EU population grows for fourth consecutive year

The population of the European Union reached an estimated 450.4 million people on 1 January 2025, reflecting an increase of just over one million compared with the previous year, according to data released by Eurostat. This marks the fourth consecutive year of population growth following a decline in 2021 linked to the impact of the COVID-19 pandemic.

The recent increase is largely attributed to higher levels of migration in the post-pandemic period. Since 2012, natural population change in the EU has been negative each year, with more deaths than births, but this has been offset by positive net migration flows.

Over the longer term, the EU’s population has expanded significantly, rising from 354.5 million in 1960 to 450.4 million in 2025, an increase of nearly 96 million. However, growth has slowed in recent decades. Between 2005 and 2024, the EU population grew by an average of about 0.9 million people per year, compared with roughly three million per year during the 1960s.

As of the start of 2025, Germany remained the EU’s most populous member state, with 83.6 million residents, representing 19 percent of the total EU population. France and Italy followed with 15 percent and 13 percent shares, respectively. Together, these three countries accounted for nearly half of the EU’s population.

While the overall EU population grew, eight member states recorded population declines over the past year. Latvia experienced the steepest drop, with a crude rate of change of minus 9.9 per 1,000 people, followed by Hungary, Poland, and Estonia.

Among member states with growing populations, Malta reported the highest increase at 19.0 per 1,000 people, ahead of Ireland at 16.3 and Luxembourg at 14.7.

Source: eurostat

Poland’s inflation expectations ease as future index continues decline

Poland’s Future Inflation Index (WPI), which signals expected movements in consumer prices over the coming months, fell by 0.3 points in July compared to June. This marks the fourth consecutive monthly decline, although the pace of decrease was slightly slower than in the previous month. The trend reflects lower readings in the country’s consumer price index (CPI).

Short-term factors, including modest increases in crude oil and certain metal prices on global markets, contributed to the slower decline in the WPI. Nonetheless, underlying conditions remain favorable for a further easing of inflation pressures. Analysts point to subdued economic activity, which is prompting businesses to maintain cautious pricing strategies, as well as relatively low commodity prices overall.

Inflation expectations among both consumers and managers in manufacturing continue to decline. While a majority in both groups still anticipate price increases, the gap between those expecting higher prices and those expecting stable or lower prices has narrowed in recent months. In June, the difference among managers was under four percentage points, down from over thirteen percentage points at the beginning of the year. This shift is visible in producer pricing trends, with the Producer Price Index (PPI) remaining negative for the past two years.

Similar sentiment is observed among consumers. Since January, the proportion of individuals anticipating higher inflation has decreased by nearly four percentage points. More consumers now expect price increases to slow rather than accelerate. Contributing factors include seasonally slower growth in fruit and vegetable prices and the continued cap on household energy prices, which is set to remain in place until the end of the year.

Global commodity prices have generally been declining since the start of 2025. However, recent days have seen increases in oil and certain metal prices, particularly copper, driven in part by new tariff measures announced by U.S. President Donald Trump. The Polish zloty has strengthened against the U.S. dollar over the past month, offsetting some of the dollar-denominated cost increases. Analysts note that markets appear more accustomed to fluctuations stemming from U.S. trade policies, which could help limit volatility in commodity prices moving forward.

DL Invest Group secures €350 million in debut Eurobond issue

DL Invest Group has raised €350 million through its first public Eurobond issuance, a significant step for the Polish commercial real estate developer and investor. Investor demand exceeded the offering volume by more than 60 percent, prompting a reduction in allocations. The bonds, which mature in five years, will be listed on the Luxembourg Stock Exchange. Citi acted as sole global coordinator, bookrunner, and ratings advisor for the transaction.

According to Dominik Leszczyński, Founder and CEO of DL Invest Group, proceeds from the bond issue will be used to support the company’s expansion in logistics, industrial real estate, and data centers, as well as to fund acquisitions of new projects in Poland and the wider Central and Eastern European region.

DL Invest Group operates a portfolio exceeding €1 billion in value, with assets spanning logistics and warehouse facilities, mixed-use complexes, retail parks, data centers, and renewable energy projects. The company manages properties occupied by more than 400 tenants and reports a portfolio occupancy rate of approximately 97 percent.

The company’s development strategy focuses on selective investment locations and projects tailored for long-term cooperation with tenants. It maintains integrated operations across development, construction, asset management, and property management, allowing it to adapt projects to tenant requirements and market demands.

DL Invest Group collaborates with various global corporations and institutional investors, including DHL, Inditex, Hutchinson, DPD, Avio GE, Emira Property Fund, Invesco Real Estate, Macquarie Capital, and the European Bank for Reconstruction and Development. Its financial partnerships extend to banks such as BNP Paribas, Santander, ING, and mBank.

In preparation for the bond issuance, the group obtained credit ratings from Fitch Ratings and Standard & Poor’s, which it says reflects the company’s financial stability and positions it for further activity in international capital markets.

Leszczyński noted that the Eurobond issuance underscores growing confidence in the Polish commercial real estate market and the broader economy, which he described as maintaining strong growth momentum within Europe.

DL Invest Group continues to pursue projects across logistics, office, and retail segments, emphasizing architectural quality, functionality, and rigorous execution standards. Its integrated business model enables it to oversee projects from design and development through to active asset and property management.

225-metre outdoor art gallery unveiled around Dornych construction site in Brno

The perimeter fencing around the Dornych construction site near Brno’s main railway station has been transformed into an open-air gallery stretching 225 metres. Over the past several days, thirty street artists from the Czech Republic, the Netherlands, and New Zealand have painted the solid barrier surrounding the site. The initiative was organised by the developer Crestyl in collaboration with the local association Panto Graff. The project required more than 1,800 cans of spray paint to cover the extensive OSB board wall.

The public can participate in selecting the best artworks by voting through the Streetart.Dornych Instagram account until 15 September. The top three artists will receive materials for future work valued at CZK 40,000 and an opportunity to create a special piece on the construction fence in Úzká Street.

Viktor Peška, sales and marketing director at Crestyl, explained that the goal was to avoid standard advertising fencing and instead enhance the site visually, involve the local community, and reduce the risk of non-artistic graffiti.

Ondřej Vítek, chairman of Panto Graff, described the project as a collaborative effort between Panto Graff, Crestyl, and construction firm GEMO, turning a previously grey wall into a canvas for artists. Each artist was assigned a space measuring 7.5 by 1.85 metres. All artworks were required to relate to the themes of the local area, Brno, trains, or construction.

Artists participating in the project include wosk, oliver, furie, pauser, guilty, spord, silver, trip, ding, rwek, 8Rox, mello, scim, noee, lotr, maroko, tofee, veud, keim, duroy, rhak, inlove, part, optik, miser, traum, robot, dose, and sklon. GEMO, alongside Crestyl and Panto Graff, also contributed to the initiative.

The Dornych project itself involves the redevelopment of the former department store area into a mixed-use space covering 25,000 square metres. The plan includes six smaller buildings that will accommodate the NYX Hotel Brno with 170 rooms, 186 rental apartments, and approximately 50,000 square metres of offices, restaurants, shops, and services. Notable tenants will include the EUC clinic, offering medical services and two pharmacies across 6,000 square metres, and Scott.Weber Workspace, which will establish the largest flexible office and co-working centre in the South Moravian Region on 5,200 square metres, including facilities for 600 employees and a private terrace of 500 square metres. The development will also feature 5,000 square metres dedicated to restaurants, bars, and cafés.

The buildings will range from seven to eight floors and include underground parking. The project will integrate with the existing street network and the underpass beneath the railway station, creating a link between Brno’s historic city centre and the planned South Quarter. The total investment exceeds seven billion Czech crowns. The project’s architectural design is led by international firm MTDI, headed by Marek Tryzybowicz, in cooperation with Brno’s Arch.Design studio. RUBY Project Management is overseeing the entire development process, while GEMO is handling demolition, excavation, and structural works.

GCC Fixed Income Market Faces Shifts Amid Global Uncertainty

The Gulf Cooperation Council (GCC) fixed income market is navigating a complex landscape in 2025, shaped by global monetary policy shifts, geopolitical tensions, and evolving investor sentiment, according to the latest GCC Fixed Income Market Update from Kamco Invest.

Global Volatility Shapes Outlook

Global debt markets hit record highs in the first half of 2025, with issuances reaching $6.4 trillion despite an 8% quarter-on-quarter drop in Q2. High-grade issuances dominated, while high-yield activity remained flat. Notably, green bond issuances fell to a three-year low of $267.7 billion in the first half.

In the U.S., treasury yields have fluctuated, with the 10-year yield declining from May highs of 4.6% to around 4.3% by July. The Federal Reserve remains cautious on rate cuts, with decisions hinging on the inflationary impact of new tariffs. Meanwhile, Europe has moved in the opposite direction, with the European Central Bank cutting rates four times this year to support a slowing economy.

GCC Market Adapts to Global Dynamics

GCC central banks largely mirror U.S. monetary policy due to currency pegs, though Kuwait, whose dinar is pegged to a basket of currencies, has charted a more conservative path. While other GCC nations cut rates by 100 basis points in 2024, Kuwait opted for a modest 25-basis-point cut.

Economic prospects in the GCC remain supported by resilient non-oil sectors and stable oil prices around $70 per barrel. However, the region faces significant debt maturities. Sovereign and corporate maturities across the GCC are projected to total nearly $449 billion between 2025 and 2029, with Saudi Arabia leading at $166 billion.

Issuances Decline, But Outlook Remains Solid

Primary market issuances in the GCC totaled $100.3 billion in H1-2025, a 22% drop from the same period in 2024. Government issuances halved to $36.6 billion, while corporate issuances rose to $63.7 billion, partially offsetting the decline. Sukuk issuance saw a sharper contraction, falling nearly one-third to $39.4 billion.

Country-wise, the UAE posted slight growth in issuances, while Saudi Arabia, Qatar, and Oman witnessed significant declines. Saudi issuers remained dominant, accounting for half of the region’s issuance despite a steep year-on-year decrease.

Green instruments maintained momentum in the region, with $8.7 billion issued in H1-2025. Saudi Arabia led the segment with $5.6 billion in green debt, underscoring the region’s gradual pivot toward sustainable financing.

Rate Cuts Expected to Shape Second Half

Looking ahead, Kamco Invest forecasts that GCC central banks will likely mirror any U.S. Federal Reserve rate cuts later this year. Issuance volumes are anticipated to pick up in the second half, as issuers seek to lock in lower rates amid growing expectations of monetary easing.

Moreover, Kuwait has announced plans to issue $6 billion in bonds on international markets, which could further bolster regional issuance figures.

Despite near-term headwinds from global economic shifts and geopolitical tensions, the GCC fixed income market appears poised to maintain stability, underpinned by robust sovereign credit profiles and steady economic fundamentals.

Churchill Square adopts drone technology for facade cleaning

The method of cleaning building facades and windows is undergoing significant changes, with drones beginning to replace traditional suspended platforms and chemical-based cleaning solutions. This new approach has the potential to reduce costs by nearly half, improve safety conditions for workers, and lower environmental impact. The trend has started to appear in the Czech Republic, including in historic city areas where commercial buildings owned by Českomoravská Nemovitostní (ČMN), such as Churchill Square and Mezi Vodami, are being cleaned using drone technology.

The cleaning process involves drones spraying demineralized water heated to 70°C, which removes dirt without relying on aggressive chemicals. This method is particularly suitable for historic buildings where chemical cleaning agents could damage delicate plasterwork or building materials.

Petra Vondrová, Senior Property Manager of the Churchill building, noted that her team is always exploring new ways to enhance services. After learning about drone-based cleaning, they decided to test it on the Churchill building due to its large facade surface area. According to Vondrová, the results were positive, with tenants expressing satisfaction and passersby taking an interest in the operation of the drones.

Cost efficiency is one of the main advantages of using drones, as the process requires fewer workers and can be carried out more quickly than traditional methods. Dita Lawn, Senior Property Manager at the Mezi Vodami building, explained that initial reservations about the technology were quickly overcome once they observed its effectiveness and cost benefits, allowing for future investments in other innovations.

Safety is another significant factor influencing the move towards drone cleaning. Traditional methods involving workers suspended at height carry inherent risks, whereas drone operations involve a team of just two individuals—a pilot and a safety technician—reducing potential hazards and associated costs.

Environmental considerations also play a role, especially in historic city areas where maintaining the integrity of building materials is crucial. The absence of harsh chemicals in the drone cleaning process helps prevent damage to facades, making it an appropriate solution for sensitive sites.

Encouraged by the successful pilot cleaning, ČMN plans to implement drone cleaning technology across other properties in its portfolio. CBRE, which also took part in the testing phase, has begun introducing the method in some of its own buildings.

Although drone-based facade cleaning is not yet a standard practice, companies such as ČMN are helping to increase its adoption. The combination of environmental benefits, reduced costs, and improved safety suggests that drone technology could play a larger role in building maintenance in the years to come.

Rafał Mazurczak appointed President of the Management Board at CitySpace

CitySpace, part of the Echo Group, has announced a leadership change with Rafał Mazurczak taking over as President of the Management Board. Mazurczak, who is also a member of the Management Board and Chief Operating Officer at Echo Investment, succeeds Lisa Zettlin, who led CitySpace for nearly seven years. Zettlin will now head the Archicom Fit-Out Centre.

Mazurczak has been with the Echo Group since 2000 and joined the Management Board of Echo Investment eight years ago, where he has been responsible for commercial projects. Commenting on his new role, he stated that CitySpace’s strong market position is built on initiatives focused on tenant comfort and that the company will continue to prioritize delivering high-quality office spaces.

The management transition aligns with the broader strategic objectives of the Echo Group, which aims to maximise the expertise of experienced leaders across its businesses while maintaining the distinct identity of each brand.

Under Lisa Zettlin’s leadership, CitySpace developed a unique brand identity, incorporating the work of Polish artists into its office spaces and introducing new interior design trends. Zettlin’s next role will be to oversee the Fit-Out Center Archicom, a new company in the group’s portfolio, as Archicom expands its offerings in interior finishing and design services.

CitySpace operates 12 locations across Poland’s five largest cities, catering to both growing businesses and established corporations that require flexibility and modern facilities. The company’s offices are situated in contemporary, BREEAM-certified A-class buildings and feature high-speed internet, advanced IT infrastructure, and access to shared spaces such as meeting rooms and kitchens. The facilities are available to tenants around the clock, providing professional work environments tailored to the current needs of employees.

Trade tensions push up Medicine prices, German pharmaceutical sector faces uncertainty

Threatened tariffs and proposed price caps on medicines in the United States are creating mounting challenges for Germany’s pharmaceutical industry, which relies heavily on exports to the US, its most significant single market. The American market currently accounts for around 23 percent of all German pharmaceutical exports. Nicole Bludau, Risk Services Manager at international credit insurer Atradius, warns that exports could decline by as much as 35 percent if the trade dispute escalates. Such developments could drive up medicine costs, hinder research efforts, and cause drug shortages.

While the pharmaceutical industry has traditionally been one of Germany’s more resilient economic sectors, new US tariff policies threaten to disrupt this stability. If negotiations fail and tariffs on medicines and pharmaceutical products take effect as planned on 1 August, significant price increases are expected in Germany. The extent of the price hikes will depend on the level of the imposed tariffs. According to Nicole Bludau, companies will be forced to implement substantial cost-cutting measures to offset rising costs. In a more optimistic scenario, drug prices could increase by around 10 percent if US tariffs reach 20 percent and pharmaceutical firms manage to reduce their costs by half. However, in a worst-case scenario involving 50 percent tariffs, medicine prices could rise by as much as 30 percent.

Bludau also noted that higher prices could further strain supply chains, particularly if health insurers are unwilling or unable to cover increased costs. She emphasized that the situation goes beyond a simple trade conflict between nations and instead exacerbates existing challenges faced by health insurance providers, ultimately impacting patients.

A steep drop in US exports of up to 35 percent would significantly affect revenues for German pharmaceutical companies, especially those focused on research and development. Lower profits would limit resources available for investment in innovation, potentially weakening Germany’s position as a key pharmaceutical hub and jeopardizing long-term supply security. Bludau pointed out that some pharmaceutical manufacturers are exploring options to relocate operations abroad to mitigate rising costs, but this approach carries risks, as much of their research funding remains tied to Germany. A shift away from the domestic market could therefore deepen research deficits.

Although major pharmaceutical distributors currently feel resilient, medium-sized companies with strong exposure to the US market are facing growing pressure. Atradius has placed a substantial proportion of firms in the sector under heightened monitoring. Nicole Bludau indicated that, while the industry does not yet show signs of widespread imbalance, certain companies may need to brace for significant revenue losses if the proposed US trade measures come into effect. She added that reports of payment defaults remain limited for now, though this could change rapidly if trade tensions intensify.

Author: Atradius

Develia acquires Bouygues Immobilier Polska for EUR 65.9 million

Develia has completed the acquisition of 100 percent of the shares in Bouygues Immobilier Polska, the Polish branch of the French property developer Bouygues Immobilier, for EUR 65.9 million, equivalent to approximately PLN 279.4 million. The transaction expands Develia’s portfolio of residential projects and strengthens its land bank in Warsaw, Poznań, and Wrocław, further supporting the company’s growth strategy in Poland’s residential real estate market.

The acquisition follows Develia’s purchase of Nexity’s Polish subsidiaries over the past two years and contributes to the company’s goal of exceeding annual sales of 4,500 residential units by 2028. Andrzej Oślizło, CEO of Develia, stated that the acquisition of Bouygues Immobilier Polska is a significant step in implementing the firm’s strategic plans, particularly in Warsaw, which remains Poland’s largest and most stable residential market with considerable potential for future growth. Oślizło noted that the transaction coincides with the completion of the sale of Arkady Wrocławskie, enabling Develia to reinvest the proceeds into its residential development segment, which offers attractive returns.

Bouygues Immobilier Polska has been active in the Polish market since 2001, employing approximately 80 staff and completing over 9,500 residential units and commercial spaces across 70 projects. By the end of 2024, the company had around 1,300 units under development or in planning, with a further 2,800 units secured through preliminary agreements. The majority of these projects are located in Warsaw, accounting for about 71 percent of the total planned residential area, with Poznań representing 13 percent and Wrocław 16 percent. Current projects include Viva Cité, Lumea Estate, and Neo Praga in Warsaw, Vilda Arte in Poznań, and Vivre in Wrocław.

Karol Dzięcioł, a member of Develia’s management board, commented that the acquisition significantly increases the scale of Develia’s operations and diversifies its project portfolio in districts with strong investment potential, such as Bemowo, Ursus, and Włochy in Warsaw, as well as in Poznań and Wrocław. He added that Develia would focus on the integration of Bouygues Immobilier Polska in the coming months, leveraging experience gained during the successful integration of Nexity’s Polish operations in 2023.

The transaction was financed through Develia’s own funds, with an option for future refinancing via a bank loan. Approval for the acquisition was granted by Poland’s Office of Competition and Consumer Protection (UOKiK) prior to its completion.

Develia acquires Bouygues Immobilier Polska for EUR 65.9 million

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All posts by fletcher@cijeurope.com.

EU population grows for fourth consecutive year

Poland’s inflation expectations ease as future index continues decline

DL Invest Group secures €350 million in debut Eurobond issue

GCC Fixed Income Market Faces Shifts Amid Global Uncertainty

Churchill Square adopts drone technology for facade cleaning

Rafał Mazurczak appointed President of the Management Board at CitySpace

Trade tensions push up Medicine prices, German pharmaceutical sector faces uncertainty

Develia acquires Bouygues Immobilier Polska for EUR 65.9 million

Develia acquires Bouygues Immobilier Polska for EUR 65.9 million