OBERMEYER Helika delivers design work for the expansion of Westfield Černý Most

OBERMEYER Helika has served as the general designer for the latest expansion of Westfield Černý Most, a project carried out by Unibail-Rodamco-Westfield (URW). The second phase of the centre’s development adds more than 9,100 sqm of retail and leisure space, accommodating over 30 additional units including shops, food and beverage outlets, cinemas and related services. With this extension, the shopping centre now covers approximately 94,100 sqm, making it the second-largest retail complex in the Czech Republic.

The design process required detailed phasing to allow the existing building to remain operational throughout construction. According to the project team, previously undocumented building components and installations were uncovered during the works, requiring on-site adjustments and updates to the documentation. The project was delivered using BIM workflows in Revit to coordinate engineering disciplines and manage design changes.

Part of OBERMEYER Helika’s scope involved proposing space-efficient layouts for new tenants within the limited footprint of the extension and preparing full technical documentation, including a revised food court concept. The firm also developed a reuse strategy for selected structural and façade elements from the original building, in line with URW’s objectives to reduce construction-related emissions. Materials such as cladding components, railings and aggregate layers from demolished sections were incorporated into the design where feasible.

Structural solutions for reinforced concrete, steel and timber elements were designed as part of the wider expansion works. The project has been prepared to meet BREEAM sustainability requirements.

Westfield Černý Most originally opened in 1997 and was among the first large-scale shopping centres in the post-1993 Czech Republic. Earlier expansion stages began in 2000. The architectural concept for the most recent extension was developed by London-based studio Benoy.

Major logistics tenant leases 80,000 sqm at new CTPark Budapest–Érd

CTP has secured an 80,000 sqm build-to-suit lease with a large international logistics company at the newly launched CTPark Budapest–Érd. The facility, tailored to the tenant’s operational requirements, is scheduled for handover in the first quarter of 2027.

The occupier will consolidate its activities into the new site, which was selected for its access to the M6 motorway, proximity to the M0, M1, M6 and M7 transport corridors, and availability of local labour. The park, located on a 70-hectare plot at the border of Érd and Budafok-Tétény, is CTP’s sixteenth industrial location in Hungary.

Development of CTPark Budapest–Érd began in January 2025. The project is planned to provide approximately 250,000 sqm of Grade-A industrial and logistics space once fully built out. The 80,000 sqm agreement, together with the initial 75,000 sqm phase, reflects continued pre-letting activity in the area.

The park’s masterplan includes service facilities, green areas, and connections for pedestrians and cyclists, including links to the Tétényliget railway station and the EuroVelo 6 cycling route. CTP states that all buildings will feature energy-efficient design elements such as improved insulation, LED lighting, and photovoltaic panels. Green façades and newly planted forest areas along the Danube form part of the site’s environmental measures, supported by cooperation with the Hungarian Garden Heritage Foundation.

According to CTP Hungary, the project aims to integrate with the surrounding landscape while meeting modern logistics standards. CTP continues to expand its CEE industrial network, with a significant share of its annual leasing activity coming from existing tenants across its parks.

Sweden’s Property Market Rebounds as Investor Confidence Returns

fletcher@cijeurope.com
13 November 2025
Logistics, Market Report, Office, Residential

Sweden’s real estate market showed clear signs of recovery in the third quarter of 2025, supported by improving financing conditions, stronger investment flows and sustained occupier demand across key sectors. Total property transactions reached approximately SEK 33 billion during the quarter and SEK 104 billion for the first nine months of the year — about 27 percent higher than the same period in 2024.

Foreign investors were notably active, accounting for around a quarter of all investment volume, well above the historical average. Industrial and logistics properties led the market, followed by residential and office assets. Major deals included Alecta’s sale of its 50 percent stake in Ancore to ICA Fastigheter, Vasakronan’s purchase of Solna United from DWS, and Hines’ acquisition of an eight-asset logistics portfolio from Blackstone covering Stockholm and Gothenburg.

The Riksbank’s decision to lower the benchmark rate to 1.75 percent, after a series of cuts since mid-2024, has started to ease pressure on financing and stimulate renewed investor interest, particularly in sectors that had been constrained by higher borrowing costs. Analysts expect that the downward trend in interest rates will continue to stabilise valuations and gradually lift transaction volumes through 2026.

In the housing market, activity increased moderately as buyers and investors responded to improving credit conditions. Residential transaction volumes rose by roughly seven percent year-on-year, reaching SEK 9.9 billion in the third quarter, while the number of deals climbed by more than a quarter. Several high-profile transactions underscored renewed confidence in the sector, including Familjebostäder’s acquisition of 14 apartment buildings in Hjulsta and KKR’s forward funding of a new residential development in Täby.

Rental demand remains strong across Sweden’s largest cities, but construction has slowed significantly. The number of new apartment completions in 2025 is expected to fall by nearly half compared with two years earlier, limiting supply at a time of steady population growth and housing need. Although smaller municipalities have reported isolated cases of increased vacancy in new developments, the main metropolitan regions continue to experience structural undersupply.

The logistics and industrial segment remains one of the country’s most dynamic asset classes. Leasing activity accelerated in Q3 to nearly 240,000 sqm, driven by expansions from occupiers in e-commerce, manufacturing and pharmaceuticals. Notable transactions included major new leases by Hitachi, Epiroc, AstraZeneca and Salix Group. Despite a slight increase in vacancy due to a wave of new completions, demand for sustainable and strategically located warehouse space continues to outpace supply in most regions.

Investment in logistics assets accounted for around one-third of Sweden’s total property market turnover in the third quarter, almost doubling the level recorded a year earlier. Yields remained stable, reflecting ongoing competition for prime assets and a cautious but confident outlook among investors.

Across all property sectors, Sweden’s market is showing stronger fundamentals than at any point since the peak of the rate-hike cycle. Lower borrowing costs, rising international participation and a gradual return of development activity point toward a measured but broad-based recovery as the country heads into 2026.

Norway’s Property Market Remains Stable as Investors Focus on Core Assets

fletcher@cijeurope.com
13 November 2025
Finance, Market Report, Office, Residential

Norway’s commercial property market showed steady performance in the third quarter of 2025, following a strong first half of the year. Investment activity slowed slightly during the summer months, reflecting seasonal trends, but remained consistent with broader regional patterns across the Nordics.

Total real estate transactions in Norway during the first nine months of the year reached close to NOK 47 billion. Although this represents a modest decline from the same period last year, the number of deals has increased, indicating that market interest remains resilient even under tighter financing conditions.

Activity was led by residential and retail properties, both of which saw increased investor focus. Housing assets accounted for nearly a quarter of total transaction volume this year, while retail investments expanded after several quarters of subdued performance. Among the notable transactions were the sale of a shopping centre in Bergen and the acquisition of major office and mixed-use properties in Oslo, underlining continued appetite for well-located assets.

Interest rates and borrowing costs remain key factors shaping investment strategy. The central bank reduced its policy rate earlier this year, but longer-term lending rates have edged higher, keeping financing conditions relatively demanding. Despite this, property values and yields have remained broadly stable, supported by equity-backed investors and selective acquisition strategies.

In the Oslo office market, rental levels and occupancy have stabilised after recent fluctuations. Demand continues to be driven by modern and energy-efficient buildings in central locations, while older premises face greater competition for tenants. Vacancy in the capital region has stayed within a moderate range, and new construction remains limited, helping to maintain balance between supply and demand.

Market analysts note that investors and occupiers alike are focusing on quality and sustainability. Developers are prioritising energy performance and adaptability in new projects, while investors are concentrating on long-term value rather than short-term yield shifts.

Overall, Norway’s property market continues to show resilience. With stable pricing, selective investor engagement and consistent tenant demand in prime locations, the sector appears to be moving through a period of consolidation rather than contraction as 2025 draws to a close.

Source: CBRE

Finland’s Real Estate Market Shows Broad Signs of Recovery in Q3 2025

fletcher@cijeurope.com
13 November 2025
Indicators, Logistics, Office, Residential

Finland’s property market recorded a steady upturn in activity during the third quarter of 2025, with investors showing renewed interest across several key sectors after a subdued 2024. The rebound was driven by stronger demand in the residential and healthcare segments, alongside stable conditions in offices and industrial assets, according to new data from CBRE Finland.

The total value of property transactions in the quarter reached more than €700 million, a marked improvement from the same period last year. Housing-related assets accounted for the largest share of investment, supported by one of the biggest deals of the year—the acquisition of a nationwide residential portfolio by SATO from OP Rental Yield Fund. The healthcare sector also saw heightened activity, including the sale of a major wellbeing centre in Helsinki to an institutional investor.

While the overall investment volume has yet to return to the record highs seen earlier in the decade, the Finnish market is clearly regaining momentum. Investors remain focused on stable, income-producing assets in prime locations, with the Helsinki Metropolitan Area continuing to attract both domestic and international capital. Pricing across most asset classes has remained steady, and confidence in the country’s real estate fundamentals is strengthening.

In the office market, activity concentrated on high-quality buildings in central Helsinki, where modern and energy-efficient workplaces continue to attract occupiers. Although total leasing volumes remain below pre-pandemic levels, the market has shown clear signs of stabilisation. Tenants are prioritising well-connected buildings that meet sustainability standards, while older and less efficient stock continues to experience weaker demand.

The industrial and logistics sector continues to perform well, benefiting from Finland’s role as a northern logistics hub and ongoing supply-chain modernisation. Demand from e-commerce, manufacturing and data-centre operators has helped maintain low vacancy rates in the most accessible regional locations. Rental levels have remained firm despite rising development costs and a slowdown in speculative construction.

In the residential sector, investor confidence is gradually returning. The slowdown in new housing completions has created a more balanced market, particularly in the Helsinki area and university cities. Investors are increasingly targeting affordable and energy-efficient housing as long-term rental demand remains stable.

Healthcare properties have become a notable area of focus for institutional investors seeking dependable returns. The combination of ageing demographics, long lease terms and strong tenant covenants has made the sector an attractive alternative to traditional commercial assets.

Across all segments, CBRE reports that prime yields were largely unchanged in the third quarter, with minor downward adjustments in some retail categories and logistics properties. Market sentiment has shifted toward cautious optimism as investors and developers adapt to a more stable financial environment and modest improvements in financing conditions.

Overall, Finland’s real estate market appears to be entering a new phase of recovery, characterised by selective investment, sustainable development priorities and an emphasis on long-term value creation.

Source: CBRE

Prague’s New Apartment Supply Remains Tight as Permitting Slowdown Deepens

The supply of new apartments in the Czech capital continues to stagnate despite developer pipelines holding tens of thousands of planned units. Market data from leading residential developers shows that Prague currently has roughly 5,700 new-build apartments available for sale, a level that has changed little over the past year.

The distribution of units remains uneven. Central districts, particularly Prague 1 and Prague 2, continue to show the most limited availability, while Prague 9 accounts for the largest share of the market and remains the city’s most active development area. The district has seen the transformation of several former industrial zones and today represents one of the main hubs for new residential projects.

Market activity continues to be dominated by 2+kk units, which represent around 40% of both supply and transactions. Developers report a longer-term decline in the share of studio apartments, which has fallen to below one-fifth of the market as buyers prioritise slightly larger units with more flexible layouts.

Developers are adjusting to these trends by adding projects aimed at smaller, more affordable units. Central Group recently launched another phase of its Harfa Living development, designed to meet ongoing demand from both owner-occupiers and private investors seeking compact apartments with lower entry prices.

Permitting at a standstill

The key challenge facing the market remains the slow pace of permitting in the capital. According to publicly available development data, less than 4,000 apartments were approved in the first three quarters of 2025, leaving the city far from meeting the estimated annual demand of around 10,000 units. Approvals recorded in the third quarter were among the lowest in recent years, continuing a long-running trend of administrative delays.

Despite continued year-on-year growth in the Czech construction sector as a whole, Prague’s approval pipeline has increasingly failed to keep pace with demand. Developers warn that prolonged delays, combined with ongoing shortages of skilled labour and limited availability of raw materials, may further constrain future construction activity.

Government pledges reform

The newly formed government has identified housing as a strategic national priority and has signalled its intention to accelerate the approval of residential projects. Planned measures include wider implementation of digitised permitting procedures, reducing regulatory overlap, and classifying key housing developments as strategic projects to speed up their processing.

Industry representatives note that if these measures are implemented effectively, they could help unlock a significant portion of the residential pipeline. Developers collectively hold planning projects amounting to over 100,000 units that could enter the market more quickly under a streamlined approval system.

Only a sustained increase in the pace of new construction, combined with a more efficient permitting process, is expected to ease the longstanding pressure on housing availability and affordability in the capital.

PSN starts construction on JITRO residential project in Prague’s Vršovice

PSN has commenced construction of its new residential development, JITRO, located on Litevská Street in Prague’s Vršovice district. The project was officially launched with a foundation stone ceremony attended by representatives of the developer, the architectural studio, and the city district.

JITRO will deliver 144 apartments in a residential building and 35 townhouse-style units. The architectural design is by QARTA Architektura, while PRŮMSTAV is responsible for construction. According to the developer, the project is intended to complement the existing urban fabric of Vršovice with contemporary housing focused on durability, functionality, and everyday comfort.

The development will feature units ranging from compact studios to larger family layouts. Shared amenities include a community roof terrace, wellness area with sauna, gym, bicycle storage, and laundry room, along with landscaped outdoor areas.

The location offers a full range of urban services and public transport options. Completion and final inspection are scheduled for the second half of 2027.

LEG Immobilien reports stronger nine-month results and maintains 2026 earnings outlook

LEG Immobilien SE has reported a solid performance for the first nine months of 2025, confirming its full-year guidance and projecting continued earnings growth in 2026. The German residential landlord recorded an adjusted funds from operations (AFFO) of €181.3 million between January and September, an increase of 19.3% year-on-year. The improvement was driven by rental growth, the integration of the Brack Capital Properties portfolio, and increased revenue from value-add services. FFO I rose 12.6% to €370.7 million.

Rental income increased by 6.8% to €687.7 million, with comparable rents growing 3.6% in the free-financed segment. The EPRA vacancy rate remained low at 2.5%. LEG invested €291.9 million in maintenance and modernisation during the first nine months—around 10% more than in the prior-year period—as the company continues to prioritise portfolio upgrades and energy-efficiency measures.

LEG’s properties recorded a 4.1% increase in EPRA NTA per share since December 2024, supported by rising residential values in its markets. The company expects a valuation uplift of 1.5% to 2.0% in the second half of the year. Apartment disposals are accelerating, with roughly 2,200 units sold or agreed for sale in the first three quarters for €190 million. LEG maintains that sales will not be executed below book value.

The company reports that its financing position remains stable. Loan-to-value was 48.3% at the end of September, and all refinancing needs are covered until the end of 2026. Moody’s recently affirmed LEG’s Baa2 investment-grade rating and upgraded the outlook to positive.

LEG maintains its 2025 AFFO guidance of €215–225 million and has introduced an outlook for 2026, forecasting AFFO in the range of €220–240 million. The company expects to achieve an LTV of about 45% in 2026 and plans to continue investing more than €35 per square metre in portfolio improvements. Rental growth of 3.8–4.0% is forecast for 2026, with higher growth expected in subsequent years as subsidised units gradually exit regulated rent schemes.

PTXRE forecasts selective German real estate recovery in 2026 amid ongoing financing pressure

Germany’s real estate market will remain characterised by selective investment activity in 2026, according to a new market outlook published by PTXRE. The consultancy estimates that the refinancing shortfall in the market will reach approximately €8.5 billion next year, with office assets accounting for nearly €5.1 billion of that figure. PTXRE attributes the pressure on refinancing to tightened lending standards and higher capital requirements as Basel IV and CRR III come into force, limiting banks’ risk appetite, particularly for non-core assets.

The company expects total transaction volume in 2026 to reach around €40 billion. Rather than new capital entering the market, PTXRE says most transactions are likely to be driven by reallocation and portfolio optimisation as institutional investors remain cautious in the core and core-plus segments. ESG regulation will play a decisive role in shaping market behaviour next year. Three regulatory changes – the Energy Performance of Buildings Directive, the Carbon Border Adjustment Mechanism, and expanded Corporate Sustainability Reporting Directive requirements – will place increasing pressure on investors and owners to quantify energy performance, adjust sourcing strategies and develop decarbonisation plans. PTXRE notes that assets falling short of ESG compliance requirements may face a growing need for repositioning or divestment.

Market dynamics are expected to vary significantly by sector. In the office market, demand will remain focused on centrally located properties with rental growth potential, while peripheral locations continue to experience downward pressure. In the residential sector, completions are expected to fall to roughly 175,000 units, well below the annual demand of more than 300,000 units, creating selective entry points in subsidised housing, compact formats and energy-efficient stock. Logistics and industrial facilities are projected to remain resilient, supported by structural demand linked to data infrastructure, security and supply chain requirements. Retail properties anchored by food and daily-needs operators continue to attract investor interest, while mixed-use redevelopment is gaining momentum in urban and secondary locations. The hotel sector is seeing improving performance driven by higher occupancy and renewed expansion strategies from international operators.

PTXRE concludes that 2026 will be defined by capital selectivity and regulatory adaptation. The consultancy expects the refinancing gap to gradually decline over the coming years and return to pre-rate-hike levels within five to six years.

Slovenia Adopts Amendments to Building Act to Simplify Procedures and Strengthen Oversight

Slovenia has introduced a series of changes to its Building Act (GZ-1B), which took effect on 15 October 2025 following publication in the Official Gazette. The amendment aims to simplify administrative procedures, improve legal clarity, and accelerate reconstruction efforts, particularly in response to natural disasters.

The revised legislation streamlines permitting for urgent and temporary construction, enhances inspection powers, and introduces broader use of digital tools such as the eGraditev electronic system. The platform will gradually become the central channel for issuing permits, managing applications, and conducting inspections, with full integration planned by 2028.

Among the most notable adjustments is the updated definition of temporary structures, which can now be erected without a building permit for up to three years in emergencies or other exceptional circumstances. Rules for emergency reconstruction have also been clarified, allowing damaged buildings to be restored to their original state more quickly, with a one-year window to begin construction after an incident.

Inspection and enforcement have been reinforced after years of limited capacity at the Construction Inspectorate. The amendment introduces clearer oversight mechanisms for projects that do not require building permits and will link inspection processes to eGraditev in the coming years.

The law also tightens deadlines for public authorities to issue opinions and project conditions — 15 days in standard cases and 30 days where extended by law. If these deadlines are missed, a positive opinion will be presumed, reducing bureaucratic delays that have historically slowed development.

Further changes include the explicit recognition of universal design principles, provisions encouraging the reuse of building materials without reclassification as waste, and priority processing for public-interest projects such as housing, infrastructure, and student accommodation.

Legalisation rules have been extended until the end of 2030 for buildings that reached the rough construction phase before November 2017. The amendment also establishes a presumption of legality for certain older structures built before 1967 or with valid permits issued before the early 2000s.

Overall, the GZ-1B amendment reflects Slovenia’s move toward a faster, more transparent, and digitally supported construction permitting system that balances development needs with stronger regulatory oversight.

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