Housing completions in Slovakia reach nine-year low in first quarter of 2025

Housing construction in Slovakia continued to slow in the first quarter of 2025, with the number of completed dwellings falling to its lowest level in nine years. According to data from the Statistical Office of the Slovak Republic, 3,119 dwellings were completed, representing a 24% decline year-on-year and a similar decrease compared to the average for first quarters over the past decade.

Most completions remained concentrated in family houses, accounting for 72% of the total. The slowdown was evident across six of the country’s eight regions, with Bratislava, Nitra, and Žilina regions recording the steepest year-on-year declines at 47%, 32%, and 30% respectively. Only Banská Bystrica and one other region reported an increase, largely due to the low base of comparison from the previous year.

In a long-term comparison, six regions also reported a decline against the ten-year average, with notable drops in Trnava and Nitra regions (over 25%) and Bratislava, where completions were less than half the long-term average. Bratislava, typically leading the country in housing completions, saw only 540 dwellings completed compared to a ten-year average of over 1,100.

In addition to fewer completions, the number of housing starts also declined. In the first quarter, 3,198 dwellings were started, marking the lowest first-quarter figure in twelve years. This represented a 17% decline year-on-year and a 27% decline compared to the ten-year average. Family houses made up 56% of the new starts.

Six regions recorded a decline in housing starts year-on-year, with the sharpest decreases in Banská Bystrica, Trnava, and Žilina regions, ranging from 42% to 51%. Bratislava and Košice regions were the exceptions, showing increases of 45% and 27% respectively, though the gains in Bratislava were influenced by the low figures from the previous year and remained below the long-term average.

As of the end of March 2025, around 77,000 dwellings were under construction in Slovakia, slightly lower (2.9%) compared to the previous year but still 2.8% higher than the ten-year average.

PORR to modernise key section of Craiova–Caransebeș railway line in Romania

PORR has been awarded a major railway infrastructure contract in Romania, strengthening its position in European rail construction. The company will undertake the refurbishment and modernisation of the Craiova – Drobeta Turnu Severin – Caransebeș railway line, Lot 5, through a design and build contract valued at approximately EUR 428 million (RON 2.14 billion).

The project involves significant upgrades aimed at aligning the railway infrastructure with European standards along the Orient/Eastern Mediterranean corridor. The scope of work covers 32.6 kilometres of refurbishment and the expansion of the existing single-track section to a double-track line, along with the construction of two new double-track sections.

Key components of the project include the construction of 18 bridges and 54 culverts, the refurbishment of the 496-metre-long Rachitoberg tunnel, and the construction of a new 1,279-metre-long double-track tunnel, Poarta I. Six stations—Băile Herculane, Mehadia Nouă, Mehadia, Iablanița, Crușovăț, and Domașnea Cornea—will also undergo refurbishment and modernisation.

The contract specifies a project duration of 60 months. Once completed, the railway line will be fully electrified and equipped with the European Rail Traffic Management System (ERTMS) Level 2, enhancing both safety and operational efficiency.

The modernisation is expected to reduce journey times, increase transport capacity, and bring the infrastructure up to European speed and safety standards.

Czech average wage rises 3.9% in real terms in Q1 2025

In the first quarter of 2025, the average gross monthly nominal wage per full-time equivalent (FTE) employee in the Czech Republic increased by 6.7% compared to the same period last year, reaching CZK 46,924. Adjusted for inflation, wages rose by 3.9% in real terms, according to data from the Czech Statistical Office (CZSO). The median wage stood at CZK 38,385.

“The average real wage increased by 3.9% in the first quarter of 2025, with the nominal wage rising by 6.7% to CZK 46,924. The lowest year-on-year growth was observed in the sectors of mining and quarrying, and electricity, gas, steam, and air conditioning supply, though wage levels in these sectors remain above the national average,” said Jitka Erhartová, Head of the Labour Statistics Unit at the CZSO.

Consumer prices grew by 2.7% over the same period, contributing to the real wage increase. The overall wage bill expanded by 7.1%, while employment rose by 0.4%. On a seasonally adjusted basis, the average wage grew by 1.7% compared to the previous quarter.

By industry, the highest wage growth was recorded in real estate activities (12.4%), professional, scientific, and technical activities (10.9%), and construction (10.3%). The smallest increases were seen in mining and quarrying (3.1%) and electricity, gas, steam, and air conditioning supply (3.3%).

The median wage, reflecting the midpoint of the wage distribution, increased by 5.3% year-on-year. Median earnings for men were CZK 41,677, while women earned a median wage of CZK 35,226. Approximately 80% of employees earned between CZK 21,136 and CZK 73,611.

The average gross monthly wage is calculated based on wage funds, including overtime, bonuses, and compensation, divided by the number of employees. It represents an aggregate figure rather than individual earnings. The earnings structure statistics indicate that about two-thirds of employees earn less than the national average wage.

The median wage is derived from a statistical model based on sample surveys and offers a more representative view of typical earnings, accounting for the distribution of wages across the workforce.

Net wages, paid to employees after deductions for health insurance, social security, and income tax, are lower than the gross figures reported.

Sales in Czech retail trade accelerate in April 2025

Retail trade sales in the Czech Republic recorded a year-on-year increase of 5.8% in April, according to data released by the Czech Statistical Office (CZSO). This marks an acceleration compared to previous months. In a month-on-month comparison, retail sales grew by 1.2%.

Sales in retail trade, excluding motor vehicles, rose by 1.2% from March. Within this category, food sales increased by 2.4%, sales of automotive fuel rose by 1.3%, and non-food goods sales grew by 0.4%.

Compared to April 2024, automotive fuel sales showed the largest year-on-year growth at 12.3%. Sales of non-food goods increased by 5.7%, and food sales rose by 3.7%.

“Retail sales adjusted for price effects grew at a faster pace in April than in the preceding month. Increases were observed across all main types of retail stores. The strongest contributions came from automotive fuel sales, internet and mail-order sales, and food sales in non-specialised stores,” said Jana Gotvaldová, Head of the Trade, Transport, and Services Statistics Unit at the CZSO.

In specialised retail segments, cosmetic and toilet articles posted an 11.0% year-on-year increase. Sales of cultural and recreational goods grew by 6.7%, dispensing chemist and medical goods by 5.3%, household equipment by 2.7%, clothing and footwear by 2.1%, and information and communication equipment by 1.2%. Non-specialised stores with a focus on food, beverages, or tobacco reported a 3.9% increase, while specialised food stores saw a 2.2% rise. Other non-specialised retail sales increased by 6.5%. Sales via mail order and internet channels rose by 10.9%.

Sales in the sale and repair of motor vehicles increased by 0.4% month-on-month and 4.8% year-on-year. Within this segment, motor vehicle sales, including spare parts, grew by 5.6% compared to the previous year, while repair services increased by 2.0%.

The data reflect continued consumer demand across various retail sectors, contributing to an overall positive trend in the country’s retail market.

Prague launches CZK 7.12 billion tender for new Smíchov transport terminal

Prague City Hall has announced a tender valued at approximately CZK 7.12 billion (excluding VAT) for the construction of a new transport terminal at Smíchov station. According to information published in the public procurement bulletin, the project will include a bus terminal above the station platforms, a P+R parking facility west of the station, and upgrades to Nádražní Street.

The new terminal is intended to integrate multiple modes of transport, connecting trains, the metro, city and intercity buses, and trams within one complex. Plans call for underpasses linking Nádražní Street to the train platforms. The relocated bus terminal, currently at Na Knížecí, will be situated above the station. The metro will remain below ground level, and all levels will be interconnected for easier transfers between transport modes.

Deputy Mayor Zdeněk Hřib recently confirmed that the project has received a building permit, with construction expected to start next year. Separately, the Railway Administration (SŽ) has begun modernization work on the train stop and track systems at Smíchov station, a project with a budget of CZK 5.1 billion. Preparations are also underway to renovate the station building, including replacing the current southern wing with a new four-story structure that will accommodate shops and restaurants.

Smíchov station, which opened in 1862 as Prague’s second major railway hub, has undergone various changes over the years. The original station buildings were not preserved, in part due to damage sustained during World War II. The current station structure dates back to the 1950s. Along with the main station and Masaryk station, Smíchov remains one of Prague’s key railway hubs.

Source: CTK
Photo: Smíchov station, IPR Praha

Brno records lowest number of completed apartments since 2001

Builders completed approximately 900 apartments in Brno last year, marking the lowest annual figure since 2001, according to data from the city’s portal, data.brno.cz. At the same time, residential property prices continued to rise, reaching nearly CZK 120,000 per square meter by the end of 2024. The city also faces ongoing challenges related to increasing mobility, with more than 3,500 new personal cars added year-on-year. In contrast, air quality in Brno continues to show improvement, a positive development highlighted in the city’s latest statistical overview, “Brno in Numbers.” The public can view a summary of these findings at an outdoor exhibition on Mendlovo náměstí.

At the end of last year, Brno had over 402,000 permanent residents, about 2,000 more than the previous year, driven mainly by immigration. However, mobile operator data indicates that on an average workday, the city population swells to approximately 500,000. Population distribution varies widely across Brno’s 29 districts, with Brno-střed being the most populous at over 86,000 residents, while Ořešín remains the smallest district with fewer than 600 inhabitants.

The ongoing imbalance between the high demand and limited supply of apartments has contributed to property price increases. Prices rose steadily from 2015 until early 2022, experienced a slight decline in the second half of 2022, but began rising again in spring 2023. As of April 2025, asking prices had climbed to over CZK 123,000 per square meter. Rental prices have also increased; while the average monthly rent was CZK 18,657 in February 2024, it had risen to CZK 21,087 by February 2025.

Brno is home to over 300,000 motor vehicles, including around 240,500 personal cars. The number of electric and hybrid vehicles has also grown, reaching approximately 3,000. Last year, there were 598 cars per 1,000 inhabitants, compared to 443 a decade ago. Although the total number of traffic accidents decreased year-on-year—from 1,894 in 2023 to 1,761 last year—the number of fatalities rose from three to ten.

Despite the rise in motor vehicle numbers, Brno continues to see improvements in air quality, with most areas staying within emission limits. Environmental conditions in the Brno reservoir are also improving, as evidenced by decreasing chlorophyll concentrations. However, the city is experiencing the effects of climate change. The average temperature in 2024 was recorded at 12.2 degrees Celsius, an increase of 0.7 degrees compared to 2023.

Source: CTK
Photo: PSN_Brno Jedna_kavarna_kolarna

Union Investment completes refurbishment of “The Precedent” office building in Brussels

Union Investment has finalized the comprehensive modernization of “The Precedent,” an office and commercial building located in Brussels. Originally constructed in 1988, the building underwent a complete refurbishment and extension overseen by YUGENING Architecture. The project, involving an investment of approximately EUR 43 million, has upgraded the property to meet modern standards for user comfort, technical performance, and sustainability. “The Precedent” has been part of the UniInstitutional European Real Estate portfolio since 2004.

According to Laurence Simillon, Director of Union Investment’s Belgian branch, the refurbishment delivers a combination of user well-being and operational efficiency. The building now hosts two restaurants, Mimi and Samourai, on its ground floor, adding dining options to its mixed-use offering.

The modernization retained the original concrete structure for environmental reasons and introduced a new timber-constructed section. The property features nine floors of flexible office spaces, with four floors connected by large staircases designed to enhance natural lighting and provide views over Brussels. The fully glazed facades incorporate dynamic glass panels that adjust their transparency based on sunlight intensity, maximizing daylight use while offering thermal and visual comfort without traditional blinds.

The Precedent meets passive house standards (EPB Brussels 2015) and has achieved BREEAM Excellent and WELL Gold certifications, reflecting its sustainability and user health focus.

Located in the Ixelles/Elsene district, a mixed-use area in the south of Brussels, the building benefits from a prominent position on Avenue Louise, offering convenient access to public transport and city amenities.

Scallier opens new retail park in Ploiești, Romania

Poznań-based Scallier has completed and opened a new FunShop Park retail facility in Ploiești, Romania. The retail park, located in the northern part of the city, offers 10,000 square metres of gross leasable area. Ploiești has a population of over 200,000.

The development includes a 2,300-square-metre Lidl supermarket and a shopping centre with individual entrances to each store. Tenants at FunShop Park Ploiești include brands such as DM, Sinsay, TEDi, KiK, ZooCenter, Pepco, Jysk, Hervis, New Yorker, CCC, Flanco, and Agroland. The complex also features dining options, including the Rimini restaurant and the FryDay drive-thru, as well as a fitness club operated by a recognised chain.

Romania’s economy, supported by consistent growth and a large consumer base, provides favourable conditions for retail development. The country’s retail sales continue to grow, while the supply of modern retail space remains low compared to other Central and Eastern European markets. Retail parks are the main contributors to new retail space in Romania, with development rates comparable to those in Poland when adjusted for market size.

Demand for local shopping centres remains high, as reflected in low vacancy rates and the rapid leasing of new developments.

FunShop Park Ploiești expands Scallier’s network of retail parks in Romania. Since 2021, Scallier has completed and opened FunShop Park projects in Roșiorii de Vede, Focșani, Turda, Vaslui, Timișoara, Moșnița Nouă, and Arad, contributing more than 70,000 square metres of gross leasable area to the Romanian market.

Panattoni secures financing from PKO Bank Polski for expansion of Panattoni Park Zgierz II

Panattoni has secured €24 million in financing from PKO Bank Polski to support the second phase of development at Panattoni Park Zgierz II. The new phase will include a central warehouse for a Polish cosmetics manufacturer and a distribution centre for a national drugstore chain.

The second phase will add 70,000 square metres to the logistics park. Of this, 30,500 square metres of warehouse space and 1,300 square metres of office space will be leased by a company operating in the drugstore sector, bringing their total leased area to 50,000 square metres. Bielenda, a Polish cosmetics producer, has leased 10,500 square metres for a central warehouse that will support domestic and international distribution.

Once completed, Panattoni Park Zgierz will offer a total of 120,000 square metres of space. The facility is designed to meet BREEAM Excellent certification standards, reflecting the use of technologies aimed at reducing environmental impact.

The site is located near major transport routes, approximately 2.5 kilometres from the A2 motorway and 13 kilometres from the A1 motorway in Stryków, offering convenient access to regional and international markets. Its proximity to Łódź and Zgierz also provides access to a skilled workforce.

Emilia Taczewska-Trojańska, Head of Debt Finance Poland at Panattoni, noted that the financing from PKO Bank Polski supports the ongoing expansion of the company’s investment portfolio in Poland.

Pactic signs lease at CTPark Budapest Ecser logistics park

Pactic (Fürgefutár.hu Kft.) has signed a five-year lease agreement for nearly 3,000 square meters of industrial space at CTPark Budapest Ecser.

Pactic specializes in cross-border logistics, offering services tailored to e-commerce businesses and companies expanding into international markets. Its operations include warehousing, transportation, last-mile delivery, and cash-on-delivery payment solutions across multiple countries. The move to CTPark Budapest Ecser is part of the company’s continued expansion.

The lease covers a standalone building designed to meet Pactic’s operational requirements. The facility reflects CTP’s approach of providing scalable logistics space, capable of accommodating businesses from various sectors.

The logistics park’s location was an important factor in the agreement. Positioned near Budapest and Liszt Ferenc International Airport, and close to the M0 and M4 motorways, the site offers strong national and international connectivity. The Budapest area is one of Hungary’s most competitive economic regions, providing Pactic with access to a broad client base.

The building is equipped with a heat pump-based system for heating and cooling, supporting energy efficiency goals. In line with CTP’s sustainability policies, the park is designed to minimize environmental impact while maintaining operational efficiency for its tenants.

Colin Snead, CEO of Pactic, stated that the company’s growth required an expansion of its facilities and that the ECS4 hall at CTPark Budapest Ecser meets their current needs. He noted the importance of maintaining service quality in the parcel delivery market.

Ferenc Gondi, Managing Director of CTP Hungary, commented that Pactic’s lease reflects CTP’s focus on offering flexible logistics solutions and supporting long-term tenant relationships.

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