Poland’s Proposed Short-Term Rental Rules Could Reshape the Investment Apartment Market

fletcher@cijeurope.com
3 September 2026
CIJ - Spotlight, Indicators, Residential

Poland is moving towards tighter regulation of short-term accommodation, with proposed legislation that could significantly change the risk profile of apartments purchased for tourist and other temporary stays.

The government adopted an amendment to its short-term accommodation bill on 2 September 2026 that would strengthen the ability of municipalities, housing communities and housing cooperatives to control short-term rental activity. The measures have not yet completed the parliamentary process and should therefore be treated as proposed rules rather than existing law.

One of the most significant elements for residential property investors is the planned ability of housing communities and cooperatives to restrict short-term accommodation within residential buildings. Municipalities would also receive powers to introduce restrictions in designated areas.

If these provisions survive the legislative process, investors considering apartments for short-term operation could face an additional layer of regulatory risk. The viability of an investment would potentially depend not only on national legislation and local planning conditions, but also on decisions taken at municipal and individual building level.

That could be particularly important in Warsaw, Kraków, Gdańsk, Wrocław and other markets where apartments have been acquired partly to serve tourists and business travellers. Properties purchased on assumptions of higher short-stay revenues could produce different returns if future restrictions required them to move towards conventional residential leasing.

The potential effect on property values is more difficult to determine and will depend on the final legislation and how extensively the new powers are used. Nevertheless, apartments whose investment case depends heavily on short-term accommodation could eventually be valued differently from comparable properties where the permitted operating model is more secure.

The changes could also influence due diligence. Investors may increasingly need to examine the rules and resolutions governing an entire residential building, as well as municipal policy towards short-term accommodation, before calculating expected rental income.

Professional operators managing portfolios of individually owned apartments could face a similar challenge. A portfolio distributed among numerous residential buildings could potentially become subject to different decisions by individual communities or cooperatives. This would create a different regulatory exposure from operating a building specifically structured for temporary accommodation.

The distinction between conventional residential apartments, serviced accommodation and aparthotels could consequently become more important. Purpose-designed hospitality and serviced-apartment properties may offer greater operational certainty in some circumstances, although the treatment of different accommodation formats will ultimately depend on the definitions contained in the final legislation.

Municipal powers could prove particularly important for investment markets. If cities are able to identify areas where short-term accommodation should be limited, regulation could vary substantially between locations within the same city. Properties in districts with heavy concentrations of tourist accommodation could therefore face a different regulatory environment from apartments elsewhere.

The policy also addresses a longstanding tension within residential buildings. Permanent residents and short-term accommodation operators can have different expectations concerning common areas, security, noise and the frequency with which occupants change. Giving residential communities greater influence would strengthen the role of building governance in determining how individual apartments can be operated.

Existing investors will be watching the legislative process particularly closely. The eventual impact will depend on the voting procedures required to introduce restrictions, the treatment of businesses already operating legally, the precise definition of short-term accommodation and any transitional arrangements.

The timetable is also important. The proposed changes are expected to lead towards a new regulatory framework operating from 2028 rather than producing an immediate prohibition on existing short-term rentals. Until the parliamentary process is completed and implementing provisions are settled, the final scope of the restrictions remains subject to change.

For developers, the proposals could influence decisions made much earlier in the investment cycle. Projects in locations with strong visitor demand may require greater consideration of whether units should be delivered as conventional residential apartments or structured from the outset around hospitality or serviced accommodation.

Mixed-use developments could face similar questions. Where permanent residents, individually owned investment apartments and commercial premises occupy the same property, the ability to operate short-term accommodation could increasingly become an important element of project governance.

Poland’s proposed reform therefore reaches considerably further than tourism regulation. If enacted broadly in its current direction, it would introduce new building- and location-specific considerations into residential investment decisions.

For investors, the crucial question will no longer be simply how much income a short-term rental apartment can generate. Increasingly, they may also need to assess how secure the right to operate that business model will remain over the life of the investment.

France’s €19 Billion Office Debt Reckoning Is Moving Closer

France’s commercial property downturn is entering a stage where financing, rather than falling valuations alone, could determine which assets change hands next. After several years of repricing, the French market has yet to experience the widespread distressed selling that some investors expected when interest rates began rising. Banks have remained capable of working with viable borrowers, while many owners have avoided selling properties into a weak investment market. That has limited the number of transactions capable of establishing new values for more difficult assets.

The approaching maturity of billions of euros of property debt could begin changing that balance. Approximately €19 billion of loans secured against offices in Île-de-France are expected to mature between 2026 and 2028, according to research published by Colliers in June. Under current lending conditions, the amount borrowers may be able to replace could fall around €5 billion short of their existing financing requirements.

That does not mean €5 billion of property is destined for distressed sale. It does, however, illustrate the scale of the capital problem facing some owners. Commercial property loans originated several years ago were frequently supported by higher valuations and different financing conditions. When those loans mature, banks must assess the buildings against today’s values, income, occupancy prospects and investment requirements.

If a property has fallen significantly in value, refinancing the previous debt amount can become difficult even when the borrower has continued servicing the loan. An owner may then have several options. Additional equity can be contributed, new investors can be introduced, alternative financing can replace part of the bank debt or the property can be sold. Which route is chosen will depend heavily on the quality of the building and the financial strength of its owner.

This is why France’s emerging property distress is unlikely to resemble a sudden wave of bank repossessions. French financial institutions remain in a comparatively strong position. Regulatory assessments published in 2026 indicate that risks associated with commercial property lending remain manageable within the wider banking system. Problem loans have increased in some parts of the property industry, but the evidence does not point to a systemic commercial real estate banking crisis.

That gives lenders greater flexibility when dealing with borrowers whose assets remain fundamentally viable. For investors waiting to acquire discounted property, however, the important question is what happens when a building no longer supports its existing capital structure.

The clearest pressure is appearing in offices. Île-de-France had approximately 6.5 million square metres of immediately available office space at the end of the second quarter of 2026, reaching a record level. Around 750,000 square metres was taken up during the first half of the year, approximately 5% less than during the corresponding period of 2025.

These headline figures conceal substantial differences between buildings and locations. Modern offices in the strongest central districts remain capable of attracting occupiers and investment capital. Buildings with strong environmental credentials, good transport connections and limited future expenditure requirements are also considerably easier to finance.

Older offices in weaker locations face a different calculation. A property with significant vacancy may require substantial expenditure before it can compete effectively for tenants. Environmental improvements can add another layer of investment. If its market value has simultaneously declined, the owner can face both a refinancing gap and a large future capital requirement.

Those are the assets where loan maturities could eventually translate into sales. Parts of La Défense illustrate the challenge. Individual office towers have already encountered financing or ownership difficulties, showing what can happen when large buildings carrying significant capital requirements meet weaker occupational demand and tighter financing conditions.

These cases should not be interpreted as evidence that the entire La Défense market is distressed. They do demonstrate, however, how financing problems can eventually force decisions that owners might otherwise prefer to postpone.

The French investment market itself remains unusually selective. Commercial property investment volumes increased during the first half of 2026 according to several major property advisers, but the headline improvement was heavily influenced by a small number of exceptionally large transactions.

One transaction was particularly significant: Blackstone’s acquisition of the Proudreed industrial portfolio for approximately €2.3 billion. JLL calculated that French commercial property investment reached around €6.6 billion during the first six months of 2026, approximately 9% higher than a year earlier. Excluding the Proudreed transaction, however, investment activity would have been around 29% lower year-on-year.

That provides a very different picture of the recovery. France clearly has capital available for assets investors want to own. What remains much harder is establishing a liquid market for buildings carrying vacancy, refurbishment requirements, financing problems or uncertain future uses.

The difference is critical for understanding where distressed opportunities may originate. Property owners do not necessarily sell simply because the theoretical value of their building has declined. As long as financing remains in place and debt obligations can be met, an owner can often continue operating the asset while waiting for better conditions.

A refinancing date changes that equation. A lender assessing a maturing loan must decide how much it is prepared to advance against the property under current conditions. If that amount is substantially below the outstanding debt, the owner has to fill the difference. For well-capitalised investors, that may be inconvenient but manageable. For highly leveraged owners, it can become decisive.

This suggests that France’s next investment cycle may increasingly be divided according to balance-sheet strength. Owners capable of contributing fresh equity can retain assets and wait for market conditions to improve. Those without sufficient capital may have to bring in partners, restructure ownership or accept a sale.

Banks do not necessarily have to repossess properties for this process to accelerate. Simply refusing to refinance an asset at its previous leverage level can be enough to trigger a transaction.

The pressure also differs considerably between property sectors. Retail appears more resilient than secondary offices. Around €1.8 billion was invested in French retail property during the first half of 2026, while pricing for the strongest assets remained relatively stable. Individual distressed properties will undoubtedly occur, but current evidence does not indicate a broad retail financing crisis.

Hotels should similarly be treated selectively. Highly leveraged properties and hotels requiring substantial refurbishment can encounter refinancing difficulties, but there is insufficient evidence to describe French hospitality as experiencing widespread distressed selling.

Development-related property deserves closer attention. Developers and property traders depend more heavily on future sales, construction programmes and changing project values than owners of stabilised income-producing buildings. French banking data indicate greater credit deterioration among certain professional property borrowers, particularly property traders.

That does not establish that large quantities of development land are already being forced onto the market. It does suggest that projects based on outdated construction costs, financing assumptions or exit values could become another source of motivated transactions.

The resulting opportunity for investors may therefore be broader than buying discounted offices. Properties requiring major refurbishment, stalled developments, buildings needing conversion and assets carrying excessive debt could increasingly become available to buyers capable of providing both capital and a new business plan.

Alternative lenders could also play a larger role. Where conventional banks are unwilling to provide sufficient leverage, private credit can potentially bridge part of the financing gap. The higher cost of that capital, however, means it works only where the underlying investment can support it.

The €19 billion of Île-de-France office debt approaching maturity therefore represents more than a refinancing statistic. It is a test of how much of the previous property cycle’s capital structure can survive under today’s valuations.

Not every loan will encounter difficulties. Many assets will refinance normally, and other borrowers will contribute the additional equity required. Some loans may be restructured without any property changing ownership. But even a relatively small proportion becoming motivated sales could increase the supply of investible opportunities in a French market where genuine price discovery has remained limited.

For buyers with capital available, this may be the beginning of the more interesting stage of the downturn. The opportunity is unlikely to arrive as a single wave of foreclosures. Instead, properties could emerge gradually as individual financing arrangements reach maturity and owners confront the difference between what their buildings were once worth and how much lenders are now prepared to finance.

France’s commercial property reset has already changed valuations. The approaching debt maturities will determine how much of that repricing finally turns into transactions.

Source: CIJ.World UK Research & Analysis Team

Monnari Expands Gdańsk Presence with 344 sqm Galeria Przymorze Store

Polish fashion retailer Monnari has joined the tenant line-up at Galeria Przymorze in Gdańsk, opening a new store of almost 344 sqm.

The store is located next to Pepco and expands the shopping centre’s womenswear offer. Monnari has operated on the Polish market for more than 25 years, with a product range covering clothing, footwear, handbags and accessories.

The latest opening continues recent leasing activity at Galeria Przymorze and follows the arrival of other Polish fashion brands at the property.

“Monnari has a clearly defined profile and has enjoyed recognition among Polish customers for many years. These are exactly the types of brands we want to have at Galeria Przymorze – established, offering a broad range and responding to specific shopping needs,” said Agnieszka Wojtaszczyk, Director of Galeria Przymorze.

She added that the opening provides customers with another dedicated womenswear store while demonstrating the centre’s ability to attract established domestic retailers looking to expand their physical networks.

The Monnari opening comes shortly after Ochnik launched a 386 sqm store at Galeria Przymorze in late August. Together, the two additions represent approximately 730 sqm of recently opened fashion space at the Gdańsk shopping centre.

The latest leases indicate a continued focus on refreshing Galeria Przymorze’s fashion offer through established Polish brands, as shopping centres compete not only for new concepts but also for retailers capable of generating regular customer traffic through established national recognition.

Saxony-Anhalt Election Raises Questions Over Housing, Infrastructure and Labour Policy

fletcher@cijeurope.com
2 September 2026
Indicators, Infrastructure, Jobs, Residential

Saxony-Anhalt is approaching a potentially significant political shift as voters prepare for the state election on 6 September. With the AfD potentially in a position to take on greater responsibility in the state government, the election could have consequences extending beyond party politics to housing, infrastructure, labour availability and the wider investment environment.

An analysis based on responses to the Federal Agency for Civic Education’s Wahl-O-Mat highlights substantial differences between the AfD and other parties on the policies underpinning public services and social infrastructure. It also points to a changing political landscape compared with the state elections of 2016 and 2021 and the 2025 federal election.

For the property and construction sectors, the important question is how future policy could affect the conditions required for investment. Saxony-Anhalt depends on functioning municipal infrastructure, available workers, housing, education, healthcare and transport networks to support both residents and companies. Decisions in these areas can influence the attractiveness of cities and industrial locations to developers and employers.

The AfD supports some measures intended to reduce household costs, according to the analysis, including free transport for schoolchildren, lower childcare expenses and the continued role of publicly operated hospitals. At the same time, it takes a more restrictive position on several policies that the study regards as important to maintaining the state’s longer-term social and economic infrastructure.

One of the clearest areas of disagreement concerns international recruitment. The AfD opposes policies aimed at attracting foreign workers, according to the analysis. This has potential economic significance in sectors where employers depend on additional labour, including construction, industry and healthcare.

The issue is particularly relevant when companies make long-term location decisions. Industrial investment does not depend exclusively on available land, energy and transport infrastructure. Employers also need access to sufficient numbers of qualified workers, while employees require housing and functioning public services around major employment centres.

Housing policy represents another dividing line. The analysis identifies differences over some mechanisms used to support social housing and training, although the material does not provide sufficient detail to establish how individual proposals would affect housing delivery or development economics. The eventual consequences would depend on the specific measures pursued by a future state government.

Municipal investment is another important consideration. Local authorities influence planning, transport connections, schools and other infrastructure that can determine whether development sites remain attractive. Changes to funding priorities can therefore have consequences for property markets even when they are not presented explicitly as real estate policies.

The Wahl-O-Mat comparison also points to disagreements over climate neutrality, taxation, education programmes and initiatives addressing right-wing extremism. These issues form part of a wider divergence between the parties over the role of government and how public services should be financed and delivered.

For commercial real estate, the immediate impact of the election is likely to be less important than the policy direction that follows. Investors considering industrial, logistics, residential or other projects generally work with horizons extending well beyond an electoral cycle, making regulatory predictability and continuity of infrastructure investment particularly relevant.

Saxony-Anhalt has increasingly competed for industrial and infrastructure investment, meaning political decisions affecting skilled labour, housing and municipalities can ultimately influence its competitiveness as a business location.

The 6 September election will therefore be watched not only for its political implications. The composition and priorities of the next state government could also determine how Saxony-Anhalt approaches some of the underlying conditions required for future development and investment, from workforce availability and affordable housing to municipal infrastructure and public services.

Czech-Slovak Legal Institute Targets Rising Corporate Risks from AI, Labour and Compliance

Czech-Slovak law firm Chrenek, Toman, Kotrba is launching a new professional education platform focused on legal situations that increasingly form part of everyday corporate decision-making, ranging from police investigations and international recruitment to liability arising from artificial intelligence.

The Institut CHTK will begin its programme in October 2026 with three online seminars aimed at company executives, in-house lawyers, compliance specialists, professional advisers and representatives of public institutions. The initiative is intended to translate legal requirements into procedures that companies can apply when confronted with operational problems.

“Management today often deals with legal issues directly when making operational decisions and under time pressure. In such situations, knowing the relevant section of the law is not enough. You need to know how to proceed, what to watch out for and which mistakes to avoid. This is precisely the kind of experience from real practice on which we want to build the Institute,” said Tomáš Chrenek, Executive Partner at Chrenek, Toman, Kotrba.

The first seminar, scheduled for 13 October, will address how companies should respond when police authorities arrive at their premises. Led by partner Jakub Šefrna, it will cover the limits of mandatory cooperation, requests for corporate documents and electronic information, searches of business premises and the allocation of responsibilities between management, employees, internal legal teams and IT departments during the initial stages of an intervention.

International recruitment will be the subject of the second session on 15 October. Petra Silovská will examine the employment of workers from the Philippines as well as a new Czech government initiative concerning Indonesian workers for large industrial companies.

The programme will consider the process from recruitment through employment and residence requirements to the integration and retention of overseas employees. The issue has become increasingly relevant to industries dependent on substantial workforces, including manufacturing, construction and other parts of the Czech economy.

Artificial intelligence will take centre stage on 20 October, when Pavol Szabo will examine how responsibility may be allocated when an AI system produces an incorrect result, malfunctions or contributes to financial or other damage.

The session will consider the European AI Act alongside Czech and Slovak legislation, examining potential responsibilities across companies, directors, employees and technology suppliers. As businesses integrate AI into operational and management processes, determining responsibility for decisions influenced by automated systems is becoming a practical corporate governance question rather than solely a technology issue.

The institute plans to broaden its programme beyond the initial three subjects. Future areas are expected to include cybersecurity and NIS2, corporate and management criminal liability, employment law, public procurement, infrastructure, energy, property development and healthcare regulation.

Several of these areas have direct implications for real estate and construction businesses. Developers and contractors increasingly operate at the intersection of public procurement, international recruitment, digitalisation, cybersecurity and complex regulatory requirements. The adoption of AI adds another layer as companies introduce automated tools into document analysis, procurement, project management and other business processes.

The platform will draw on lawyers from Chrenek, Toman, Kotrba’s Czech and Slovak operations, allowing selected programmes to compare requirements across the two jurisdictions as well as the wider European regulatory environment.

Online sessions will be delivered live with opportunities for participants to submit questions, followed by access to recordings and supporting materials. The digital education programme is being produced and distributed in cooperation with EPRAVO.CZ.

The launch reflects a broader change in corporate legal risk. Issues once handled predominantly after a problem occurred are increasingly becoming matters of advance preparation and governance. For management teams, the challenge is shifting from simply understanding what legislation requires to establishing procedures that determine how an organisation responds when those rules are tested in practice.

Deka Expands European Logistics Portfolio with 33,000 sqm Helsinki Acquisition

Deka Immobilien has acquired a 33,000 sqm logistics property close to Helsinki Airport for its Deka-ImmobilienEuropa open-ended real estate fund, adding a recently completed and fully occupied asset to the fund’s European portfolio.

The property is located at Aviapolis in Vantaa, one of the Helsinki metropolitan area’s established logistics and business districts. The seller is an unnamed institutional investor, while financial details of the acquisition have not been disclosed.

Completed in 2022, the building provides approximately 33,000 sqm of lettable space and is occupied under a long-term lease by Barona Varastopalvelut Oy, a Finnish third-party logistics provider. The existing lease gives Deka immediate income from the property without an initial vacancy or repositioning requirement.

The location provides access to Helsinki Airport as well as Ring Road III and Finland’s wider motorway system. These connections make the area suitable for logistics operators serving the Helsinki metropolitan region as well as national distribution networks.

The acquisition also reflects the continued importance of building quality and environmental performance in institutional logistics investment. The property has achieved BREEAM Excellent certification and incorporates rooftop photovoltaic generation together with a geothermal system supporting temperature management.

The site also includes 167 parking spaces, of which 24 are equipped with electric vehicle charging facilities.

For Deka-ImmobilienEuropa, the transaction combines several characteristics typically associated with core logistics investment: a recently constructed building, an established distribution location, full occupancy and a long-term tenant commitment.

The acquisition comes as institutional investors across Europe continue to differentiate more sharply between newer logistics facilities and older properties potentially requiring substantial expenditure to meet occupier and environmental requirements. Modern assets with secure leases can provide greater visibility over future income, although their performance remains dependent on tenant strength and lease terms.

Helsinki’s airport corridor also gives the investment a different profile from logistics assets focused exclusively on road freight. Its position within the wider Aviapolis district provides access to the capital region’s transport infrastructure while maintaining connections to Finland’s principal road network.

Deka has not disclosed the acquisition price or financial terms of the lease, preventing calculation of the transaction yield. The deal nevertheless expands the logistics exposure of Deka-ImmobilienEuropa through an income-producing Finnish asset with no immediate leasing requirement.

For the fund, the transaction represents a relatively defensive logistics acquisition based on existing income and modern building specifications rather than development or repositioning potential.

Cyberattack on Romanian Land Registry Highlights Hidden Risk to Property Markets

A cyberattack affecting Romania’s land-registration infrastructure has demonstrated how weaknesses in public digital systems can become a direct risk for property transactions, turning what might initially appear to be an IT security problem into an issue for investors, developers, lenders and other participants in the real estate market.

According to reports cited in legal analysis of the incident, an attacker gained access to systems operated by Romania’s National Agency for Cadastre and Land Registration (ANCPI) using previously obtained legitimate credentials. Important data was subsequently deleted following an unsuccessful attempt to obtain payment, disrupting the processing of property transactions.

The incident is particularly significant for the real estate industry because cadastral and land-registration systems underpin many of the processes required to complete a transaction. Buyers, banks, lawyers and notaries depend on access to reliable information concerning ownership, property boundaries and registered rights. When that infrastructure becomes unavailable, transactions can potentially be delayed regardless of whether buyers and sellers are otherwise ready to proceed.

Reported weaknesses surrounding the Romanian incident included outdated software, inadequate password protection, disabled security controls and historically limited spending on cybersecurity. These details remain allegations based on reports referenced in the legal analysis rather than findings independently established in the material available. Separately maintained offline backups reportedly prevented the incident from resulting in permanent loss of the affected information.

The episode nevertheless illustrates an increasingly important consideration for property investors. The security of a building or portfolio is no longer determined solely by its physical characteristics. Real estate has become dependent on a network of digital systems extending from government registers and transaction platforms to property-management software, tenant information, building controls and connected equipment.

A disruption to any critical part of that chain can have financial consequences. Problems accessing land-registration information can interfere with due diligence and closings, while attacks on property-management or building systems can affect operations, tenants and potentially income.

The Romanian case also arrives as European businesses face more extensive cybersecurity obligations. Austria, for example, is preparing to introduce requirements under its NISG 2026 legislation from 1 October, implementing the European NIS2 framework for organisations operating in designated critical and important sectors and affecting parts of their supply chains.

The approach places greater responsibility on companies to identify critical systems, assess their exposure and introduce safeguards proportionate to the potential consequences of failure. Basic measures can include stronger authentication, restrictions determining which users can access sensitive systems, monitoring capable of identifying unusual behaviour and tested recovery procedures.

The Romanian incident demonstrates why compromised credentials represent a particularly important vulnerability. If an attacker obtains the username and password of an authorised user, traditional perimeter security may provide limited protection. Multi-factor authentication and restrictions on what individual accounts can access can reduce the damage possible after credentials have been compromised.

Backup strategy is equally important. Maintaining copies of information is insufficient if attackers can reach and destroy the backups through the same compromised environment. Separating recovery data from operational systems and regularly testing restoration procedures can determine whether an attack results in temporary disruption or potentially permanent data loss.

For businesses falling within the new regulatory framework, cybersecurity is also becoming a board-level responsibility. Management is expected to understand relevant risks, oversee appropriate measures and ensure that adequate resources are available. The Austrian rules described in the legal analysis provide for potential penalties reaching €10 million or 2% of worldwide annual turnover for applicable infringements.

The regulatory consequences add another dimension to cybersecurity due diligence for property investors. Acquiring a company or operational real estate platform increasingly means acquiring its digital infrastructure and potentially its security weaknesses as well. Understanding how data is protected, who can access critical systems and how quickly operations can be restored after an incident can therefore become part of assessing operational risk.

The implications extend beyond individual buildings. Property markets depend on government databases, cadastral records and other digital infrastructure that individual investors cannot control. A failure at this level can potentially affect multiple transactions simultaneously, creating a form of systemic operational risk that conventional property underwriting has historically given relatively little attention.

Romania’s land-registry disruption provides a reminder that digital resilience is becoming part of the infrastructure supporting real estate liquidity. As transactions, financing and building operations become more dependent on interconnected systems, cybersecurity failures increasingly have the potential to move rapidly from computer networks into the financial and operational performance of physical property.

Source: CMS

tbi Bank Raises Financing for Cluj Residential Project to €15 Million

tbi bank Romania has increased its financing for Hexagon’s Someșului 15 residential development in Cluj-Napoca by a further €5 million, bringing the lender’s total commitment to the project to €15 million.

The additional facility follows €10 million in financing provided in 2025 and will support the completion of the development in central Cluj-Napoca. The increased commitment extends an existing relationship between the lender and Hexagon as construction of the scheme progresses.

Someșului 15 is being developed close to the Someș River and will comprise 136 apartments together with commercial premises and a two-level underground parking facility. The buildings will rise to five or six upper floors above the ground floor and two basement levels. Landscaped areas and measures intended to improve the project’s energy performance are also incorporated into the development.

The financing comes at a time when access to development capital and the ability to control construction costs remain important considerations for residential developers. By increasing its exposure to an existing project rather than financing a new scheme from the outset, tbi bank is providing additional capital during the delivery stage.

“In real estate, you are not simply financing square metres, but the confidence that a strong project will be successfully delivered,” said Marius Constantinescu, Head of Business Banking Sales at tbi bank Romania. “Our relationship with Hexagon has developed over time, and the additional financing for Someșului 15 is a natural step in a partnership built around experience, strong execution capabilities and a project that is highly relevant to a robust market such as Cluj-Napoca.”

Hexagon operates across several stages of the development process, including land acquisition, planning, design, construction, sales and asset management. Much of its construction work is undertaken through Hexagon Structures, its own general contracting business, giving the developer direct involvement in the delivery of its projects.

That structure is intended to give the group greater oversight of construction quality and schedules while limiting its dependence on external general contractors. Hexagon has previously developed residential, retail and office properties in Cluj-Napoca and Bucharest.

“Someșului 15 is an important project for us, both in terms of its location and concept, as well as the quality standards we have set for its development,” said Florin Măriș, founder and CEO of Hexagon. “tbi bank’s decision to increase the financing confirms the trust built over time. In a market where execution discipline matters more than ever, partnerships like this make the difference between a well-designed project and one that is successfully delivered.”

The transaction also comes during a period of change for tbi bank. The lender entered a new stage of ownership in 2026 following its acquisition by private equity investor Advent International.

For Cluj-Napoca’s residential development market, the increased facility provides another example of lenders extending capital to projects already moving through construction. The decision to raise the Someșului 15 financing from €10 million to €15 million gives Hexagon additional resources for completion while increasing tbi bank’s exposure to one of Romania’s most expensive and closely watched residential markets.

Hungary Opens New Wind Investment Pipeline with 702 MVA Grid Allocation

Hungary has taken a significant step towards restarting large-scale wind energy development by launching its first competitive allocation of grid capacity specifically aimed at new wind projects. The programme makes 702 MVA available across nine connection points, creating a defined pipeline for investment in generation, battery storage and associated electricity infrastructure.

The Hungarian Energy and Public Utility Regulatory Authority published the tender on 30 August 2026. Developers will be able to submit applications between 4 September and 30 October, with the outcome due to be announced by 13 December 2026.

The available capacity is spread across four parts of the country. The largest individual opportunity is at Ócsa in central Hungary, where 255 MVA has been allocated. A further 200 MVA is available at the Szombathely OVIT connection in western Hungary. Other locations include Ács, Kisbér, Komárom, Dunaújváros, Iváncsa and Székesfehérvár, together with an additional connection at Szombathely.

Successful projects will not receive immediate access to the network. Connections are scheduled to become available from 30 September 2030 at the earliest, while winning developments must reach commercial operation by 30 September 2032.

The programme has significant implications for development land surrounding the designated grid infrastructure. Proposed wind farms must be situated within 19 kilometres of the connection point selected in the application. Developers must identify at least one hectare of land and demonstrate an appropriate legal interest in the site, which can include ownership, lease rights or certain other contractual arrangements.

This requirement effectively establishes nine geographical zones in which developers can compete for both grid capacity and suitable sites. As projects advance, land with the necessary planning, technical and wind characteristics within these areas could become increasingly important to investors.

Previously developed land has been given an explicit role in the selection process. Projects where at least 70% of the proposed site qualifies as brownfield can receive 10% of the total evaluation score. This could improve the prospects for former industrial sites capable of accommodating energy infrastructure.

Battery storage will also influence the competition. Wind remains the principal technology, with applications requiring at least 14 MVA of grid capacity and a minimum 14 MW of installed wind generation. Developers can combine their projects with battery storage within the limits established by the tender, while the proportion of storage included in a proposal accounts for 15% of its evaluation score.

The tender therefore encourages projects that go beyond standalone wind generation. Combining turbines with storage could help developers improve their competitive position while creating additional investment requirements for batteries, electrical equipment and supporting infrastructure.

Grid costs will vary significantly between locations. At several of the connection points, successful bidders will be required to construct specified network infrastructure and subsequently transfer it to the relevant grid operator without compensation. Developers will consequently need to consider these infrastructure obligations when comparing the economics of individual sites.

Local financial commitments are another major component. Upfront contributions to municipalities account for 20% of the scoring system, while continuing payments linked to electricity production represent another 15%. Together, these measures make the financial relationship between developers and host communities one of the most influential elements of the competition.

Other criteria include installing more generating capacity than the grid capacity requested, accepting a partial allocation, providing a higher performance guarantee, sharing connection infrastructure with another successful applicant and using qualifying EU-manufactured equipment.

The final tender notably does not award points according to how advanced a project already is. An earlier consultation version considered elements such as feasibility work, business planning, land rights, environmental approvals and wind measurements. These have been removed from the final scoring structure, leaving developers to compete according to the published financial, technical, location and equipment criteria.

The ownership requirements are also significant for investors. Applicants must use a Hungarian project company established specifically for the proposed development. A single corporate group can secure no more than 200 MVA across the programme and no more than 100 MVA at any individual connection point.

Successful applicants must additionally agree to provide a 25% purchase option in their project company to a renewable energy community designated by the Hungarian government, subject to the conditions established by the tender. The option can be exercised within two years after the regulatory decision granting the grid connection becomes final.

Financial security requirements are substantial. Each application carries a HUF 3 million participation fee. Developers must also provide a bid guarantee calculated at 0.5% of the benchmark investment value, followed by a performance guarantee of at least 2.5% for successful projects. Bidders can commit to a higher performance guarantee in return for additional evaluation points.

For wind generation, the benchmark used for calculating these guarantees is HUF 406 million per MW of installed capacity, while battery storage is assessed at HUF 200 million per MWh.

The tender is therefore more than an allocation of electricity-network capacity. It establishes where a substantial part of Hungary’s next generation of wind investment could be concentrated and creates new considerations for land acquisition, brownfield redevelopment, storage development and electricity infrastructure.

With 702 MVA being allocated and grid access extending into the next decade, the process could begin shaping investment decisions well before the first new turbines become operational. For developers, however, securing capacity will require balancing land strategy and project economics with local financial commitments, grid infrastructure obligations, ownership requirements and significant financial guarantees.

Source: CMS

Hybrid Retail Concepts Are Changing the Requirements of Czech Commercial Space

Physical retail is entering another phase of transformation as stores increasingly combine shopping with hospitality, services and other activities designed to give consumers additional reasons to visit. The change is beginning to influence not only retailers’ operating models but also the type of commercial space that landlords need to provide.

According to Colliers, hybrid formats are becoming more important as conventional stores compete with the convenience and efficiency of digital sales channels. Rather than functioning solely as places where products are displayed and purchased, stores are increasingly being used for customer engagement, services, food and beverage and interaction between online and offline sales.

“Retail is evolving toward hybrid concepts that can attract both investors and customers thanks to these set-ups ability to generate consistent foot traffic. The trend is toward expanding experiential concepts, which are bringing customers back to stores and strengthening brand loyalty,” said Blanka Sovová, Director of the Retail Division at Colliers.

This evolution is changing how the performance of physical stores is assessed. Visitor numbers remain important, but retailers are also paying closer attention to how consumers use a space and how long they remain there. Seating, refreshments, consultations and other services can turn a relatively short shopping visit into a longer interaction with the retailer.

“In practice, this means that if a retailer can extend a customer’s stay—for example, by offering coffee or a place to sit—the store owner then increases the likelihood of larger purchases. However, the length of stay isn’t just important for immediate sales; it also serves as an indicator of the quality of customer experience,” Sovová said.

Bookshops provide one of the more established examples. Combining bookselling with cafés gives customers somewhere to browse, meet and spend time rather than simply completing a purchase. Similar strategies are increasingly visible elsewhere in retail.

“Coffee in stores is nothing new, though. Tomáš Baťa already used this idea in the 1930s. He offered coffee to men who were waiting for their wives to choose their shoes,” Sovová said.

Contemporary fashion brands are developing the concept further. Colliers points to H&M’s ARKET format in Prague as an example of combining fashion retail with refreshments. At the luxury end of the market, brands including Dior, Gucci and Ralph Lauren have used cafés and restaurants to extend their presence beyond conventional fashion stores.

Beauty retail has followed a somewhat different route. Physical locations increasingly combine product sales with services such as consultations, makeup application, product trials and skin analysis. These activities provide an element that cannot be replicated as easily through an online transaction and can therefore strengthen the role of the store within a retailer’s wider sales network.

The relationship between e-commerce and physical stores is also becoming less straightforward. Instead of treating the two channels as competitors, retailers increasingly use them together. Online sales can provide information about customer preferences before a company commits to a physical location, while stores can support product discovery and strengthen a retailer’s presence within a particular market.

“When a brand opens a physical store, digital sales in that area typically rise; when it closes one, they fall. According to a Capital One Shopping survey from this past June, as many as 55% of customers visit the retailer’s website before heading to the store. So, as the online world grows, so do sales in the offline world,” Sovová said.

For commercial property owners, however, the move towards hybrid retail creates practical challenges. A unit originally designed exclusively for selling clothing or other merchandise may require substantial changes if a café, restaurant or another regulated activity is subsequently introduced.

In the Czech Republic, combining conventional retail with food preparation or service can trigger additional hygiene, ventilation, technical and fire-safety requirements. Depending on the existing approval of the premises and the proposed operation, alterations can also require changes to the permitted use of the space.

This creates a property investment consideration that extends beyond tenant mix. Retail buildings capable of accommodating different activities without extensive reconstruction may become more attractive to operators whose business models continue to evolve. Flexible layouts, sufficient building services and the ability to modify units could therefore become increasingly important when shopping centres and high-street properties are refurbished.

“We recommend that property owners and retailers move away from rigid divisions of retail spaces and start thinking of them as dynamic ecosystems. Successful stores are no longer defined by the number of items sold, but by the depth of the customer’s engagement in the brand’s world. Hybrid concepts are a good tool for achieving this goal,” Sovová said.

For landlords, the shift means that future leasing strategies may need to consider much more than the traditional division between shops, restaurants and services. As those boundaries become less distinct, adaptable commercial space could play a larger role in attracting tenants and keeping existing retail properties competitive.

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