Kamco Invest: Middle East Conflict Adds Inflation Pressure Across GCC Economies

Inflationary pressures across the Gulf region have intensified following the escalation of conflict in the Middle East, according to a new report released by Kamco Invest. The report said disruptions to global energy and commodity markets have contributed to a renewed rise in inflation expectations worldwide, reversing part of the disinflation trend seen over the past two years.

According to the report, the International Monetary Fund has raised its forecast for global inflation to 4.4 percent in 2026, before moderating to 3.7 percent in 2027. In a more adverse scenario, where oil prices remain close to $110 per barrel due to prolonged supply disruptions, global inflation could rise to 5.4 percent in 2026 and exceed 6 percent in 2027.

The report noted that energy supply disruptions linked to the closure of the Strait of Hormuz and the wider regional conflict have pushed up fuel and food prices globally. In the United States, inflation accelerated to 3.8 percent in April 2026 from 3.3 percent a month earlier, marking the highest level since May 2023. Eurozone inflation also increased to 3 percent in April, driven primarily by higher energy costs.

Kamco Invest said Gulf economies have so far experienced more moderate inflationary effects than several other emerging markets, although risks remain elevated due to the region’s dependence on imported food and desalinated water supplies. The report added that prolonged disruptions could place additional pressure on food inventories and increase import costs across the region.

The report highlighted that Gulf central banks have broadly maintained interest rates in line with the Federal Reserve System, which kept rates unchanged in April 2026 amid renewed inflation concerns. At the same time, inflation trends within GCC countries have remained mixed.

In Kuwait, inflation rose 2.6 percent year-on-year in April 2026, driven mainly by a 6.3 percent increase in food and beverage prices. Transport prices rose 4.5 percent during the month, while housing services increased at a slower pace of 0.5 percent annually.

Saudi Arabia maintained one of the lowest inflation rates in the region, with consumer prices rising 1.7 percent year-on-year in April 2026. Housing, utilities and fuel costs increased 3.8 percent, supported by higher residential rents, while transport prices rose 1 percent. Food and beverage prices increased 0.6 percent annually.

In the United Arab Emirates, inflation remained relatively stable despite higher fuel prices. Dubai’s annual inflation rate stood at 3 percent in December 2025, while the UAE-wide inflation rate averaged 1.3 percent during 2025, supported by declines in transport and clothing prices that offset increases in housing and financial services costs.

Qatar recorded annual inflation of 2.6 percent in April 2026, led by increases in food and beverage prices, which rose 10.4 percent year-on-year. Bahrain reported one of the region’s lowest inflation levels at 1.1 percent in March 2026, while Oman registered the highest inflation rate among GCC countries at 3.2 percent in April 2026, driven largely by higher food prices, including a 25 percent rise in vegetable prices.

Kamco Invest also noted that global food prices continued to rise moderately in April 2026. The Food and Agriculture Organization food price index increased 2 percent year-on-year, supported by higher prices for meat, vegetable oils and grains. Vegetable oil prices reached their highest level since July 2022 due to stronger demand linked to biofuel production and higher crude oil prices.

Pre-Lease Activity Gains Momentum on Bucharest Office Market as New Supply Expands

The Bucharest office market is showing signs of recovery, supported by a growing number of pre-lease agreements as occupiers increasingly secure office space ahead of project completion, according to data from the latest Cushman & Wakefield Echinox Office Marketbeat Q1 2026 report.

The consultancy notes that the current development pipeline exceeds 215,600 sqm, representing the largest volume of office space under construction in recent years. The increasing level of pre-lease activity is expected to support the gradual absorption of this future supply.

Pre-lease transactions already accounted for two of the five largest office deals signed in the first quarter of 2026, continuing a trend observed in several major transactions completed during 2025.

Total leasing activity in Bucharest reached 49,100 sqm in Q1 2026, with approximately 25% represented by pre-lease agreements tied to projects scheduled for delivery within the next one to two years.

According to Cushman & Wakefield Echinox, pre-leases are becoming an increasingly important tool for developers, allowing them to reduce leasing risk and secure occupancy levels ahead of completion. The report also highlights that 83% of leasing activity during the quarter consisted of net take-up, the highest share recorded since the pandemic, indicating that occupier demand continues to be driven by company expansions and relocations despite ongoing economic uncertainty.

The market vacancy rate continued to decline, reaching 12% compared with 13.6% in the first quarter of 2025. The reduction was supported by the absence of new office deliveries and the continued absorption of existing stock.

Bucharest’s modern office stock remained unchanged at approximately 3.43 million sqm during the quarter, as no new projects were delivered.

Looking ahead, more than 215,000 sqm of office space is currently under construction, with approximately 25% expected to be delivered by the end of 2026.

Among the largest projects under development are Timpuri Noi Square II with 60,000 sqm, ARC Project with 30,000 sqm, AFI Central Tower with 28,000 sqm, Queens District with 23,000 sqm and One Technology District with 20,600 sqm.

These developments are expected to strengthen Bucharest’s main office hubs, particularly the Floreasca–Barbu Văcărescu and Center-West submarkets. The Center area is also expected to become the city’s third office submarket to exceed 500,000 sqm of stock.

Market conditions continue to vary significantly between submarkets. Prime CBD locations, particularly the area between Charles de Gaulle Square and Dacia Boulevard, recorded the lowest vacancy rates at 3%–4%. In contrast, Pipera North reported the highest vacancy level at 36.6%, although the area continues to offer some of the most competitive prime rents in the city at €9–11 per sqm per month.

Infrastructure works currently underway in the Pipera area are expected to improve accessibility and could support occupancy growth in the medium term.

Central and semi-central locations, including Floreasca–Barbu Văcărescu and Center-West, remained the most active leasing destinations, accounting for more than 80% of transaction volumes in Q1 2026.

Prime headline rents in the CBD remained stable at €21–22 per sqm per month, while rents in central and semi-central locations generally ranged between €15 and €20 per sqm per month. Peripheral office locations continued to offer rents between €9 and €13.5 per sqm per month.

Mădălina Cojocaru, Partner Office Agency at Cushman & Wakefield Echinox, said the growing share of pre-lease transactions and the current development pipeline indicate the Bucharest office market may be entering a new growth phase, supported by occupier expansion demand and improving confidence in future market conditions.

Vienna School Project Uses Low-Emission Concrete to Reduce Construction Emissions

PORR and the City of Vienna are using low-emission concrete in the construction of the ZBG Seestadt Aspern vocational school project in Vienna, with projected savings of around 4,200 tonnes of CO₂e over the course of the development.

The educational complex, scheduled to open in September 2028, will provide capacity for up to 7,500 students annually across approximately 42,000 sqm of usable space. The project is being delivered by PORR and its joint venture partner Apleona, with up to 400 workers expected on site during peak construction phases.

As part of the project, PORR is using concrete based on CEM II/C cement for load-bearing structures. According to the company, the material choice, combined with shorter transport routes, contributes significantly to lowering emissions associated with the construction process.

Approximately 36,000 cubic metres of low-emission concrete are expected to be used during construction. PORR estimates that this will reduce emissions by around 4,200 tonnes of CO₂e compared with conventional concrete solutions.

Karl-Heinz Strauss, CEO of PORR, said the savings demonstrate the scale of emissions reductions possible through alternative construction materials and supply chain optimisation.

The project also serves as a testing ground for the wider application of CO₂e-optimised concrete mixtures. PORR noted that alternative concrete formulations can create technical and logistical challenges, including longer curing times and stricter processing requirements. However, the company said these issues have not presented significant difficulties at the Aspern project.

To further reduce emissions, the project incorporates shorter supply chains and local material processing. A mobile concrete plant has been installed on site, while excavated material is being processed at a nearby gravel facility located around two kilometres away and reused in concrete production.

According to PORR, the experience gained through the project will support future applications of lower-emission construction materials in large-scale developments.

Slovakia Transposes EU Pay Transparency Directive into National Law

Slovakia has adopted Act No. 76/2026 Coll. on Equal Pay of Men and Women for Equal Work or Work of Equal Value, introducing into national legislation the requirements of the EU Pay Transparency Directive (Directive (EU) 2023/970). Most of the new obligations will take effect from 7 June 2026.

The legislation introduces a series of new transparency, reporting and compliance obligations for employers operating in Slovakia, covering recruitment processes, pay structures, employee information rights and gender pay gap reporting.

Under the new rules, job advertisements and job titles must be gender-neutral and recruitment procedures must not undermine the principle of equal pay. Candidates must receive information about the starting salary or salary range, as well as any relevant collective agreement provisions, before the job interview or conclusion of the employment contract. Employers will also be prohibited from requesting information about a candidate’s current or previous remuneration.

The law further requires employers to establish an internal pay structure enabling the assessment of whether employees perform equal work or work of equal value based on objective criteria. Where employee representatives are present, these criteria must be agreed with them. Employers established before 7 June 2026 must implement compliant pay structures by 31 July 2026.

In addition, employers must make available to employees the criteria used to determine pay, pay levels and salary increases. These criteria must remain objective and non-discriminatory. Employers with fewer than 50 employees are exempt from the requirement to disclose criteria related to salary increases.

Employees will gain the right to request written information regarding their individual pay level and the average pay levels, broken down by gender, for employees carrying out equal work or work of equal value. Employers must respond within two months. Where information is considered incomplete or inaccurate, employees may request additional explanations, which employers must provide within 30 days.

The legislation also states that employers must inform employees annually about these rights and the relevant procedures. Employees cannot be prohibited from disclosing their own salary information, and confidentiality clauses restricting disclosure of personal pay information will be unenforceable.

The provision concerning average gender pay data will apply for the first time to data relating to 2027.

The new framework also introduces mandatory gender pay gap reporting obligations for larger employers. Companies with 250 or more employees will be required to submit annual reports to the Ministry of Labour, Social Affairs and Family of the Slovak Republic by 15 April each year, while employers with 100 to 249 employees must report every three years. Employers with fewer than 100 employees may report voluntarily.

The first reporting obligations will apply to employers with at least 150 employees by 7 June 2027, covering the period from 1 August to 31 December 2026. Employers with 100 to 149 employees will be required to report for the first time in 2031 for the 2030 reporting year.

A joint pay assessment will become mandatory for employers with at least 100 employees where reporting identifies a gender pay gap of at least 5% within any employee category that cannot be objectively justified and remains unresolved within six months after submission of the report. The assessment must be shared with employees, employee representatives, the Ministry of Labour and, upon request, the Labour Inspectorate and the Slovak National Centre for Human Rights.

The legislation also strengthens employee enforcement rights. Individuals may seek compensation for unpaid remuneration, lost opportunities, non-pecuniary damages and default interest.

In cases where employers fail to comply with obligations relating to pay transparency, reporting or employee information rights, the burden of proof shifts to the employer to demonstrate that discrimination has not occurred.

Failure to submit mandatory pay reports may result in administrative fines ranging between EUR 4,000 and EUR 8,000, while additional sanctions may apply under existing Slovak labour inspection legislation.

Source: CMS

CA Immo reports lower earnings following asset disposals in Q1 2026

CA Immo reported a decline in earnings for the first quarter of 2026, reflecting the impact of a reduced investment portfolio following a series of property disposals completed in 2025 and early 2026. Despite the lower income base, the company maintained a portfolio occupancy rate of 95% and recorded a 2 percent increase in like-for-like annualised gross rental income.

Gross rental income fell by 18 percent year-on-year to €55.9 million, while net rental income declined by 15 percent to €45.8 million. The company said the decrease was largely linked to the disposal of non-strategic assets, which reduced its gross leasable area by 23 percent compared with the same period last year. Lower vacancy costs and operating expenses partially offset the reduction in rental income.

EBITDA for the quarter totalled €33.9 million, down 31 percent from €49.1 million a year earlier. Consolidated net profit reached €16.6 million, compared with €22.5 million in the first quarter of 2025. Recurring earnings (FFO I) declined by 24 percent year-on-year to €25.9 million.

Keegan Viscius, CEO of CA Immo, said the company continued to reshape its portfolio while maintaining stable occupancy levels.

“In Q1 2026, we further enhanced the quality of our portfolio through non-core sales while maintaining a high occupancy rate of 95%. Our leasing business is performing well, and our prime development pipeline is 100% pre-leased with further potential for profitable growth,” he said.

The company signed leases covering around 57,000 sqm during the quarter. CA Immo also noted that 40 percent of the vacant space recorded at the reporting date had already been leased with future commencement dates.

All three of the company’s office projects currently under construction in Berlin are now fully pre-let ahead of completion. These include the Upbeat and Anna Lindh Haus office schemes near Berlin Central Station, as well as the Karlsgärten refurbishment project close to Potsdamer Platz. Upon completion, the developments are expected to generate around €28 million in annualised gross rental income and add approximately €650 million in gross asset value to the portfolio.

Alongside its development activity, CA Immo continued its programme of non-core asset disposals. The company sold eight assets with a combined transaction volume of approximately €205 million during 2026 so far, including three transactions completed in the first quarter valued at €134 million. The disposals included office properties in Budapest, Warsaw and Berlin, in addition to non-core land plots and a parking asset in Germany.

CA Immo stated that the disposals were aligned with its strategy of focusing on high-quality office assets in major urban markets. Germany accounted for 73 percent of the company’s €4.6 billion property portfolio at the end of March 2026, followed by the CEE region with 22 percent and Austria with 5 percent. Office properties represented around 98 percent of the investment portfolio.

The company also reported a strong liquidity position, with cash and cash equivalents totalling €533.2 million at the end of the quarter. The equity ratio improved to 48.4 percent, while net loan-to-value decreased to 33.4 percent.

Looking ahead, CA Immo said it expects continued market uncertainty linked to geopolitical tensions, inflation risks and changing investor sentiment. The company confirmed it would continue concentrating on prime office markets in Germany, particularly Berlin and Munich, while accelerating disposals of non-core assets in the CEE region.

The company said the separation between prime and secondary office assets has become increasingly evident across European markets, with demand remaining focused on centrally located, high-quality buildings.

DIW Study Warns of Declining Competitiveness in Germany’s Research-Intensive Industries

German Institute for Economic Research has warned that Germany’s research-intensive industries are losing international competitiveness, with declines in value creation, productivity growth and global export share since 2015.

According to a new study by the institute, Germany’s traditionally strong sectors in high-quality technology goods, including automotive manufacturing and mechanical engineering, have lost ground compared with international competitors. The study also found that cutting-edge technology industries such as pharmaceuticals and electronics have failed to achieve above-average growth.

“Germany’s economic strength was long based on its research-intensive industries. But this strength is waning,” said Alexander Schiersch from the Entrepreneurship research group at DIW Berlin, who co-authored the report together with Christian Danne from DIW Econ.

The researchers analysed developments in value creation, productivity and global trade shares across research-intensive industries between 2015 and 2024. While many major industrial economies recorded declines, the report states that Germany’s deterioration was more pronounced than in countries such as Japan or South Korea.

In contrast, several smaller European economies, including Denmark, Switzerland and Netherlands, increased their shares of value creation in research-intensive sectors. The study noted that these gains were sometimes driven by individual companies or specialised industries, such as Novo Nordisk in Denmark and the pharmaceutical sector in Switzerland.

“The growing disparity between countries is therefore not based on broad trends. However, the successes of our European neighbors show that it is still possible to generate additional value creation and economic growth through innovation,” Schiersch said.

The report also highlighted weak productivity growth in Germany. Since 2015, labour productivity in Germany’s high-quality technology industries has increased by only eight percent, while productivity in cutting-edge technology sectors rose by 25 percent.

The loss of competitiveness is also visible in international trade performance. Germany’s share of global exports of research-intensive goods has declined by around 15 percent since 2015, according to the study.

“Germany’s success in trade with research-intensive goods was long driven primarily by quality and innovation. This comparative advantage is increasingly at risk,” said Danne.

The authors noted that China increased its share of global exports of research-intensive goods by 22 percent during the same period. However, they also pointed out that several smaller European countries, including Denmark, the Netherlands and Belgium, managed to increase their positions in global trade despite growing Chinese competition.

“Innovation and the development of highly specialized, difficult-to-replace products can increase a country’s share of global trade, despite China’s growing importance,” Danne added.

The study concludes that political action is needed to improve Germany’s industrial competitiveness. The authors identified reducing regulatory burdens, improving public administration and further integration of the European single market as key priorities.

“Less regulation, better public administration, and a less fragmented European single market—without these levers, the competitiveness of German industry cannot be sustainably secured,” Schiersch said.

Deka Immobilien Sells Schönhauser Tor Property in Berlin

Deka Immobilien has sold the “Schönhauser Tor” office and retail property in Berlin-Mitte from the portfolio of its Deka-ImmobilienEuropa open-ended real estate fund to an institutional investor. The parties agreed not to disclose the purchase price.

The eight-storey mixed-use complex at Schönhauser Tor comprises approximately 16,200 sqm of lettable space. Around 14,700 sqm is dedicated to office use, while retail space accounts for roughly 950 sqm. The property also includes 570 sqm of storage space and 124 parking spaces.

The building is currently around 80 percent occupied. Deka Immobilien originally acquired the asset in 1993.

According to the company, the transaction was completed as part of portfolio optimisation measures, with the fund management taking advantage of current market conditions to execute the sale.

Brainmarket has joined them, which, with its focus on dietary supplements and a healthy lifestyle, will further expand the diversity and attractiveness of the dynamic park. Korean manufacturing company SFI Europe has also chosen P3 Ostrava Central to enter the European market.

P3 Logistic Parks will expand the tenant mix at P3 Ostrava Central with the addition of a new sports and leisure concept operated by Jungle. The project will introduce what the operator describes as its largest Jungle sports park in the Czech Republic.

The new facility will occupy 4,411 square metres in the M1 building at P3 Ostrava Central, a mixed industrial and commercial district developed on a former brownfield site in the Vítkovice area of Ostrava. The centre will include climbing walls, parkour and gymnastics areas, physiotherapy and regeneration facilities, a workout zone, retail space for climbing equipment and a bistro with indoor and outdoor seating.

“Our vision for P3 Ostrava Central was to create a vibrant urban district where business meets everyday life. The arrival of Jungle is exactly the piece of the puzzle that fulfills this vision. Thanks to its clear height of 12 meters and layout, the modern industrial hall will offer ideal conditions for sports activities, which have been lacking in the region to this extent and quality,” said Marek Jaskula, Leasing Manager at P3 Logistic Parks.

The largest section of the complex will focus on rope climbing, alongside a dedicated children’s climbing area intended for family activities and events. The first floor will feature an 1,800 square metre bouldering area, while the workout section will include specialised climbing training technologies such as campus boards, kilter boards and moon boards.

“Our goal is to build a place in Ostrava where families with children can spend the whole day. Thanks to the large selection of activities that visitors can experience in the center, everyone will find something for themselves. Children will have fun in the children’s corner or on the smaller climbing wall, older children will appreciate the parkour and gymnastics zone. Adults will have fun on the bouldering or on the largest climbing wall in Ostrava. Then they will eat together in the large bistro and can relax in the relaxation zone,” said Milan Genda, Manager of Jungle Sport Park Ostrava.

The project forms part of Jungle’s wider expansion strategy in the Czech market. Existing locations operate in Prague’s Letňany, Holešovice and Výstaviště districts, as well as in Pardubice and Mladá Boleslav. The Ostrava development will become the company’s sixth location in the country.

“We want to build places where people will not only come to play sports, but where they will want to spend time, meet and move naturally across generations,” said Karel Trsek, Marketing Director of Jungle.

The first phase of the Ostrava facility is scheduled to open in autumn 2026, with additional sections to be completed gradually. The development will also include approximately 100 parking spaces and plans for a future bus connection to improve accessibility.

P3 Ostrava Central currently accommodates a range of manufacturing, logistics and retail tenants including Linde Material Handling, Tefcold, BrainMarket and SFI Europe.

The district has been developed with sustainability measures including BREEAM Excellent certification across all buildings, green landscaping and publicly accessible outdoor facilities.

Passerinvest Group completes shell construction of mixed-use Hila project in Prague’s Brumlovka district

Passerinvest Group has completed the shell construction of the Hila multifunctional project in Prague’s Brumlovka district. The development, which rises to 55 metres at its highest point, combines offices, rental housing, retail and services within a single building and is expected to become a new landmark in the area.

Designed by Aulík Fišer architekti, the 15-storey building will provide 20,200 sqm of office space, 71 fully furnished rental apartments and 2,300 sqm of retail space. According to the developer, the project has been designed in line with EU taxonomy criteria and is targeting LEED Gold certification.

The project introduces a mixed-use concept to Brumlovka, integrating workplaces, housing and community functions within one structure. Office tenants will have access to more than 2,000 sqm of rooftop terraces, while the building also includes a four-storey atrium spanning 464 sqm.

“A quality working environment is fundamental for us. We have been designing offices for people, not for Excel spreadsheets, for a long time. Hila is pushing the standard even further in this regard, whether it is the number of outdoor spaces and terraces, the quality of the indoor environment or the overall comfort of everyday functioning,” said Eduard Forejt.

Forejt added that the large rooftop terrace overlooking Prague is expected to become a meeting point for employees working in the building.

The Hila project replaces older prefabricated residential and office buildings that previously occupied the site. According to Passerinvest, the earlier buildings provided less than 10,000 sqm of space, while the new development will offer almost three times that amount.

“The Hila building fulfilled an old dream for us as architects, to build a city up in layers. To build an apartment building on the roof of an office building, where the air in the city is already better and there is a view,” said Jan Aulík.

Aulík noted that both the office and residential sections of the building operate independently, with separate entrances and vertical circulation systems, while sharing emergency infrastructure. He added that the office section was designed to minimise shading on neighbouring buildings along Jemnická Street, with terraces and greenery incorporated into the stepped design.

Office rents at Hila are expected to range between EUR 24.50 and EUR 27.50 per sqm per month excluding VAT. The residential section will include a mix of units ranging from studio apartments to four-room layouts, with apartment sizes between 33.5 sqm and 133 sqm.

Following completion of the shell construction, work will continue on the façade and interior fit-out. The development also includes underground parking spaces with a minimum width of 2.7 metres, above the typical local standard of 2.4 metres.

The construction involved several large-scale engineering elements, including piling works extending more than two kilometres in total length and an 86-metre-high construction crane.

HSF System SK Completes First Starbucks Drive Thru in Slovakia and Czech Republic in Žilina

Construction company HSF System SK has completed the first Starbucks Drive Thru café in Slovakia and the Czech Republic. The new outlet has opened at the Klokan shopping centre in Žilina, with the project developed for investor MC Štadión, part of the KLM real estate group.

The single-storey building includes a customer sales area, bar and kitchen facilities, as well as technical and staff areas. The project also incorporates a dedicated Drive Thru lane designed to allow customers to order and collect products directly from their vehicles.

“The new single-storey building with a rectangular floor plan represents a modern object that combines high-quality architectural solutions, technological innovation and an ecological approach to construction, while creating a comfortable environment for customers and effective conditions for operation,” said Peter Guoth, Sales Director at HSF System SK.

The building has a footprint of 208.6 sqm and a total usable area of 168.14 sqm. The structure combines masonry construction with a prefabricated reinforced concrete frame system supported by reinforced concrete foundations.

“The architectural solution works with modern materials and respects the corporate identity of the brand while maintaining high aesthetic and technical standards,” said Tomáš Mydlo, Production Director at HSF System SK.

The façade combines an external insulation system with aluminium glazing and triple-glazed insulated panels. Wooden and aluminium cassette cladding were also incorporated into the design. The flat roof features foil waterproofing and a stabilising gravel layer.

Internally, the building uses plasterboard partition systems with insulation and fibre concrete flooring finished with ceramic surfaces. Heating and cooling are provided through a VRF system with an air-to-air heat pump, while ventilation is managed through a rooftop heat recovery unit supplemented by local extraction systems in sanitary and kitchen areas.

The project also included surrounding infrastructure and landscaping works. Access roads and handling areas were built using asphalt and cement concrete designed to withstand high mechanical loads. Rainwater drainage is managed through an oil separator and infiltration blocks.

“The landscaping is designed with an emphasis on the microclimatic, aesthetic, representative, accompanying and hygienic function of greenery, while the selection of vegetation has been adapted to climate changes and the effects of biotic and abiotic factors,” added Mydlo.

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