Polish Non-Bank Loan Market Expands in August with Growth Across All Segments

Poland’s non-bank lending sector recorded strong gains in August, with both short-term and longer-term cash loans, as well as installment loans, rising in number and value compared with the same month last year.

According to data from the Credit Information Bureau (BIK), the largest increases were seen in short-term cash loans, which are typically repaid within two months. These reached a value of just over PLN 1.15 billion in August, nearly 21 percent higher than a year earlier. Around 464,000 such loans were issued during the month, up by more than 7 percent year-on-year. The average loan size also increased, climbing to about PLN 2,700.

Loans with maturities longer than two months also advanced, with more than 74,000 granted in August, worth roughly PLN 441 million. Both the number and value of these loans grew compared with last year, while the average size rose to just over PLN 6,000.

The installment loan segment also showed strong momentum, with almost 873,000 loans granted during the month. Their total value came to PLN 582 million, reflecting a rise of more than 15 percent. However, the average installment loan size dropped by nearly 10 percent, to about PLN 670, suggesting that many borrowers are opting for smaller amounts even as overall demand rises.

Cumulative figures for the first eight months of the year highlight the strength of the sector. More than 3.6 million short-term cash loans were issued between January and August, up nearly 15 percent on the year, with the value growing by close to 29 percent. Longer-term cash loans and installment loans also recorded double-digit growth in both number and value.

Analysts note that while the market is expanding, the fall in average installment loan amounts and reports of high rejection rates across the industry suggest lenders are exercising caution. For now, though, the data confirms that Poland’s non-bank loan sector continues to grow rapidly, driven by both household financing needs and wider consumer spending trends.

WING Expands Sustainable Hospitality Portfolio with ibis & TRIBE Hotels in Budapest

Hungarian developer WING has strengthened its hotel portfolio with two new projects under Accor’s TRIBE brand: the ibis & TRIBE Budapest Stadium Hotel near Népliget and the TRIBE Budapest Airport Hotel. Both properties have been designed with sustainability and accessibility in mind, and are positioned as part of a new wave of lifestyle hotels in Central Europe.

The dual-branded ibis & TRIBE Budapest Stadium, offering 332 rooms across three- and four-star categories, combines the design focus of TRIBE with the wider reach of ibis. Located within the Liberty mixed-use complex, the project has been highlighted by WING as a showcase for environmentally responsible design. The developer has stated that the hotel is targeting high-level green certification under the BREEAM framework, though independent confirmation of certification status has not yet been published.

The TRIBE Budapest Airport Hotel, connected to Liszt Ferenc International Airport, brings 167 additional rooms to the capital’s hospitality market. WING has said the hotel incorporates accessibility standards and inclusive design principles, and industry press reports note that the property aims for BREEAM certification as well.

TRIBE, a relatively new brand within the Accor portfolio, positions itself at the intersection of lifestyle and sustainability, with emphasis on communal spaces, contemporary design and resource-efficient operations. Its arrival in Budapest is part of a broader trend among international operators to expand sustainable hospitality offerings in the region.

WING has been one of Hungary’s most active developers in the hotel sector over the past decade, delivering more than 1,000 rooms across multiple projects. The company says sustainability has become a guiding principle in all new developments, both in terms of energy performance and the reuse of existing structures.

While claims of top-tier BREEAM ratings for the Stadium hotel have circulated, neither BREEAM’s certification database nor independent industry sources have yet confirmed an “Outstanding” ranking. For now, the projects represent significant progress in aligning Budapest’s hospitality sector with European environmental standards, while underscoring WING’s role in introducing new international hotel concepts to Hungary.

Slovakia: Industry and Services Struggle, Households Improve

Slovakia’s overall economic confidence slipped in September, with factories and service firms turning more cautious, even as consumers, builders, and retailers expressed slightly greater optimism.

The composite measure of sentiment dropped compared with August and remained well below its long-term average, underscoring an uneven backdrop for growth. Year on year, the index is nearly five points lower.

The sharpest deterioration came from industry. Manufacturers reported lower expectations for output in the coming months and a build-up of unsold goods. Weakness was most visible in textiles, food production, and pharmaceuticals, while makers of refined fuels and transport equipment also forecast cutbacks. Some relief came from exporters in food and electrical equipment, who noted a small improvement in foreign orders, but this was not enough to offset the broader decline.

Service companies also scaled back their outlook. Real estate activities in particular weighed on the sector, while transport and storage firms said they expect to reduce staff in the coming quarter. Businesses in finance and insurance reported stronger demand, but this was not enough to keep the sector’s overall reading in positive territory.

By contrast, construction firms saw an improved flow of orders, especially in building works, and reported plans to take on staff. Labour shortages and higher costs remain obstacles, but more firms described their order books as sufficient. Retailers also voiced greater optimism, pointing to expectations of higher sales and employment, particularly in household goods and information technology equipment.

Household sentiment strengthened modestly after several months of declines. People were less worried about job prospects and financial pressures, and more confident about their ability to save. All four components of the household survey improved in September, although the overall mood remains far more negative than a year ago.

The downturn in Slovak business sentiment mirrors a broader cooling trend across Europe. The European Commission’s September survey showed the euro area’s overall sentiment index falling slightly, as manufacturing remained subdued and services confidence softened. Consumer mood in the EU improved somewhat, though it also stayed well below historical averages. Compared with neighbours, Slovakia’s index is weaker than that of Czechia, where confidence has been steadier, but broadly in line with Hungary and Poland, where industry has also been under strain. The divergence between still-cautious businesses and slowly recovering households appears to be a common pattern across Central Europe.

Taken together, the results highlight a split in the Slovak economy. Industry and services, which account for a large share of output, are showing signs of strain from weaker demand and rising inventories. On the other hand, households, retailers, and builders are cautiously more optimistic, hinting at pockets of resilience. The question for the months ahead is whether the gains in construction, trade, and household confidence can balance out the drag from factories and services. For now, Slovakia’s sentiment index suggests that growth momentum remains fragile heading into the final quarter of 2025.

Source: SOSR

Poland’s Jobless Rate Edges Higher as Fewer Vacancies Emerge

fletcher@cijeurope.com
29 September 2025
Jobs

Unemployment in Poland has inched upward through the summer, with labour market data pointing to both a slowdown in hiring and changes in how jobseekers are registered.

Official figures show that the number of people listed as unemployed has been rising since the spring. The rate stood at about 5.4 percent in July and climbed to 5.5 percent in August. That translates into more than 800,000 people out of work, up by over 65,000 compared with a year earlier.

Part of the increase reflects a weaker flow of new job offers. Statistics from public employment offices show that the number of vacancies has been shrinking steadily, falling by around 15 percent in August from the previous year and dropping to about half the levels seen earlier. Separate surveys of online job ads also point to a decline, marking the lowest volume since the beginning of 2025.

Another factor is institutional. A law introduced in June broadened access to unemployment registers, allowing farmers to sign up, enabling people to register in their home district, and curbing automatic removals from the rolls. Officials have acknowledged that these changes are raising the headline figures, even if the number of people without work has not risen as sharply in practice.

At the same time, more workers are entering the register after being laid off by employers, with four consecutive months of increases. While the absolute number is still modest, the pace of growth — about five percent month on month in recent weeks — suggests that companies are trimming staff in response to softer demand.

Business surveys hint at a mixed picture. More managers are reporting stability in employment expectations, though job cuts still outweigh plans to expand headcount. Industrial firms remain relatively optimistic about their overall outlook, even as service providers show more caution.

Taken together, the data suggest that Poland’s labour market is under gentle but sustained pressure. Whether this reflects a temporary adjustment or the beginning of a more pronounced cooling will depend on how hiring intentions develop in the months ahead.

Source: BIEC

Poland’s Retail Parks Strengthen Position as Leasing Models Adjust

fletcher@cijeurope.com
29 September 2025
Retail

Retail parks have emerged as the most resilient segment of Poland’s retail property market in 2025, with new projects, steady investment activity and a changing approach to lease agreements reshaping the sector.

Industry data indicate that more than 170,000 square metres of new retail space was delivered in the first half of the year, with forecasts suggesting that total completions could reach close to 400,000 square metres by December. Developers are also pressing ahead with projects that will add another half a million square metres in 2026, signalling the strongest construction pipeline the sector has seen to date.

The surge in supply has not discouraged investors. Mid-year reviews by international brokerages highlight that retail parks continue to draw capital, with yields holding in the range of seven to seven and a half percent, and prime assets in established catchments trading slightly below that. Analysts point to consistently strong tenant demand and stable occupancy as reasons for this steady pricing.

Market commentators describe retail parks as one of the most active property formats in Poland, with many investors viewing them as defensive assets in uncertain economic conditions. Reports also highlight that landlords and tenants are increasingly negotiating around how service charges and maintenance costs are handled.

A study prepared jointly by Avison Young, CMS, BIG Poland and the Polish Council of Shopping Centres notes that while the principle of tenants covering property operating costs remains intact, agreements are more frequently being adapted to include safeguards such as cost ceilings, inflation-linked fees or fixed monthly contributions. Legal experts argue that these changes, once confined to large shopping centres or key tenants, are now becoming more common across the retail park sector.

Brokers confirm that retailers are seeking greater predictability in their occupancy costs and that landlords are responding with more flexible arrangements. This reflects a broader shift in bargaining power and the growing maturity of the market.

The overall picture shows a sector that continues to expand, both in scale and sophistication. Strong construction pipelines, a healthy investment market and evolving lease practices suggest that retail parks are set to remain a cornerstone of Poland’s retail landscape in the coming years.

Allegro to Relocate Prague Office to Karlín

fletcher@cijeurope.com
29 September 2025
Office

Allegro, the European online marketplace, will relocate its Prague office from Holešovice to Danube House in Karlín, part of the Riverside Karlín complex currently under renovation. The move follows a search process carried out with real estate consultancy Colliers.

The company has leased 2,850 square metres of space across two floors at Karolinská 650/1. The building, which holds a LEED Platinum sustainability certification, was chosen for its location, design standards, and environmental performance. Allegro expects the new office to better align with its corporate values and environmental goals.

The fit-out, set to begin in early 2026, will incorporate employee feedback and consultations with team leaders. Plans include a kitchen with a terrace overlooking the Vltava River, a dedicated visitor zone with meeting space, and areas for corporate events. Smaller features such as telephone booths and relaxation zones are also planned.

Danube House is designed with measures to improve efficiency and comfort, including renewable energy use, smart heat pumps, shading systems, and automated ventilation in meeting rooms. Shared facilities will include a garden and landscaped areas intended for informal meetings.

Allegro intends to complete the relocation in the summer of 2026. The company has described the move as part of its long-term commitment to operations in the Czech market.

Poland’s Fitness Chains Face Scrutiny Over Contracts and Consumer Complaints

Poland’s fitness industry is drawing renewed attention from consumers and legal experts as complaints about contract terms, debt collection and service quality continue to circulate. At the same time, official data and past regulatory decisions point to a sector that has already faced scrutiny for how its largest operators conduct business.

Zdrofit, part of the Benefit Systems group, is among the country’s leading fitness brands, with more than 100 clubs nationwide, including a flagship location in Warsaw’s Westfield Mokotów shopping centre. According to the company’s own website, membership plans are promoted as flexible, with access to facilities across Poland. However, users posting on online forums have reported difficulties canceling contracts, citing unclear procedures, automatic renewals and subsequent demands for payments. In some cases, individuals stated they were contacted by debt collection agencies such as Kaczmarski Inkasso after attempting to terminate their memberships.

The Office of Competition and Consumer Protection (UOKiK) confirmed in 2021 that it had fined several operators, including entities connected to Zdrofit, more than PLN 32 million for engaging in anti-competitive agreements to divide local markets. The ruling was partially upheld by Poland’s Competition and Consumer Protection Court. According to UOKiK, these practices reduced consumer choice and distorted competition between fitness chains.

Additional financial stress is evident across the sector. Data published by the National Debt Register (KRD) shows that by 2025, Polish fitness operators carried arrears of more than PLN 36 million, compared with PLN 30 million two years earlier. Analysts told local media that such indebtedness may increase pressure on companies to enforce contract terms more strictly, potentially contributing to disputes with customers.

Criticism has not been limited to contract terms. Comments posted on consumer review sites and social media point to overcrowding, broken equipment and locker security issues, although these are anecdotal accounts rather than verified findings. Employee reviews reported by platforms such as GoWork and Glassdoor also describe staff facing heavy sales pressure and stretched resources, suggesting wider operational strains in some clubs.

Despite these concerns, Zdrofit and other chains continue to expand. Benefit Systems announced the opening of new clubs in Warsaw and other cities in 2025, underlining the brand’s ongoing presence and investment. The company has not publicly responded to the recent wave of online complaints.

While there has been no new investigation into fitness chains’ consumer practices, legal experts note that contract features such as automatic renewals or unclear cancellation procedures could fall under UOKiK’s remit on unfair commercial terms if proven systemic. A spokesperson for UOKiK recently reiterated that consumers should first turn to local ombudsmen for assistance, but added that if widespread abuses are documented, the regulator has the power to launch further inquiries.

For now, Poland’s fitness industry remains a legitimate and expanding business sector, but its history of antitrust violations and a steady flow of consumer complaints point to vulnerabilities. Whether the next intervention comes from ombudsmen, courts, or regulators may depend on how many more clients formally challenge the fine print of their contracts.

Nathan Law Blocked From Entering Singapore as Hong Kong Tightens Grip on Exiled Critics

fletcher@cijeurope.com
29 September 2025
Other

Democracy campaigner Nathan Law was stopped at Singapore’s border over the weekend and put on a return flight to the United States, the latest setback for one of Hong Kong’s most prominent exiled figures.

Law said he was detained for several hours after landing, questioned by immigration officials and then told he would not be allowed to stay. Authorities in Singapore later explained that, although he held a valid visa, his presence was not considered to serve the country’s national interest. He spent around 14 hours in the city-state before being flown back to the US, where he has been based in recent months.

The activist, who came to prominence during the 2014 Umbrella Movement and was once the youngest lawmaker in Hong Kong’s legislature, has lived abroad since the national security law was imposed on the territory five years ago. Since then, he has been a vocal critic of Beijing, lobbying in Western capitals and urging sanctions against Chinese and Hong Kong officials.

His denied entry coincides with intensified measures against overseas dissidents by Hong Kong authorities. In 2023, police in the city announced rewards for information leading to the capture of Law and seven others, accusing them of offences under the sweeping security law. The bounties were set at one million Hong Kong dollars each. This year the government went further, using new security powers to cancel the passports of 12 activists abroad and to ban local institutions from providing them financial or property support.

Human rights groups say such steps are part of a broader effort to extend political control beyond Hong Kong’s borders. They have criticized Singapore’s handling of Law’s case, warning that governments risk reinforcing Hong Kong’s campaign against dissent. Lawmakers in Britain and the United States, where Law has testified on human rights issues, have also voiced concern.

Singapore has pushed back against claims of outside influence, stressing that it makes its own immigration decisions. The city-state has long kept a firm line against foreign political activity on its soil, and analysts note it has previously barred entry to activists from other countries.

For Law, the episode highlights the narrowing options for travel and advocacy in Asia. With his Hong Kong passport now voided under the new rules and a bounty still in place, his movements are increasingly restricted. For Singapore, the case reflects the challenge of maintaining neutrality in a region where ties with Beijing are central to trade and diplomacy.

The outcome is a reminder that Hong Kong’s security legislation is not only reshaping life inside the territory, but also influencing how other governments respond to its critics abroad.

Spain’s Growth Story Extends to Housing, but Structural Strains Remain

Spain has secured a position as one of Europe’s more dynamic economies, with growth figures surpassing those of its neighbours and a property sector that continues to attract investors and households alike. The picture is encouraging, yet the underlying conditions point to challenges in productivity and in providing enough homes to meet demand.

The economy expanded strongly through the first half of 2025, supported by a larger workforce, vigorous services exports, and tourism that has rebounded to near record levels. Public investment, partly financed through European Union programmes, has also added momentum. The result has been growth rates far above the euro-area average, at a time when many member states are struggling to maintain output.

Immigration has been central to this performance. Spain has admitted large numbers of newcomers over the past three years, many of them of working age, which has helped offset demographic decline and filled labour market gaps. Economists note that this influx has contributed directly to income growth, while also sustaining the consumption and services base of the economy. Recent reforms have eased the process of regularising undocumented workers, broadening the pool of legal employees, and nearly half of all new jobs since 2022 have gone to foreign nationals.

The property sector has mirrored the country’s economic upswing. Home sales rose strongly in 2024, with both new and existing units seeing significant increases. The trend has continued into 2025: in the first quarter alone, nearly 185,000 transactions were completed, a sharp increase on the previous year. Analysts expect that by year’s end, sales could reach the highest level since before the financial crisis. Prices have moved upwards as well, averaging close to €2,000 per square metre nationwide, with considerably higher figures in major cities and coastal regions.

Despite the surge in activity, weaknesses are evident. Supply has not kept up with demand. While construction starts and completions have risen, they remain far short of what would be required to close the estimated housing shortfall, which runs into the hundreds of thousands of units. Rents have also climbed quickly, and in many urban areas families are now devoting an ever larger share of income to housing costs. A tightening of rules on tourist rentals and new rent caps have been introduced in an attempt to ease pressures, but their long-term effectiveness remains uncertain.

Financing conditions are somewhat more favourable than during the peak of Europe’s rate-hiking cycle. Mortgage costs have eased as banks offer more competitive fixed and variable products, helping households access credit. Yet an increase in foreclosures in recent months points to vulnerabilities among more stretched borrowers, especially in regions where prices have risen fastest.

The government has announced plans to expand social housing, tripling budget allocations over the coming years in an effort to raise Spain’s public housing stock closer to the European average. Authorities have also taken steps to increase data transparency and rein in speculative practices. But industry players argue that permitting delays, land shortages and a lack of skilled construction labour continue to constrain delivery.

Beyond housing, the broader economy faces the question of productivity. Output per worker remains well below the euro-area norm, limiting the extent to which rapid growth can translate into sustainable gains in living standards. International institutions have urged Spain to modernise regulations, support innovation and help companies scale up.

Spain has positioned itself as one of Europe’s few bright spots, showing how demographic renewal and service-led expansion can drive results. The challenge now is to ensure that this momentum translates into more efficient output and adequate housing for its growing population. Without that, the risk is that today’s success will prove cyclical rather than transformative.

The Grounds Narrows Losses in First Half of 2025, Reaffirms Full-Year Outlook

The Grounds Real Estate Development AG reported a significant reduction in its consolidated loss for the first six months of 2025, even as revenues fell compared with the previous year. The company reaffirmed its guidance for the full year, projecting revenues between €9 million and €11 million and a balanced operating result.

Revenue for the first half of the year stood at €2.9 million, down from the same period in 2024, reflecting weaker activity in property and portfolio sales as well as cautious demand from private buyers. Nevertheless, the company’s operating performance improved, with EBIT narrowing to –€1.1 million from –€4.3 million a year earlier. Net loss after tax decreased to –€3.7 million, compared with –€8.1 million in the first half of 2024, with earnings per share improving to –€0.19 from –€0.30.

Total assets rose slightly to €169.9 million at mid-year, up from €168.3 million at the end of 2024. A reclassification of projects in Schorfheide and Rauen boosted inventories to €122.8 million, while investment property values declined to €29.5 million. The company also acquired residential portfolios in Werder (Havel) and Potsdam-Fahrland, contributing to higher inventories. Cash reserves fell to €5.6 million from €27.6 million at the end of last year, reflecting property acquisitions, a further stake in The Grounds App2 GmbH, and debt repayments.

On the liabilities side, equity decreased to €44.1 million, reducing the equity ratio to 26 percent from 30 percent at the end of 2024. Long-term debt rose to €68.6 million, driven by new financing for recent acquisitions and an increase in bond liabilities.

Chief Executive Officer Jacopo Mingazzini said the company continued to face hesitant demand from private buyers during the first half of the year, but noted that completed sales and discussions with prospective clients indicated a recovery in the second half. He also highlighted the company’s takeover of asset management activities for parts of the insolvent Ziegert Group on behalf of H.I.G. Capital, describing it as a milestone that strengthened The Grounds’ workforce and broadened its scope.

Chief Financial Officer Andrew Wallis said the expansion into asset management was expected to generate more than €3 million in sales revenue and contribute over €1 million to EBIT this year, adding that project developments in Magdeburg and Erkner would further support earnings in 2026.

Despite ongoing pressure in the housing market, The Grounds said it remains confident in its outlook, with management reaffirming its forecast of €9–11 million in consolidated revenues for 2025 and a balanced EBIT at year’s end.

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