Czech housing support act passed, experts call for broader measures

The Czech Chamber of Deputies has passed the Housing Support Act, a measure aimed at addressing housing distress in the country. Experts from the initiative For Housing—which includes representatives from NGOs, social services, academia, and local government—have welcomed the law’s adoption but expressed concern that it falls short of earlier, more ambitious proposals.

The bill, originally prepared by the Ministry of Regional Development under former minister Ivan Bartoš (Pirates), underwent several changes after the Pirates left the government. Bartoš criticised the final version, calling it inadequate and significantly watered down from the original draft.

Mikoláš Opletal of For Housing emphasized the importance of passing the law during the current parliamentary term. He said the legislation provides a framework to support people at risk of housing exclusion and could help prevent exploitative practices in the housing market.

The act introduces several new tools, including the establishment of contact points to offer housing-related counselling, a voluntary system of housing guarantees for private landlords, and financial incentives for municipalities that rent to people in housing distress. The goal is to create a more coordinated approach between national and local levels in addressing housing challenges.

However, the bill has faced criticism from opposition parties ANO and SPD, which argue that it creates an expensive and complex bureaucracy without adding new housing units.

Some local officials support the bill. Kateřina Dobrozemská, Deputy Mayor of Olomouc, said the law offers municipalities useful tools for preventing housing loss. She also highlighted the need to encourage private landlords to make vacant apartments available for rent.

Originally, the bill proposed that 205 municipalities with extended jurisdiction would host contact points, creating 352 new positions with an estimated cost of CZK 348 million. However, following amendments by the parliamentary committee on public administration, the number of contact points was reduced to 115, to be located in areas with higher housing vulnerability and existing labor office branches. Municipalities will have the option to establish these contact points on a voluntary basis.

Bartoš criticised the final version on social media, claiming it had been stripped of key elements and would no longer deliver the projected cost savings. He argued the coalition had taken a short-term view and failed to prioritise long-term benefits for vulnerable populations.

Opponents of the law argue that it introduces new administrative layers without addressing core issues such as housing supply. They believe the initiative may result in inefficiencies and be open to misuse.

An amendment introduced by MP Jiří Havránek (ODS) extended eligibility for support to households earning up to 1.43 times the subsistence minimum. The For Housing initiative had previously warned this threshold was too restrictive. Regional Development Minister Petr Kulhánek (STAN) later announced that the government intends to raise the limit to 1.6 times the minimum, which the law allows through a government decision.

Martin Lux, a housing expert at the Czech Academy of Sciences, supported the law, describing it as a long-overdue step forward. He acknowledged that while some parameters might need adjustment, these can be modified by the government over time. He said the law lays a necessary foundation for addressing both acute and long-term housing needs.

Source: CTK

YIT reaches structural milestone on Sija Kamýk residential project in Prague

YIT has reached the rough construction phase of its Sija Kamýk residential project in Prague 12. The development includes 122 apartment units, with less than 30% still available for sale. The project is expected to be completed by the end of 2025, with residents moving in during spring 2026.

The structural milestone involved completing the reinforced concrete framework for the building, which has two underground levels and ten above-ground floors. Construction now continues with roofing, façade work, and technical installations. Interior work has also begun, and landscaping of the inner courtyard is underway. This private space will include seating areas and amenities such as bike and pet washing stations for residents.

The surrounding public area will also undergo improvement. Plans include the addition of new greenery, a workout zone, and a children’s playground. YIT will also repair nearby sidewalks and construct four ground-floor commercial units intended for small shops and services.

The apartment units range from 1+kk to 4+kk, with floor areas between 30 and 116 square meters. Most of the apartments include outdoor space in the form of a balcony, terrace, or front garden. Other features include triple-glazed windows, and in some cases, ventilation systems or preparation for blinds and air conditioning. Shared building amenities will include basement storage, a carriage room, and garage parking.

Environmental considerations play a significant role in the design. The project incorporates water-saving fixtures, LED lighting in common areas, and rainwater tanks for irrigation. Solar panels will be installed to reduce energy use and carbon emissions. Recycled concrete has been used in construction to help conserve natural resources, and the building will support electric vehicle charging, including a fast-charging station and infrastructure for up to 31 controlled indoor chargers.

Located in the Kamýk district, the development offers access to green spaces such as Lhotka Biotope, Hodkovičky Forest Park, and Kamýk Forest. The area includes a full range of civic amenities and is well-connected by public transport. The future D metro line, with the planned Nové Dvory station, is expected to further improve accessibility.

Retailers face financial strain ahead of Easter despite seasonal demand

The Easter period, traditionally a time of increased consumer spending, is proving to be a growing challenge for many businesses in the retail sector. Rising operational costs, cautious consumer behavior, and growing debt levels are creating a difficult environment for shop owners and suppliers alike.

Although the Easter season typically brings a boost in sales, current market conditions are adding pressure to what should be a profitable time. According to data from BIG InfoMonitor and the Credit Information Bureau (BIK), the total overdue debt of companies in the retail sector reached more than PLN 3.3 billion by the end of February 2025—an increase of nearly PLN 182 million compared to the previous year. The number of indebted companies also rose by 961, bringing the total to 36,127. The average debt per company is now approximately PLN 92,500.

Specialist food retailers, such as butcher shops and greengrocers, have been hit particularly hard. Over the past year, overdue debt in the meat retail sector grew by nearly PLN 5 million, reaching close to PLN 48 million. Fruit and vegetable retailers saw arrears rise by over PLN 2.6 million, while bakeries and confectioneries recorded an increase of PLN 1.6 million in unpaid liabilities.

Despite stabilizing inflation—reported at 4.9% in March—many households are still struggling with rising prices. Food and non-alcoholic beverages saw year-on-year increases of 6.7%. Essentials such as butter have become significantly more expensive, affecting purchasing habits and shifting priorities among consumers. According to analysts, this trend is reflected in reduced spending on traditional food items in favor of leisure activities and travel during the holiday season.

The financial strain on retailers is mirrored across their supply chains. Wholesalers dealing in dairy, eggs, oils, sugar, chocolate, and meat have also seen a rise in overdue payments. In particular, meat wholesalers reported outstanding debt of approximately PLN 116 million, with 11% of these businesses facing significant payment delays.

Dr. Waldemar Rogowski, Chief Analyst at BIG InfoMonitor, notes that many of the affected businesses are small, local operations with high fixed costs. These enterprises are vulnerable to even small fluctuations in input prices and face strong competition from large retail chains. He also points out that Sunday trading restrictions, while intended to support small retailers, have often had the opposite effect.

Upcoming trading Sundays on April 13 and 27 may offer some short-term relief for retailers, but overall financial pressures are expected to persist.

Maintaining cash flow is increasingly difficult, and missed payments risk triggering a chain reaction across the supply chain—from manufacturers to wholesalers to retailers. This makes financial risk monitoring more important than ever. Tools like the BIG InfoMonitor Register and BIK’s credit database can help companies evaluate their partners’ financial reliability, especially during high-activity periods like Easter.

According to Paweł Szarkowski, President of BIG InfoMonitor, there has been a noticeable increase in companies seeking credit information as a way to protect themselves from potential losses. Being able to identify partners with a high risk of default is key to maintaining financial stability.

For many small businesses, Easter presents not only a commercial opportunity but also a test of financial resilience. Supporting local producers and shops—by choosing their products—can make a meaningful difference. As Szarkowski emphasizes, every purchase is more than just a transaction: it’s a show of support for businesses navigating a challenging economic landscape.

Source: BIG InfoMonitor

XTB extends office lease at Skyliner in Warsaw

XTB, a global fintech company, has extended its lease for nearly 4,400 square metres of office space at the Skyliner building in Warsaw. The new agreement adds another 63 months to XTB’s current lease, securing its presence in the building for a total of ten years. XTB initially moved into the skyscraper, located at Daszyńskiego Roundabout, in early 2022, occupying three floors.

According to Michał Orłowski, Head of Leasing and Asset Management at Karimpol Polska, the lease extension reflects the tenant’s continued satisfaction with the building’s location and quality, including its technological and sustainability features. The Skyliner is owned by the Karimpol Group.

Founded in 2004, XTB provides individual investors with access to global financial markets via a mobile platform. The company operates in 12 countries and supports over 1.5 million clients worldwide. In addition to offering financial tools such as stocks, ETFs, and multi-currency accounts, XTB is involved in financial education initiatives through its foundation and partnerships with academic institutions.

Paweł Szejko, XTB Management Board Member for Finance, stated that the extension is a continuation of the existing collaboration with Skyliner and noted the importance of the location, functionality, and flexibility of the space in meeting the company’s needs.

XTB was represented by Savills in renegotiating the lease, while Karimpol worked with Argon Legal.

Skyliner, one of the tallest office buildings in Poland at 195 metres, was completed in January 2021 and holds a BREEAM Excellent certification. The 45,000-square-metre tower runs entirely on renewable energy. Tenants include companies such as Coca-Cola Poland Services, Bolt, Capital.com, Luxoft, and Mindspace.

Construction of the complex’s second tower began in February 2024, with completion expected by the end of 2026. The 28-storey building will add 24,000 square metres of leasable space, primarily for office use. Designed by APA Wojciechowski Architekci, the project includes features such as terrace gardens and a continued commitment to sustainable construction. CBRE Polska is managing the commercialisation of the second phase, with WARBUD S.A. serving as the main contractor.

Linkcity launches new residential development near Prague

Linkcity Czech Republic has introduced a new residential project in Brandýs nad Labem, located in the Prague-East district. The development, named 4 Domy Brandýs, will comprise 88 apartments ranging from studio units to three-room layouts (1+kk to 3+kk). Designed for a broad spectrum of residents — including individuals, couples, families, and investors — the project emphasizes practical living in a location with good access to Prague. Completion is scheduled for late 2027, with VCES Group serving as the general contractor.

According to Kristýna Zavrtálková, CEO of Linkcity Czech Republic, the project offers a balance between price and quality, with a focus on functional interior layouts and good connectivity. Situated on the southern edge of Brandýs nad Labem, the development is near a retail area and integrates with the existing residential surroundings. Ground-floor units will feature private gardens, while upper-level apartments come with balconies. Select three-room units will have two balconies. Each apartment will include an outdoor parking space in the price.

The architectural design, prepared by AP Studio, consists of four four-storey buildings designed to fit into the existing urban landscape. The project has a Class B energy rating, reflecting efficient building performance and potentially lower utility costs for residents. Green roofs will enhance thermal insulation, help manage rainwater runoff, and reduce environmental impact. A landscaped courtyard and relaxation area will provide shared outdoor space, and a new cycle path is planned nearby.

The development is located near Zápská Street, with direct access to the D10 motorway. Public transport links include a 10-minute drive or 15-minute bus ride to the Černý Most metro station. Local amenities in the area include supermarkets, healthcare services, schools, and various sports and leisure facilities. Nearby green areas, such as Houštka Forest Park and the Elbe River paths, offer additional options for recreation.

Apartments start at CZK 3.6 million for a one-room unit. The pricing and location are aimed at those looking for accessible housing options outside of Prague, whether for personal use or as an investment.

Sea transport remains dominant mode of freight in the EU in 2023

In 2023, maritime transport continued to account for the largest share of freight moved within the European Union, representing 67.4% of total tonne-kilometres. This measure reflects both the volume of goods and the distance travelled. Road transport followed with 25.3%, while rail accounted for 5.5%. Inland waterways made up 1.6%, and air freight had a minimal share of 0.2%.

Over the past decade, road transport was the only mode to increase its share, rising by 2.8 percentage points compared to 2013. Maritime transport saw a decline of 2 percentage points, while inland waterways and rail transport also dropped slightly, by 0.6 and 0.2 percentage points respectively.

The data, published by Eurostat, highlights the ongoing significance of sea freight across many EU countries, particularly those with coastlines. In 15 of the 22 EU coastal member states, maritime transport was the dominant method for moving goods. Portugal (98.2%), Cyprus (96.5%), and Greece (96.4%) recorded the highest reliance on sea freight.

In contrast, landlocked countries or those with more developed road networks leaned more heavily on road transport. Luxembourg (84.5%), Czechia (77.7%), and Hungary (70.7%) had the highest shares of road freight.

Several countries maintained strong rail freight sectors. Lithuania led with 31.7% of goods moved by rail, followed by Slovakia (30.1%), Austria (29.1%), and Slovenia (27.1%).

Inland waterways played a notable role in a few countries. Romania transported 18.9% of its freight by this method, the highest among EU countries, followed by the Netherlands at 11.7% and Bulgaria at 8.7%.

Air transport remained marginal, making up more than 1% of freight in only a few countries. Romania (1.6%), Luxembourg (1.5%), Hungary, and Lithuania (1.3% each) had the highest shares.

The statistics are based on the tonne-kilometre method and reflect only freight movements within each country’s territory, following the territoriality principle. For maritime transport, calculations are based on movements within national Exclusive Economic Zones. EU-wide figures for 2023 are estimates.

Source: Eurostat

Štiřín Castle remains unsold after sixth auction attempt

The Štiřín Castle in Central Bohemia remains unsold after its sixth auction attempt. According to the Office for Representation of the State in Property Matters (ÚZSVM), no bidders registered for the latest auction, which had a starting price of CZK 982.6 million. The office plans to relaunch the sale process for the historic property, located about 25 kilometers from Prague.

The state acquired the property in June 2023 from the Ministry of Foreign Affairs, which had previously managed the site as a hotel, restaurant, wellness facility, and golf course. When no other government institution expressed interest in using the complex, the property was put up for sale.

The first auction, launched in September 2023, began with a starting price of CZK 3.3 billion. Since then, the price has been gradually reduced across multiple auction rounds, and part of the land originally included in the park area was removed from the offer. Despite these adjustments, no bids have been placed.

Štiřín Castle dates back to the mid-18th century and was renovated around 1900 based on plans by architect Jiří Stibral. It became state property after World War II, having previously belonged to the Ringhoffer family. After the war, it was briefly used by scout groups, and from 1985 to 1993, it underwent renovations to accommodate hotel operations.

The property is one of approximately 50 assets currently offered for sale by ÚZSVM. Among them is the Veleslavín Castle in Prague, which is listed with a starting price of CZK 303.45 million and has also yet to attract a buyer after four previous attempts.

Several recent high-value auctions organised by ÚZSVM have concluded without success. Alongside Štiřín Castle, the Prague National House in Vinohrady, listed at CZK 760 million, also failed to sell today. Earlier this year, the eighth auction for Prague’s Broadway Palace, offered at CZK 878 million, also ended without a buyer. However, in March, the office successfully auctioned the U Hybernů building in Prague for CZK 447 million, marking its second-highest sale on record.

Source: CTK
Photo: Štiřín Castle

PORR applies LEAN methods across projects to improve construction efficiency

Construction company PORR is expanding the use of LEAN construction methods across its operations, aiming to streamline project execution by reducing waste and improving coordination on site. The approach focuses on efficient use of time, materials, and capacity to enhance productivity and deliver projects more effectively.

LEAN Construction involves the early planning and continuous adjustment of work processes in collaboration with all project participants. By analysing each phase of construction in advance, teams can better allocate resources and adapt workflows during implementation. This method promotes a coordinated working environment, where all stakeholders contribute to shared project goals.

PORR is applying this strategy across its international operations, including in Austria, Germany, and Romania. The company highlights the integration of LEAN principles with digital tools, such as Building Information Modeling (BIM), as key to meeting the growing demands for quality, sustainability, and faster delivery in construction.

In Germany, LEAN methods were applied during the construction of a production hall for a major automotive client. A logistics team managed material deliveries and workflows, leading to cost savings and improved onsite efficiency.

In Austria, PORR collaborated with Wiener Netze, the country’s largest combined network operator, on a long-term project to upgrade the electricity grid. With support from its subsidiary, pde Integrale Planung, PORR used visual process mapping and planning tools to reduce setup time by 24% and site downtime by 17%.

In Romania, LEAN techniques were used on the fourth section of the Sibiu–Pitești motorway. The Last Planner® System, along with other process management tools such as Stage Gate reviews and Swim Lane diagrams, helped teams identify issues early and find solutions collaboratively. For certain processes, such as preparing topographic reports, these changes led to a 20% time saving.

PORR continues to expand the use of LEAN methodology across its portfolio, adapting its approach to meet the evolving requirements of the construction industry.

AI model enhances forecast accuracy for ECB interest rate decisions

A new study by the German Institute for Economic Research (DIW Berlin) shows that artificial intelligence can improve the accuracy of forecasts for European Central Bank (ECB) interest rate decisions by analysing the tone of its official communications. The AI-supported model, developed using ECB statements from January 2019 to March 2025, categorises messages as restrictive, expansive, or neutral, and incorporates this analysis into a broader forecasting framework.

The research introduced a “communication rate indicator” that tracks the overall direction of ECB communication over time. When combined with other economic indicators such as inflation, economic policy uncertainty, and previous interest rate decisions, the model improved prediction accuracy for rate changes from around 70% to 80%. According to the study, 11 of the last 14 ECB decisions were correctly anticipated using the full model, compared to 10 without communication analysis.

“Central banks use carefully chosen language to signal their monetary policy intentions,” said Kerstin Bernoth, lead author of the study. “Our AI-based approach captures these signals and can meaningfully enhance forecasts.”

The study uses the RoBERTa language model to evaluate ECB speeches, press statements, and interviews. The model classifies the tone of individual sentences and tracks changes in messaging over time. For example, ECB communication was generally expansionary in 2019 and intensified during the pandemic in 2020. As inflation rose toward the end of 2020, the ECB maintained an expansionary stance, drawing some criticism. A shift toward a more restrictive tone began in late 2021, peaking in 2022, alongside a series of interest rate hikes. Since mid-2024, ECB messaging has shifted toward a more neutral tone.

For the upcoming ECB Governing Council meeting on 17 April 2025, the AI model suggests a strong likelihood of an interest rate cut. This forecast is supported by slowing economic activity and inflation rates that are now within the ECB’s target range. However, the model does not account for recent developments, such as new U.S. trade policies and tariffs announced by President Trump, which could influence monetary policy decisions in the short term.

“Given the increased economic uncertainty, it may be necessary for the ECB to pause and assess these external impacts before proceeding with further rate changes,” Bernoth noted.

The study highlights the value of integrating advanced language models into economic forecasting, particularly in times of policy uncertainty.

Cushman & Wakefield Echinox advises on Mall Moldova project ahead of opening

Cushman & Wakefield Echinox has provided strategic consultancy to Prime Kapital for the Mall Moldova development in Iași. The shopping centre is set to open on April 17, 2025, and will become the largest retail facility in the Moldova region and the only super-regional mall in Romania outside Bucharest.

The Cushman & Wakefield Echinox retail team supported Prime Kapital in securing a range of well-known international and local brands for the project, including Inditex, Peek & Cloppenburg, IKEA, and Leroy Merlin. The collaboration focused on creating a diverse tenant mix to position Mall Moldova as a key shopping and entertainment destination in the region.

The centre will offer approximately 125,000 sq. m of retail space, featuring more than 250 stores, a cinema complex—the largest in eastern Romania—and over 10,000 sq. m dedicated to entertainment and leisure.

Bogdan Marcu, Partner Capital Markets at Cushman & Wakefield Echinox, noted the company’s long-standing cooperation with Prime Kapital and emphasised the importance of retail sector support in the development process.

Dana Radoveneanu, Head of Retail Agency, highlighted recent growth in Romania’s retail sector, citing the delivery of 735,000 sq. m of new retail space across the country between 2020 and 2024. Around a quarter of that space was developed by Prime Kapital. Future projects planned by major investors may add another 600,000 sq. m by 2028–2029, targeting cities such as Cluj-Napoca, Bacău, Galați, Arad, and Bucharest.

Upon its opening, Mall Moldova will increase Iași’s total modern retail stock to 231,000 sq. m, placing it second among Romania’s regional cities after Timișoara, which currently leads with 264,700 sq. m.

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