Polish business climate indicator rises for second consecutive month in March

The Business Climate Indicator (BCI), a measure providing early insight into future economic trends, rose by more than 1.3 points in March compared to February 2025. This marks the second consecutive month of improvement in the indicator, although the pace of positive change has slowed compared to the previous month. The sustainability of this trend will depend on whether the current optimism among company managers translates into actual economic performance, as reflected in official statistics.

Out of the BCI’s eight components, three showed improvement while five remained stable. The most significant factor contributing to the index’s growth was the continued rise of the Warsaw Stock Exchange. The WIG index in real terms reached a new peak, surpassing the previous local high from April 2024.

Manufacturing sector managers reported continued positive sentiment regarding the inflow of new orders. While the total volume of orders has not changed substantially, there has been a noticeable increase in export orders, particularly among chemical industry firms. Conversely, producers of durable consumer goods noted a decline in order inflow, in line with recent trends in retail sales. A modest recovery was observed among producers of capital and intermediate goods, which may signal renewed private sector investment. This trend is supported by survey responses indicating that firms planning to increase investment this year outnumber those planning reductions by nearly 12 percentage points—up from a 10-point margin in last year’s survey.

Company assessments of their financial condition remained largely unchanged from February. However, concern over rising labour costs has grown, with over 60% of manufacturing managers now citing high labour expenses as a key obstacle to operations. Despite this, fewer firms are reporting delays in payments from clients. The percentage of companies experiencing an increase in payment arrears fell from nearly 11% a year ago to 7.5% this month.

In monetary terms, the M3 money supply rose by 0.8% in real, seasonally adjusted terms compared to February. Household credit debt also increased, although this does not reverse the long-term trend of declining interest in consumer loans for purposes other than home purchases.

Source: BIEC

State sells historic Prague property U Hybernů for CZK 447 million

The Office for the Representation of the State in Property Matters (ÚZSVM) has successfully auctioned the historic House U Hybernů in central Prague for CZK 447 million. The property was sold in the first round of the electronic auction, marking the second-highest transaction in the history of the property office. Only the sale of a site on Republic Square, which fetched CZK 790 million, has surpassed it.

Two applicants registered for the auction, but only one submitted a bid—matching the starting price—shortly before the auction closed. No additional bids were placed. ÚZSVM confirmed the winning bidder is a legal entity based in Prague, but further details were not disclosed. The transaction will proceed once approved by the Ministry of Finance.

The U Hybernů building, located opposite the Municipal House, has a layered history. Originally a Baroque church belonging to the Irish Franciscans, it was converted into a customs office in the early 19th century and later served as an exhibition space. A major renovation in 2006 saw the addition of a modern theatre, currently home to the Hybernia Theatre, which holds a lease until 2055.

ÚZSVM acquired the property in late 2024 from the State Culture Fund. After offering it to other public institutions without interest, the office moved forward with the public auction process.

While this sale concluded successfully, other recent high-value property auctions have not. Attempts to sell Prague’s Veleslavín Castle (CZK 357 million), Štiřín Castle (CZK 1.156 billion), and Broadway Palace (CZK 878 million) have all ended without bids.

Source: CTK
Photo: Wikipedie

Czech households join grid stability efforts through new energy platform

Czech households are now contributing to the stability of the national electricity grid through a new platform developed by Delta Green. The initiative allows homes equipped with solar panels and battery storage systems to provide performance balancing services, previously reserved for industrial facilities. Depending on real-time grid needs, households can supply or draw electricity for short periods, typically a few minutes several times per day.

The project is being implemented in cooperation with the national transmission system operator ČEPS and energy company Nano Energies. In recent weeks, the partners certified a one-megawatt aggregation block composed entirely of households, marking the first such unit in the Czech Republic.

Jan Hicl, co-owner of Delta Green, noted that while the concept of flexible electricity consumption is unfamiliar to most people, early adopters have quickly adapted. The service is designed not to interfere with everyday household operations, and connected users may see substantial cost reductions. For a typical four-person household, annual energy expenses could be reduced by up to one-third, with potential monthly savings of around CZK 1,000.

Martin Kašák, Director of the Energy Market Industry at ČEPS, emphasised the growing importance of aggregators in maintaining grid reliability. By broadening the pool of participants to include households, the market for performance balancing services becomes more competitive, which could help reduce costs.

The platform uses real-time monitoring to manage electricity use and coordinate the aggregated response of multiple households. These flexibility aggregators consolidate energy contributions from smaller producers or consumers and offer them as standardised products in energy markets or directly for grid balancing. The new model represents a shift in how energy flexibility is sourced and used across the Czech electricity system.

Source: CTK

Front Line Hungary begins operations at CTPark Budapest West

Front Line Hungary has started operations at a new 1,500-square-metre distribution centre in CTPark Budapest West. The company, part of the Czech-founded Front Line Group established in 1997, distributes ingredients for Mexican and American cuisine across Central and Eastern Europe and has been active in Hungary since 2004.

The new facility supports the expansion of Front Line’s e-commerce business in Hungary. It includes warehousing infrastructure tailored for food distribution, such as two docking gates with a six-tonne capacity each, as well as on-site office space for local operations.

The location in Biatorbágy, 19 kilometres from Budapest city centre and near the M1 motorway and M0 ring road, was selected for its logistical advantages, allowing efficient distribution both in Budapest and across the country.

The facility was recently upgraded by CTP with several sustainability features, including an energy-efficient heat pump system, LED lighting, and updated fire safety and hot water systems, aligning with the company’s ESG objectives.

Front Line Hungary plans further growth in the local market, supported by the logistical capabilities of the new site. CTP noted that the project was delivered to meet the specific operational needs of the tenant, reflecting its strategy of long-term partnership with clients.

First keys programme targets affordable homeownership in secondary Mmarket

The First Keys programme targets first-time buyers seeking second-hand flats priced up to PLN 10,000–11,000 per square metre. Its impact will depend on availability in eligible locations, likely outside major urban centres. Aimed at moderate-income buyers, it could boost affordability and stimulate the lower end of the housing market.

Mirosław Bednarek, Regional Business Director, CEO of Matexi Polska
It is good that after months of waiting, we have finally learnt about the ministry’s initial plans regarding support for housing in our country. Every programme that brings those in need closer to owning their own home deserves recognition. It is also encouraging that the funds will be allocated to municipal and social housing construction and support for the purchase of flats on the secondary market. It is a shame that people wishing to buy new flats have been excluded from state aid. This will limit buyers’ choice and access to modern flats.
It is worth remembering that new investments meet the highest standards of energy efficiency and construction quality, which is crucial for the comfort and maintenance costs of flats in the long term. Paradoxically, excluding the primary market from the government programme may increase the demand for new flats. Potential buyers who have been hesitating to make a purchase have now been given a signal that there is no need to wait any longer. They can now take advantage of the stabilisation of prices on the primary market, look for bargains and negotiate discounts.

Zbigniew Juroszek, CEO of Atal
We do not see any benefits for the economy in the broader sense in this programme. It does not support production, it does not promote the creation of new jobs, and it will not increase state budget revenues. The announcement of the exclusion of the primary market from the programme can be considered surprising, due to the structure of housing production in Poland, in which developers have had a more than 90% share in the multi-family construction segment for years.

Limiting the programme to the secondary market favours older housing stock, which is less attractive in technical terms and less energy-efficient. In addition, it may cause prices to rise in smaller cities. On the other hand, it will have a limited impact on the markets in large agglomerations, where the leading developers operate, due to the proposed price limits. All this calls into question the objectives of the programme and significantly narrows the target group and the range of offers available within this framework.

Tomasz Kaleta, Managing Director of Sales and Marketing at Develia
After a long period of uncertainty, we welcome the government’s new proposal to support home buyers, as it will help reduce market speculation and the uncertainty that has dominated the market over the past year. However, with the assumed limits on the price per square metre, the programme is unlikely to have a real impact on the housing market.

In the largest cities, the programme will cover a marginal part of the offer. In Krakow, only 0.7% of the properties currently meet its criteria, and in Warsaw, 1%. Moreover, directing support exclusively to the secondary market will not contribute to reducing the housing deficit or to the development of modern, energy-efficient investments.

Paulina Prusiecka, Marketing Director, Member of the Board at Grupa Konkret
The current progress of the government support programme is at too early a stage to be evaluated. There are more questions than answers. Let’s wait for the finished bill. However, the legislator’s intentions are already clear. He definitely wants to support that part of society that cannot afford and may never be able to afford to buy their own home. The aim is to provide funding for social housing, among other things. In the case of the First Keys programme, the announced restrictions on the purchase of real estate only in the secondary market or within a specific price range may have little effect on improving the situation on the housing market.

We are not saying this as representatives of the development industry, which is the target of the changes in the approach to housing policy. This approach will not increase the housing stock, but will only regulate the trade in what has already been built. Consequently, customers who want to take advantage of government support for the purchase of their first home will not have access to flats built using the latest technologies and the most energy-efficient ones. One should also ask oneself how the programme will affect property prices in the secondary market and whether it will not simply drive them up.

From the point of view of customers who are determined to buy their own flat, the key issue is the improvement of credit availability and, consequently, the interest rates. And so, in the face of the lack of state subsidies for loans, they will probably have to reconsider their approach to the choice of real estate and choose flats located away from the city or with a slightly smaller floor area.

Witold Kikolski, board member of MS Waryński Development S.A.
The First Keys programme is a step in the right direction, but it is worth considering expanding it to include primary market properties. The number of properties on the secondary market is limited, and the demand for new flats in attractive locations will always be there. Expanding the programme could increase the supply of flats and support the development of housing, better meeting the needs of people looking for new properties.
The programme could also contribute to improving the quality of apartments, especially in terms of energy efficiency and modern solutions. The inclusion of the primary market would increase the availability of apartments for a wider group of buyers and would also help the development of local real estate markets, which would be beneficial for both investors and future apartment owners.

Eyal Keltsh, CEO of Robyg and Vantage
Without detailed information about which locations will be covered by the First Keys programme, it can be assumed that it will focus on smaller cities and the outskirts of large agglomerations, where prices of used flats may be lower. The availability of subsidies for apartments priced at PLN 10-11 thousand per square metre in the most popular locations may be limited, which may mean that the programme will not have as much of an impact in the central parts of the largest cities.

However, in smaller cities and the suburbs of larger centres, where housing prices are much lower, such support may prove more accessible and effective in meeting the housing needs of people with lower incomes.
One of the main limitations of this programme is that it does not directly support the development of housing construction. The programme is aimed at the secondary market (used flats) rather than supporting the construction of new flats. If the programme does not support the development of new investments, the real estate market in Poland will continue to face problems related to the insufficient number of new flats. Therefore, the First Keys programme may serve as a stopgap measure aimed at improving the situation on the secondary market, but it will not solve the long-term problems with housing availability. As a result, its impact on the Polish real estate market may be limited, and its effectiveness will depend on the location and the specific financing arrangements.

Andrzej Gutowski, Sales Director at Ronson Development
The First Keys programme is unlikely to have a significant impact on the real estate market in large cities. The set price limit of PLN 11,000 per square metre is lower than the average housing prices in the largest agglomerations, where the activity of developers is concentrated. Therefore, the programme will mainly cover smaller cities and suburban areas, and it is there that there may be a risk of a possible increase in prices up to the set limits.

One possible effect of the programme’s introduction may be to accelerate purchasing decisions by people who were previously hoping to be able to buy a flat from a developer under the programme. When it turns out that this option is not available, they may decide to buy under standard conditions more quickly. However, the overall impact of the programme on the market will remain small.

Łukasz Šedovič, Sales Director at Trust Investment S.A.
The price limit of PLN 10-11 thousand per square metre raises doubts, as in many cities, especially the more expensive ones, the choice of flats at this price is very limited. As a result of such assumptions, we can expect an artificial increase in offer prices to the level of the limits, which, paradoxically, will make it more difficult to purchase these flats. The idea behind the programme is good, as the subsidies for high earners are being reduced and the aid should be allocated where it is most needed. However, demand will exceed supply without the new housing, which will drive up prices in this segment.

Mariusz Gajżewski, Head of Sales, Marketing and Communication BPI Real Estate Poland
The First Keys programme may improve the availability of housing, but its impact on the primary market will be limited, so it will not contribute to the development of new construction.

This assumption covers only the secondary market, which is likely to help boost it and increase housing mobility. However, the initial assumptions indicate support in locations where housing prices are within certain limits. This means that its use may be limited in the largest cities. In the long term, it will be crucial to develop a solution combining support for buyers with investment in new housing, which will contribute to greater market stability.

Source: Dompress.pl
Photo: Do Wilgi, Matexi

Garbe holds topping-out ceremony for logistics facility in Norderstedt

Garbe Industrial Real Estate GmbH has marked a construction milestone with the topping-out ceremony for its new logistics development in Norderstedt, just north of Hamburg. The facility, which covers approximately 12,700 square metres, is expected to be completed by mid-2025. The total investment in the project is around €23 million.

The property is located within the Schützenwall industrial estate on a 29,500-square-metre site. The development was launched without pre-leases, based on confidence in the site’s market appeal. Garbe, headquartered in Hamburg, identified strong demand for modern logistics, production, and warehouse space in the metropolitan area, which has limited supply.

The site has a previous industrial history tied to chemical production for the film and photography sector. Prior to construction, the area underwent extensive decontamination and demolition work, although soil testing showed no contamination. Recovered materials from the old structure were reused for the new building’s foundation, contributing to sustainable site management.

The new logistics facility will offer approximately 11,200 square metres of warehouse space, 840 square metres for offices and social areas, and 650 square metres of mezzanine. Loading infrastructure includes eleven dock levellers and two ground-level sectional doors. Goldbeck has been appointed as the general contractor.

The building is being developed to meet energy-efficient standards, specifically the KfW Efficiency House 40 classification. It will be equipped with a rooftop photovoltaic system capable of generating up to one megawatt of electricity and connected to a district heating network with underfloor heating. Garbe is seeking DGNB Gold certification for sustainable construction.

The facility will be available for lease from August 2025. It can accommodate either a single tenant or be divided into two units of approximately 4,200 and 7,000 square metres. Discussions with prospective tenants are ongoing, and the developer anticipates full occupancy by the time of completion.

The site offers direct access to key transport routes, including the A7 motorway, and is well positioned in relation to the A1 and A23 motorways. Its location near the city park also contributes to its attractiveness for future employees.

Dedeman acquires land near Giurgiu border to complete national store network

Dedeman, Romania’s largest DIY retail chain, has acquired a 6-hectare plot of land near the Giurgiu customs, close to the Bulgarian border. The purchase, brokered by real estate consultancy Colliers, enables Dedeman to enter the final county in Romania where it previously had no presence.

The acquired land includes approved urban planning documentation for commercial use, allowing Dedeman to proceed with construction without delay. With this development, Giurgiu becomes fully integrated into the company’s nationwide network.

According to Sînziana Oprea, Director of Land Agency at Colliers Romania, the transaction reflects ongoing activity in the retail segment of the real estate market, where demand remains steady despite broader economic and political uncertainties.

In 2024, retail-focused land acquisitions represented around 20% of the total land transaction volume, bringing the sector close to the €450 million level seen in the previous year. Colliers’ latest report indicates that retailers continue to focus on consolidating and expanding their networks, with particular attention to underserved regions.

The availability of land remains stable, with well-located plots—especially those with pre-approved development permissions—moving efficiently in the market. Developers are investing in a mix of formats, including business parks and stand-alone stores, while large plots suitable for mixed-use developments continue to attract interest due to their flexibility and market relevance.

CIRRO Parcel leases space at CTPark Amsterdam City for Dutch expansion

CIRRO Parcel has signed a lease agreement for 10,000 square metres of logistics space and an additional 600 square metres of office space at CTPark Amsterdam City. The site will serve as the company’s new operational base in the Netherlands, supporting the growth of its last-mile delivery services.

CIRRO Parcel, the last-mile delivery arm of CIRRO, a global logistics and fulfilment provider, selected the location for its proximity to Amsterdam’s urban centre and major transportation networks. The move is intended to improve delivery efficiency, reduce transport mileage, and support the company’s sustainability goals.

CTPark Amsterdam City is located in the Port of Amsterdam and provides access to the city centre via road and canal networks, including the A10 ring motorway. The site includes over 120,000 square metres of logistics space, cross-dock facilities, and an on-site 5.7 MWp solar plant, which contributes to energy self-sufficiency.

Heiko Koop, Managing Director of CTP Netherlands, noted that over half of the logistics park is now leased, citing increased demand for last-mile distribution hubs. He added that the site’s location and energy-efficient infrastructure address the evolving needs of logistics providers.

Mandy Ho, General Manager of CIRRO Parcel Netherlands, stated that the company selected the site as part of its strategy to strengthen its delivery network across the country. She highlighted the site’s environmental credentials and operational advantages as factors in the decision.

The transaction was advised by Savills. Maarten Bulstra, Associate Logistics & Industrial at Savills, described the lease as a strategic move that aligns with CIRRO’s operational requirements and CTPark’s focus on sustainable logistics infrastructure.

DIW Berlin: Nuclear fusion remains irrelevant for energy transition

According to a new study from the German Institute for Economic Research (DIW Berlin), nuclear fusion is unlikely to play a practical role in the energy transition in the foreseeable future. Despite notable technological advancements and increasing private-sector involvement, researchers at DIW conclude that fusion energy remains far from commercial viability.

The analysis, conducted by the Department of Energy, Transport, and Environment at DIW, highlights that many of the fundamental scientific and engineering challenges of nuclear fusion remain unresolved. Study co-author Christian von Hirschhausen notes that “from an energy perspective, nuclear fusion is no closer to market use today than it was in the 1950s.” He emphasises that it is therefore irrelevant to the urgent goals of transitioning to sustainable energy sources.

A key focus of the study is the international ITER project in France, designed as an experimental nuclear fusion reactor. Although initially intended to demonstrate fusion energy by the 2020s, the timeline has been repeatedly delayed. Current estimates suggest the demonstration reactor may not become operational until the second half of the century. Costs have also risen dramatically—from an original estimate of €5 billion to upwards of €50 billion.

The DIW researchers analysed decades of expert forecasts and found that expectations for when fusion would reach commercial readiness have consistently remained 20 to 40 years away, regardless of when the forecasts were made. This phenomenon, described as the “fusion constant,” illustrates the persistent gap between promise and practical implementation.

While publicly funded fusion research remains focused on long-term goals, private companies have brought new energy to the field. In the past decade, around 80 privately financed small and mid-sized firms have attracted billions of dollars in investment. Many of these firms are exploring new approaches, including advanced magnetic coils and laser technology. However, most of these efforts also stop short of aiming for energy production in the near term.

The study’s authors argue that current research structures should be reconsidered. They recommend shifting a portion of public investment away from fundamental research and towards applied research that could generate more immediate and practical results. Claudia Kemfert, co-author of the study, concluded that nuclear fusion should be viewed as a long-term research endeavour with no realistic short-term impact on energy supply. She called for greater focus on technologies and policies that can contribute directly to the energy transition.

DIW Berlin’s findings underline the importance of aligning energy research funding with the practical demands of climate policy and the growing need for scalable, clean energy sources.

UOKiK investigates potential pyramid schemes in online investment projects

The Office of Competition and Consumer Protection (UOKiK) has launched formal investigations into two online platforms—BE Poland and GrowUp Session—to determine whether their operations may constitute illegal pyramid-type promotional systems. The President of UOKiK, Tomasz Chróstny, has indicated that these inquiries are part of broader market surveillance targeting online investment schemes promising fast and high returns.

Both BE Poland and GrowUp Session offer educational packages related to online trading and investments, including forex and cryptocurrency markets. However, UOKiK is examining whether these platforms primarily rely on recruiting new participants as the basis for generating income, rather than on the sale of legitimate services or products.

In the case of BE Poland, the platform operates as part of the international BE (Better Experience) network headquartered in Dubai. Polish participants promote the service under the name TPR (Trading People Revolution), selling subscriptions to trading tools and platforms. Recruitment is largely carried out via social media, particularly Instagram, with individuals receiving compensation for referring others.

Similarly, GrowUp Session markets training packages and encourages participants to join its affiliate program. Promoters often present themselves on social platforms as financially successful, attributing their lifestyle to income from the program. This image is used to attract new recruits, raising concerns that the system may be structured around recruitment rather than genuine educational services.

According to UOKiK, schemes of this nature often use the language of entrepreneurship and self-improvement—described as “programs,” “projects,” or “online earnings”—to mask what may be a pyramid structure. Promoters, sometimes influencers or celebrities, lend legitimacy to these ventures through public appearances or livestreamed events. Participants typically pay for access, then earn money by recruiting others, who in turn do the same. The model becomes unsustainable when the flow of new entrants slows, often resulting in financial losses for those at the lower levels of the structure.

UOKiK warns that consumers, particularly young people or those in unstable financial situations, are often drawn into such schemes by promises of high profits with little effort or risk. The regulator urges caution and scepticism when evaluating online business proposals, especially when returns depend largely on bringing in new members.

These actions are part of a broader enforcement effort. UOKiK has previously intervened in cases involving platforms such as iGenius, Dream Trips, and Jifu. Last year, fines totalling nearly PLN 1 million were imposed on companies associated with Selfmaker Smart Solution and Selfmaker Technology for similar practices.

If a scheme is determined to be a pyramid system, it may also be considered a criminal offence under Article 286 of the Polish Penal Code, which addresses organised fraud. In such cases, UOKiK advises anyone with suspicions to report them to the police or public prosecutor’s office.

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