Slovak Retail Sales Slip in August as Smaller Shops Feel the Strain

Retail activity in Slovakia weakened again in August, showing that household spending remains under pressure despite signs of stability in some parts of the economy.

According to the national statistics office, overall retail sales were slightly below last year’s level, continuing a pattern of sluggish performance that has persisted for much of 2025. Rising prices have outpaced revenue growth for six of the past eight months, leaving real sales volumes lower even where nominal turnover appeared stable.

The slowdown was most visible among smaller and specialized retailers. Businesses selling groceries, alcohol, and tobacco recorded a sharp drop in receipts, and online stores and mail-order businesses also suffered a double-digit setback. Demand for discretionary goods such as books, toys, and sporting items followed the same downward trend.

By contrast, larger general retailers were more resilient. Major supermarket and hypermarket chains managed modest year-on-year growth, benefiting from steady consumer footfall and continued price-based competition. Clothing shops, pharmacies, and beauty retailers also registered small improvements, though these were not enough to reverse the wider sectoral decline.

When adjusted for seasonal effects, August’s results were broadly unchanged from July, suggesting that the market has at least stabilized after earlier fluctuations.

Cumulatively, results for the first eight months of 2025 show a slight contraction in retail trade compared with the same period last year. Smaller sectors such as food and leisure goods remain the most affected, while stronger categories like large-scale food retail continue to offset part of the losses.

Outside the retail segment, other parts of domestic commerce fared better. Wholesale businesses reported a noticeable year-on-year increase, and hotels recorded marginal gains as tourism continued to recover. Car dealers, repair shops, and restaurants, however, posted weaker figures, reflecting cautious household spending on non-essential items.

Economists say that the mixed results underline the uneven nature of Slovakia’s consumer economy. While inflation has eased from its peak, real incomes are still being eroded by higher living costs and a slower pace of wage growth. Households remain selective, prioritizing essentials and discounted items over discretionary purchases.

If current trends continue, analysts expect only modest improvement through the remainder of the year. The key test for retailers will come in the final quarter, when holiday spending typically provides a boost—but this year’s outlook remains subdued.

World Bank Backs Romania’s Drive to Modernize Land Data and Strengthen Disaster Resilience

Romania’s National Cadastre and Real Estate Advertising Agency (ANCPI), operating under the Ministry of Development, Public Works and Administration (MDLPA), has launched a new partnership with the World Bank aimed at improving disaster prevention and property assessment systems nationwide.

The initiative, supported through the World Bank’s Global Facility for Disaster Risk Reduction and Recovery (GFDRR), focuses on strengthening Romania’s capacity to prevent, manage, and recover from natural disasters and climate-related impacts. Central to the project is the modernization of cadastral and geospatial data, digital transformation, and greater interoperability among public institutions.

The programme — titled “Support for the Modernization of the Land Sector in Romania to Enhance Resilience to Disasters and Climate Change” — includes developing a modernization roadmap for ANCPI, implementing international best practices, and organizing stakeholder workshops. It will also pilot an urban resilience project in one municipality, combining cadastral data completion, LiDAR scanning, and property risk mapping.

The first World Bank mission under this project is taking place in Romania this week, focusing on defining specific steps for updating cadastral data, improving property valuation systems, and enhancing digital services.

“A transparent and reliable mass property valuation system is essential for a functional real estate market,” said Laurențiu Alexandru Blaga, President and General Director of ANCPI. “It also supports urban planning, broadens the tax base, and creates predictability for investors.”

The initial phase will result in a series of technical reports outlining proposals for completing cadastral registers, digitizing land data, and improving valuation methods across the country. The project involves close cooperation with multiple stakeholders, including the Ministry of Finance, the National Union of Notaries Public, academic institutions, and civil society organizations.

According to ANCPI, the collaboration marks an important step toward aligning Romania’s property registration and disaster-prevention systems with international standards, ensuring that both public authorities and communities are better equipped to manage climate and disaster risks.

Galeria Echo in Kielce Expands Tenant Mix and Adds New Features

Galeria Echo, owned by EPP, is strengthening its retail offer with a mix of new and expanded tenants as it enters the new season. The shopping and entertainment centre has welcomed several new brands, including the only Samsung Brand Store in the Świętokrzyskie Province, Rituals, Castorama Design Studio, and the multi-brand retailer eobuwie, which will open later this year.

The centre has also renewed partnerships with several existing tenants. NEW YORKER has expanded its store by more than 40 percent to nearly 1,500 square metres, while other established brands such as Inglot and Apart have unveiled redesigned units. Apart, which operates the province’s only Mennica Apart point of sale, has more than tripled its retail space.

The updated tenant mix combines technology, cosmetics, fashion, and home improvement. The Castorama Design Studio offers personalised interior design support, while Rituals and Samsung introduce experiential shopping concepts focused on direct interaction with products. Other newcomers include Fale Loki Koki, Liqud Jungle, Milano Uomo, and Crazy Bubble, expanding the lifestyle and food offerings within the centre.

In addition to retail changes, Galeria Echo has introduced a new attraction: a 12-metre-high spiral slide linking levels +1 and -1. The installation functions both as a playful architectural feature and as an alternative route between floors, adding a distinct visual element to the centre’s interior.

According to EPP, the updates form part of an ongoing effort to maintain the centre’s position as the region’s leading shopping and entertainment destination, combining established brands with new experiences.

Croatia’s Property Market Steady in Late 2025 Amid New Supply and Regulation

Croatia’s property market is maintaining a steady pace in the second half of the year, as new supply enters the pipeline, credit conditions ease, and tighter rules begin to reshape investment decisions in coastal and urban areas. While the early summer months saw a strong flow of tourism and a modest increase in retail activity, housing and commercial trends suggest a gradual stabilisation rather than acceleration.

Economic growth slowed to just under 3 percent year-on-year in the first quarter, indicating that the surge seen after the pandemic has settled into a more sustainable rhythm. Yet the country continues to outperform some of its regional peers thanks to its service sector, tourism revenues, and a cautious approach to construction financing. Analysts expect Croatia’s GDP to expand by roughly 2.5 to 3 percent for the full year, supporting a broadly stable real estate environment.

Office and Logistics Markets Stay Balanced
In Zagreb, office occupancy remains tight, with rents at the upper end of Central European levels but relatively little new speculative construction. Developers are advancing several mid-sized business parks and mixed-use buildings, particularly in Buzin and Radnička, while larger projects like Matrix D and Landmark Green Towers are expected to complete through 2026.
In the logistics sector, supply is finally aligning with demand. Several regional hubs west and south of the capital have added capacity in 2025, including in Samobor and Velika Gorica. Vacancy rates are among the lowest in the region, hovering near two to three percent, and rental growth has flattened after several years of sharp increases.

Retail Supported by Consumer Spending and New Parks
Croatia’s retail market continues to draw steady investor interest, reflecting healthy household spending. Retail turnover in mid-2025 was notably higher than a year earlier, with strong non-food sales and a record number of new retail park openings in secondary cities. More than a dozen new schemes are in development across the country, adding tens of thousands of square metres to regional supply.
Prime high-street and shopping centre rents have stabilised after gradual growth through 2024, while retail parks remain a focus for domestic investors seeking long-term, inflation-resistant income.

Tourism Extends Beyond Summer
Tourism remains a pillar of the national economy. By the end of August, Croatia had already surpassed last year’s record number of visitors, with hotel occupancy stretching further into the spring and early autumn. Industry observers note that tourist spending is increasing at a faster pace than arrivals, helping to support retail, hospitality, and short-term rental markets.
New international hotel brands have expanded their presence in 2025, including openings in Zadar and on Ugljan Island, while refurbishment projects in Split and Dubrovnik continue ahead of 2026’s peak season.

Residential Prices Show Signs of Cooling
After several years of rapid appreciation, housing prices have begun to level off. Average national prices range from around €2,000 per square metre inland to over €3,500 on the coast, depending on location and amenities.
Mortgage rates eased slightly through the spring, encouraging a rebound in housing loans. Nonetheless, regulatory changes—particularly a new property tax system and stricter rules for short-term rentals in apartment buildings—are expected to slow speculative activity in popular tourist zones. Developers are also facing tighter planning frameworks in Zagreb, where a revised city plan aims to balance residential growth with infrastructure capacity.

Domestic Investors Lead, but International Interest Persists
Investment transactions in 2025 have remained concentrated among Croatian buyers, though international funds continue to watch the logistics and retail sectors closely. Institutional investors are assessing assets in Zagreb and along the Adriatic coast, drawn by solid occupancy levels and stable returns.
Advisers say yields are largely unchanged from last year, with prime offices and logistics assets attracting strong competition amid limited stock.

Outlook for Late 2025 and Beyond
As the year closes, Croatia’s property market appears well anchored. Economic growth is cooling but steady, tourism continues to expand its seasonality, and real estate development is moving in line with demand rather than speculative excess. The combination of moderate lending rates, steady domestic investment, and new regulatory clarity is likely to keep the market balanced heading into 2026.

Source: Colliers Croatia and comp.

Contractor to Developer-How STC Partners is Shaping Romania’s Green Residential Market

Adi Steiner’s career began with Strabag, one of Europe’s largest construction companies, where he spent over a decade delivering major projects across Romania and Bulgaria. By 2009, he had risen to area manager for civil construction in Bucharest, overseeing landmark schemes such as Skytower, Promenada Mall, the Mark office building, and large-scale wind farms in Dobrogea. The role gave him broad technical expertise across multiple sectors, though always from the construction side, with a focus on tenders, delivery, and handovers. Financing and long-term development strategies were beyond his remit.

By the mid-2010s, however, Steiner was ready for a new challenge. Advancement within Strabag in Romania was limited, and moving abroad was not the right choice for his family. Together with his wife Roxana, he decided to pivot toward real estate development. Spotting a gap in Bucharest’s residential market for higher-quality housing, they launched Quartier Gramont in 2019. It was a bold first step: the project was located in a protected area of the city centre, with heritage façades, but it set the tone for what would become STC Partners. Since then, the company has steadily grown, establishing a reputation for sustainable residential schemes designed with long-term value in mind.

Against this backdrop, CIJ Europe sat down with Adi Steiner to discuss the economics of building nearly-zero and zero-emission projects, how buyers and banks are responding, and what lies ahead for STC Partners.

One of the main challenges for STC Partners has been pushing beyond Romania’s minimum nZEB standard to deliver projects that approach or achieve zero emissions. At Quartier Azuga, the company introduced air-to-water heat pumps combined with photovoltaic panels, while retaining gas as a backup for hot water production during the winter months. The underfloor heating system, operating at 40–42 degrees, proved far more efficient with heat pumps than traditional systems. For the first 100 apartments, the additional cost of these upgrades amounted to about €85,000.

At Quartier Ferdinand, however, the developer made the decision to go fully gas-free. The system uses roof-mounted air-to-water heat pumps to heat water for underfloor heating, while a booster pump raises part of that water to 65 degrees for domestic use. Photovoltaic panels feed electricity directly to the heat pumps and the building’s common spaces, supported by 8,000 litres of buffer tanks that store hot water during the day for evening and night consumption. This setup acts like a thermal battery, matching peak production with peak demand. Interestingly, Steiner notes that the costs balanced out: savings from eliminating the gas connection and plant offset the investment in additional technical equipment.

Noise, often cited as a concern with roof-mounted heat pumps, has not proven problematic. Steiner points out that modern systems operate at around 35 decibels—equivalent to the minimum sound insulation required for residential windows. Located on the roof, the sound disperses upwards rather than horizontally, and during frequent site visits he has not encountered complaints. Compared with the noisier technology available two decades ago, today’s systems are much more advanced.

Buyers, meanwhile, have responded positively. STC Partners does not charge a premium for the green upgrades, instead pricing projects at market level. Offering a zero-emission building in central Bucharest, where comparable product is scarce, provides a competitive edge. “Buyers like the idea of sustainability, but few are willing to pay extra for it,” Steiner explains. “The differentiation helps us sell faster, and that’s the real benefit.”

Banks, too, are proving supportive. According to Steiner, institutions such as Banca Transilvania and BRD prefer to finance certified green projects. Independent labels like Green Homes, BREEAM, or EDGE add credibility that simple nZEB paperwork cannot, making financing more accessible and reinforcing trust with buyers.

Ensuring buildings perform to their energy targets once completed is another key focus. STC Partners equips each project with a management system that optimises efficiency, programming heat pumps to operate during the day when solar panels are producing electricity. This renewable energy is stored in buffer tanks and used in the evenings. Residents are also trained during handover on waste sorting, heating and cooling management, and other sustainability practices. Each apartment includes a smart home system linked to the intercom, allowing residents to control heating and cooling remotely. Exterior roller shutters further help reduce solar gain, often removing the need for air conditioning even in extreme heat.

The results are tangible. At one project, the photovoltaic system produced 6.3 MWh in March, with 4.56 MWh used directly on-site, 1.8 MWh fed into the grid, and 3.8 MWh purchased—mainly at night. By April, production rose to 8 MWh, and in June it delivered 7.45 MWh, with nearly two-thirds consumed within the building. Romania’s prosumer law allows overproduction in summer to balance higher consumption in winter, ensuring efficiency across the year.

Looking ahead, STC Partners is preparing its next development, Quartier Pipera, with around 500 apartments across two phases near Pipera Plaza on the border of Voluntari and Bucharest. The ambition is once again to deliver a zero-emission project. “Buyers may not always ask for this,” Steiner says, “but banks and institutional investors increasingly require it. As long as costs remain under control, this is the model we will continue to pursue.”

CTP Leases 5,300 sqm to Moemax at CTPark Bucharest South

CTP has signed a lease agreement with Moemax, part of the XXXLutz Group, for a 5,300 sqm logistics unit at CTPark Bucharest South. The park is located between Bucharest’s inner ring road and the A0 motorway, the capital’s upcoming outer ring route.

Moemax selected the site for its proximity to the retailer’s new store, the immediate availability of space, and the building’s technical specifications suited to its logistics operations. The location also allows efficient access to the city and major transport routes.

Cristina Manea, Business Developer at CTP Romania, said that Moemax’s decision highlights the strategic advantages of the park’s position and its ability to accommodate diverse operational needs.

CTPark Bucharest South provides direct access to the A2 motorway, linking Bucharest with the Port of Constanța, and is accessible via two entrances from the DN4 highway. The park also benefits from public transport connections to the city. A newly built 54,000 sqm facility will be available by the end of the year as part of the site’s ongoing expansion.

CTP’s Romanian portfolio exceeds 3 million sqm of A-class industrial space across locations such as Arad, Brașov, Bucharest, Craiova, Oradea, Sibiu, and Timișoara.

WDP to Develop 32,000 m² Distribution Centre for FAN Courier near Bucharest

WDP has announced the development of a new 32,000 m² distribution centre in WDP Park Bucharest – Ștefănești for FAN Courier Group, one of Romania’s leading courier and logistics operators. The two companies already collaborate on a facility in Timișoara, and this new investment further strengthens their partnership.

The project, valued at around €22 million, will be built on WDP-owned land in northern Bucharest. Construction is scheduled to begin in early 2026, with completion expected later that year. FAN Courier will occupy the property under a 10-year triple-net lease. The facility is designed to support the company’s expanding delivery operations and will reinforce Ștefănești’s role as a key logistics hub serving the capital and surrounding regions.

According to Jeroen Biermans, Country Manager of WDP Romania, this new project deepens the company’s relationship with FAN Courier and expands WDP’s footprint in northern Bucharest. He added that the development aligns with WDP’s cluster strategy and marks the completion of the park’s first phase, which highlights sustained demand for modern logistics space in the area.

WDP Park Bucharest – Ștefănești has become the company’s largest logistics cluster, with more than 400,000 m² of leasable space. It accommodates both small units and large distribution centres and hosts tenants such as Decathlon, Auchan, LPP, and several industrial suppliers. The FAN Courier facility finalises the park’s first development phase and positions Ștefănești among WDP’s largest sites, alongside WDP Park Bollène in France.

WDP is now working to expand its Bucharest cluster through additional land acquisitions. Within the current park, another 30,000 m² of space is planned for existing clients, while a new site north of Ștefănești is under development, beginning with a 54,000 m² project for the retailer Action.

Beyond its logistics function, the park has become a model for sustainability and biodiversity in industrial real estate. It features over 12 MWp of solar panels, 10,000 trees, and 5,000 shrubs across 150,000 m², forming Romania’s largest biodiversity project of its kind. These initiatives reflect WDP’s long-term approach to integrating environmental goals into its logistics infrastructure.

BF Group and FOX Group Form Joint Venture to Finance Logistics Real Estate Developments

BF Group and FOX Group have announced the formation of a joint venture focused on financing logistics real estate projects across Germany. The new company, BF.infrastructure finance, will combine FOX Group’s development pipeline and property identification expertise with BF Group’s experience in lending and financial structuring. Senior management will include representatives from both partners.

The joint venture will create debt structures designed for professional investors, providing access to financing opportunities in logistics property development while supporting developers with tailored funding solutions. The initiative addresses the growing demand for alternative financing in the sector, as traditional banks remain cautious despite high capital needs and strong underlying demand.

According to the partners, the logistics segment offers favourable risk-adjusted returns, driven by sustained demand for modern storage and distribution space and relatively short investment horizons.

Francesco Fedele, CEO of BF.direkt AG, said the collaboration aims to fill a clear financing gap in the market. “We see a significant need for alternative lending solutions in logistics property development. Through this joint venture, we intend to make efficient and attractive financing options more widely available.”

Jörn Reinecke, Managing Partner of FOX Group, highlighted the investment appeal of the sector: “Financing logistics developments offers a compelling balance. The returns are higher than those from investments in standing properties, while the risk remains lower than with direct equity participation.”

The new venture is part of FOX Group’s broader strategy to expand its logistics real estate operations. It complements the activities of its FOX Industrial Real Estate division, which focuses on the development of big-box logistics centres, light industrial buildings, and business parks.

Images: BF.direkt AG (Francesco Fedele), FOX Group (Jörn Reinecke)

Deka Immobilien Sells Frankfurt Office Building to IMAXXAM

Deka Immobilien has completed the sale of the Lighttower office building in Frankfurt’s Ostend district. The property, formerly part of the Deka-ImmobilienEuropa open-ended real estate fund, was acquired by IMAXXAM for its German Small Asset Invest (GSAI) fund. The parties have not disclosed the purchase price.

The Lighttower offers more than 10,000 m² of leasable space and 87 parking spaces. It is nearly fully occupied by 13 tenants, with Frankfurt Economic Development as the main occupier. The property is situated on Hanauer Landstraße 126–128, close to the European Central Bank and Frankfurt Ostbahnhof railway station. Originally built in 1966, the building was extensively modernised between 2002 and 2005, including the addition of an extra floor.

The sale marks part of Deka-ImmobilienEuropa’s ongoing strategy to streamline and optimise its portfolio. According to Deka Immobilien, the property delivered a solid overall return for investors over the course of its holding period.

Europe’s Hybrid Work Reset: From Flexibility to Structure

Across Europe, the landscape of work in 2025 reveals a shared reality: hybrid work is no longer an experiment but a structured norm. The balance between home and office has stabilized, though the rhythm varies widely from country to country. The pandemic’s remote revolution has given way to a subtler, more regulated hybrid model—anchored in two or three in-office days per week for most desk-based jobs.

In the United Kingdom, the hybrid model has become standardized rather than optional. Job listings across sectors now specify office presence as a condition, with most employers expecting two to three office days per week. The ultra-flexible one-day arrangements that flourished during the pandemic have almost vanished. Analysts say the UK’s pattern reflects both cultural adaptation and the realities of collaboration—businesses want teams together, but not full-time.

In Germany, hybrid work has proven remarkably resilient. Roughly a quarter of the workforce now works from home at least part of the week, a rate that has held steady since 2024. The country’s engineering and manufacturing base still demands physical presence, but the white-collar core of its economy—finance, professional services, and IT—has embraced long-term hybrid patterns. The result is a model that prioritizes predictability over novelty, with two or three remote days seen as the practical ceiling.

France has settled into a similar rhythm. While homeworking rates dipped from the pandemic peak, telework remains embedded in corporate structures. French employees in eligible roles typically spend about two days per week at home, sustained by collective agreements that protect the right to disconnect and limit unpaid overtime. For many companies, this compromise between flexibility and structure has become part of their employment brand.

Further north, Belgium remains one of Europe’s most hybrid-friendly markets. Surveys show that most employees there work remotely one or two days per week, with Brussels—where cross-border commuting is heavy—showing even higher averages. The practice has eased traffic pressure and become part of the capital’s sustainability agenda.

Southern Europe paints a different picture. In Spain, about a quarter of the workforce teleworks in some capacity, with younger workers most likely to split their week between home and office. Italy continues to use its own “smart working” framework, though adoption varies sharply by company. Many Italian firms now treat two home days as a reasonable middle ground, while public administration and smaller enterprises have returned more firmly to traditional office setups.

In the Netherlands, hybrid working is now woven into the national culture. The Dutch legal framework grants employees the right to request remote work, and around a third of workers now exercise that option regularly. The country’s mature infrastructure and long tradition of part-time arrangements make flexibility the default, not the exception.

Sweden and its Nordic neighbours maintain similarly flexible systems. Major cities like Stockholm see regular remote work in well over 10–15 percent of jobs, and although the frequency of full-week telework has dipped, the hybrid model remains a cornerstone of professional life. Nordic firms continue to link workplace flexibility with employee well-being and productivity rather than with short-term efficiency drives.

Central Europe shows the hybrid model’s uneven integration. In Poland, surveys indicate that nearly half of employees prefer hybrid schedules, yet employers—especially outside large cities—often insist on more in-office time. Czechia mirrors this tension: hybrid roles attract far more applicants than fully on-site ones, but many firms still push for a return to three or more office days. Hungary is mid-transition, with hybrid arrangements widespread in corporate sectors but inconsistent across public and manufacturing jobs.

What unites these markets is a quiet recalibration of what “flexible” really means. The early 2020s were defined by freedom—work anywhere, anytime. The mid-decade reality is defined by expectation: how many office days, which days, and for what purpose. Europe’s capital cities have all reached the same conclusion from different directions. Too much home working risks isolation and weak cohesion; too much office time undermines retention and morale. The sweet spot, it seems, lies somewhere around the middle of the week.

Yet this convergence hides wide local contrasts. Northern and Western Europe continue to enjoy higher flexibility and better digital infrastructure; Southern and Central Europe, more hierarchical management cultures, move slower. The direction, however, is shared. Employers are not abandoning hybrid work—they are professionalising it.

If the pandemic forced remote work on Europe, 2025 marks the year when the continent truly learned to govern it.

Source: comp.

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