Deka Immobilien acquires premium hotel property in Vienna

Deka Immobilien has purchased the five-star Andaz Vienna Am Belvedere hotel for approximately EUR 92 million. The seller was a joint venture between affiliates of Hyatt Hotels Corporation and Signa Development Selection AG. The asset will be incorporated into the portfolio of the WestInvest InterSelect open-ended real estate fund.

The hotel, completed in 2019, comprises 16 floors and 303 guest rooms, including 44 suites. Facilities include four dining outlets, conference and event areas, a fitness and wellness zone, and an underground car park with 233 spaces, of which 62 are allocated to hotel use. The property is fully leased on a long-term agreement to MHP Hotel am Schweizergarten GmbH, part of MHP Hotel AG. It currently operates under Hyatt’s Andaz brand and is scheduled to transition to the Hyatt Regency brand in April 2026.

The building is located at Arsenalstraße 10 in Vienna’s Belvedere district, positioned between the city’s main railway station and the Belvedere Palace. The surrounding area, developed between 2012 and 2019, has become a mixed-use zone combining cultural institutions, office buildings and residential projects. The property holds LEED Gold environmental certification.

According to the fund management of WestInvest InterSelect, the acquisition represents the fund’s first hotel investment in Vienna and is intended to provide stable long-term rental income through a property in a central location.

Photo: Hyatt

São Paulo Office Market in 2025 Shows Gradual Recovery Driven by Prime Locations

São Paulo’s office real estate market in 2025 showed clearer signs of recovery than in previous years, supported by steady corporate activity and a limited volume of newly completed buildings. The balance between supply and demand gradually improved as several planned developments were postponed or delivered later than expected, reducing the amount of additional space entering the market. This situation contributed to a noticeable decline in empty offices across many of the city’s main business districts.

Leasing activity remained concentrated in central and well-established commercial corridors, where companies continued to prioritise accessibility, modern infrastructure and proximity to services. Financial firms, technology companies and professional service providers were among the most active occupiers, often choosing recently refurbished or newly built properties that offer flexible layouts and energy-efficient systems. As a result, the best-located and most modern buildings reported stronger occupancy levels, while older stock in secondary areas continued to face slower take-up.

Rental prices in prime locations experienced moderate upward movement during the year, reflecting improved confidence among landlords of high-quality assets. In contrast, owners of less competitive buildings frequently relied on incentives or renovation plans to maintain tenant interest. The divergence between premium and secondary properties became more pronounced, highlighting the growing importance of building standards, environmental performance and workplace amenities in tenant decision-making.

Investment in office assets in São Paulo remained selective but active, with buyers focusing primarily on properties that demonstrate stable income streams and long-term leasing potential. Institutional investors showed interest in assets located in established business zones, particularly those with modern technical specifications or recent upgrades. Transactions involving buildings that required significant capital expenditure were less common, as investors continued to prioritise predictable returns over opportunistic acquisitions.

Overall, 2025 was characterised by gradual strengthening rather than rapid expansion. The market’s progress was driven less by large-scale growth and more by the absorption of existing space, delayed new supply and a continued shift toward higher-quality workplaces. São Paulo’s office sector entered the year with cautious expectations and ended it with improved occupancy levels in key districts, though challenges remained for older or poorly located properties.

Rio de Janeiro Office Market in 2025 Marked by Stabilisation and Asset Repositioning

Rio de Janeiro’s office property market in 2025 continued to adjust to slower corporate expansion and changes in workplace strategies that began in previous years. While economic conditions in Brazil showed gradual stabilisation, demand for traditional office space in the city remained uneven, with many companies maintaining hybrid work models and reassessing their long-term space requirements.

Leasing volumes over the course of the year were generally moderate, with most transactions concentrated in higher-quality buildings located in established business districts such as Centro and Barra da Tijuca. Larger occupiers, including public institutions and companies linked to the legal and energy sectors, accounted for a noticeable share of new agreements and renewals. However, the overall pace of new occupier entry into the market was limited compared with earlier growth cycles.

Vacancy levels stayed relatively high across the city, particularly in older buildings that struggle to compete with newer developments offering improved technical standards, energy efficiency and flexible floor layouts. Landlords of prime properties were better positioned to maintain stable rental income, while secondary stock often required incentives or refurbishment to attract tenants. Rental prices showed only minor fluctuations during the year, reflecting a balance between cautious tenant demand and owners’ efforts to retain occupancy.

A visible trend in 2025 was the growing interest in repositioning underused office assets. Some property owners began exploring alternative uses for buildings that had experienced prolonged vacancies, including conversions to residential, hospitality or educational functions. This approach reflects a broader reassessment of how centrally located real estate can be adapted to changing urban needs rather than relying solely on traditional office demand.

Investment activity in Rio’s office sector remained selective. Transactions occurred primarily for well-located or modern assets with stable tenant profiles, while investors showed limited appetite for properties requiring significant capital expenditure or facing uncertain leasing prospects. As a result, deal volumes were modest compared with other commercial real estate segments.

Overall, the year was characterised less by expansion and more by consolidation and repositioning. The market continued to function, but with a focus on asset quality, tenant retention and long-term adaptability rather than rapid growth. These dynamics suggest that Rio de Janeiro’s office sector is moving through a period of structural recalibration rather than short-term cyclical change.

Studio A receives occupancy permit and leases more than 20,000 sqm in Warsaw

The Studio A office building, which represents the second and final phase of the Studio development in Warsaw, received its occupancy permit in December 2025. By the end of the year, more than 20,000 sqm of office space had been leased.

The tower rises over 100 metres and provides approximately 27,000 sqm of office space across 22 above-ground floors. The ground floor is planned to include a bistro or café unit intended for tenants and visitors.

Construction of the project began in November 2023. The development forms part of the frontage along Prosta Street and includes a publicly accessible pedestrian passage connecting Prosta and Łucka Streets. According to the developer, this element is intended to improve pedestrian circulation in the surrounding area.

Representatives of Skanska Commercial Development Europe stated that the occupancy permit marks the completion of the entire Studio complex and noted that the company remains active in delivering new office space in central Warsaw.

Studio A is located within walking distance of the Rondo Daszyńskiego and ONZ metro stations and near the Norblin Factory mixed-use complex, which offers retail and service functions. Tenants secured to date represent sectors including energy, pharmaceuticals, finance, IT, consulting and legal services.

The building was designed by Arrow Architects in cooperation with Grupa 5 Architekci and maintains architectural continuity with the first phase of the project. Public space in front of the building includes landscaped greenery and seating areas.

Studio A incorporates digital building management systems intended to support energy monitoring and access control via mobile devices. The project has obtained several building and sustainability certifications, including LEED, WELL, WiredScore and SmartScore, as well as a “Building without Barriers” accessibility certificate.

LivUp begins revitalisation of historic building at 8 Moniuszki Street in Warsaw

LivUp, a company active in Poland’s private rented sector (PRS), has started the revitalisation of a historic tenement building at 8 Moniuszki Street in central Warsaw. The property is known as the former location of Café Adria, a pre-war entertainment venue. Following modernisation, the building is planned to return to use as a residential project for long-term institutional rental, with additional retail and food and beverage units at street level.

The project involves reconstruction, extension and a change of use from office and service functions to residential. The renovated building will have six residential floors and a usable area of nearly 2,600 sqm, providing 65 apartments ranging from 25 to 64 sqm. Planned amenities include shared leisure and work areas, a reception lobby, a small fitness zone, bicycle storage and outdoor terraces, including a rooftop terrace. Ground-floor and underground levels are designated for approximately 1,200 sqm of commercial space. Construction works began in August 2025 and are scheduled for completion in the second half of 2027. Techbau has been appointed as general contractor.

According to LivUp, the project represents the company’s first major revitalisation scheme and combines residential and commercial functions within a single property in Warsaw’s city centre.

The architectural design has been prepared by APMD Architects. The building, constructed between 1928 and 1930 for the Riunione Adriatica di Sicurtà insurance company and designed by Edward Zachariasz Eber, is listed in the Municipal Register of Monuments as an example of classicising modernism. The planned works, carried out in line with conservation guidelines agreed with the Mazovian Conservator of Monuments, include façade renovation, restoration of original stone and stucco elements, reconstruction of architectural details and replacement of windows with wooden frames reflecting the historic appearance. A commemorative plaque related to a World War II event at the site is also planned to be reinstated after completion.

Interior design has been developed by the Warsaw-based studio IDSTUDIO, with a concept referencing interwar aesthetics interpreted in a contemporary manner. The apartments and common areas are planned to use durable materials and custom-made furnishings produced by local manufacturers.

Union Investment secures EUR 282 million in rental income for funds in 2025

Union Investment reported new and replacement lettings totalling approximately 890,650 sqm across its portfolio in 2025, resulting in annual net rental income of EUR 282 million for its commercial real estate funds, compared with EUR 273 million in 2024. The occupancy rate, measured by income, remained broadly stable at 95.3 percent at the end of 2025, up slightly from 95.1 percent a year earlier.

The majority of leasing activity took place within the company’s three open-ended real estate funds. The UniImmo: Deutschland fund recorded around 256,550 sqm of lettings, corresponding to annual income of EUR 105.6 million. UniImmo: Europa leased approximately 220,000 sqm, securing annual net rent of EUR 81.8 million, while UniImmo: Global concluded leases for roughly 132,000 sqm, generating annual rental income of EUR 31.7 million.

According to Union Investment Real Estate GmbH management board member Henrike Waldburg, lease renewals and follow-up lettings accounted for 68.7 percent of the total leasing volume, or around 612,000 sqm, reflecting a continued focus on retaining existing tenants in a competitive market environment.

Office properties represented the largest share of lettings in 2025 at around 66 percent, followed by retail assets at approximately 25 percent. The remaining activity was mainly in logistics and hotel properties.

Among the larger transactions during the year was a lease agreement with law firm Clifford Chance for the entire 11,000 sqm of office space at 59 Boulevard Haussmann in Paris, starting in 2027 for a term of 12 years. The building, constructed in 1927 and held in the UniImmo: Deutschland fund since 2021, is scheduled for renovation and restructuring by 2027. In Brisbane, Flight Centre Travel Group extended its lease in the Southpoint office building by 10 years for around 16,200 sqm; the asset has been part of the UniImmo: Europa portfolio since 2014. In Hamburg’s Wandsbek Markt district, Union Investment signed a lease with the Free and Hanseatic City of Hamburg for approximately 11,400 sqm in a former Karstadt property held within the UniImmo: Deutschland fund.

7R appoints Martin Ohly as Head of Germany

7R and Urban Partners have announced the appointment of Martin Ohly as Head of Germany. He joins 7R from Logicenters, where he most recently served as General Manager and Head of Logistics. In his new role, he will be responsible for leading 7R’s activities and planned expansion in the German market.

Ohly moves from Logicenters, Urban Partners’ logistics property management and development platform, to 7R, which is also part of the Urban Partners portfolio and owned by the Nordic Strategic Fund V. He brings more than 19 years of experience in commercial real estate, including work in investments, transactions, capital markets, leasing and asset management. Prior to Logicenters, he held positions at companies including Amazon Global Realty, JLL, Apleona and METRO Properties, working in both national and European roles.

According to 7R CEO Andrzej Wroński, the appointment is intended to support the company’s entry into Germany and strengthen its understanding of local market conditions and business requirements.

In his new position, Ohly will oversee the development of 7R’s German portfolio, which is expected to include acquisitions of existing assets, speculative and build-to-suit logistics projects, and potential joint ventures. The company states that its focus will be on operational efficiency and long-term cooperation with tenants across the lifecycle of its properties.

Ohly said that he intends to focus on expanding 7R’s presence in Germany and highlighted the company’s approach to ESG standards and a range of logistics formats, from large distribution facilities to urban logistics parks.

CA Immo completes sale of Millennium Tower I office building in Budapest

CA Immo has finalised the sale of Millennium Tower I, an office property located in Budapest’s Central Pest office submarket. The transaction forms part of the company’s ongoing capital rotation strategy aimed at concentrating its investment portfolio on modern, high-quality office assets within its core markets.

Millennium Tower I was completed in 2006 and is one of several buildings within the Millennium Towers office park on the Danube riverbank, adjacent to landscaped green areas. The multi-tenant building provides approximately 18,800 sqm of gross leasable area and around 270 parking spaces. As of November 2025, the property reported an occupancy rate of roughly 87 percent, a weighted average unexpired lease term (WAULT) of seven years and annualised gross rental income of about €3.1 million.

According to CA Immo CEO Keegan Viscius, the company reclassified Hungary as a non-core market in 2023 in response to market conditions and alternative capital allocation opportunities. He noted that the disposal represents another step toward a planned exit from the Hungarian market. Proceeds from the sale may be used for general corporate purposes, reinvestment into prime assets, debt reduction, share buybacks or external investments, depending on available opportunities.

Hedwig Höfler, Group Head of Investment Management at CA Immo, stated that while transaction volumes in Budapest were subdued in 2023 and 2024, investment activity strengthened in 2025. She added that the completion of three sales during the year reflects improving market sentiment and expressed confidence that the company’s remaining assets will continue to attract investor interest.

The disposal aligns with CA Immo’s long-term strategy to prioritise large, Class A office properties in prime inner-city locations. Assets that fall outside the company’s core criteria in terms of location, building quality, age or value-creation potential are being gradually divested as part of portfolio optimisation efforts focused on quality and sustainability.

CERHA HEMPEL Rechtsanwälte and CBRE acted as advisers to CA Immo on the transaction.

As of 30 September 2025, CA Immo’s portfolio in Hungary comprised six office buildings in Budapest with a combined lettable area of approximately 125,000 sqm and a book value of around €246 million. All properties hold either BREEAM Very Good or LEED Gold sustainability certifications.

Labour market indicator rises in January, pointing to potential increase in unemployment

The Labour Market Indicator (WRP), which signals possible future changes in unemployment, increased by 0.5 points in January compared with December 2025. Although the indicator remains below its most recent peak from July last year, recent movements suggest that the registered unemployment rate may rise slightly in the coming months.

In December 2025, the registered unemployment rate stood at 5.7%, up from 5.1% a year earlier. Part of this increase is linked to regulatory changes introduced in mid-2025 that altered the operation of public employment services and the rules for registering unemployed individuals at district labour offices. The impact of these changes is expected to diminish over the course of 2026. Beyond these regulatory effects, the labour market continues to face structural challenges, including limited labour supply, insufficient activation measures and persistently weak demand for workers, reflected in a low number of job vacancies.

The main factor currently pushing the WRP upward is the low number of job offers registered at district labour offices, which suggests upward pressure on unemployment. A secondary, smaller contribution comes from a rise in the number of unemployed people deregistering after finding work. Other components of the indicator show little evidence of improvement in labour market conditions.

One of the few positive signals comes from assessments of the overall economic situation by managers in the manufacturing sector. While negative views still outweigh positive ones, the gap has narrowed considerably over the past year. However, this improvement has not been matched by employment plans, as forecasts from industrial firms do not yet point to a clear increase in hiring, even though the number of companies planning workforce reductions has been gradually declining.

Labour demand reported through employment offices remains weak. The number of vacancies registered at these offices is close to historical lows. Online job postings show slightly more stability, with the Job Offer Barometer declining marginally month on month and remaining unchanged year on year. This divergence suggests that public employment offices are playing a reduced role in matching jobseekers with vacancies.

Flows out of unemployment into employment have remained broadly stable, with the average monthly number of people leaving unemployment for work in 2025 similar to that in 2024. However, the relationship between job creation and exits from unemployment has shifted. Whereas in previous years new vacancies exceeded the number of people finding work, the situation has now reversed, further indicating a diminished intermediary role for district labour offices.

Recent media reports have highlighted redundancies attributable to employers. Data from the Central Statistical Office (GUS) show that the number of such layoffs has been declining steadily over the past three months, suggesting that large-scale job losses are easing despite the overall weak labour demand.

U Boží Vody project highlights demand for energy-efficient family housing in regional cities

The U Boží Vody residential development in Mladá Boleslav suggests that demand for energy-efficient family homes remains solid outside Prague. Of the nine detached houses planned within the project, four have already been sold, accounting for more than 44% of the total, despite construction still being underway.

The project is being developed by Pierwood Capital and comprises nine standalone houses designed for family living. One unit serves as a show house, while four homes have been sold to date—one already completed and handed over, with three others currently under construction. The remaining four houses are still available.

Sales achieved during the construction phase indicate sustained interest in housing that combines low operating costs with a high standard of living. The project also reflects a broader shift in buyer activity toward regional cities that offer established infrastructure and suitable conditions for family life, rather than demand being focused exclusively on Prague and its immediate surroundings.

According to Pierwood Capital, the development follows a long-term approach that prioritises architectural quality, energy performance and healthy indoor environments over rapid delivery. The scheme was planned as a cohesive residential setting rather than a collection of individual units.

“For us, sustainability is not a marketing label. It must be evident in everyday living comfort, operating costs and in how a home performs over decades. The fact that a number of homes in this project were sold during construction clearly shows that this approach resonates with buyers,” said Frank Nourse, founder of Pierwood Capital.

Nourse’s development philosophy is informed by international experience gained in Africa, Ireland, the United States and across Europe, where he observed the long-term impact of poor construction quality and energy-inefficient housing. After more than 20 years working with conventional steel and concrete structures, he shifted toward timber construction as a way to improve energy performance and long-term sustainability.

Sustainability at U Boží Vody is defined through measurable design and performance criteria rather than formal certification. The homes focus on high insulation standards, the use of natural materials and modern building technologies aimed at reducing long-term energy consumption and operating costs.

The project is delivered under the ZEO Homes standard, which specialises in passive timber housing with very low energy requirements. Pierwood Capital applies this development standard across its residential projects in several regions of the Czech Republic.

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