the region.

Although around 150,000 new apartments are at various stages of preparation in Prague, developers are facing delays due to a protracted and complex permitting process. These projects could eventually provide housing for approximately 300,000 people. The largest numbers of new apartments under preparation are located in Prague 9 and Prague 5, with more than 12,500 units in the approval phase in Prague 5 and over 9,000 in Prague 9.

Dušan Kunovský, founder and CEO of Central Group, emphasized the need to accelerate the permitting process. “However, expediting permitting alone is not enough. It is also necessary to make spatial planning more flexible and reduce excessive regulations that increase the cost of housing construction,” he stated.

Comparatively, purchasing a new apartment requires 14.8 years of wages in Bratislava, about 11 years in Munich, 8.5 years in Warsaw, and fewer than eight years in Berlin and Vienna.

According to a joint analysis by Trigema, Central Group, and Skanska Residential, developers sold 2,550 new apartments in Prague in the first quarter of 2025 — an increase of 60% year-on-year and the highest first-quarter figure in the past 15 years. Higher quarterly sales figures were only recorded in the second quarter of 2021. The average asking price for new apartments reached CZK 167,947 per square metre in the first quarter, 10% higher year-on-year and 2.9% higher compared to the previous quarter.

The recent decline in interest rates has been a significant driver of increased demand for new apartments. Additionally, investors are turning to real estate amid volatility in financial markets.

Based on Central Group data, the average gross monthly wage in Prague is CZK 63,106, while the average price of a new 70-square-metre apartment is CZK 11,756,291. The affordability index uses wage data from the Ministry of Labour and Social Affairs and apartment prices from the developers’ joint analysis. Data from the Czech Statistical Office show the average gross wage in Prague was slightly lower, at CZK 62,472, in the first quarter.

Forbes: Renáta Kellnerová remains the most influential woman in the Czech Republic

Forbes magazine has once again ranked Renáta Kellnerová, owner of PPF Group, as the most influential woman in the Czech Republic. Lenka Bradáčová, recently appointed Supreme Public Prosecutor, retains second place, while PPF’s Chief Financial Officer Kateřina Jirásková has moved into third position.

Forbes published its annual ranking online today, highlighting Kellnerová’s growing involvement in PPF’s activities. Editor-in-chief Zdravko Krstanov noted that Kellnerová continues to direct the group towards more conservative and stable investments, including acquisitions of major Prague hotels such as Hilton and Four Seasons. Beyond business, Kellnerová is active in philanthropic initiatives, particularly through The Kellner Family Foundation, which supports educational scholarships for students.

Bradáčová, who had served as Prague’s Chief Prosecutor until April this year, continues her longstanding presence at the top of the list.

Kateřina Jirásková, who has been with PPF for 25 years, recently assumed the role of co-CEO alongside Didier Stoessel. Together, they oversee the group’s operations following Jiří Šmejc’s departure at the end of his term. Jirásková now shares responsibility for managing one of the largest private financial groups in the region.

Other notable figures in the top ten include Michaela Chaloupková, Director of the ČEZ Administration Division and Board Member at ČEZ; Katarína Kohlmayer, CFO and Board Member at KKCG; Minister of Defence Jana Černochová (ODS); Petra Kutnarová, co-owner of DEK Building Materials; entrepreneur Ivana Tykač; and Simona Kijonková, co-owner of JSK Investments.

Former European Commission Vice-President Věra Jourová, who transitioned to a role as Vice-Rector at Charles University, dropped from third place last year to 78th position. Speaker of the Chamber of Deputies Markéta Pekarová Adamová (TOP 09) also declined in the ranking, falling from seventh to 31st, after announcing she will not seek re-election due to health reasons.

The list also includes Dana Drábová, Chairwoman of the State Office for Nuclear Safety, who ranks 15th, and Eva Pavlová, the President’s wife, at 16th.

Forbes has been publishing the ranking of the 200 most influential women in the Czech Republic for 14 years. The list covers representatives from politics, business, and the non-profit sector, with rankings based on a set of defined evaluation criteria.

Housing prices in Slovakia continue to rise, analyst warns of long-term market shifts

Housing prices in Slovakia rose by 13% year-on-year in the first quarter of 2025, according to data from the Slovak Statistical Office. This marks the first double-digit increase since the third quarter of 2022, suggesting a renewed rise in demand after a brief slowdown.

Matej Horňák, an analyst at Slovenská Sporiteľňa, noted that falling mortgage rates and a strong labor market are contributing to the renewed growth in housing prices. However, he cautioned that these trends are occurring against a backdrop of limited supply, which continues to lag behind the country’s needs.

Horňák emphasized that while current conditions support continued price growth, Slovakia faces significant demographic challenges that could reshape the housing market in the long term. He expects the structure and accessibility of housing to change as a result of these shifts.

New and existing properties both recorded notable price increases, rising by 10% and 14% year-on-year, respectively. Regionally, the Bratislava area saw the most significant growth, with prices rising by 27%. Double-digit increases were also observed in the Nitra, Košice, Žilina, and Prešov regions.

The recovery in the mortgage market is another factor supporting housing demand. In April 2025, the volume of new mortgages exceeded €680 million, the highest since 2022. The average interest rate on new mortgages has fallen to 3.7%, 0.8 percentage points below the previous year’s peak, providing further stimulus to the market.

Despite strong demand, the supply of housing remains constrained. While transactions involving existing properties continue, building permit statistics do not indicate a significant increase in new housing construction. In the last quarter of 2024, the number of housing starts declined by 15% year-on-year, and the number of completed units fell by 16%.

Horňák pointed out that Slovakia has the highest average household size in the European Union, with an average of 3.1 people per household compared to the EU average of 2.3. This indicates an ongoing need for more, and more affordable, housing options.

While demand remains strong and borrowing conditions have improved, Horňák warned that the gap between housing prices and household incomes is widening. This could slow the rate of price increases going forward.

Looking ahead, demographic trends such as an ageing population and a potential decline in overall population are expected to alter housing needs. Future demand may shift toward smaller, more accessible, and better-equipped housing units, potentially easing pressure on the market over time.

Source: SITA

Poland’s housing loan inquiries rise 46.4% year-on-year in May 2025

According to the latest data from the BIK Housing Loan Demand Index, the value of housing loan inquiries rose by 46.4% year-on-year in May 2025. This indicates that, on a working day basis, banks and credit unions in Poland submitted housing loan inquiries for amounts significantly higher than in May 2024.

The BIK Housing Loan Demand Index measures changes in the value of housing loans requested by individual clients compared to the same period in the previous year. It serves as a tool for analysts and financial institutions to assess market trends and forecast credit activity in the coming months.

In May 2025, 38,630 individuals applied for housing loans, compared to 26,990 in May 2024, reflecting a year-on-year increase of 43.1%. Compared to April 2025, the number of applicants rose by 8.4%.

The average requested housing loan amount in May 2025 was PLN 467,600, an increase of 7.4% compared to the previous year and 2.1% higher than in April 2025.

According to Dr. Waldemar Rogowski, Chief Analyst at BIK Group, the number of housing loan applicants in May reached its highest level since October 2021, excluding brief periods of increased activity in March 2022—related to anticipated interest rate buffer changes—and the second half of 2023, following the introduction of the Safe Loan 2% Program.

Dr. Rogowski noted that the demand for housing loans is being influenced by the recent interest rate cut, with borrowers responding to expectations of further reductions. High interest rates between mid-2022 and mid-2023 had led to a significant decline in demand. Additional factors contributing to the renewed interest include relatively stable real estate prices and signs of price declines in the secondary market, encouraging property purchases.

The average requested loan amount of PLN 467,600 in May 2025 represents the highest recorded level. Dr. Rogowski anticipates that in the coming months, the BIK Housing Loan Demand Index may continue to rise, driven by both an increase in the number of applicants and higher average loan amounts.

NEPI Rockcastle CEO Rüdiger Dany to step down in March 2026

Rüdiger Dany, CEO of NEPI Rockcastle, has announced that he will leave the company in March 2026. The decision was made in agreement with the company’s Board of Directors.

Dany stated that the early announcement is intended to allow sufficient time for the Board to appoint and transition a new CEO. He will remain in position to complete the 2025 financial year and present the full-year results, reflecting the impact of major acquisitions completed in 2024 and earlier strategic investments.

Since Dany assumed the CEO role in February 2022, NEPI Rockcastle’s net operating income has increased by 58%, from EUR 347 million to EUR 547 million by the end of 2024, excluding energy revenues. Distributable earnings per share grew by 75%, from 34.42 euro cents to 60.17 euro cents. Over the same period, the company raised EUR 1.7 billion, including EUR 1.2 billion in debt and EUR 500 million in equity, notably through a EUR 300 million bookbuild in 2024.

NEPI Rockcastle has made acquisitions totalling EUR 1.2 billion since 2022, with a focus on retail properties in Poland. The company maintained a stable loan-to-value (LTV) ratio of 32.1%, remaining below its 35% target.

During his tenure, Dany also oversaw the establishment of NEPI Rockcastle’s renewable energy business, which is aimed at supplying electricity to its properties and tenants. The initial investment of EUR 34 million in Romania between 2022 and 2023 generated EUR 9 million in revenue by 2024. The company expects the renewable energy initiative to achieve returns higher than those of traditional retail developments.

George Aase, Chairman of NEPI Rockcastle, thanked Dany for his contributions and confirmed that a search process for the next CEO has begun. The Board has engaged an executive search firm to evaluate internal and external candidates. Further updates will be provided once the appointment is made.

NEPI Rockcastle is active across Central and Eastern Europe, operating a portfolio of shopping centres and maintaining a strong presence in retail real estate markets.

EU sustainable development report highlights areas of progress and concern

Eurostat has released its 2025 edition of the “Sustainable Development in the European Union — Monitoring Report on Progress Towards the SDGs,” offering a comprehensive statistical overview of the European Union’s journey toward achieving the United Nations’ Sustainable Development Goals (SDGs).

The report, now in its ninth edition, assesses the EU’s progress across all 17 SDGs over the past five years, drawing on official data from EU member states and institutions. Significant strides were made in key areas such as reducing inequalities (SDG 10), promoting decent work and economic growth (SDG 8), and enhancing quality education (SDG 4). These domains have seen consistent improvements, reflecting the Union’s commitment to fostering inclusive and sustainable development.

Moderate progress was noted in several other areas, including gender equality (SDG 5), responsible consumption and production (SDG 12), industry, innovation and infrastructure (SDG 9), and zero hunger (SDG 2). However, the pace of progress was slower than in previous reporting periods, indicating room for further action.

The report also highlights areas where advancement has stalled or regressed. No significant progress was recorded for life below water (SDG 14), largely due to the limited expansion of marine protected areas and deteriorating ocean health. Moreover, setbacks were observed in clean water and sanitation (SDG 6) and life on land (SDG 15), with challenges such as water stress, land degradation, and biodiversity loss impacting these goals.

Valdis Dombrovskis, European Commissioner for Economy and Productivity, emphasized the importance of maintaining focus on sustainability despite ongoing geopolitical tensions and economic uncertainties. He reaffirmed that the SDGs remain integral to the European Commission’s strategies and that continued efforts are necessary to meet environmental targets under the European Green Deal.

In a first for the series, this year’s report also examines regional disparities in SDG progress, providing insights into the uneven development across different parts of Europe. It underscores the principle of “leaving no one behind” by analyzing key sustainability indicators at the regional level.

Mariana Kotzeva, Director-General of Eurostat, noted that while the EU has made notable progress, the path to achieving the 2030 Agenda remains complex. She emphasized that the report serves as an important resource for policymakers, researchers, and citizens alike, offering a clear picture of achievements and highlighting areas that demand further action.

The monitoring report is accompanied by a dedicated communication package, including the new SDG EU Progress Tracker and country-specific overviews, available through Eurostat’s website. These tools aim to enhance transparency and facilitate a broader understanding of the EU’s sustainability performance as the 2030 deadline approaches.

Wages in Slovakia rise by 4.9% in early 2025, real growth slowed by inflation

Average wages in Slovakia increased at the beginning of 2025, although rising inflation limited the real growth. According to data from the Statistical Office of the Slovak Republic, the average nominal monthly wage in the first quarter reached EUR 1,518, up 4.9% compared to the same period last year. This represents an average increase of EUR 71.

While the pace of nominal wage growth slightly accelerated compared to the previous quarter, inflation slowed real wage growth to 1%, the slowest since late 2023. After seasonal adjustment, the average wage increased by 1.6% compared to the fourth quarter of 2024.

Across the economy, 18 out of 19 monitored sectors recorded a year-on-year increase in nominal wages. In two-thirds of the sectors, wage growth exceeded the national average. Increases ranged from 1% in education to nearly 14% in real estate activities and mining and quarrying. After adjusting for inflation, 16 sectors registered real wage growth, while three sectors—energy supply (electricity, gas, steam), education, and public administration—recorded a decrease in real terms. Employees in mining and quarrying, real estate, and water supply reported the highest real wage growth.

Among sectors with high employment levels, trade outperformed industry for the first time in over a year. Nominal wages in trade rose by 6.2% to EUR 1,453, with real growth of 2.2%, exceeding the national average. Industry, the largest employer, saw nominal wage growth of 4.3%, with the average wage reaching EUR 1,624 and real growth of just 0.4%.

The highest average monthly wage was recorded in financial and insurance activities, exceeding EUR 3,100. Employees in information and communication and in electricity, gas, and steam supply also earned over EUR 2,600 per month. However, in 11 of the 19 monitored sectors, gross wages remained below the national average. The lowest wages were found in accommodation and food services (EUR 908) and in other activities (EUR 964).

Regionally, Bratislavský kraj was the only region with above-average wages, averaging EUR 1,901. In other regions, wages ranged from EUR 1,179 in Prešovský kraj to EUR 1,417 in Trenčiansky kraj. Nominal wages increased year-on-year in all regions, with the most notable rise of 8.2% recorded in Nitriansky kraj. Real wage growth was observed in five regions, with Nitriansky and Trenčiansky kraj seeing increases of more than 2%. Wages decreased in real terms in Bratislavský and Žilinský kraj, while remaining unchanged in Banskobystrický kraj compared to the previous year.

Apartment transactions in Romania fall 9% in early 2025

The number of apartment transactions in Romania declined by nearly 9% in the first four months of 2025 compared to the same period in 2024, according to data from Colliers. In Bucharest, the decrease was more pronounced at 12%. Tighter access to financing, economic uncertainty, and rising construction costs contributed to the slower activity in the residential market.

Several factors have combined to impact buyer confidence and purchasing power. According to Gabriel Blăniță, Associate Director for Valuation & Advisory Services at Colliers Romania, a slowdown in the labor market, moderate wage growth, political uncertainties tied to the electoral cycle, and continued increases in housing prices have created difficult conditions for transactions. Access to mortgage financing has become more limited due to persistent inflation and economic instability. The removal of certain tax incentives at the start of 2025 has raised labor costs for developers, further increasing housing prices. Additionally, a shortage of construction workers, exacerbated by ongoing infrastructure projects, is becoming more evident.

After a 20% drop in housing deliveries in Bucharest during 2024, 2025 has not shown clear signs of recovery. Although construction activity rose by 9% in the first quarter, the volume of housing completions is not expected to return to previous levels in the near term.

Despite these challenges, interest in homeownership remains high. Surveys by Eurostat indicate that demand for housing is approaching record levels. However, purchasing a home has become more complex, especially for buyers reliant on credit. Inflation, elevated financing costs, and potential fiscal measures aimed at reducing the budget deficit are affecting affordability.

Colliers consultants anticipate that inflation will stay high in the medium term, which could limit the central bank’s ability to ease monetary policy. Fiscal adjustments to address the budget deficit may also indirectly affect the housing market. As a result, 2025 is expected to remain challenging for buyers.

High financing costs are influencing not only demand but also developers’ willingness to launch new projects, particularly in the mid-market segment. In this environment, the rental market is gaining importance. In Bucharest, about 15% of residents live in rental housing, a figure that could rise as renting becomes a more accessible option for those unable to secure mortgage financing. Although this percentage remains below the European average, affordability pressures and a shortage of new supply in central areas are likely to drive further growth in rental demand.

Looking ahead, Colliers notes that the residential market’s performance will depend on monetary and fiscal policies, labor market conditions, and how developers adapt to changing cost structures and demand patterns. While transaction volumes are adjusting, interest in urban housing remains steady, suggesting that market activity will continue at a more moderate pace with increased attention to efficiency and affordability.

Cinema attendance and revenue in Romania decline in 2024

Cinema attendance and revenues in Romania declined in 2024, with total spending reaching €59 million, approximately 5% lower than the previous year, according to data from the Romanian Film Center analyzed by Cushman & Wakefield Echinox. This decline occurred despite a 10% year-on-year increase in average ticket prices.

The number of cinema tickets sold decreased by 14% year-on-year, falling from 13.1 million in 2023 to 11.2 million in 2024. Average ticket prices rose from 23.7 lei to 26.1 lei during the same period. Cinema operators reported total revenues of 292.9 million lei (~€59 million) for the year.

By the end of 2024, Romania had 108 cinemas, an increase from 103 the year before. Multiplexes continued to dominate the market, accounting for over 96% of total box office revenues and 93% of total admissions. The number of cinema visits per capita also declined, dropping from 0.68 in 2023 to 0.59 in 2024.

The largest cinema markets remained concentrated in urban centers, with Bucharest leading at 3.5 million spectators (-13% year-on-year), followed by Constanța (633,300, -14%), Cluj-Napoca (626,188, -18%), Timișoara (611,548, -19%), and Brașov (541,478, -13%). These five cities accounted for 55% of national cinema attendance. The consistent declines across these markets suggest a broader shift in consumer behavior in urban areas.

However, some regions recorded growth. Iași and Prahova counties saw an increase in the number of visitors, indicating potential regional variation in cinema engagement.

Dana Radoveneanu, Head of Retail Agency at Cushman & Wakefield Echinox, noted that these trends reflect broader changes in consumer preferences. As digital content becomes more accessible and audiences seek more personalized experiences, traditional cinemas are being challenged to adapt. Radoveneanu emphasized that these shifts have implications for shopping mall developments, where cinemas have historically played a key role in generating foot traffic. Developers are increasingly being pushed to design spaces that integrate retail, cultural, social, and technology-driven experiences.

Data on per capita cinema visits in 2024 showed Brașov leading with 2.05 visits per capita (2023 data), followed by Bucharest (1.54), Brăila (1.18), and Iași (1.06). In terms of seat utilization rates, Iași recorded the highest occupancy with 1.26 spectators per seat per day, followed by Vrancea (0.88), Ialomița (0.84), Covasna (0.82), and Brașov (0.58). Bucharest recorded 0.46 spectators per seat per day.

Unemployment rate in Slovakia declines to 5.3% in first quarter of 2025

Unemployment in Slovakia continued to decline in the first quarter of 2025, reaching 5.3%, one of the lowest rates recorded in recent decades. According to the latest Labour Force Sample Survey (LFSS) from the Statistical Office of the Slovak Republic, the number of unemployed fell to 146,600, a year-on-year decrease of 8,200 people or 5%.

This decline was particularly notable among the long-term unemployed, defined as individuals without work for more than 12 months. Their number dropped by 9,000 to 93,400, representing a reduction of 8.8% compared to the same period last year.

Although there was a slight quarter-on-quarter increase of 0.1% after seasonal adjustment, overall unemployment remained low. Historical data show that only two quarters in the past three decades recorded marginally lower unemployment rates.

In terms of age groups, the most significant year-on-year decrease was seen among individuals aged 15 to 24, where unemployment fell by 25% (7,400 people). By contrast, unemployment increased slightly among those aged 55 and older.

Looking at previous employment sectors, the highest numbers of unemployed came from industry, trade, construction, and public administration. Public administration and social security saw the largest year-on-year increase in unemployment, rising by 3,400 individuals.

Approximately 32% of the unemployed—around 47,600 people—had never held a job, including recent graduates.

Regionally, six of Slovakia’s eight regions reported a year-on-year decline in unemployment. Košice and Trnava regions recorded the largest absolute decreases, with reductions of 5,000 and 2,300 unemployed persons, respectively. However, Prešov, Košice, and Banská Bystrica regions continued to account for around two-thirds of the total unemployed population.

The regional unemployment rates varied from 2.6% in Bratislava to 10.5% in Prešov. Western and northern regions of Slovakia generally recorded unemployment rates below 4%, while rates in Banská Bystrica and Košice remained above 7% and 8%, respectively.

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