Retail deliveries surge in Romania, reaching 80% of 2024 forecast in just two months

The Romanian retail real estate market recorded a sharp increase in activity in April and May, with approximately 150,000 sq m of new retail space delivered during these two months. This represents 80% of the total retail space expected to be completed throughout 2024, according to data published by real estate consultancy Cushman & Wakefield Echinox.

The most notable delivery was Mall Moldova in Iași, a super-regional shopping centre that significantly contributed to the volume of newly completed retail space. There were no new retail project completions in the first quarter of the year, making the April–May period particularly active.

Following these developments, Romania’s modern retail stock has reached 4.7 million sq m, equating to a density of 250 sq m per 1,000 inhabitants. Despite recent growth, this remains one of the lowest ratios in both the European Union and the broader Central and Eastern Europe (CEE) region.

Looking ahead, developers have announced plans for more than 600,000 sq m of additional gross leasable area (GLA) to be delivered by the end of the decade. These projects aim to address the continued demand for modern retail formats and evolving consumer expectations.

Dana Radoveneanu, Head of Retail Agency at Cushman & Wakefield Echinox, highlighted that Romania’s retail market still holds substantial potential for growth. She noted that retail density remains below the European average in many Romanian cities, offering opportunities for new development. Radoveneanu added that future projects are expected to include mixed-use concepts and entertainment components, reflecting a broader shift in consumer preferences.

“The integration of digital technologies and the blending of online and offline retail channels are becoming crucial in the current market environment,” said Radoveneanu. “These elements are increasingly viewed as key differentiators in a competitive commercial landscape. At the same time, the steady increase in retail sales—especially in the non-food segment—encourages investor confidence, despite a volatile economic backdrop.”

Retail sales in Romania rose by 3.5% in the first quarter of 2025, driven primarily by a 7.8% increase in non-food product sales. By contrast, sales of food, beverages, and tobacco fell by 2% during the same period. According to Moody’s, retail sales in Romania are projected to grow at an average annual rate of 3% through 2030—significantly higher than the 1% forecast for the Eurozone.

Investor interest in the Romanian retail segment remains strong. Retail assets accounted for over €110 million in transactions during the first quarter of 2025, comprising more than 64% of total real estate investment volume for the period. All of the recorded transactions involved properties located outside the capital, Bucharest.

Rental levels for retail space remained stable in the first quarter. Prime rents in dominant shopping centres in Bucharest held steady at around €90 per sq m per month for ground-floor units between 100 and 200 sq m. High street retail rents were similarly unchanged, averaging €60 per sq m per month. In regional cities such as Cluj-Napoca, Timișoara, Iași, and Constanța, rents for comparable spaces ranged between €50 and €65 per sq m per month.

As Romania continues to attract retail development and investment, market fundamentals appear to support sustained growth. With modern retail density still below European benchmarks and positive retail sales trends in place, developers and investors are expected to remain active in both primary and secondary locations across the country.

European student housing emerges as strategic investment focus, PATRIZIA report shows

The student housing sector in Europe is undergoing a fundamental transformation, with Purpose-Built Student Accommodation (PBSA) becoming a focal point for institutional investors seeking resilient, inflation-protected, and high-yielding assets. According to PATRIZIA SE’s latest Student City Index, released in May 2025, the sector presents significant long-term opportunities driven by demographic trends, under-supply, and shifting preferences in higher education and urban living.

The report evaluates more than 180 cities across 21 European countries, offering a city-level assessment that aims to replace traditional country-wide analyses. This approach provides a more precise understanding of PBSA investment potential, reflecting local market conditions, demographic patterns, university quality, and supply-demand dynamics.

PBSA: From Student Unions to Institutional Portfolios

The landscape of student housing has changed significantly over recent decades. Traditional student accommodation—typically managed by universities and known for its low-cost and basic design—has evolved into a professionalised, experience-driven product. Today’s PBSA developments offer higher quality, amenity-rich environments designed to appeal to both domestic and international students.

With short tenancy durations that allow for regular rent adjustments, PBSA provides strong inflation protection and superior income growth potential compared to traditional multifamily housing. In addition, higher education in developed economies tends to be counter-cyclical, with weaker labour markets pushing more individuals into education, which in turn supports stable housing demand.

Demographics and Demand Fuel Growth

One of the key drivers of PBSA investment is a significant supply-demand imbalance. Many European cities have insufficient dedicated student housing, particularly for the growing population of international students who often struggle to access conventional rental markets. The rise in global student mobility, combined with continued demand for higher education, underscores the need for institutional-quality accommodation.

Yet the availability of PBSA varies greatly. The report’s provision rate data show wide discrepancies between countries, with the UK and Ireland leading in supply, while Germany, Poland, Czechia, and Italy lag significantly behind. Participation rates in higher education have generally risen across Europe, reinforcing this underlying demand trend.

A Bespoke, City-Level Investment Approach

While national trends are important, the report emphasises the critical need for investors to adopt a city-specific strategy. PBSA assets are highly dependent on local context—student population size, university quality, lifestyle offerings, housing availability, and employment opportunities all influence demand.

Cities with large, diverse student populations, high levels of international enrolment, strong academic reputations, and vibrant urban amenities are prime candidates for PBSA development. These cities not only offer better tenant retention and rental growth but also support a more stable investment environment.

International students, in particular, are a key demand segment. With limited access to traditional housing and a willingness to pay a premium for convenience, safety, and quality, this group supports higher yields in PBSA developments.

PATRIZIA Student City Index: Methodology and Insights

The PATRIZIA Student City Index applies a framework based on three main indicators: demographic setup, city gravitas, and market structure.
• Demographic setup measures overall student demand and the quality of that demand.
• Gravitas assesses a city’s ability to consistently attract both domestic and international students, incorporating metrics such as university prestige, quality of life, and personal development opportunities.
• Market structure evaluates the maturity and saturation of the student housing market, considering the current PBSA stock, future development pipeline, and the presence of experienced operators.

Using these metrics, PATRIZIA categorises cities into five investment clusters:
1. Prime Established Markets – Mature, stable markets like London, Berlin, Oxford, and Barcelona offer predictable income streams but limited upside due to strong competition and high prices.
2. Dynamic Markets – Cities such as Kraków, Aachen, Granada, and Sheffield combine established demand with moderate risk and the potential for above-average returns.
3. Liquid Markets – Including Durham, Bremen, and Colchester, these offer investment flexibility but carry greater risk due to weaker fundamentals.
4. Prime Potential Markets – Locations like Lyon, Eindhoven, and Malmö are currently less liquid but show strong long-term demand fundamentals.
5. Emerging Markets – Cities such as Antwerp, Bergen, and Bonn hold promise but require careful execution due to higher risks and less institutional maturity.

Cities not included in these clusters may still offer occasional opportunities but are considered less suitable for inclusion in diversified PBSA investment portfolios due to limited demand or poor liquidity.

Illustrating the Spectrum: Case Examples

Barcelona exemplifies a prime established market: it boasts a student population exceeding 150,000, a well-developed PBSA sector, and strong institutional investment activity. This makes it suitable for core, stable strategies, though high entry costs may limit upside for long-term investors.

At the other end, cities like Erfurt have limited institutional activity and a predominantly local student base, resulting in weak fundamentals. Investment in such markets is likely to be opportunistic and rare.

Mid-range examples such as Lyon present emerging opportunities. Although institutional liquidity is still developing, the city’s large and diverse student population ensures stable demand, making it attractive for long-term strategies.

Meanwhile, Durham offers liquidity but lacks growth drivers. Investment strategies here may favour short-term positioning or value-add approaches rather than long-term holds.

Strategic Implications for Investors

The Student City Index is intended as a tool for constructing PBSA portfolios with a better risk-return profile. Understanding the nuances of local markets allows investors to tailor their exposure, combine stable income with growth potential, and avoid areas of oversupply or limited demand.

PBSA stands out as a robust, resilient real estate segment. It benefits from structural trends, cyclical defensiveness, and growing investor acceptance. However, as the report makes clear, successful PBSA investing hinges on understanding the detailed dynamics of individual cities.

A one-size-fits-all approach is no longer viable. Bespoke strategies, grounded in reliable data and a deep understanding of local context, are essential to unlocking the sector’s full potential.

Conclusion

PATRIZIA’s Student City Index highlights how the PBSA sector is evolving into a mature institutional asset class with strong long-term fundamentals. The combination of under-supply, growing student mobility, and demographic trends makes it a compelling area for capital deployment. However, real opportunity lies in careful, city-specific selection—recognising where long-term demand exists, where quality supply is lacking, and where risk can be balanced with returns.

With this detailed index and segmentation, PATRIZIA provides investors with the framework to capitalise on the sector’s strengths while navigating its complexities. The future of student housing investment in Europe lies not only in the strength of higher education but in the sophistication of how—and where—investors choose to engage.

Source: PATRIZIA

Czech cottage market sees rising prices but slower demand ahead of summer season

The Czech cottage and chalet market is experiencing a shift as average asking prices continue to rise, despite a noticeable drop in buyer activity compared to last year. According to an analysis by the digital real estate platform Bezrealitky, the average asking price for a cottage has now surpassed CZK 3.2 million. However, owners are facing growing pressure to sell before the peak season, as interest from buyers has declined.

Compared to spring 2024, when each listing attracted five to ten inquiries, current listings are receiving about half as much attention. Demand is concentrated primarily on well-maintained properties in desirable locations, while older cottages requiring renovation, especially those outside key tourist areas, are seeing limited interest.

In premium regions, prices for quality recreational properties have reached an average of CZK 6.4 million. Smaller cottages remain more affordable, with average prices around CZK 850,000, or up to CZK 1.6 million in high-demand locations.

Although asking prices have continued to increase, the market dynamic now favors buyers. According to Martin Ponzer, head of Bezrealitky, many sellers are under pressure to complete sales quickly, often to finance purchases of primary residences. This urgency is resulting in more flexibility during negotiations, giving buyers more leverage than in previous years.

Owners are also taking additional steps to market their properties, including advertising across multiple platforms to broaden reach. Bezrealitky reports that over half of their sellers now use a combined listing approach to reach up to 1.7 million potential buyers.

Competition is also emerging from older family homes, which in some cases offer better value than cottages, though often in less popular locations. Nevertheless, proximity to major cities and the potential for year-round use remain decisive factors in maintaining high interest in certain regions.

Top-tier locations such as the Krkonoše, Jizerské, Orlické Mountains, and Kralický Sněžník continue to command the strongest demand and highest prices, thanks to their tourism appeal and accessibility. Other popular areas include Kokořínsko, Pálava, and Lipno, where strong commercial potential and proximity to Prague and Brno drive higher valuations.

Regions such as Šumava, Bohemian Switzerland, the Beskydy, Slapy, and Bohemian Paradise remain attractive, though with more moderate pricing. In contrast, areas like the Ore Mountains, Lužické Mountains, and Křivoklátsko have seen reduced demand, offering greater room for negotiation.

Among Czech regions, Liberec currently holds the highest average cottage price at CZK 4.95 million, followed by Hradec Králové (CZK 4.67 million) and Central Bohemia (CZK 3.83 million).

As the summer season approaches, owners keen to sell are increasingly relying on direct negotiations and personal engagement with buyers. Ponzer notes that in a segment where emotions often play a role, details such as the seller’s personal connection to the property or positive experiences in the location can help facilitate deals. With fewer active buyers but more properties on offer, the success of a sale may depend as much on presentation and timing as on price.

Czech cottage market sees rising prices but slower demand ahead of summer season

Among Czech regions, Liberec currently holds the highest average cottage price at CZK 4.95 million, followed by Hradec Králové (CZK 4.67 million) and Central Bohemia (CZK 3.83 million).

Energy efficiency goals hindered by shortage of HVAC specialists

The development and implementation of advanced HVAC (heating, ventilation, and air conditioning) systems—capable of using AI to predict and respond to weather, building occupancy, and user preferences—continues to gain momentum across the real estate sector. However, the effectiveness of these innovations increasingly depends on a factor that technology cannot replace: skilled human expertise.

According to Marcin Kosieniak, MEP specialist and co-owner of the PM Projekt design office, the lack of qualified engineers and technicians is a major barrier to the adoption of smart HVAC solutions. While technological tools such as digital twins, IoT-based monitoring, and intelligent sensors are becoming standard in high-efficiency systems, their successful deployment still requires in-depth knowledge and experience. In practice, installation errors and mismatches—especially with heat pumps—remain common, often due to misapplied systems or inadequate training.

Kosieniak notes that many HVAC projects still fall short due to the assumption that a one-size-fits-all solution exists. He emphasises that each installation must be tailored to the specific needs and technical conditions of the property. Poor implementation not only results in inefficient systems but also leads to rising maintenance costs and user dissatisfaction.

The HVAC industry is also undergoing significant transformation as it responds to regulatory and environmental pressures. The phase-out of high-GWP refrigerants is pushing the sector toward alternatives such as CO₂, ammonia, and propane, all of which require new infrastructure and staff training. At the same time, HVAC systems are becoming active components in energy networks through mechanisms such as Demand Side Response (DSR), where they can help balance grid load by adjusting energy usage in real time.

Another critical area gaining attention is indoor air quality, especially in the aftermath of the COVID-19 pandemic. New ventilation standards require improved filtration and air exchange without compromising energy efficiency. This adds another layer of complexity to HVAC design and management, requiring highly specialised skills.

Despite the technical advancements available, the shortage of qualified workers continues to challenge the industry. As HVAC systems grow more complex, the skills gap is widening. Addressing this issue will require not only new educational pathways and training programmes but also long-term investment in workforce development.

Innovations such as decentralised HVAC units, radiant heating and cooling systems, thermal energy storage, and waste heat recovery from industrial sources or data centres are reshaping how buildings manage energy. These technologies offer notable improvements in comfort and energy savings but also demand precise execution.

Kosieniak concludes that the sector’s future success depends on its ability to integrate smart, low-carbon systems while overcoming the technological, financial, and human resource constraints that remain. Without a concerted focus on specialist training and infrastructure readiness, the full potential of energy-efficient HVAC systems may remain out of reach.

INREV appoints Lucy Fletcher as new chair, expands Management Board

The European Association for Investors in Non-Listed Real Estate (INREV) has announced the appointment of Lucy Fletcher as its new Chair. Fletcher, a board member since 2021, brings more than 26 years of global real estate experience to the role. She has previously served on INREV’s Investor Advisory Council and held senior positions at organisations including JLL in Chicago and Bank of America Merrill Lynch in Asia Pacific. She is currently a Fund Manager with CBRE’s Indirect Private Real Estate team, where she oversees fund strategy and performance.

In addition to Fletcher’s appointment, the INREV Management Board has been expanded with three new members: Robert-Jan Foortse, Head of European Property Investments at APG Asset Management; Dennis Lopez, CEO of QuadReal; and Mahdi Mokrane, Co-Head of Fund Management at PATRIZIA. Rainer Komenda of Bayerische Versorgungskammer has also been reappointed for a second consecutive three-year term.

The organisation also acknowledged the contributions of outgoing Chair Martin Lemke of AM Alpha, along with Ray Adderley of Nuveen Real Estate and Jenny Buck, who are stepping down from the board.

Speaking on her appointment, Fletcher expressed enthusiasm about her new responsibilities, stating that she looks forward to working with the board, the INREV team, and the wider community to continue promoting transparency in the non-listed real estate sector—an objective she described as increasingly vital in the current market environment.

INREV CEO Casper Hesp welcomed Fletcher’s appointment, noting her strong commitment to the organisation and highlighting the relevance of her international experience in navigating a real estate market that is becoming more global, diverse, and cross-sectoral. He added that the expertise brought by the new board members would support INREV’s efforts to offer its members greater access to international standards and insights beyond traditional fund strategies.

What types of homes are selling fastest in Poland’s major cities?

The speed at which new apartments are sold varies significantly across Poland’s largest cities and is not solely determined by price. While lower-priced units often sell quickly, market analysis from BIG DATA RynekPierwotny.pl suggests that other factors, including location, target demographic, and urban infrastructure, also play a critical role.

In cities like Warsaw and Gdańsk, where average prices are among the highest nationally, apartments are still selling relatively fast — typically within 14 months. This contrasts with Kraków, Poznań, and Wrocław, where average selling times stretch to 20–21 months, and Łódź, where buyers may wait up to 26 months to close a sale.

In Wrocław, mid-priced apartments (around PLN 9,000–10,000 per sqm) are selling the fastest, often within nine months. This trend is attributed to demand from young professionals and investors targeting rental properties. In Kraków, the fastest-selling units are those at the lower end of the price range (PLN 10,000–12,000 per sqm), reflecting continued interest in affordable options. In contrast, higher-end and premium apartments take longer to sell, requiring more time to match with suitable buyers.

According to Grzegorz Woźniak, President of Q3D Locum, tailoring residential offerings to local market characteristics is crucial. He notes that successful developments often combine competitive pricing with good connectivity and proximity to essential services. In an increasingly cautious market, details such as the design and quality of shared spaces have also become more relevant in influencing buyer decisions, particularly in larger cities where affordability is a growing concern.

Location continues to be a decisive factor in housing demand. In cities such as Kraków, the “15-minute city” concept — which prioritises access to workplaces, schools, shops, and services within a short walking or cycling distance — is gaining traction. Projects built around this model are proving attractive to buyers seeking a more balanced urban lifestyle.

Krzysztof Tętnowski, CEO of Tętnowski Development, emphasises that well-connected residential areas, even outside city centres, are likely to see increasing demand. Developments such as Nowa Drożdżownia in Kraków reflect this trend by integrating access to public transport and local amenities. He argues that such neighbourhoods not only improve quality of life but also support sustainable urban growth and local entrepreneurship.

The current data suggests that while price remains an important factor in housing sales, buyers are increasingly focused on broader aspects of livability. Developers are expected to respond by designing residential projects that combine affordability, accessibility, and functionality in line with evolving urban planning trends.

Czech Senate to finalise decision on housing support legislation

The Czech Senate is expected to complete the approval process for the Housing Support Act today. The legislation, put forward by the government, aims to assist individuals facing housing insecurity and to strengthen preventative measures against homelessness.

Key elements of the proposed law include the creation of a network of contact points offering advisory services to prevent housing loss, the introduction of a voluntary guarantee scheme for private landlords—referred to as “liability housing”—and financial incentives for municipalities that make their housing stock available to individuals in need.

Supporters of the law, including the For Housing initiative, argue that it provides a necessary framework for addressing systemic housing issues and combating exploitative practices in the rental market.

The Senate will also decide whether to support a constitutional amendment proposed by senators that would extend the authority of the Supreme Audit Office to include oversight of Czech Television and Czech Radio. If approved, the proposal would be submitted to the government and the Chamber of Deputies for further consideration.

In addition to the housing and constitutional matters, senators will review the outcomes of a recent public hearing on the future of Czech Post, including the operation and potential restructuring of its branch network. The session is set to conclude with the presentation of the Office for Personal Data Protection’s annual report on its activities in the previous year.

Source: CTK

Polish local governments record highest-ever Q1 budget surplus in 2025

Local government units (JST) in Poland reported a record-high budget surplus of PLN 41.3 billion for the first quarter of 2025, according to data from financial reports. This result significantly exceeds the PLN 23.6 billion surplus recorded in the same period last year and contrasts with the full-year deficit of PLN 38.6 billion planned by local authorities.

Revenues for the first three months of the year totalled PLN 140 billion, accounting for 30.5% of the annual revenue plan. Compared to Q1 2024, this marks an increase of 23.6%. Expenditures in the same period reached PLN 98.7 billion, or 19.8% of the annual spending plan, representing a 10.1% rise year-on-year.

The current income exceeded current expenditure by PLN 44.6 billion, substantially outperforming the planned current surplus of PLN 17.6 billion for the full year. This level of surplus, driven by strong revenue collection, is the most favourable result recorded by local governments at this stage of the year in many years. While 404 local government units had forecast current deficits totalling PLN 1.7 billion for 2025, all recorded surpluses at the end of the first quarter.

The debt level of local government units stood at PLN 108.9 billion at the end of March, showing no significant change. Debt as a share of planned total income declined slightly to 23.7%, compared to 23.9% in the same period last year.

The strong budgetary performance is seen as a sign of improved financial health among local governments, largely attributed to the implementation of reforms under the new Act on local government income.

Construction and assembly production prices in Poland rise by 3.4% year-on-year in April 2025

According to preliminary data released by Statistics Poland, prices in the construction and assembly production sector increased by 0.2% in April 2025 compared to March. On a year-on-year basis, prices rose by 3.4% compared to April 2024.

Price growth was observed across all major segments of the construction sector. Civil engineering recorded a monthly increase of 0.3%, while both building construction and specialised construction activities saw price rises of 0.2% and 0.1%, respectively. Compared with the same period last year, civil engineering and building construction each posted a 3.5% increase, while specialised construction activities grew by 3.2%.

The data also shows a continued upward trend in construction costs since the beginning of 2024, although at a more moderate pace in recent months. Compared to December 2023, the most significant increase was noted in civil engineering, with prices rising by 5.3%.

The overall price index for the construction and assembly production sector in the first four months of 2025 stands at 103.4 compared to the corresponding period of 2024, reflecting consistent cost pressures in the industry.

This continued growth in prices may have implications for investment planning, procurement, and project delivery timelines in the construction sector. The figures suggest that despite economic headwinds, pricing in the sector remains resilient, driven by demand and broader inflationary trends affecting materials and labour.

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All posts by fletcher@cijeurope.com.

Retail deliveries surge in Romania, reaching 80% of 2024 forecast in just two months

European student housing emerges as strategic investment focus, PATRIZIA report shows

Czech cottage market sees rising prices but slower demand ahead of summer season

Czech cottage market sees rising prices but slower demand ahead of summer season

Energy efficiency goals hindered by shortage of HVAC specialists

INREV appoints Lucy Fletcher as new chair, expands Management Board

What types of homes are selling fastest in Poland’s major cities?

Czech Senate to finalise decision on housing support legislation

Polish local governments record highest-ever Q1 budget surplus in 2025

Construction and assembly production prices in Poland rise by 3.4% year-on-year in April 2025