Personal bankruptcies in the Czech Republic rise by 7% in 2024, marking a trend reversal

In 2024, the Czech Republic saw 13,751 personal bankruptcies, reflecting a 7% year-on-year increase and signaling a shift after four consecutive years of decline. This data, analyzed by the portal www.informaceofirmach.cz and provided by CRIF – Czech Credit Bureau, highlights significant changes in the country’s financial landscape. Alongside the rise in bankruptcies, 14,883 insolvency petitions were filed, representing a 10% increase compared to the previous year.

December alone accounted for 1,219 personal bankruptcies and 1,257 insolvency petitions, demonstrating a steady monthly trend of 1,146 bankruptcies and 1,240 petitions throughout the year. Despite the rise, the total number remains 4,763 fewer than in 2019, though analysts predict further increases in 2025.

Impact of Legislative Changes and Financial Challenges
The October 2024 amendment to the Insolvency Act has made personal bankruptcy more accessible to individuals in financial distress. However, CRIF analyst Věra Kameníčková points to declining repayment morale and rising consumer credit volumes as contributing factors to the increase.

“The amended Insolvency Act has eased conditions, enabling more people to address financial difficulties. However, this comes amid worsening repayment discipline and higher borrowing levels, adding pressure to the system,” Kameníčková explained.

Regional Breakdown of Personal Bankruptcies
The Moravian-Silesian Region recorded the highest number of bankruptcies in 2024, with 2,176 cases, followed by the Ústí nad Labem Region (1,934) and the Central Bohemian Region (1,493). In contrast, the Vysočina Region had the fewest, with only 436 cases, alongside the Karlovy Vary Region (516) and the Zlín Region (528).

Year-on-year increases were most notable in the Ústí nad Labem Region (+14%) and the South Bohemian Region (+12%). The Vysočina Region and Karlovy Vary Region saw the smallest increases, at 1% and 4%, respectively.

Bankruptcy Risk by Region
The Ústí nad Labem Region remains the most bankruptcy-prone area, with 28 bankruptcies per 10,000 residents aged 15 and above, followed by the Moravian-Silesian Region (22 per 10,000) and the Karlovy Vary Region (21 per 10,000). In contrast, Prague had the lowest bankruptcy rate, with just 9 bankruptcies per 10,000 residents, followed by the Vysočina Region (10) and the Zlín Region (11). The national average stood at 15 bankruptcies per 10,000 residents, up slightly from the previous year.

With rising insolvency petitions and the ongoing effects of legislative changes, experts anticipate a continued increase in personal bankruptcies in 2025. The data underscores growing financial pressures on Czech households, particularly in regions with historically higher bankruptcy risks.

Source: CRIF and CTK

Haná Barracks in Olomouc sold to Brno developer Richard Saliba for CZK 91 million

The historic Haná Barracks in Olomouc has been purchased by the Brno-based developer Salibara, owned by Richard Saliba, in an electronic auction conducted by the Office for the Representation of the State in Property Matters (ÚZSVM). The final sale price of CZK 91 million was reached after a competitive bidding process, narrowly surpassing the offer from the Redstone Group by CZK 100,000. This successful sale marks the culmination of the state’s tenth attempt to sell the property, which was first listed for CZK 262 million in 2021.

The auction, lasting 24 hours, saw intense activity in the final moments, with two active bidders driving up the price. Richard Saliba’s winning bid reflects his interest in the property, which he visited multiple times during the past year. Saliba is no stranger to significant redevelopment projects, having previously restored prominent Brno landmarks such as the Padowetz Palace and the Jalta Palace. He has already reached out to Olomouc Mayor Miroslav Žbánek, regional Governor Ladislav Oklešt’k, and representatives of Palacký University to discuss potential collaborations for the future use of the barracks.

The Haná Barracks, a listed 19th-century building, is a prime example of classicist military architecture. Situated in the historic heart of Olomouc, the site was previously used as a Regional Assistance Centre for Ukraine (KACPU) during the war in Ukraine, but has been vacant since January 2024. The property’s sale history has been complex, with prior auctions ending unsuccessfully due to procedural challenges. In a previous auction, Redstone Group had bid CZK 89.1 million, but disputes over the process led to another sale attempt.

Palacký University expressed interest in acquiring the site but withdrew due to limitations in its financial decision-making processes and the transparency required as a public institution. This left private developers, such as Salibara and Redstone, as the primary competitors for the property.

The purchase agreement will now move through formal approval by the Ministry of Culture. Saliba plans to expedite negotiations to minimize legal uncertainties and begin the redevelopment process. His plans for the Haná Barracks are expected to honor the site’s cultural significance while integrating modern functionality, bringing new life to one of Olomouc’s architectural treasures.

Source: CTK
Photo: denarchitektury.cz

Inflation in Slovakia slows to 2.8% in 2024, marking the sharpest year-on-year decline in 25 Years

In 2024, Slovakia’s average inflation rate dropped significantly to 2.8%, a dramatic slowdown compared to the double-digit inflation rates of the previous two years. This represents the sharpest year-on-year deceleration in price growth over the past quarter-century, with inflation standing at 10.5% in 2023 and 12.8% in 2022. Notably, inflation never exceeded 4% in any month of 2024, signaling a marked stabilization in consumer prices.

The moderation in inflation was largely driven by subdued increases in food prices, which rose by just 2.5%, a stark contrast to the 17.3% spike in 2023. Prices in housing and energy, another major household expenditure category, grew by only 0.5%, influenced by stable electricity and gas prices and lower costs for items such as imputed rent and solid fuels.

Drivers of Inflation in 2024
The slowdown was primarily shaped by the easing of price growth in key consumer sectors. Food prices, which had been a major inflation driver in 2023, saw more modest increases, with notable price rises in bread and cereals (4%) and vegetables and fruits (above 3%). However, certain items, such as oils and fats and sugar and confectionery, saw sharper increases of 9% and 5%, respectively. Meanwhile, prices for milk, cheese, and eggs recorded a slight 0.2% decline.

The housing and energy sector, which accounts for a significant portion of household expenses, experienced minimal inflationary pressure. Electricity and gas prices remained stable, while some components, such as imputed rent and solid fuels, saw year-on-year price reductions. Price increases in less critical areas, such as waste collection and water and sewage services, contributed marginally to the overall inflation in this division.

In contrast, other sectors experienced more pronounced price increases. The restaurants and hotels division saw prices rise by 5%, driven by higher costs in restaurants and cafes. Alcoholic beverages and tobacco prices also rose, with taxes contributing to increases of nearly 9% for spirits and tobacco.

Transportation was the only division to record faster price growth than in 2023, with a rise of 3.2%. This was driven by increased fares for passenger transport, though fuel prices fell by 1.7%, tempering the overall impact.

The most significant price growth occurred in the education sector, which experienced a 10.5% increase in fees across all levels of study. Despite this, education remains a minor contributor to household expenses.

Core and Net Inflation
In 2024, both core and net inflation stood at 2.6%, reflecting the effects of stable regulated prices and minimal administrative adjustments. Core inflation, which excludes the impact of food and regulated price changes, indicates a stable underlying price trend.

The marked decline in inflation in 2024 reflects a stabilization in consumer prices following two years of extreme increases, signaling progress in Slovakia’s economic recovery. However, certain sectors, such as transportation and education, continue to see notable price pressures, underscoring the need for ongoing monitoring of inflationary trends.

Source: Statistical Office of the SR

Conseq Realitní acquires iconic EA Hotel Atlantic Palace in Karlovy Vary

Conseq Realitní, a real estate investment fund, has finalized the acquisition of the landmark EA Hotel Atlantic Palace, a prominent five-star hotel in the heart of Karlovy Vary. The deal was facilitated by real estate consultancy Reals, which provided comprehensive advisory services throughout the process.

Located in the historic spa town renowned for its thermal springs and cultural heritage, the EA Hotel Atlantic Palace is a prime example of neo-Renaissance architecture. It offers high-end accommodations and stunning views of Karlovy Vary’s iconic landmarks, making it a favored destination for international tourists.

The transaction signals Conseq Realitní’s commitment to expanding its portfolio with premium assets in sought-after locations. A spokesperson for Conseq Realitní noted, “The acquisition of the EA Hotel Atlantic Palace reinforces our strategy to invest in properties with exceptional value and long-term growth potential. Karlovy Vary’s status as a premier tourist destination adds significant strength to this investment.”

Reals played a pivotal role in the successful completion of the deal, providing services that included due diligence, asset valuation, and transaction structuring. The consultancy leveraged its extensive knowledge of the hospitality sector to ensure that Conseq Realitní achieved its investment objectives.

“We are proud to have supported Conseq Realitní in securing such a prestigious property,” said a Reals spokesperson. “The EA Hotel Atlantic Palace is a cornerstone of Karlovy Vary’s hospitality sector, and this acquisition reflects the growing interest in high-value real estate in the region.”

Photo: hotelatlanticpalace.cz

Dekpol Budownictwo to build Świdnik Arena, the largest investment in Świdnik’s history

The city of Świdnik in the Lublin region is set to undergo a transformative development with the construction of Świdnik Arena, a Multifunctional Development Center designed to address the evolving needs of the local community. The ambitious project, which will be carried out by Dekpol Budownictwo as the general contractor and financed by the Municipality of Świdnik, marks the largest investment in the city’s history.

Spanning over 9,000 square meters and with a volume exceeding 70,000 cubic meters, the Świdnik Arena will include a modern sports and entertainment hall capable of accommodating more than 2,000 spectators. The facility will stand 18 meters tall and is set to be completed by the second half of 2026, establishing itself as a premier venue for cultural, athletic, and community events in the region.

The project is being hailed as a milestone for Świdnik’s development. Marcin Dmowski, Mayor of Świdnik, emphasized its significance, stating that the center will serve as a multifunctional hub for education, culture, and social interaction. He expressed confidence that the PLN 79 million investment would not only improve the quality of life for residents but also position Świdnik as a modern and integrated city.

Świdnik Arena will host a wide range of activities, including sports competitions, cultural events, concerts, conferences, and trade fairs. It will also become the home base for the PZL Leonardo Avia Świdnik volleyball team and other athletic teams, making it a central hub for sports in the region.

The project’s scale and vision are complemented by the implementation of advanced technical and technological solutions. According to Dawid Osmólski, Sales Director of Dekpol Budownictwo, the arena will adhere to international standards set by organizations such as FIFA, FIVB, FIBA, and IHF, as well as Polish sports unions. Osmólski highlighted the arena’s potential to become a cornerstone of cultural and social life in Świdnik, hosting events that will leave a lasting impression on the community.

Photo: Multifunkcyjne Centrum Rozwoju

Swiss MET Group enters Czech energy market with bold plans for expansion

Swiss energy company MET Group has officially entered the Czech energy market by establishing a local subsidiary, marking its 17th country of operation. Renowned for its robust presence in the gas sector, including LNG capacities, and active electricity trading, MET Group aims to become a key player in the Czech Republic’s energy landscape.

Initially, MET Czech Republic will focus on wholesale services tailored to energy-intensive companies and industrial plants. Over time, it plans to expand its offerings to smaller customers and households. At a press conference, company representatives emphasized MET’s commitment to enhancing supply security, stability, and supporting the country’s energy transition.

Headquartered in Switzerland and managed by its leadership team, MET Group operates across 30 national gas markets and employs over 1,000 people. In 2023, the company reported consolidated sales of €24.5 billion, trading 88 billion cubic meters of gas and 68 terawatt hours of electricity. With new long-term LNG contracts from the United States, along with resources from Africa and Asia, MET is well-positioned to serve its new market.

MET Czech Republic has already secured the necessary licenses for electricity and gas trading, allowing it to immediately engage with potential customers. According to Pavel Balada, CEO of MET Czech Republic, the company will initially prioritize large industrial clients, a segment left underserved after the energy crisis led to the exit of several suppliers.

“We enter the Czech market as a full-fledged partner. Our goal is to bring security of supply, stability, and support the country in its energy transition. As part of the MET Group, we are a reliable partner for our customers,” Balada said.

In its early years, the Czech subsidiary will employ dozens of professionals, with ambitions to expand its workforce as operations grow. Looking ahead, MET aims to diversify into cogeneration and renewable energy projects. Although MET has previously supplied LNG gas to a Czech client, the company did not disclose specific details.

This entry marks a significant step in MET Group’s broader strategy to strengthen its presence in European markets and underscores its commitment to delivering innovative and reliable energy solutions to the Czech Republic.

Kajima acquires third student depot site in Warsaw

Kajima Europe, the pan-European real estate investor, developer, and manager with GDP 10 billion in assets under management, has acquired its third Student Depot development site in Warsaw. The new project on Ciołka Street in the Wola district will feature 628 rooms and premium amenities, further solidifying Kajima’s position as the leading investor in student housing in Poland.

Located just a four-minute walk from the Księcia Janusza metro station on Line 2, the eight-story development will provide 10,100 square meters of Net Lettable Area (NLA), with the ground floor dedicated to concierge and shared spaces, including a co-working hub, games room, gym, lounge, entertainment space, and retail facilities.

Since acquiring Student Depot in 2019, Kajima has rapidly expanded its platform, achieving full ownership in 2023. Student Depot now accommodates nearly 4,200 students across major university cities like Warsaw, Kraków, Poznań, and Wrocław, with an additional 1,500 beds in the pipeline. This includes the expansion of Student Depot Poznań and a second project in Gdańsk.

Construction of the Ciołka Street site is set to begin in March 2025, with completion targeted for September 2026.

Jan Trybulski, Head of Poland at Kajima Europe, emphasized the strategic importance of the acquisition, stating, “This prime project aligns seamlessly with our expansion strategy for the Student Depot platform. Kajima’s deep commitment to the Polish PBSA market and proven expertise in managing student housing assets will ensure continued exceptional performance.”

Michal Obara, CEO of Student Depot, added, “Our third site in Warsaw marks another milestone for Student Depot as the largest and most established PBSA developer in Poland. We are excited to collaborate with Kajima Europe to maintain our strong track record of occupancy and rental growth.”

Report: German logistics real estate booms in 2024 with 4.4 million square metres built

The logistics real estate market outperformed expectations in 2024, with new construction volumes reaching an impressive 4.4 million square metres, according to data from Logivest’s annual logistics real estate seismograph. This marks a 15% increase compared to the previous year. The measurement, taken at the groundbreaking ceremony, highlights a strong year for the sector despite broader economic challenges in Germany. The second quarter stood out as the most active, contributing nearly 1.4 million square metres of new construction and featuring several significant projects.

One of the year’s largest developments is the Mercedes-Benz logistics centre in Bischweier, Rastatt district, spanning 130,000 square metres on a brownfield site, developed by Panattoni. Other notable projects include the Log Plaza in Frankfurt Oder, a speculative build by Alcaro comprising a 90,000-square-metre section, and The Space in Halle an der Saale, another speculative centre of nearly 90,000 square metres, developed by BentallGreenOak.

Positive Market Trends and Optimism
“The logistics real estate market has demonstrated remarkable resilience and optimism, reflected in the rise of speculative new construction projects,” said Kuno Neumeier, CEO of Logivest. He emphasized that the slight decline in prime rents—such as Munich’s drop from €16 per square metre in 2023 to €14 in 2024—indicates a healthy market correction. Despite this adjustment, rents remain high, reflecting continued demand and investor confidence in logistics assets.

Top Logistics Regions of 2024
The Leipzig/Halle region maintained its position as the leading logistics hub, with 465,000 square metres of new construction. The Cologne Lowland followed with 335,000 square metres, reclaiming its spot in the top tier, while the Duisburg/Lower Rhine region ranked third with 290,000 square metres.

Unexpectedly, the Upper Rhine region achieved its best result in five years, largely thanks to the Mercedes-Benz logistics centre, with 200,000 square metres of new developments. Meanwhile, Berlin saw a decline, slipping from the top three to 16th place with just 105,000 square metres, while the Munich region re-entered the top 10 with 135,000 square metres.

Looking Ahead to 2025/26
With stability regained in 2024, the logistics real estate market shows no signs of slowing down. Logivest projects approximately 13 million square metres of planned new construction for 2025/26, with 2.6 million square metres already in user-specific negotiations.

Neumeier remains optimistic about the sector’s potential, citing logistics real estate as an attractive investment despite looming uncertainties such as the February 2025 elections and economic fluctuations. He highlighted potential challenges, including market adjustments due to insolvencies and consolidations, but pointed to opportunities in reducing bureaucracy and advancing sustainability initiatives.

As the logistics real estate market continues to adapt and expand, it remains a key player in Germany’s economic framework, balancing growth with innovation and resilience.

Source: Logivest GmbH

HIH Invest completes sale of ibis budget hotel near Munich to Atream

HIH Invest Real Estate GmbH has finalized the sale of a hotel in Aschheim, near Munich, to a fund managed by French investment firm Atream. The property, located at Bahnhofstrasse 2-4, operates under the ibis budget brand and features a total leasable area of 3,912 square meters. This includes 150 rooms, a restaurant, and 84 parking spaces, with 33 outdoor and 51 underground parking spots. The hotel, leased to AccorInvest Germany, has been in operation since its construction in 2007 and underwent significant renovations between 2019 and 2021 to modernize the rooms, corridors, and lobby.

The hotel’s strategic location in Aschheim, on Munich’s eastern city limits, makes it an attractive asset. It is five minutes by car from the Munich exhibition center, within walking distance of the Riem S-Bahn station, and less than 30 minutes by car from Munich Airport. Additionally, its proximity to the A94 motorway and the area’s emergence as a tech hub, with numerous major companies, has created strong demand for accommodations.

Daniel Asmus, Team Leader of Transaction Management Office Germany at HIH Invest Real Estate, noted the challenges faced by the hospitality sector in recent years, particularly trade fair hotels affected by declining guest numbers during the pandemic. However, he emphasized that ongoing modernization efforts enhanced the hotel’s appeal to guests and significantly boosted its market position, contributing to the successful sale.

The transaction was facilitated by BNP Paribas Real Estate, with legal counsel provided by Norton Rose Fulbright. While the purchase price remains undisclosed, the sale reflects strong investor interest in high-quality hotel properties located near major transportation and economic hubs. This marks a strategic move for both HIH Invest and Atream as the hospitality sector continues to recover.

Korean Factory under construction in Brzeg by Dekpol Budownictwo

In a significant development for Poland’s automotive sector, Dekpol Budownictwo is constructing the first factory for Korean company POSCO International Poland E-Mobility. Located in the Wałbrzych Special Economic Zone ‘Invest-Park’, the factory will produce key components for electric vehicles, catering to the growing global demand for e-mobility solutions.

POSCO International Poland E-Mobility supplies cutting-edge technology used by major electric vehicle manufacturers, including Hyundai Motor Co. and Kia Corp. The new facility in Brzeg, situated in the Opolskie Voivodeship, will focus on the production of components for electric cars and will cover a total area of 21,000 square meters upon completion.

Construction is advancing according to schedule, with the main hall and installation of sanitary and electrical systems already completed. Mariusz Niewiadomski, Operations Director and Member of the Management Board of Dekpol Budownictwo, highlighted the team’s efforts, stating, “Despite September’s weather challenges in the Opole region, we are progressing as planned. Our team is committed to delivering this demanding project to the highest quality standards.”

The factory is being built on a 10-hectare plot, with mass production set to begin in the second half of 2025. The first production order for propulsion engine cores has already been placed by Hyundai-Kia Motors, signaling strong demand for the facility’s output.

This project marks a significant step forward in Poland’s integration into the global electric vehicle supply chain and underscores the country’s growing role in advanced automotive manufacturing. Once operational, the Brzeg factory is expected to contribute significantly to the region’s economic development while reinforcing Poland’s position as a hub for e-mobility innovation.

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