CPI Hungary navigates market shifts with tenant partnerships and strategic investments

In a Q&A interview with CIJ EUROPE, Mátyás Gereben, Country Manager at CPI Hungary, shared insights into the company’s current market position, strategic focus areas, and future plans amid a challenging economic climate.
CPI Hungary remains one of the leading real estate owners and asset management firms in Hungary, managing a portfolio valued at over €1.3 billion and comprising approximately 650,000 sqm of gross leasable area across office, retail, and hotel segments. Gereben emphasised that the company’s efforts are balanced across these asset classes, with a strong emphasis on forging deeper partnerships with tenants. Instead of maintaining a traditional landlord-tenant relationship, CPI Hungary aims to understand and align with tenants’ needs, creating mutual benefits and longer-term stability.

Addressing shifting market dynamics, particularly in the office and retail sectors, Gereben highlighted CPI’s proactive approach to environmental, social, and governance (ESG) goals and evolving workplace trends. CPI Hungary has long positioned itself as an environmentally conscious player in the market. The company has implemented various initiatives to enhance its ESG performance, including 360-degree selective waste management, consumer-side electricity optimisation, adaptive building management systems, a 100% LED lighting programme, and the expansion of green spaces. Notably, nearly 70 percent of CPI’s office tenants have signed green leases, reflecting a shared commitment to sustainability and collaborative thinking for long-term success.

Economic and regulatory changes in Hungary have presented significant challenges for the real estate sector. Gereben noted that Hungary currently faces the highest economic and political risk levels in the Central and Eastern European region, which has implications not only for investments and development decisions but for the broader business environment. The relocation of approximately 500,000 sqm of government institutions from commercial office space into state-owned properties has contributed to increased vacancy in the office sector, complicating new development prospects. Despite these challenges, CPI Hungary maintains a cautiously optimistic outlook, seeking opportunities where long-term business cases remain viable. Recently, the company completed a comprehensive refurbishment of a downtown hotel and is preparing to commence development of a retail park in north-eastern Hungary in the coming weeks.

Looking at future initiatives, Gereben confirmed that CPI is actively working on repositioning parts of its portfolio in response to current market demands. This strategy includes converting some Class B office buildings into hotels or residential units, reflecting a flexible approach to asset management and market realities.
Over the next 12 to 18 months, CPI Hungary’s priorities will centre on tenant retention, portfolio optimisation, and sustainable capital expenditure. The company has established the CPI Club, an initiative designed to enhance tenant relationships and provide complex services tailored to tenants’ evolving needs. In addition, CPI remains focused on generating long-term value through smart and sustainable investment strategies, while also considering the repositioning or disposal of non-core assets to refine its portfolio and strengthen its market position.

Through this combination of adaptability, tenant-centric management, and sustainable investment, CPI Hungary is positioning itself to navigate both the immediate challenges and future opportunities within Hungary’s real estate market.

Source: CIJ EUROPE

Rising labor costs and staff shortages drive interest in process outsourcing in Poland

Poland’s labor market continues to show signs of strain as wages rise and companies struggle to fill vacancies, particularly in logistics and manufacturing. According to data from the Central Statistical Office (GUS) and the Gi Pro 2025 salary report, the average gross salary in the enterprise sector has now exceeded PLN 8,900, while the median salary in the national economy is above PLN 6,800. At the same time, the logistics sector’s vacancy rate stands at 1.16%, underscoring the persistent difficulty employers face in maintaining operational continuity.

The Gi Pro 2025 report highlights ongoing challenges across industries. In logistics, 44% of companies said job candidates withdrew during the recruitment process, and 41% reported skill mismatches. Manufacturing firms most frequently cited excessive wage demands and difficult working conditions as key obstacles, with 36% pointing to these issues. Despite these barriers, demand for workers remains high. At the end of the first quarter of 2025, there were over 21,600 vacancies in manufacturing and more than 10,000 in logistics, with strong demand for machine operators, packers, warehouse staff, forklift operators, and fitters.

Employers are also reporting high turnover in entry-level positions, with some companies experiencing double-digit monthly rates. Seasonal workload peaks add further strain, and many businesses admit they cannot meet all orders. Despite this, 82% of surveyed manufacturing and logistics companies say they do not plan to expand permanent employment, citing economic uncertainty and the limited pool of available candidates.

Official statistics show wages rising rapidly, with GUS reporting a 9% year-on-year increase in June 2025. At the same time, employment in the enterprise sector fell by 0.8% year-on-year, suggesting that firms are unable to expand full-time headcount in proportion to their needs. The costs of absenteeism, recruitment, and onboarding are also increasing, leading some employers to question the sustainability of a traditional full-time hiring model.

“In many companies, the full-time model is no longer viable, not only financially but also operationally,” said Jakub Kizielewicz, CEO of the Opteamic Group, a process outsourcing provider. “Hiring permanent staff for seasonal or unpredictable tasks is increasingly seen as a risk. More companies are asking us to take over the process itself, deliver the results, and relieve them of managing daily operations.”

Process outsourcing differs from temporary staffing in that the service provider assumes responsibility for an entire operational process. This includes building team structures, managing supervision, ensuring quality control, and delivering results based on agreed performance metrics. The client does not manage individual workers but instead receives outcomes such as on-time deliveries or completed production runs.

This model is particularly attractive in industries with seasonal or project-based fluctuations, including logistics, contract manufacturing, food processing, and distribution. Companies adopting process outsourcing can achieve greater predictability and reduce the burden on internal teams, allowing management to focus on business development rather than day-to-day operations.

According to the Gi Pro 2025 salary report, firms are increasingly evaluating employment costs in a broader sense – not just wages, but also indirect expenses linked to turnover and inefficiencies. In this environment, models that prioritize flexibility, standardization, and accountability for results are expected to play a growing role.

First lease signed at renovated PRISMA office building in Frankfurt

Sonar Real Estate has signed the first lease at PRISMA, a major office redevelopment project in Frankfurt’s Lyoner Quartier. IT consulting firm adesso SE has committed to around 6,500 square metres of office space, marking the beginning of the active leasing phase for the building.

The office space is scheduled for occupation in spring 2026, once the fit-out is completed. According to adesso SE, the decision to remain in Lyoner Quartier was based on both the building’s flexible design and its sustainable refurbishment.

PRISMA comprises approximately 50,000 square metres of gross floor area, including 44,000 square metres of office space. The property, acquired in 2022 by Sonar Real Estate together with a fund advised by Patron Capital Advisers, was previously occupied by Deka Bank. The building has since undergone a comprehensive renovation designed by Holger Meyer Architekten, focusing on energy efficiency, flexibility, and ESG compliance.

Sonar reports that primary energy consumption has been reduced by 55%, allowing the building to meet the KfW 55 standard. Projected CO₂ emissions are under three kilograms per square metre per year, equivalent to 42% lower emissions compared with a conventional new build. The project is targeting DGNB Platinum and BREEAM Excellent sustainability certifications.

A reuse approach has also been integrated into the refurbishment. Fixtures, materials and furniture were evaluated for reusability, with many items reintegrated into the building or redirected into the material cycle.

Beyond office space, PRISMA will include a 3,000-square-metre atrium accessible to the public, with facilities for catering, co-working, conferences, and exhibitions. Additional amenities include a planned restaurant, fitness centre, and event space.

The renovation is due for completion by the end of 2025. Sonar says further leasing discussions with potential tenants are ongoing.

Savills advised the owner, JLL acted for the tenant, and Gowling WLG provided legal counsel.

Poland absent from Washington meeting on Ukraine amid internal power dispute

Poland was notably absent from a high-level meeting at the White House in Washington on 18 August, where U.S. President Donald Trump hosted Ukrainian President Volodymyr Zelenskyy and several European leaders to discuss Ukraine’s security guarantees. Neither President Karol Nawrocki nor Prime Minister Donald Tusk were present, sparking criticism and debate within Poland.

President Nawrocki later said that the “coalition of the willing” — a group of 33 countries backing Ukraine — participated via video on 17 August, with Foreign Minister Radosław Sikorski representing Poland in that call. He also emphasized that it was Zelensky who extended invitations to European leaders, implying no formal invitation was issued to Poland for the Washington meeting.

Georgette Mosbacher, a former U.S. ambassador to Poland, attributed responsibility to the president’s administration, stating: “They were waiting for an invitation to the White House.” She also highlighted the symbolism of Nawrocki’s upcoming White House visit in September, affirming Poland’s important role to the U.S.

Sources further confirmed that President Nawrocki is scheduled to meet President Trump at the White House on 3 September, with the invitation having been extended via a congratulatory note following his inauguration.

At the same time, Prime Minister Tusk remains focused on coordinating support for Ukraine through European Union mechanisms, including engaging in what he described as a “coalition of the willing” for unified political and military backing. These overlapping approaches have exposed a growing rift in how Poland executes foreign policy, with both leaders sending conflicting signals, and critics warning of a divided national voice.

Source: Warsaw Enterprise Institute (WEI)

Savills warning: Energy performance certificates fail to reflect real building efficiency in Prague

A recent internal survey by Savills covering numerous office buildings in Prague findings reveal that, on average, only 14% of properties hold Energy Performance Certificates (EPCs) rated A or B. Most buildings fall into class C or lower, or lack EPC data entirely. Older buildings, which are less likely to share their energy credentials, are frequently missing documentation and are the ones most in need of modernization to meet future legislative standards.

Jan Jurčíček, Head of Building & Project Consultancy at Savills, emphasized the limits of relying solely on EPCs. “The situation is further complicated by the fact that energy performance certificates (EPCs) often have limited informative value. For older buildings, the EPCs are either overestimated—due to outdated methodology—or underestimated if post-certificate improvements haven’t been reflected,” he said. He noted that EPCs are based on model conditions—such as set indoor temperatures and standard operating hours—that often do not match real-world usage. “Actual energy consumption of office buildings can exceed EPC figures by tens of percent,” Jurčíček added.

EPCs are often treated as guarantees of sustainability, a practice Savills warns against. “Energy Performance Certificates are often mistakenly considered a guarantee of sustainability or a low-carbon footprint. In reality, they only assess the building’s energy performance against legislative requirements, and do not always reflect the overall carbon footprint or operational efficiency,” stated Barbora Jansová, ESG Consultant & Project Manager at Savills. She highlighted that EPC standards vary across versions and jurisdictions, making comparison difficult. Nonetheless, EPCs remain relevant from a regulatory standpoint. “For financing institutions, an EPC is certainly a valuable and measurable input within their ESG strategy, but it is by no means the only factor,” Jansová said.

In parallel, the revised Energy Performance of Buildings Directive (EPBD) introduces mandatory requirements that signal a shift from voluntary measures to binding regulations. According to EU sources, it must be transposed into national laws by 29 May 2026, and requires member states to renovate the worst-performing 16% of non-residential buildings by 2030, and 26% by 2033. New constructions from 2030 must be zero-emission buildings. Additionally, the directive introduces digitalized EPCs and Building Renovation Passports to guide staged energy upgrades. The EPBD’s intent is to decarbonize the EU’s building stock by 2050, reducing energy consumption while at the same time promoting transparency and financial support structures for sustainable renovation efforts.

Savills warns that outdated EPCs are becoming increasingly insufficient tools. With legislation approaching, property owners must go beyond historic certiﬁcates. They should consider carbon footprint analyses, CRREM risk assessments, or EU Taxonomy alignment to manage long-term environmental risks and maintain asset value.

West Group completes acquisition of iResidence project in Northern Bucharest

West Group has concluded the full acquisition of the iResidence residential project in northern Bucharest, a location noted for its convenient access to major traffic routes, business centers, retail hubs, and reputable schools. The transition was completed under legally agreed commercial terms, ensuring that construction continues uninterrupted and maintains its existing quality standards.

“We have completed the transfer of the project company and kept the construction site in normal operation. Through this acquisition, we bring clarity, financial discipline and additional resources to deliver iResidence at the quality level promised to our clients,” said Dan Crăciunescu, founder of West Group.

The iResidence development will feature 520 apartments, each including at least one parking space and a storage unit within a two-level underground area. In the first phase of construction, the structural framework for 260 apartments is complete. Detailed progress across site buildings includes exterior joinery completed in building B3, masonry work concluding in B1, and upcoming electrical and plumbing installations at B3. Window installation for buildings B1 and B2 is scheduled for later this autumn.

So far, 105 apartments and two commercial units have been sold, amounting to approximately €17.5 million in total sales . The project is backed by a balanced financing structure: €18.8 million in equity, €5 million from banking loans, and around €7.7 million from client down payments. Additional financing is being negotiated to accelerate progress.

Mr. Crăciunescu added, “Buyer interest in iResidence apartments remains steady, and the financing structure gives us confidence to maintain progress and communicate transparently. In the Pipera area, monthly mortgage payments can be about 25% lower than rents for comparable properties, making ownership a more attractive long-term option”.

West Group is also offering attractive purchasing terms, including a 1% down payment upon signing the pre-contract, a 10% discount from listed prices, and a payment schedule tied to construction milestones—30% after installing exterior joinery, 30% at façade completion, 30% following screed pouring, and the remaining 9% upon signing the final sales contract.

The project is designed as a sustainable, inclusive residential community. It will include a 15,000 m² private park featuring playgrounds and bike paths, a wellness center with a swimming pool and gym, a retail gallery, and aims to achieve BREEAM certification for environmental performance.

July sees record apartment sales in Romania ahead of VAT increase, report finds

Romania’s residential market experienced a pronounced surge in July, recording unusually high apartment sales in Bucharest and other major cities as buyers rushed to secure purchases under the reduced VAT rate before it increased from 19% to 21% on 1 August.

In Bucharest, slightly more than 5,000 homes changed hands—marking the third strongest monthly performance in the past two and a half years—especially concentrated in Sectors 3 and 6, reinforcing their status as development hotspots . Cluj-Napoca emerged as another market with pronounced activity, where July saw over 1,000 transactions, the highest level in approximately three and a half years . In contrast, Timișoara posted modest gains, and Iași experienced a noticeable slowdown in sales.

Comparing the first seven months of 2025 with the same period in 2024 reveals diverging trends: Bucharest recorded a 7% decline, Timișoara slipped by 3%, and Iași dropped sharply by 25%, while Cluj-Napoca posted a robust 14% year-on-year increase. On aggregate, the national market remains broadly on par with the previous year.

Colliers attributed the July surge to buyers and developers accelerating transactions ahead of the VAT shift. Pre-contracts signed by 1 August enabled buyers to retain eligibility for the reduced VAT, provided the properties are delivered by 1 August 2026.

Real estate analysts warn that the VAT hike may put upward pressure on housing prices, though actual pricing outcomes will depend on the supply-demand balance. Some developers have indicated they may absorb some or all of the increase, at least temporarily, to maintain sales momentum. Nevertheless, environmental factors—such as new taxes, higher property levies, rising energy costs, and a weakening economic backdrop—may weigh on demand in the coming months.

Additional data from the property sector highlights a significant year-on-year jump in national apartment sales for July: a 16.7% increase compared to July 2024, with strong regional growth—Cluj up 20.2%, Iași up 27.3%, and Timiș up 15.4% . Experts noted that this surge exceeded even previous record-setting years like 2021 and 2022.

Children from flood-hit Kłodzko to spend summer at Borussia Dortmund football camp

In the summer of 2024, the town of Kłodzko and surrounding areas were severely affected by flooding that damaged homes, schools, and community facilities. More than a year later, rebuilding continues, and support initiatives remain in place for residents still dealing with the consequences.

The Robert Dobrzycki Foundation, which last year coordinated cleanup efforts with volunteers from Panattoni and provided more than PLN 600,000 in aid, has launched a new initiative in cooperation with the Łukasz Piszczek Academy Foundation and partners. Together, they are organizing a football camp with Borussia Dortmund for children from families impacted by the disaster.

The day camp will take place between 18 and 22 August 2025 at the Sports and Recreation Center in Kłodzko, a facility that previously served as an emergency response hub during the floods. The program will include daily training sessions with licensed Borussia Dortmund coaches, meals, supervision by qualified staff, and the provision of training kits. At the end of the camp, participants will receive medals, diplomas, and small gifts.

Local officials and organizers highlighted the importance of the initiative. “Kłodzko is still rebuilding after last year’s flood. Every initiative that brings joy and a sense of normality to our community is of great importance,” said Mayor Michał Piszko. According to Michał Zioło, Director of the Łukasz Piszczek Academy Foundation, the project demonstrates the value of long-term support: “A year after the flood, children can once again enjoy safe and active holidays. This proves that working together really does bring results.”

Organizers also emphasized the symbolic role of the Sports and Recreation Center, which has shifted from a site of emergency relief to a venue for children’s activities. “The same place that once hosted response efforts is now providing space for play, development, and new friendships,” noted Tomasz Perczyński, Director of the Center.

According to Malwina Pawłowska, Director of the Robert Dobrzycki Foundation, the camp is intended to provide children with positive experiences after a difficult period. “After their dramatic experiences, we want to give them the chance to play, develop, and feel remembered,” she said.

Survey finds most Romanian employees seek greater employer support

A survey by Genesis Property shows that nearly six in ten Romanian employees believe their employers could do more to support both professional and personal development. The study, conducted on a nationally representative sample of 1,012 respondents, highlights rising expectations in a period marked by economic pressures and slower wage growth.

More than half of those surveyed said they would like to see additional benefits from their employers. Close to half expressed interest in performance-based bonuses, while many also called for more time off or access to wellness-related services such as massage and psychotherapy. The findings suggest that employees increasingly value non-monetary support to balance professional growth with personal well-being.

Commenting on the results, Elena Panait, Head of Leasing & ComYunitY at Genesis Property, said professional advancement and personal development are now inseparable. She noted that environments fostering learning, reflection, and authenticity help employees not only remain with their employers but also grow and contribute more fully.

The study also found that more than 80 percent of Romanian employees continue to see the office environment as essential for career development. This aligns with broader research showing that teleworking remains less widespread in Romania compared with other EU countries, largely due to the structure of the national workforce.

Context from the wider labor market underscores why employees place growing emphasis on benefits and supportive workplace cultures. A Randstad Romania survey earlier in 2025 showed that most employers planned salary increases of between six and ten percent, yet many workers viewed this as insufficient. Other research by Undelucram.ro reported that 43 percent of Romanian employees are dissatisfied with their current pay, and nearly two-thirds would consider changing jobs for higher salaries.

At the same time, studies suggest that salary alone does not determine satisfaction. Research published in Sustainability has shown that greater flexibility in work arrangements and access to supportive workplace resources can significantly boost job satisfaction.

Genesis Property notes that these trends are informing its long-term plans, including the completion of YUNITY Park in Bucharest. The project’s next stage, the Innovation Center, is due to open following an additional €20 million investment, continuing efforts to create office environments that combine professional and personal growth opportunities.

Colliers: Prague could see 600,000 m² of new office space by 2029

Prague’s office market may expand by as much as 600,000 square meters by 2029, according to a new report from Colliers. The forecast comes as construction activity picks up despite a historically low level of completions in 2025.

In the second quarter, only two projects were finalized, adding 11,300 square meters to the market. For the year as a whole, completions are expected to reach 26,600 square meters—one of the lowest levels of new supply ever recorded in the city. At the same time, four new projects were launched, bringing the total area under construction to 212,600 square meters.

Colliers projects that between 2027 and 2029, new deliveries could total up to 600,000 square meters, although not all planned projects are expected to move forward. By the end of 2025 alone, construction is scheduled to begin on five projects totaling 119,500 square meters, all located in Prague 4. This could reestablish Pankrác, Brumlovka, and Roztyly as key office hubs after a period of limited development.

The vacancy rate in Prague continues to decline, standing at 6.6% at the end of the second quarter—down 1.3 percentage points year-on-year. Conditions vary by submarket, with Karlín reporting vacancy at 3.9%, Pankrác at 5.4%, and the city center at 4.4%. Higher vacancy persists in areas such as Chodov (12.7%) and Stodůlky (11.4%).

Demand remained stable. Gross take-up in the first half of 2025 was 253,100 square meters, in line with recent years. Net demand reached 97,400 square meters, roughly equal to the volume of renegotiations and subleases (94,700 square meters). Several major owner-occupier deals were recorded, including ČEZ securing three buildings in the Smíchov City project for its future headquarters and Creditas Bank beginning construction of its new offices in Rohan City. Together, these transactions accounted for about 61,000 square meters.

Lease renegotiations continue to play a major role in market activity, representing 53% of second-quarter demand. Colliers notes that negotiation timelines can now extend to 12 months or longer, creating challenges for tenants who delay decision-making in a market with limited availability.

Rental benchmarks remain steady, with prime rents in central Prague at €30 per square meter per month. In the wider center, rents rose slightly to €20.50, while peripheral areas remain at €16.50. Based on current activity, Colliers expects upward pressure on rents in both the city center and wider central zones, potentially reaching €35 and €25 per square meter respectively.

Looking ahead, Colliers highlights that while Prague’s office market continues to attract investors due to its transparency and competitiveness, limited supply is shifting conditions toward landlords. Tenant commitments prior to construction may become increasingly important for projects to secure financing, marking a change from the traditionally low level of pre-construction leasing in the market.

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