Rudolf Nemes: Innovation Driving Hungary’s Logistics Market

In a recent CIJ EUROPE Q&A, Rudolf Nemes, CEO of HelloParks, discusses the changing dynamics of Hungary’s logistics and industrial real estate market — from shifting tenant demand and ESG-driven development to new frontiers in digital design.

Q: How do you see the Hungarian logistics and industrial property market evolving over the next five years, especially with increasing competition from regional developers in Poland, Romania and Slovakia?

Rudolf Nemes: Hungary’s competitive advantage is not only about geography – success will depend on who can respond the fastest and most flexibly to tenants’ business needs. Key factors include the quality of the business offer, speed of reaction, transparency, and client experience. Naturally, building quality is also critical. More and more tenants integrate carbon footprint and ESG considerations into their reporting, so the sustainability performance of industrial properties has become a decisive element of competitiveness.

Q: Your tenants include global names like BYD, DHL and dm. What new categories of tenants or industries do you expect to drive demand in Hungary—tech, e-commerce, automotive or manufacturing?

Rudolf Nemes: Hungary increasingly serves as a gateway to Asia, and as a result, foreign direct investment from Asia has been flowing in strongly in recent years. This has brought not only OEMs but also tier 1–4 suppliers, who now represent a growing share of tenant demand. Since 2020, we have seen around 50% growth in this segment. Of course, global trade tensions and geopolitical shifts may influence the pace of this trend, but we believe Asia-linked investment will remain a defining driver in Hungary. At the same time, as domestic consumption grows, new players from outside China may also enter the market. E-commerce – including flows originating from China – is another important source of demand.

Q: The ERSTE acquisition was described as the largest individual industrial transaction in Hungary. How do you see investor appetite for green-certified logistics assets developing, and how does this affect HelloParks’ financing strategy?

Rudolf Nemes: Hungary’s investment market has not yet returned to pre-2019 levels, but there is strong and consistent demand for sustainable, well-located logistics properties. What makes the market special is that most competitors are portfolio builders, keeping their assets rather than selling them. We, on the other hand, are among the few classical developers that also dispose of assets, which sets us apart. Investor appetite clearly focuses on the highest-quality buildings that meet strict sustainability criteria. Properties that support tenants in achieving their ESG goals and that meet financing requirements are the ones attracting interest. For us, ensuring that our developments meet these standards has become a basic principle.

Q: So far your hubs are concentrated around Budapest. Do you plan to expand HelloParks’ footprint into secondary cities or regional logistics corridors within Hungary—or even beyond Hungary?

Rudolf Nemes: At this point we don’t plan to expand into secondary cities in Hungary, as those markets are strongly automotive-driven and would mean higher exposure in that sector. Our strategy is to remain focused on Budapest and its metropolitan area, which we see as offering long-term, balanced growth opportunities. At the same time, we are continuously monitoring international opportunities, and we hope to announce developments outside Hungary in the near future.

Q: You’ve implemented recycled steel, low-carbon concrete and other innovations. What’s next in your R&D pipeline, and how do you balance cutting-edge sustainability with cost-efficiency for tenants?

Rudolf Nemes: One of our main priorities now is the digitalization and automation of the design process. Using advanced software tools, we can significantly reduce time, costs and carbon footprint during development. Importantly, these innovations do not translate into higher rents for tenants. On the contrary, they can lower construction costs, which may result in more competitive rental levels. In addition, we are introducing on-site energy storage solutions so that the electricity generated by our solar panels can be stored and fully used by tenants, without losses. This further strengthens both sustainability and cost-efficiency.

As Hungary continues to attract large-scale industrial investment, HelloParks aims to combine digital innovation and sustainable construction to keep its developments at the forefront of the region’s logistics transformation.

Reminder: EU’s Digital Resilience Law Now in Force for Banks and Insurers

From 17 January 2025, banks, insurers, investment firms, and other financial institutions across the European Union are required to comply with a sweeping new cybersecurity framework known as the Digital Operational Resilience Act (DORA). The regulation aims to strengthen how Europe’s financial system prepares for, withstands, and recovers from cyber incidents, digital failures, and technology disruptions.

Unlike earlier rules that left much to national interpretation, this regulation applies directly and uniformly to all 27 EU member states, making it one of the bloc’s most ambitious efforts to harmonise digital risk management. It introduces stricter expectations for how financial institutions protect customer data, manage outsourced technology providers, and respond to cyberattacks or system breakdowns.

Under the new framework, firms must ensure that all critical systems – from online banking platforms to payment networks and trading systems – remain operational even under severe stress. They are expected to test their defences regularly, report significant cyber incidents quickly, and adopt stronger authentication methods for employees and customers accessing sensitive systems. While the law does not prescribe a single technical solution, experts note that multi-factor authentication and secure access controls are becoming the standard response.

A key feature of the regulation is its focus on third-party risk, especially cloud computing and software providers that supply essential digital infrastructure to banks and insurers. Large technology companies that play a crucial role in these systems will now face direct scrutiny from EU supervisors. This approach reflects growing concerns in Brussels about over-reliance on non-European technology vendors and the systemic risks such dependence could pose.

For the financial industry, the changes represent both a compliance challenge and an opportunity to modernise. Major EU regulators – including the European Banking Authority, the European Insurance and Occupational Pensions Authority, and the European Securities and Markets Authority – are jointly overseeing its rollout. They argue that the regulation will bring consistency and transparency to an area that has often been fragmented, with some countries enforcing tougher standards than others.

The new framework arrives amid a surge in cyberattacks targeting financial institutions and payment infrastructure worldwide. Analysts point out that even brief service disruptions can have cascading effects across the economy. DORA, they say, marks the EU’s clearest statement yet that digital security is now inseparable from financial stability.

While compliance may be demanding for smaller institutions, many industry figures see the regulation as a necessary step toward a more resilient financial system. By setting uniform standards for digital risk, the EU hopes to create a more secure environment for consumers, investors, and the broader economy — one that can withstand the growing complexity of the digital age.

Gold Pushes Toward $4,000 as Investors Flock to Safety Amid U.S. Political Turmoil

The price of gold climbed to new record territory this week, nearing the symbolic $4,000 per ounce mark as political and economic uncertainty in the United States unsettled global markets. The metal briefly reached about $3,977 before easing slightly, driven by a combination of mounting fears over the ongoing U.S. government shutdown and growing belief that the Federal Reserve will soon cut interest rates.

The surge underscores how investors are seeking safety in tangible assets amid instability. Gold has risen roughly 50 percent since the start of the year, a rally rarely seen outside times of crisis. Analysts say the mix of fiscal gridlock in Washington, signs of a slowing economy, and a weakening dollar has strengthened gold’s appeal as an alternative to riskier holdings.

Market attention has focused on the political deadlock that has left parts of the U.S. government unfunded for more than a week. Thousands of federal employees have been temporarily furloughed, and services such as aviation control and data reporting have faced disruptions. The uncertainty has added another layer of stress to investors already preparing for potential interest rate cuts later this year. Lower rates generally make non-yielding assets like gold more attractive, as they reduce the opportunity cost of holding them.

Institutional analysts have raised their forecasts in light of recent gains. Major investment banks now expect gold to stay above current levels if the political standoff continues or if central banks begin easing monetary policy sooner than anticipated. Some projections for the next year even point toward the mid-$4,000 range, reflecting confidence that the conditions driving this rally — geopolitical unease, central bank demand, and volatile bond markets — are unlikely to fade quickly.

Traders are watching for further signs from the Federal Reserve, whose officials have remained cautious about the timing of any policy shift. If rates are cut in the final quarter of the year, the move could push the dollar down further and lift gold beyond the $4,000 threshold. However, a faster resolution to the budget crisis or stronger-than-expected U.S. economic data could temporarily halt the metal’s upward momentum as investors rotate back toward equities and bonds.

For now, gold’s ascent reflects a broad unease about the global outlook. With U.S. policymakers struggling to reach agreement and major economies adjusting to slower growth, many investors see precious metals as one of the few dependable shelters in a turbulent environment.

Czech Economy Shows Mixed Signals in August

The latest data from the Czech Statistical Office (ČSÚ) for August 2025 paint a picture of a national economy growing unevenly, with solid performance in construction offset by slowing industrial output and weaker international trade.

Czech exports fell by 5.7 percent compared with the same month a year earlier, while imports declined by 4.3 percent. Despite this contraction in both directions, the country maintained a modest trade surplus of CZK 5.6 billion. The drop in exports reflects softer demand across key European markets and persistent pressures on supply chains, while the fall in imports suggests slower business investment and consumer demand at home.

The industrial sector, which has been one of the main engines of Czech economic growth in recent years, also showed signs of losing momentum. August figures indicate slower production dynamics compared with the previous months, with weaker performance in several manufacturing branches. Analysts attribute this to global market uncertainty, elevated input costs, and reduced export orders from Germany and other major trade partners.

By contrast, construction continued to expand for the tenth consecutive month, with output rising by 17.1 percent year-on-year. Growth was driven mainly by civil engineering and infrastructure projects, supported by public investment and EU-funded programs. The strong performance of the construction industry helped offset the decline in manufacturing and trade, underlining its role as one of the current stabilizers of the Czech economy.

Economists note that the August data confirm a shift toward slower overall growth after a strong start to the year. Export-oriented sectors remain under pressure, while high costs and labour shortages continue to limit output in manufacturing. However, sustained activity in the construction market and ongoing investment in transport and housing infrastructure provide a degree of balance.

The mixed results suggest that the Czech economy is holding steady but faces structural challenges in competitiveness and productivity. Policymakers are expected to focus in the coming months on maintaining export momentum, easing administrative burdens on construction, and supporting industrial innovation to safeguard growth in the final quarter of 2025.

Source: ČSÚ

Poland’s Economy Expands in 2024, But Business Sentiment and Labour Dynamics Show Signs of Unease

Poland’s economy recorded stronger-than-expected growth in 2024, according to revised figures from Statistics Poland (GUS), though recent data on business sentiment and foreign employment suggest that momentum may be slowing as 2025 progresses.

Revised national accounts show that gross domestic product rose by 2.9 percent in real terms in 2024 compared with the previous year, marking a clear improvement from the near stagnation of 2023. Growth was supported primarily by household consumption and public investment, while exports acted as a drag amid a weaker European demand environment. In nominal terms, GDP reached PLN 3.64 trillion. The final quarter of 2024 registered 3.2 percent year-on-year growth, confirming that the economy entered 2025 with solid underlying strength. Economists credit this performance to the resilience of the domestic market and the gradual easing of inflation, which helped restore consumer purchasing power.

The labour market also remained robust, underpinned by a steady inflow of foreign workers. Experimental statistics from GUS show that as of March 2025, over 1.06 million foreigners were working in Poland — a 5.5 percent increase compared with the previous year. This represents a continuation of the upward trend seen since 2022, confirming Poland’s position as one of Central Europe’s most significant labour destinations. While updated figures for April have not yet been published, economists expect that the number has remained above one million. The reliance on foreign labour continues to play a stabilising role for sectors facing domestic labour shortages, particularly in manufacturing, logistics, construction, and services.

Despite the encouraging macroeconomic data, business sentiment weakened toward the end of the summer. The latest regional business tendency survey from Statistics Poland, covering September 2025, indicates that companies across Poland are growing more cautious. Firms in manufacturing and construction reported concerns over rising costs, regulatory uncertainty, and reduced order volumes. Although consumer sentiment showed modest improvement in September, business expectations for future demand remain restrained. Many companies have slowed hiring or delayed investment decisions while awaiting clearer economic signals from European markets.

The combination of solid past growth and emerging caution highlights the complex environment Poland faces entering 2026. Strong domestic consumption and public investment have offset weaker external demand, but export-oriented sectors remain vulnerable to the slowdown in the euro area. Dependence on foreign workers, while a strength in maintaining production, also exposes the economy to regional migration trends and labour policy shifts.

Overall, the data suggest that Poland remains one of the more resilient economies in Central Europe, but sustaining growth will depend on improving productivity, strengthening business confidence, and maintaining labour market flexibility. Further clarity is expected in coming months as new employment and sentiment figures are released, offering a clearer view of whether Poland’s growth trajectory will continue or begin to level off in the face of a cooling European economy.

Source: GUS

Czech Construction Expands, But Prague’s Housing Supply Still Stagnates

The Czech construction sector recorded strong growth in August, marking its tenth consecutive month of expansion, according to data released by the Czech Statistical Office (ČSÚ). Overall construction output rose by 17.1 percent year-on-year, driven mainly by civil engineering and infrastructure projects.

However, while the national trend shows clear recovery, the housing situation in Prague remains critical. Despite sustained demand, the number of newly permitted residential projects in the capital continues to lag far behind needs. Preliminary regional data and industry assessments suggest that Prague’s monthly housing approvals remain at a fraction of the level required to meet market demand — a pattern that continues to undermine affordability and availability.

Analysts note that Prague requires at least 10,000 new apartments annually to stabilise prices and reduce pressure on the rental market. In practice, however, only a few thousand are permitted each year, and administrative bottlenecks continue to delay many developments. Recent reports by the Initiative for Affordable Housing (IDB) warn that without systemic reform of the approval process, affordability will worsen further in coming years.

Industry experts emphasise that accelerating and simplifying building permits remains key. The implementation of a fully digitised, unified permitting system under the revised Building Act, combined with enforceable deadlines, could help replicate the progress seen in the Transport and Energy Construction Authority (DESÚ), which has significantly shortened approval times for infrastructure projects.

Advocates for reform, including the IDB, have proposed a comprehensive framework combining simplified permitting, improved spatial planning, and large-scale development of affordable public rental housing using modern Design–Build methods. They also point to successful local models — such as the new EIB-backed affordable housing initiative in Prague, which will finance over 700 units for public-sector workers — as evidence that targeted partnerships can deliver tangible results.

The ČSÚ’s August data confirm a national rise in building activity, with 2,757 new dwellings started and 3,033 completed across the country. Yet in the capital, where more than 1.4 million people now live, the pace of residential construction remains far too slow to meet population growth.

Without structural reform, Prague risks deepening its housing crisis even as the national construction sector shows signs of strength. Experts warn that continued stagnation in approvals could soon translate into even higher prices, reduced labour mobility, and broader social challenges.

Prague Launches Tender for New Tram Line to Strahov Valued at Over CZK 1 Billion

The City of Prague has begun the tender process for the construction of a new tram connection between Malovanka and Strahov, a project estimated to cost just over CZK 1 billion. The investment is one of the capital’s key transport priorities and aims to improve access to the Strahov university dormitories and the area around the historic stadium.

The proposed double-track line will cover a distance of approximately 1.3 kilometres, starting from Bělohorská Street, continuing along Vaníčková Street, and terminating in a loop at Stadion Strahov near the existing bus terminus. The project will also include the reconstruction of sections of Bělohorská and Vaníčková streets, with upgrades to public space, utilities, and traffic organisation.

According to Prague’s public transport company (DPP), construction is planned to begin in spring 2026 and take about 18 months to complete, with the new line expected to open in autumn 2027. Once operational, it will replace several bus routes currently serving Strahov, providing a higher-capacity and fully electric mode of transport linking the area with the Dejvická metro station and other parts of the city.

Transport officials say the project is part of a broader effort to modernise Prague’s public transport network and extend tram services to under-served districts. In recent years, new lines have been completed in Pankrác, Libuš, Dědina, and Slivence, while additional routes are being prepared for construction in Žižkov and Nové Dvory.

The Strahov project also carries local urban-planning importance. Alongside improved mobility, the new line will contribute to the long-term regeneration of the surrounding neighbourhood, which includes student housing, sports facilities, and a proposed redevelopment of the Strahov Stadium.

City planners describe the investment as a step toward more efficient, low-emission public transport across Prague’s hilly western districts, strengthening connections between residential areas, campuses, and major infrastructure nodes.

Source: CTK

MLP Group Appoints Radosław Grzejdak as Project Management Director

MLP Group has announced the appointment of Radosław Grzejdak as its new Project Management Director, as part of the company’s ongoing effort to strengthen its project delivery capabilities and support growth in the Polish market.

In his new role, Grzejdak will oversee the execution of the Group’s development projects in Poland and coordinate the work of project managers across the company’s portfolio.

Grzejdak brings over two decades of experience in real estate development, with a background spanning warehouse, residential, and mixed-use projects. His professional expertise covers all stages of investment management, including planning, due diligence, budgeting, and supervision of construction processes.

Prior to joining MLP Group, he served as Regional Project Management Director at Panattoni Development Europe, where he managed a team responsible for projects in central Poland. He has also worked with Dom Development, Layetana Real Estate, and Batipont Immobilier (CFE Group), where he led various large-scale developments. Earlier in his career, he worked at CB Richard Ellis as a Property Advisor and Project Manager.

A graduate of the Warsaw University of Technology’s Faculty of Civil Engineering, Grzejdak also holds an MBA from the Polish Academy of Sciences and has completed postgraduate studies in real estate consultancy and valuation.

Agnieszka Góźdź, Member of the Management Board and Chief Development Officer at MLP Group, said that Grzejdak’s appointment will further strengthen the company’s project management team. “His broad experience in overseeing complex investment processes will support the implementation of our ongoing projects and contribute to the Group’s development in Poland and abroad,” she said.

Before joining MLP Group, Grzejdak was involved in the preparation of a major healthcare investment for the State Medical Institute of the Ministry of Interior and Administration (MSWiA) valued at approximately PLN 1.5 billion. At MLP, he will focus on ensuring project efficiency, maintaining high technical standards, and supporting the company’s long-term investment strategy.

Garbe Industrial Secures Three New Tenants at Duisburg Multi-User Park

Garbe Industrial Real Estate has signed lease agreements with three companies for its newly developed multi-user park in Duisburg, strengthening the appeal of the site as a logistics and industrial hub.

A Chinese company has leased the entire 14,000-square-metre logistics hall, while Annings Industrial Solutions and the Duisburg branch of Actemium will each occupy separate units in two adjoining industrial buildings. The three structures together offer nearly 29,500 square metres of usable space on the redeveloped 56,000-square-metre “Zeus site” in the Meiderich district — a former industrial area that has now been converted into a modern business park.

The project was jointly developed by Garbe Industrial and Bremer Project Development, with a total investment of around €50 million. “These leases confirm our decision to develop in prime locations even without pre-commitments,” said Frank Soppa, Regional Manager for Project Development West at Garbe Industrial. “By revitalising this long-unused brownfield site, we have created long-term value for Duisburg and new opportunities for the logistics and industrial sectors.”

The new tenant for the logistics hall, a Chinese company specialising in warehousing and distribution, will use the building for logistics operations supporting trade between Europe and Asia. The lease was arranged by Sinoah Immobilien of Düsseldorf.

Two other tenants will occupy the newly constructed business park units. Annings Industrial Solutions, which focuses on freight forwarding between Europe and Asia, has taken approximately 1,800 square metres to expand its existing operations at the Port of Duisburg. “Duisburg is one of the key European gateways for rail freight along the New Silk Road,” said Shaoting Fan, Managing Director of Annings Industrial Solutions. “This new facility will allow us to increase capacity and strengthen our presence in the region.” The deal was brokered by Eureal Property Advisors.

The second new tenant, Actemium Duisburg, will occupy around 1,800 square metres, including 1,400 square metres of hall space used for storage, handling, and light assembly. The company provides industrial automation and electrical services across the full lifecycle of industrial plants.

The two business park blocks together provide 14,500 square metres of hall and mezzanine space and 1,500 square metres of office area. Units can be subdivided according to tenant needs, and discussions with other potential occupiers are ongoing. The site includes 26 dock levellers, 11 ground-level sectional doors, and parking for 217 cars and 10 trucks, several with electric charging points.

Sustainability was a central focus of the project. The buildings are powered in part by a photovoltaic system comprising 6,380 modules with a peak output of 2.65 MW, and they are heated using heat pumps rather than fossil fuels. Parts of the façade feature timber cladding, and the developers are targeting DGNB Gold certification for sustainable construction.

Located about three kilometres from the Port of Duisburg, the world’s largest inland port, the multi-user park benefits from direct connections to major motorways including the A59, A42, and A3, providing fast access to the wider Rhine-Ruhr logistics corridor.

With construction now complete and leasing activity accelerating, Garbe Industrial’s Duisburg project illustrates how former industrial land can be successfully redeveloped into modern, energy-efficient commercial property — reinforcing Duisburg’s role as a central logistics hub for Europe.

Mendota Invest Commissions STRABAG to Build Southern Section of Emonika in Ljubljana

The Emonika development in the centre of Ljubljana has taken another major step forward after investor Mendota Invest, part of Hungary’s OTP Group, confirmed it has signed a new construction contract with STRABAG for the southern part of the mixed-use project. The agreement, valued at around €134 million, covers what is considered the most complex phase of the large-scale redevelopment near the capital’s main railway station.

The southern section will include a 100-metre office tower, a shopping centre, a hotel and several levels of underground parking. Building work is due to begin this month, with completion planned for late 2027. Once finished, the tower will become Slovenia’s tallest office building, transforming the city’s skyline and anchoring a new urban district beside the station.

Plans call for the office tower to reach 23 floors, with the lower levels connecting to a 22,000 m² retail centre containing more than 80 shops and food outlets. A 200-room hotel will sit above the commercial area and feature a rooftop terrace overlooking the city. Beneath the complex, four levels of parking will accommodate about 850 cars for office tenants, shoppers, and hotel guests.

This latest deal follows STRABAG’s appointment earlier in the year to build the northern section of Emonika, which is already under construction. That phase includes new residential buildings, a smaller office block, a hotel, and underground parking. With both contracts combined, STRABAG’s total involvement in the project now exceeds €230 million, confirming its role as the main contractor for the entire complex.

Representatives from both companies welcomed the agreement. Mendota Invest’s Managing Director Pál Forgács said the new phase “represents confidence in Ljubljana’s future and marks a key milestone in creating a modern urban centre for the next generation.” STRABAG board member Péter Glöckler described the development as “a flagship project that blends urban living, transport and sustainability.”

The southern section is being designed with BREEAM-level sustainability features, including energy-efficient systems, heat pumps, and low-emission construction materials. These technologies are intended to ensure lower operational energy use and long-term environmental performance.

When complete, Emonika will encompass about 190,000 m² of total floor space, combining housing, offices, retail and hospitality in a single interconnected site. The project has been years in planning, with permits secured in 2024 and construction now progressing on both its residential and commercial components.

Located at one of the busiest transport hubs in Slovenia, Emonika is expected to become a new landmark in the capital, reflecting Ljubljana’s shift toward modern mixed-use development and a stronger connection between business, retail, and urban mobility.

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