Real estate funds in Slovakia reach historic highs

Real estate funds in Slovakia have achieved record-breaking results, with assets surpassing €2.9 billion for the first time. According to the latest data from the National Bank of Slovakia (NBS), the asset volume of real estate funds grew by 12.3% year-on-year in the first quarter of 2025.

Real estate funds now represent 25.7% of all mutual fund assets in Slovakia, which totaled €11.37 billion as of March 31. This places them just behind mixed funds, which maintain the largest share at 32.8%, although that segment has been in gradual decline. In contrast, real estate and equity funds have been steadily gaining ground. Equity funds currently account for 25.2% of the market, while bond funds represent 15.8%.

Despite market volatility since 2022, real estate funds have maintained solid performance. Between 2017 and 2021, while inflation measured by consumer prices rose by 15%, real estate funds delivered an accumulated return of nearly 20%, according to Eva Sadovská, analyst at Wood & Company. From early 2022 through the end of 2023, returns reached 8.3%.

In the first quarter of 2025, real estate funds continued to post positive returns even as equity fund profitability declined. Over the eight-year period from January 2017 to March 2025, real estate funds in Slovakia achieved a cumulative return with an average annual performance of 3.6%, according to the Slovak investor index (ISI100).

“The decline in mixed funds is evident. At the end of 2021, they represented 50% of total mutual fund assets, but by March 2025 this had dropped to 32.8%,” said Sadovská. Meanwhile, real estate funds saw a quarterly increase of 2.7%, reaching their highest value to date.

Looking across the border, Slovakia is not alone in this trend. In the Czech Republic, where Slovak investors are also active, real estate fund assets totaled €13.659 billion as of the end of March. This figure represents 18.6% of mutual fund assets and marks a year-on-year increase of 36.3%, as well as a quarterly rise of 13.9%, based on data from the Czech National Bank.

Source: SME

Poles increasingly purchase property in Spain amid regulatory changes

Spain remains a popular destination for both tourists and foreign property buyers, including a growing number of Polish citizens. In 2024, Poles purchased over 4,200 residential properties in Spain, with a significant share located on the Costa del Sol, one of the most sought-after regions. The appeal of owning property abroad continues to grow, driven by various economic and lifestyle factors.

Stable economic conditions, comparatively affordable property prices, convenient flight connections, and favorable weather are among the key reasons many Poles choose to invest in Spanish real estate. For some, the ability to spend holidays in their own property has become a practical alternative to rising rental and travel costs.

Costa del Sol Remains a Focal Point

Among Spain’s many regions, the Costa del Sol continues to attract the highest interest. Its climate, offering an estimated 320 days of sunshine annually, is a strong draw for buyers from colder climates. Additionally, the region is perceived as geographically safer and more politically stable compared to Eastern Europe.

Recent Legal Changes Affecting Property Owners

In recent months, new legislation has been introduced in Spain that impacts property ownership and rental regulations:
• A new law aims to speed up proceedings against illegal occupancy. Under the revised system, courts are now required to respond within 15 days of a formal complaint, enabling quicker resolution for property owners.
• Property owners wishing to rent their apartments to tourists for less than two months must now secure approval from 60% of their homeowners’ association. This involves submitting a formal request during an association meeting and ensuring no objections are raised within 20 days of distributing the meeting minutes. Owners who had valid tourist licenses prior to April 3, 2025, are exempt from this requirement.
• As of July 1, 2025, owners of short-term rental properties who already hold a valid tourist license (VFT) and rent via platforms that manage payments, such as Airbnb or Booking.com, are required to register their properties through a dedicated online portal. The system generates a unique registration number that must be included in listings on such platforms.

These changes are part of Spain’s efforts to align with EU regulations aimed at improving transparency in the short-term rental market and reducing fraud risks.

While the new obligations may require additional administrative steps, they do not prohibit short-term rentals. Property owners are advised to consult legal professionals to ensure compliance with both local and EU-wide regulations.

Despite the regulatory updates, the Spanish real estate market—especially in regions like the Costa del Sol—remains open and attractive to foreign buyers, including a steadily growing number from Poland.

Rezolv Energy secures €331 million financing for second phase of VIFOR wind farm in Romania

Rezolv Energy, supported by Actis and operating through its subsidiary First Look Solutions S.R.L., has secured additional project financing of up to €331 million for the second phase of the VIFOR wind farm in Buzău County, Romania. This phase will expand the total installed capacity of the wind farm to 461MW.

The financing is backed primarily by the lenders involved in the project’s first phase: Erste Group, UniCredit Group, the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), Intesa Sanpaolo Group, and OTP Bank. Raiffeisenlandesbank Niederösterreich-Wien also joined the lending group for this latest round.

The initial 192MW phase, comprising 30 turbines of 6.4MW each, is currently under construction and expected to be operational by spring 2026. The second phase will add 42 turbines, with commissioning targeted for the fourth quarter of 2027. Once completed, the full project capacity of 461MW is projected to supply electricity to more than 700,000 households.

The VIFOR wind farm is expected to be the largest such facility built in Romania in the last decade and among the largest onshore wind projects in Europe. The financing approval was based on the project’s alignment with international sustainability standards, including those of the IFC, EBRD, and the Equator Principles.

Beyond energy generation, the project is contributing to local employment and community initiatives in Buzău County. Rezolv Energy stated that these efforts are intended to support local development and long-term benefits for residents.

Rezolv Energy, launched in 2022 by Actis, currently manages a renewable energy portfolio of 2.3GW across Southeastern Europe. Other projects include Dama Solar (1,044MW), the Dunarea East & West wind farms (600MW), and the St. George solar project (225MW), which is under construction in Bulgaria.

Rents in the Czech Republic rise by 9% year-on-year in Q2 2025

The average monthly rent in the Czech Republic reached CZK 17,586 in the second quarter of 2025, marking a 9% year-on-year increase and a 1% rise compared to the previous quarter, according to a report by real estate platform UlovDomov.cz.

While rents in major cities such as Prague and Brno remained relatively stable year-on-year, notable increases were recorded in cities like Ostrava, Pilsen, and Olomouc. In Prague, the average monthly rent for a 2+kk apartment stood at CZK 22,170, and in Brno at CZK 17,490. The same apartment type rented for CZK 12,250 in Ostrava and CZK 15,480 in Olomouc.

For smaller 1+kk apartments, the lowest rents were found in Ostrava at CZK 8,930 per month, while Prague remained the most expensive at CZK 16,700.

According to UlovDomov.cz director Michal Hrbatý, high mortgage interest rates continue to steer people toward renting rather than buying. Although rental prices stabilized in the second quarter, renting generally remains more affordable than mortgage repayments. In cities like Prague and Brno, monthly mortgage costs for a 2+kk apartment are typically twice as high as rent.

An exception is Ostrava, where purchasing property may be more cost-effective than renting. The city is currently the only major market in the country where mortgage payments are lower than equivalent rental costs, in contrast to the national trend.

Source: CTK

Demand for micro-apartments in the Czech Republic rises sharply

Demand for micro-apartments in the Czech Republic grew by 56% year-on-year in the second quarter of 2025, according to a market analysis by Sreality. These compact units, typically ranging from 16 to 30 square metres, are gaining popularity as traditional housing becomes increasingly unaffordable.

The study shows that micro-apartments spend the shortest time on the market among all apartment types. On average, they remain listed for less than two months—a 41% decrease compared to the same period last year. The trend reflects a growing shift toward more affordable housing solutions as property prices continue to climb across the country.

The average asking price for apartments in the Czech Republic rose by 16% year-on-year to CZK 111,700 per square metre. In Prague, prices increased by 12% and now average CZK 141,338 per square metre.

According to analysts, the pace of price growth remains consistent. In the first half of the year, advertised prices increased between 16.5% and 17.7% year-on-year. The strongest growth was recorded in the Moravian-Silesian Region (+26%), Ústí nad Labem Region (+24%), and Hradec Králové Region (+22%). In contrast, the Liberec Region saw the smallest rise at 9%.

Data from the FérMakléři platform indicate that older apartments in major cities experienced a 27% year-on-year price increase and a 7% rise compared to the previous quarter. The average price per square metre for these units now stands at CZK 77,343, with the most notable gains seen in Ústí nad Labem and Ostrava—locations that have historically offered some of the country’s most affordable housing.

Source: CTK

Seniority reform from 2026 to benefit up to 5 million Poles

Beginning in January 2026, new regulations will come into force in Poland that redefine how work experience is calculated. The changes will extend to as many as five million people, including those who previously worked under civil law contracts or operated sole proprietorships (JDG). According to experts from Personnel Service, the reform presents both opportunities for workers and significant challenges for HR departments.

The adjustment will allow non-traditional forms of employment—such as civil contracts and self-employment—to be officially included in seniority calculations. For employees, this opens the door to rights previously reserved for full-time workers, such as longer annual leave and eligibility for severance pay. According to Krzysztof Inglot, labour market expert and founder of Personnel Service, “This reform is a milestone in levelling the playing field between traditional and non-standard forms of employment.”

Greater Benefits and Career Opportunities

In practical terms, the reform means that many workers will now surpass the 10-year service threshold, entitling them to 26 days of paid leave annually. It also expands access to longer notice periods and severance packages.

For those seeking employment in public administration or state-owned institutions, previously inaccessible positions may now become available. Civil law contracts and periods of self-employment will now count towards the required experience, broadening eligibility for candidates who had previously been excluded from such recruitment processes.

Administrative and Operational Impact on Employers

For employers, the upcoming changes require immediate attention. HR departments will need to audit historical records to identify eligible former contract workers and self-employed individuals. This includes preparing internal systems for data entry, updating payroll processes, and verifying documentation submitted by employees.

The new rules are expected to increase operational costs. These include the financial burden of additional paid leave and severance pay, as well as the administrative load of processing revised seniority claims. Recruitment policies may also need to be adjusted, as seniority will now play a greater role in candidate evaluation and salary levels.

Inglot notes that early preparation will be key: “Employers that start now will be better positioned to manage the transition without disruption. These changes can also be an opportunity for companies to improve transparency and strengthen organisational culture.”

Background Context

According to a Ministry of Finance report, sole proprietorships account for over 80% of business activity in Poland. Meanwhile, more than 2.4 million people were working under civil contracts as of late 2024, with nearly half combining this with other forms of employment.

While the proportion of such workers is significant, their legal entitlements have historically lagged behind. The 2026 reform marks a shift in recognising diverse forms of work and aligning them more closely with standard employment protections.

As implementation approaches, both workers and employers are urged to prepare for the wide-reaching effects of this legislative change.

One in three Poles could only cover one month of expenses if income stops

Despite rising wages and a declining number of unreliable debtors, the latest survey from BIG InfoMonitor shows that many Poles remain financially vulnerable. While 83% of adults report having some level of savings, for one in three respondents, these funds would last no more than one month in the event of sudden income loss.

At the same time, 17% of Poles say they have no savings at all—a figure nearly unchanged from last year. Only 26% of respondents reported savings sufficient to cover more than six months of living expenses without income. Younger adults under 25 are particularly exposed, with many lacking a financial cushion.

According to Dr. Waldemar Rogowski, Chief Analyst at BIG InfoMonitor, financial security is often defined as having six months’ worth of net income saved. Based on the median Polish salary—PLN 4,645 net per month—this buffer would amount to approximately PLN 27,870. Survey results indicate that only about 40% of Poles have achieved this level of savings.

The survey also reveals significant disparities in savings levels. Approximately 28% of Poles have reserves under PLN 5,000. The largest proportion of savers—18%—report savings between PLN 10,000 and PLN 30,000. Meanwhile, 15% of respondents have accumulated more than PLN 100,000. Overall, the percentage of people with over PLN 50,000 in savings has risen from 22% in 2023 to 28% this year, while those with less than PLN 5,000 fell from 39% to 28% in the same period.

There are also notable gender differences: 46% of women hold savings between PLN 1,000 and PLN 10,000, compared to 40% of men. Men are more likely to have larger reserves, with 44% reporting savings of PLN 30,000 or more, versus 35% of women.

Despite some signs of improvement, financial strain remains for many households. Over the past six months, one in three Poles has had to use savings to cover basic living expenses. While rising incomes and falling inflation support savings growth, high costs of living and existing debts continue to limit financial flexibility.

As of May 2025, the number of unreliable debtors in Poland has decreased by more than 116,000 compared to a year earlier, and the total value of unpaid debt dropped by over PLN 194 million. However, 2.5 million consumers still owe a combined PLN 86.5 billion—an average of PLN 34,644 per person. For many with limited savings, repaying debt remains a challenge, increasing the risk of deeper financial problems.

Dr. Rogowski concluded that while the trend in savings is modestly positive, greater financial resilience will require continued progress in both income stability and household budgeting.

EU and Euro area budget deficits narrow in Q1 2025 to 2.9% of GDP

In the first quarter of 2025, the seasonally adjusted general government deficit stood at 2.9% of GDP in both the euro area (EA20) and the European Union, according to the latest data released by Eurostat. This marks a slight improvement from the previous quarter, when deficits reached 3.2% in the euro area and 3.3% in the EU.

In the euro area, total government revenue was 46.6% of GDP, down marginally from 46.7% in Q4 2024. Although revenue rose in absolute terms by approximately €11 billion, this was outpaced by nominal GDP growth. Total expenditure also declined as a share of GDP to 49.5%, compared to 49.9% in the prior quarter.

For the EU as a whole, revenue remained steady at 46.2% of GDP, with a quarterly increase of €21 billion in absolute terms. Meanwhile, expenditure declined to 49.1% of GDP, even though it rose by €5 billion in absolute terms.

National Variations

Among EU Member States, deficits varied significantly:
• Poland posted a deficit of -5.1% of GDP, an improvement from -7.6% in Q4 2024.
• France remained among the highest with a deficit of -5.6%.
• Belgium’s deficit widened to -5.5%, while Romania stood at -7.5%.
• Ireland recorded a notable surplus of 2.3%, following a volatile 2024.
• Greece registered a strong fiscal performance with a 4.2% surplus, continuing its recent trend of improvement.

The improvements in Q1 2025 reflect a continued normalization of public finances across much of the EU, following earlier periods of elevated deficits due to pandemic- and energy-related support measures.

While some Member States such as Greece, Cyprus, and Ireland have transitioned to budget surpluses, others—including Poland, Hungary, and Romania—remain under pressure to reduce their budget imbalances.

The figures are based on the European System of Accounts (ESA 2010) and follow the Excessive Deficit Procedure framework. All Q1 2025 figures are provisional and subject to revision. Final annual government finance statistics will be verified by Eurostat ahead of the October 2025 Excessive Deficit Procedure notification.

Government debt rises to 88.0% of GDP in the Euro area in Q1 2025

According to Eurostat data for the first quarter of 2025, the euro area’s general government gross debt stood at 88.0% of GDP, marking an increase from 87.4% in the fourth quarter of 2024. In the European Union as a whole, the ratio rose to 81.8%, up from 81.0% in the previous quarter.

Compared to the same period last year, the debt-to-GDP ratio increased slightly in both the euro area (from 87.8%) and the EU (from 81.2%).

Debt instruments continued to be dominated by debt securities, which accounted for 84.2% of total government debt in the euro area and 83.6% in the EU. Loans comprised 13.3% in the euro area and 13.9% in the EU, while currency and deposits made up the remainder.

Intergovernmental lending (IGL), largely related to financial assistance between EU countries, was recorded at 1.4% of GDP in the euro area and 1.2% in the EU.

Member State Overview

The highest government debt-to-GDP ratios were recorded in:
• Greece (152.5%)
• Italy (137.9%)
• France (114.1%)
• Belgium (106.8%)
• Spain (103.5%)

The lowest ratios were noted in:
• Bulgaria (23.9%)
• Estonia (24.1%)
• Luxembourg (26.1%)
• Denmark (29.9%)

From Q4 2024 to Q1 2025, debt ratios rose in 16 EU Member States, remained unchanged in Czechia, and declined in 10 countries. The largest quarterly increases were observed in Austria and Slovakia (both +3.5 pp), Slovenia (+2.9 pp), and Italy (+2.5 pp). The biggest decreases were in Ireland (-3.7 pp), Latvia (-1.2 pp), and Greece (-1.1 pp).

Year-on-year comparisons revealed a rise in the debt ratio in 13 Member States, with Poland (+6.1 pp), Finland (+5.1 pp), and Austria and Romania (both +4.1 pp) experiencing the most significant increases. Greece (-9.3 pp), Cyprus (-8.2 pp), and Ireland (-6.1 pp) saw the sharpest declines.

Poland’s government debt reached PLN 2.12 trillion in Q1 2025, representing 57.4% of GDP. This reflects a 2.2 percentage point increase over the previous quarter and a 6.1 pp rise compared to Q1 2024, the largest annual increase in the EU.

The debt figures are based on the Maastricht definition and follow the European System of Accounts (ESA 2010). They include the consolidated gross debt of the general government sector in the form of currency and deposits, debt securities, and loans, valued at nominal face value.

All Q1 2025 data are considered provisional and are subject to revision. The next comprehensive review of government debt levels will be included in the Excessive Deficit Procedure notification due in October 2025.

Specjał Capital Group expands logistics operations at MLP Poznań

The Specjał Capital Group has expanded its logistics operations at the MLP Poznań logistics centre by leasing an additional 6,400 sqm of warehouse space, including cold and freezer storage. The company also extended its existing lease, which includes more than 15,000 sqm of warehouse space and over 760 sqm of office space. With this expansion, Specjał now occupies more than 22,000 sqm at the site. The move also includes the relocation of its Śrem branch to the Poznań location. Newmark Polska advised the tenant during the leasing process.

The company stated that its growing footprint at MLP Poznań reinforces its logistics capacity in western Poland, particularly in the distribution of fresh and frozen goods. The flexibility of the landlord in accommodating refrigeration infrastructure requirements played a role in the decision.

Representatives from MLP Group highlighted that Specjał’s continued presence strengthens the park’s position as a strategic logistics hub, benefiting from proximity to the S11 expressway and the A2 motorway. The company also leases space at MLP Czeladź, positioning it among MLP Group’s significant clients in the food logistics segment.

Newmark Polska, which has supported Specjał in site selection and lease negotiations, noted the long-standing cooperation as a reflection of mutual trust and alignment with the group’s development strategy.

MLP Poznań is being developed under MLP Group’s “build & hold” model, which emphasizes long-term ownership and direct management of assets. Upon completion, the logistics park is expected to offer around 90,000 sqm of warehouse and production space.

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