ATAL Expands Gdańsk Pipeline with 111-Home Wzgórze Oruni Development

ATAL has started construction and sales at Wzgórze Oruni, a new residential development in southern Gdańsk that will add 111 apartments to the developer’s growing Tri-City portfolio. Completion is scheduled for the second quarter of 2028.

The project is being developed on Emilii Hoene Street in the Orunia Górna–Gdańsk Południe district, approximately five kilometres from central Gdańsk. It will comprise four five-storey residential buildings offering apartments ranging from around 30 sqm to more than 92 sqm, with layouts of between one and four rooms.

Prices have been set between PLN 13,000 and PLN 15,200 per sqm for apartments delivered in developer standard. Buyers will also be able to purchase completed interiors through ATAL’s finishing programme.

The development has been designed to take advantage of its elevated position, with views towards central Gdańsk and the Żuławy area. Upper-floor apartments will have glazed balconies, while homes at ground level will include private gardens. A recreation area and communal meeting space are planned within the southern part of the site.

Parking will predominantly be provided below the buildings. ATAL lists 135 parking spaces for the development in total, alongside storage facilities. The scheme will also incorporate monitoring and accessibility measures for residents with disabilities.

Public transport is available approximately 400 metres from the development on Uranowa Street, while road connections provide access towards central Gdańsk and the Tri-City bypass. ATAL also points to the proposed expansion of the Pomorska Kolej Metropolitalna as a potential future improvement to public transport accessibility in this part of the city.

The launch comes during a period of wider expansion for ATAL in the Tri-City residential market. The developer recently acquired local company Budner together with its assets, increasing its exposure to the region and adding projects to its development pipeline.

“We are maintaining the pace of our expansion in the Tri-City, and shortly after acquiring one of the local developers and its assets, we are presenting another project. This increases our current offer in the region to ten developments. We are also planning further projects, including in Gdańsk,” said Agnieszka Majkusiak, General Director of Sales and Marketing at ATAL.

ATAL has now operated in the Tri-City and surrounding market for a decade. According to the company, it has completed nine projects in the region, with another nine currently progressing, while more than 2,000 apartments have been purchased by customers during its ten years of local activity.

Wzgórze Oruni represents another step in that expansion, extending ATAL’s pipeline into southern Gdańsk at a time when the developer is increasing its regional presence through both new construction and acquisitions.

E-Commerce Tenant Takes 20,000 sqm as Wałbrzych Attracts Cross-Border Logistics Demand

An international e-commerce company has leased nearly 20,000 sqm at Panattoni Park Wałbrzych, adding another large occupier to the Lower Silesian logistics market and strengthening Wałbrzych’s position as an alternative distribution location outside the main Wrocław warehouse cluster.

The unnamed tenant will use the facility to support operations across European markets. The agreement represents another transaction between the company and Panattoni and expands the occupier’s presence in Lower Silesia.

Immediate access to completed warehouse capacity was an important factor behind the location decision. According to Panattoni, negotiations progressed from the initial enquiry to a signed lease within one week, with the premises made available to the tenant the following day.

The transaction demonstrates the potential advantage of ready-to-occupy logistics space at a time when e-commerce companies can require substantial capacity at relatively short notice. Existing buildings allow occupiers to establish or expand operations without waiting for a new development to pass through construction and commissioning.

Panattoni Park Wałbrzych comprises two warehouse buildings providing a combined 57,000 sqm. Following the latest lease, approximately 6,000 sqm remains available.

The property is located in the Szczawienko district close to national road No. 35 and within the Wałbrzych Special Economic Zone. Its position provides road connections towards the Czech border, giving occupiers access to distribution routes serving both Poland and neighbouring Central European markets.

That cross-border position is particularly relevant to Wałbrzych’s potential as a logistics location. While the Wrocław area remains Lower Silesia’s principal warehouse hub, secondary locations can compete for occupiers where available space, labour access and connections to neighbouring markets meet operational requirements.

The new tenant’s decision to manage European operations from Wałbrzych suggests that such locations can attract requirements extending beyond regional distribution. For developers and investors, this can broaden the potential occupier base for logistics properties outside Poland’s largest warehouse markets.

Panattoni says it has delivered close to 2.5 million sqm across Lower Silesia, making the region its second-largest market in Poland by completed space. The Wałbrzych property has been designed for a mixture of logistics, e-commerce and light manufacturing operations and holds BREEAM certification.

The latest transaction also leaves the majority of Panattoni Park Wałbrzych occupied, with the remaining available area representing roughly a tenth of the development.

As occupiers become increasingly selective about logistics costs and delivery times, the ability to provide substantial completed space can be as important as proximity to the largest distribution centres. The Wałbrzych lease shows how this combination of availability and cross-border connectivity can create opportunities for secondary logistics locations within Lower Silesia.

German Property Transactions Gain Momentum as Market Liquidity Returns

Germany’s commercial real estate investment market is showing stronger signs of recovery in 2026, with transaction activity accelerating as buyers and sellers increasingly reach agreement on pricing after several years of market adjustment.

Data from due diligence platform Drooms indicates a substantial increase in transactions passing through its systems. During the first six months of 2026, the number of German real estate transactions recorded on the platform had already reached approximately three-quarters of the total registered throughout 2025. If activity continues at a similar pace during the second half, Drooms estimates that its German transaction count could finish the year around 50% above the 2025 level.

The improvement is considerably stronger than the change recorded a year earlier, when transactions handled through the platform increased by only around 4.1%.

“The number of transactions remained relatively stable in recent years, fluctuating by only a few percentage points. For the first time since the start of the Ukraine crisis, we are seeing a more pronounced upward movement,” said Alexandre Grellier, CEO of Drooms.

The direction is also visible elsewhere in Europe, although Germany appears to be experiencing a particularly strong acceleration. Based on activity during the first half, Drooms estimates that the number of transactions recorded across its European operations could increase by 27.24% over the full year.

Improved agreement between buyers and sellers appears to be one factor behind the higher transaction count. After several years in which higher financing costs forced investors and owners to reconsider asset values, more properties are reaching a price at which transactions can proceed. Pressure on some owners to sell may also be contributing to the increase.

“Germany’s transaction market stands out in Europe for its sharp increase in momentum. It appears that price discovery between buyers and sellers is working better, or simply that the pressure to sell has become strong enough,” Grellier said. “Given the global uncertainty, no one can say how long this positive sentiment will last. Owners looking to sell should therefore remain transaction-ready so that they can capitalise on this kind of market momentum.”

Investment volumes provide additional evidence of improving activity. Market figures cited by Drooms put German real estate transactions at just under €16.2 billion during the first half of 2026, an increase of 13% compared with the same period last year. Around 800 transactions were recorded, with an average deal size of approximately €20 million.

The recovery remains selective, however. Germany’s seven largest property markets have contributed significantly to activity, alongside larger office transactions and portfolio deals involving residential, logistics, care and healthcare properties.

“The market is continuing its gradual recovery. Geopolitical uncertainty is still prompting caution, but the market is fundamentally recovering. Price discovery is working better than in 2025, and the underlying fundamentals remain intact,” said Jan Linsin, Head of Research Germany at CBRE. “The recovery is being driven by the top seven markets, large-volume office transactions, and portfolio deals in care and healthcare properties, logistics and residential.”

The composition of activity suggests that capital is returning most readily to sectors and properties where investors have greater confidence in income and future liquidity. Buildings requiring substantial capital expenditure, facing leasing uncertainty or carrying unresolved valuation issues may take longer to participate fully in the recovery.

Higher transaction numbers also do not necessarily mean that property values are recovering at the same pace. Refinancing requirements, approaching debt maturities and portfolio restructuring can encourage owners to sell even where market pricing remains below previous expectations.

Another constraint is the amount of time required to complete transactions. Drooms found that the average transaction process across Europe remained at 363 days in 2025. Germany recorded a modest improvement, with the average falling from 405 to 398 days, but this still represents a lengthy process for investors attempting to deploy capital.

“We are seeing a positive trend in transaction times. However, they remain at a very high level,” Grellier said. “Long transaction times could slow the recovery in the transaction market.”

The combination of increasing deal numbers and lengthy execution periods provides a more nuanced picture of Germany’s property recovery. Liquidity is improving and valuation expectations appear to be converging, but investors continue to examine individual assets carefully rather than returning indiscriminately to the market.

For owners considering disposals, the improvement in liquidity could provide a more favourable environment than during the deepest stage of the market correction. Buyers, meanwhile, are likely to continue distinguishing sharply between properties capable of attracting financing and assets requiring substantial repositioning.

The first half of 2026 therefore points towards a further normalisation of Germany’s property investment market. The next test will be whether the increase in transactions spreads beyond the strongest locations and most liquid asset classes during the remainder of the year.

Hellmann Expands in Poznań with New 5,350 sqm Logistics Facility

Hellmann Worldwide Logistics Polska is expanding its operations in the Poznań region with a new facility at MLP Poznań, where the logistics company has agreed to lease 5,350 sqm of warehouse and office space.

The premises are scheduled to become operational during the first quarter of 2027. Around 500 sqm will be allocated to offices and employee facilities, while approximately 4,850 sqm will support warehouse operations.

The move is being driven by the expansion of Hellmann’s business and the need for additional operational capacity. BNP Paribas Real Estate Poland, which advised the tenant during the leasing process, said the company’s existing premises were no longer sufficient for its requirements.

The transaction adds another logistics occupier to MLP Poznań and demonstrates continued demand for facilities positioned around the main transport corridors serving western Poland. Poznań is an important distribution location because of its connections between Warsaw and the German border, as well as routes linking western Poland with the country’s southern industrial markets.

MLP Poznań is located in Koninko, approximately 16 km from central Poznań. The development sits alongside the S11 expressway and around four kilometres from the A2 motorway, providing access to domestic distribution routes as well as international connections towards Germany and other European markets.

The park is being developed across 19.2 hectares and is planned to provide approximately 90,000 sqm of warehouse and production accommodation when completed. Its buildings are subject to BREEAM certification as part of MLP Group’s environmental standards for the development.

For Hellmann, the new location provides additional capacity for its domestic and international logistics activities while keeping operations within the wider Poznań distribution market. The combination of warehouse and office accommodation also allows the company to consolidate operational and administrative functions within the same facility.

The lease comes as logistics operators continue to place significant emphasis on motorway accessibility and the ability to serve both Polish and cross-border markets from a single distribution location. Poznań’s proximity to Germany and position on the A2 corridor have made the region an established destination for logistics and industrial development.

Hellmann’s expansion provides another example of demand being generated by existing logistics businesses requiring additional capacity rather than solely by companies establishing their first Polish operations. For warehouse owners and developers, such expansion requirements remain an important source of leasing activity as occupiers reassess the size and efficiency of their distribution networks.

Construction of the dedicated facility is due to be completed in the first quarter of 2027, after which Hellmann is expected to begin operations at MLP Poznań.

Romania’s Construction Growth Faces Test as Public Investment Dominates Market

Romania’s construction sector continued to expand strongly in the first part of 2026, but the growing importance of government-backed projects is creating a more uneven outlook for the industry. While infrastructure and residential works are maintaining high levels of activity, privately financed commercial development remains more restrained as borrowing costs and economic uncertainty weigh on investment decisions.

Construction volumes increased by approximately 12% during the first five months of 2026 compared with the same period last year, according to Colliers’ H1 real estate market analysis. The figures measure the physical volume of work carried out rather than the monetary value of projects, meaning the increase cannot simply be attributed to construction-cost inflation.

Residential construction recorded the strongest increase, rising by around 16%, while infrastructure activity expanded by approximately 14%. Non-residential construction grew at a slower rate of about 6%, reflecting a more cautious approach among private investors and the continuing difficulty of financing new developments.

Infrastructure, including road, railway and hospital projects, now represents more than half of construction activity, according to Colliers. This has helped maintain the market at levels almost twice those recorded before the pandemic, but it has also increased the industry’s exposure to government spending and the availability of European financing.

“This year’s pace of activity shows that the construction market remains very active, but its reliance on public investment is becoming increasingly significant. More than half of activity comes from state-funded projects, and the key question for the months ahead is whether these investments can continue at the same pace,” said Alexandru Atanasiu, Partner and Head of Construction Services at Colliers.

Romania’s infrastructure programme has expanded considerably in recent years. The country had approximately 1,400 kilometres of high-speed roads at the beginning of 2026, compared with around 900 kilometres before the pandemic. More than 1,000 kilometres are currently at different stages of construction, while another approximately 300 kilometres are being planned.

Maintaining that pipeline will be one of the main challenges during the remainder of the year. Some transport schemes relying on European funding face financing uncertainty, while estimates cited by Colliers indicate that road projects alone could require an additional €10–15 billion from the state budget or alternative programmes if expected European resources are unavailable.

Romania’s 2026 budget includes more than RON 160 billion for public investment, with European financing playing an important role. Any material slowdown in the deployment of those funds could therefore affect not only contractors but also suppliers, transport companies, logistics operators and other businesses connected with construction.

At the same time, contractors are facing renewed pressure on costs. Prices for some construction materials have started rising again, while labour expenses remain elevated. The introduction of costs associated with the EU’s Carbon Border Adjustment Mechanism is also expected to affect certain imported materials, including steel and aluminium.

Higher costs are particularly problematic when combined with delayed payments. Contractors working on large projects can be required to finance labour, materials and subcontractors well before receiving payment themselves, increasing working-capital requirements. High interest rates make bridging these periods more expensive.

“The construction market is still performing very well, but uncertainty is increasing. Contractors have projects and activity, but costs are rising, financing remains expensive, and some public investments are becoming more difficult to predict,” Atanasiu said.

He added that delayed payments can quickly affect contractors’ ability to finance several developments simultaneously. Although margins accumulated during stronger years provide some protection, that capacity is not unlimited if costs continue increasing or public projects begin to slow.

Employment in construction remains close to record levels at around 460,000 people. Labour expenses have also increased following the removal of tax advantages previously available to the sector from January 2025. Romanian construction wages nevertheless remain below those in several other Central and Eastern European markets, providing local contractors with some remaining cost competitiveness.

The industry’s growing economic importance makes the risks more significant. Construction represented approximately 8.6% of Romanian GDP in 2025, according to figures cited by Colliers. Lending to construction companies has also increased, exceeding RON 54 billion by the end of the first quarter of 2026, around 16% higher than a year earlier and almost double the level recorded in 2019.

For commercial property developers, the market presents a noticeably different picture from the infrastructure boom. The comparatively modest increase in non-residential construction suggests that expensive financing and uncertainty continue to constrain privately funded schemes. Developers are consequently taking a longer view on new projects rather than responding immediately to the strength visible in headline construction statistics.

Romania’s wider economic outlook is also contributing to that caution. Colliers has reduced its 2026 economic forecast substantially since the beginning of the year and now expects GDP to contract by approximately 0.7%. Inflation remains elevated and meaningful reductions in financing costs are not expected in the immediate term, making debt-dependent developments more difficult to justify.

The construction sector therefore enters the second half of 2026 from an unusually strong starting position but with an increasingly concentrated source of demand. Continued public and European investment could keep activity close to current highs, while any substantial interruption to infrastructure spending would expose how dependent the market has become on state-backed projects.

For developers and investors, this environment is also changing priorities. Controlling procurement, construction costs, financing requirements and delivery risks is becoming increasingly important as projects are assessed over longer investment horizons. Romania may still have one of Europe’s most active construction markets, but the durability of that activity will increasingly depend on whether its infrastructure pipeline can continue moving from funding commitments to construction sites.

International Student Growth Puts Japan’s Housing Market on Investors’ Radar

Japan’s shrinking population might appear to offer an unlikely backdrop for growth in student accommodation. Yet beneath the country’s broader demographic decline, the education and rental housing markets are developing differently. University enrolment remains resilient, international student numbers have climbed to record levels and younger residents continue to gravitate towards the country’s largest metropolitan centres.

Together, these trends are creating an increasingly interesting opportunity for real estate investors. Student accommodation in Japan remains considerably less institutionalised than in established markets such as the UK, Australia and the United States, leaving room for professionally managed housing platforms to expand.

Japan had approximately 2.97 million university students in 2025, demonstrating that demand for higher education has remained remarkably strong despite the declining number of young people in the country. The resilience of university enrolment is particularly important for Tokyo, Osaka, Kyoto and other major education centres where student populations support surrounding rental markets.

International students are adding another layer of demand. Japan had more than 408,000 overseas students by May 2025, rising by more than 20% from the previous year and reaching the highest level recorded to date.

The increase has been considerably faster than anticipated. Japan had established an ambition to attract 400,000 international students by 2033 as part of its strategy to strengthen educational links with other countries and improve its ability to attract international talent. The latest enrolment numbers indicate that this numerical threshold has already been exceeded well ahead of schedule.

For the property market, the important question is where this expanding student population will live.

International students can face greater obstacles when entering Japan’s conventional private rental market. Apartments may require deposits, guarantors, furnishing and knowledge of local leasing procedures, all of which can be difficult for somebody arriving in the country for the first time.

Professionally managed student residences can address many of these problems by combining furnished accommodation with straightforward rental arrangements, communal facilities and services designed for residents unfamiliar with the Japanese housing market.

This creates a potentially valuable position between traditional university dormitories and conventional private apartments.

Location will remain central to the investment case. Tokyo contains the country’s greatest concentration of universities and employment opportunities, while Osaka and Kyoto also have substantial student populations. Properties offering convenient access to campuses, railway stations and major employment districts can therefore appeal to students during their studies while retaining alternative residential uses over the longer term.

Japan’s extensive railway system may also allow the sector to expand beyond expensive locations immediately surrounding universities. Students can commute efficiently from neighbouring districts, giving developers the opportunity to identify less expensive sites several stations from major campuses while maintaining convenient journey times.

This could become particularly important because land prices represent one of the greatest obstacles to expanding purpose-built student accommodation. Sites in major university districts frequently face competition from apartments, hotels, offices and other development uses capable of supporting substantially higher rents.

The sector therefore requires a careful balance between development cost and affordability. Building premium accommodation that students cannot afford would undermine the fundamental demand story, while locating projects too far from campuses and transport connections could weaken occupancy.

Institutional investors are nevertheless beginning to explore the opportunity. International capital has already entered student accommodation in Tokyo and Kyoto, demonstrating that specialist portfolios can be assembled in Japan despite the fragmented nature of existing supply.

The attraction is part of a broader expansion of investment into living real estate. Japan already has one of Asia-Pacific’s most established institutional rental apartment markets. Student housing provides investors with another route into residential demand, although it requires a more specialised operating model.

Student residences cannot simply be managed like ordinary apartment buildings. Academic calendars influence leasing cycles, residents change more frequently and operators must continually attract new students. International residents may also require multilingual assistance and additional support when arriving in Japan.

Common spaces, study areas, security, internet connectivity and community facilities can consequently become important elements of the product rather than optional amenities. Successful operators need to combine real estate management with hospitality and residential services.

These characteristics also mean that overseas student housing concepts cannot necessarily be transferred directly into Japan. Accommodation formats that succeed in London, Sydney or other established student markets may need significant adaptation to Japanese preferences regarding privacy, room layouts, shared facilities and building operations.

This operational complexity helps explain why the sector remains relatively fragmented. It also creates a barrier to entry that could benefit experienced operators capable of developing larger portfolios.

Investors should nevertheless avoid assuming that student housing automatically produces higher returns than conventional residential property. Japan does not yet have the same depth of publicly available transaction evidence for student accommodation as it does for established sectors such as offices, logistics and multifamily housing. Performance can vary significantly according to location, operator, property quality and relationships with nearby educational institutions.

Rather than being a weakness, however, the limited institutional maturity of the sector is precisely what makes the opportunity noteworthy.

Japan already has the students. It has major universities concentrated within highly connected metropolitan economies, a sophisticated public transport network and an expanding population of overseas students requiring accommodation. What remains comparatively underdeveloped is the institutional property infrastructure capable of serving that demand at scale.

The next phase of growth is therefore likely to depend on developers and investors turning fragmented accommodation demand into professionally operated portfolios while keeping rents within reach of students.

If that balance can be achieved, student housing could become an increasingly important part of Japan’s wider living investment market. In a country normally associated with population decline, record international enrolment is demonstrating that demographic change does not affect every part of the property market in the same way—and in the right locations, it can create entirely new investment opportunities.

Source: © CIJ.World Japan Research & Analysis Team

New Trade Routes Are Redrawing Africa’s Industrial Real Estate Map

Africa’s investment in ports, railways and highways is beginning to produce a second, potentially much larger, opportunity for investors. As major transport routes improve, attention is shifting towards the warehouses, industrial parks, manufacturing sites, inland terminals and distribution centres that could develop around them. This represents an important change in how African infrastructure can be viewed from a commercial real estate perspective. A railway connecting a mineral-producing region to a port, or a highway linking several national markets, has value beyond the movement of freight. Where sufficient trade volumes develop, these connections can change the economics of surrounding land and create new locations for industrial and logistics investment.

The African Continental Free Trade Area could accelerate this process. Greater movement of goods between African economies will require additional storage, processing and distribution capacity. This means the property opportunity is unlikely to remain concentrated around traditional seaports and capital cities. Railway terminals, border crossings, industrial zones and major highway intersections could increasingly become investment locations in their own right.

One of the most closely watched examples is the Lobito Corridor, connecting Angola’s Atlantic coast with the mineral-producing areas of the Democratic Republic of Congo and, through planned extensions, Zambia. The project gained considerable momentum during 2026, including major financing for the Lobito Atlantic Railway and additional development funding supporting Zambia’s participation in the wider corridor programme.

Copper and cobalt provide much of the immediate commercial rationale, particularly as global demand for minerals used in electrification and advanced technologies continues to grow. The longer-term opportunity, however, is whether better transport connections encourage more economic activity to remain within the corridor rather than simply making raw-material exports faster. That could support logistics facilities, mineral processing, agricultural storage, light manufacturing and industrial development at several points between the Copperbelt and Angola’s Atlantic coast. Lobito itself could attract additional port-related property investment, while inland locations may become increasingly viable as freight volumes and regional connections improve.

This distinction is important. The greatest economic return from new infrastructure may not come from moving commodities more efficiently from mine to ship, but from creating locations where goods can be processed, stored and manufactured before reaching their final markets.

East Africa provides a more mature illustration of this relationship. The Northern Corridor connects the Port of Mombasa with Nairobi and extends towards Uganda, Rwanda, the Democratic Republic of Congo and other inland markets. The route already carries substantial regional trade and incorporates roads, railway infrastructure and inland freight facilities. Kenya’s current strategy is aimed at improving the corridor’s competitiveness through the end of the decade. For industrial property, this could reinforce an investment pattern already visible around Nairobi, where logistics development has increasingly moved beyond older industrial districts towards peripheral locations offering larger development sites and improved highway connections.

The Mombasa-Nairobi axis remains particularly important. Improvements in freight handling and inland distribution could support additional warehousing, container facilities and industrial parks, while Nairobi’s role as East Africa’s main corporate and consumer market provides occupier demand that many emerging African logistics locations still lack.

Tanzania’s Central Corridor is simultaneously becoming a stronger competitor for inland East African trade. Dar es Salaam provides maritime access for several landlocked economies, including Rwanda, Burundi and parts of the Democratic Republic of Congo. Tanzania’s continuing investment in standard-gauge railway infrastructure has the potential to improve the competitiveness of this route and create new development opportunities around inland freight terminals. The commercial property consequences could extend well beyond Dar es Salaam. Railway junctions and inland terminals with reliable electricity, road connections and development land could attract warehousing, agricultural processing and manufacturing facilities as freight movements increase.

Competition between the Northern and Central Corridors may ultimately benefit the region. Landlocked businesses can increasingly compare alternative routes according to transport cost, reliability, border processing and port efficiency. Investment should consequently favour the locations that provide the most dependable connection between production centres and international markets.

Southern Africa already demonstrates how an established transport route can support a broader industrial economy. The Maputo Development Corridor connects Mozambique’s principal port with South Africa’s industrial heartland. Road, rail and border infrastructure link Maputo with Gauteng and important mining and manufacturing regions along the route. Unlike newer corridor initiatives, this is already an operating economic system with significant freight volumes. Continued expansion of the Port of Maputo could strengthen demand for storage, distribution, transport services and industrial property on both sides of the border.

Maputo’s longer-term development plans envisage considerably greater cargo throughput by the early 2030s. Achieving that growth would require supporting infrastructure outside the port itself, potentially strengthening industrial and logistics locations around Maputo and along the route towards South Africa.

West Africa could eventually produce an even larger property story through the proposed Abidjan-Lagos corridor. The approximately 1,000-kilometre route would connect Côte d’Ivoire, Ghana, Togo, Benin and Nigeria, bringing together some of West Africa’s largest ports, cities and consumer markets. Rather than functioning simply as an international motorway, plans for the corridor envisage accompanying economic development, including logistics and industrial locations.

The potential scale is significant. Abidjan, Accra, Lomé, Cotonou and Lagos form an increasingly important coastal economic belt. Better road connections between them could allow manufacturers and distributors to serve several national markets from larger regional facilities instead of maintaining fragmented operations in individual countries. This could create opportunities for distribution centres, cold storage, truck terminals, manufacturing facilities and modern logistics parks around metropolitan fringes and strategic border locations.

For commercial real estate investors, however, infrastructure announcements alone are not sufficient to make these locations investible. A modern logistics park requires dependable electricity, water, telecommunications infrastructure, road access and secure land ownership. International occupiers also require appropriate fire protection, security, loading facilities and building specifications that are still unavailable across much of Africa’s existing industrial stock.

Border efficiency presents another challenge. A modern highway provides limited commercial benefit when trucks subsequently spend excessive periods waiting for customs clearance. Improvements to border processing, digital documentation and inland customs facilities will therefore influence which corridors become genuinely competitive. This creates a potentially important role for inland ports and freight terminals, where containers can be cleared, transferred, stored and redistributed while reducing pressure on coastal gateways and encouraging logistics development further inland.

Special economic zones could provide another route for converting infrastructure investment into commercial property development. By combining serviced land with utilities, customs arrangements and transport connections, these locations can remove some of the barriers that otherwise discourage international occupiers. The development around Lekki in Nigeria illustrates the model. The Lagos Free Zone sits alongside the Lekki Deep Sea Port and combines industrial development with direct access to maritime infrastructure. International institutional investment in the project demonstrates that capital can be attracted when industrial property and major transport infrastructure form part of the same development strategy.

The implications for land investment could be considerable. As freight corridors mature, sites close to railway terminals, highway interchanges, ports and industrial zones can become substantially more useful for commercial development. Locations previously regarded as peripheral may consequently become important distribution or manufacturing centres. But the risks are equally clear. Infrastructure projects can be delayed for years, financing can change, planned railway alignments can be altered and expected cargo volumes may never materialise. Purchasing land beside a proposed corridor therefore carries a very different risk profile from investing around established infrastructure with proven freight demand.

The strongest opportunities are likely to emerge where several factors converge: functioning transport infrastructure, growing cargo volumes, reliable utilities, clear land ownership and an established or rapidly developing occupier base. That produces a varied investment picture across Africa.

The Northern Corridor and Maputo already connect substantial existing economies and therefore offer relatively established industrial and logistics opportunities. Tanzania’s Central Corridor is becoming increasingly significant as railway investment progresses. Lobito offers potentially transformational development linked to Central Africa’s mineral economy, but much of its wider property opportunity remains at an earlier stage. The Abidjan-Lagos route could eventually become one of the continent’s most important logistics and manufacturing belts because of the scale of the cities and consumer markets it would connect, although its commercial real estate potential will depend heavily on execution and genuine improvements in cross-border movement.

AfCFTA adds a common thread to all these projects. If African economies succeed in reducing the practical barriers to trading with each other, distribution networks will gradually need to be reorganised around regional rather than purely national markets. That could change warehouse requirements fundamentally. Larger regional distribution centres may become viable, manufacturers could locate closer to transport corridors serving several countries, and logistics operators could consolidate activities into purpose-built facilities.

For property investors, Africa’s infrastructure programme therefore presents an opportunity that extends considerably beyond roads, railways and ports. The critical locations to watch are where transport infrastructure intersects with population, production, energy and developable land. These are the places where freight routes have the greatest chance of becoming industrial economies rather than simply transit routes.

By the end of the decade, some of Africa’s most interesting logistics property markets may consequently be found not in today’s established commercial districts, but around the ports, inland terminals, railway junctions and highway corridors that are now reshaping the continent’s trade geography.

Source: © CIJ.World Africa Research & Analysis Team

India’s AI Expansion Is Creating a New Geography for Data Centres

India’s rapid adoption of artificial intelligence is beginning to transform the country’s data-centre industry, creating demand for facilities that require considerably more electricity, advanced cooling and larger infrastructure commitments than earlier generations of digital infrastructure.

The change extends beyond simply building additional server capacity. AI applications depend on powerful computing systems capable of processing enormous quantities of information, meaning developers increasingly have to reconsider where facilities are located, how much power they can secure and how efficiently they can manage the heat generated by high-performance equipment.

India already has around 1.6 GW of operational data-centre capacity, with approximately another 3.1 GW either under construction or planned. Current projections indicate that national capacity could exceed 4.5 GW by 2030 as cloud computing, digital services and AI applications continue to expand.

AI is likely to accelerate this development because its computing requirements differ significantly from those of conventional corporate IT systems. Traditional data-centre racks have generally operated at relatively modest power densities, often averaging around 10–12 kW. Infrastructure designed for high-performance AI computing can require 40–100 kW per rack or more, with some of the latest configurations moving considerably beyond those levels.

The difference has substantial consequences for real estate. A building containing high-density computing equipment requires far more electrical infrastructure for the same amount of technical floor space. It also generates significantly greater heat, requiring more sophisticated cooling and mechanical systems.

Liquid cooling is therefore becoming increasingly important. Instead of relying entirely on conventional air-conditioning systems, new facilities can use technology that transfers heat directly from processors through liquid-based systems. This allows greater computing density but changes the design and cost of the property. Developers must allocate more space and capital to power distribution, cooling equipment and supporting infrastructure.

The result is that the value of a potential data-centre site is increasingly determined by what surrounds the land rather than simply the land itself. Reliable access to large quantities of electricity is becoming one of the most important considerations in site selection. Fibre connectivity, water availability, renewable-energy potential and proximity to major digital networks are also becoming increasingly influential.

This could gradually change the geography of India’s data-centre market. Mumbai remains the country’s largest hub, with operational capacity approaching 900 MW during the first half of 2026. Its established digital infrastructure, international connectivity, corporate demand and concentration of operators continue to give the city a significant advantage.

Chennai has also developed into one of India’s principal data-centre locations, supported by international cable connectivity and a large technology economy. Hyderabad and Delhi-NCR have established substantial positions of their own and should no longer be viewed as secondary data-centre locations.

Hyderabad in particular is attracting major investment. New projects announced by international and domestic operators are adding hundreds of megawatts of planned capacity, strengthening Telangana’s position within India’s digital infrastructure market.

The more significant development is the emergence of additional locations capable of hosting very large AI-oriented campuses. Visakhapatnam is becoming one of the clearest examples.

Google is developing a major AI and data-centre hub in the city as part of an investment programme valued at approximately USD 15 billion between 2026 and 2030. The development is expected to include large-scale computing infrastructure alongside new energy and telecommunications capacity. The scale of the project demonstrates how a single major technology investment can change the position of an emerging city within India’s digital economy.

Jamnagar provides another example of how AI could widen the country’s data-centre geography. Meta has committed to capacity within a large AI-oriented facility being developed by Reliance Industries, demonstrating that future hyperscale investment does not necessarily have to remain concentrated in established metropolitan markets.

These developments suggest that the next generation of Indian data centres could increasingly follow electricity and infrastructure availability rather than conventional commercial property patterns. Large AI campuses may require hundreds of megawatts of power. Future projects could eventually operate at gigawatt scale, making their energy requirements comparable with major industrial developments.

This creates an important challenge for India’s electricity system. Data centres already account for a measurable share of national power consumption, and demand is expected to increase substantially as new capacity becomes operational. AI could accelerate that growth because high-performance computing requires much more electricity than conventional digital workloads.

Developers are consequently placing greater emphasis on renewable power. Long-term agreements for solar and wind electricity are becoming more important, while battery storage could eventually help operators manage the difference between intermittent renewable generation and the continuous electricity requirements of data centres.

However, renewable generation alone does not solve the problem. Data centres require exceptionally reliable electricity at every hour of the day, meaning grid infrastructure, substations, storage and backup systems remain critical.

Water represents another challenge. Cooling large computing facilities can require substantial quantities of water, particularly in locations using evaporative cooling systems. India’s existing data-centre industry is already estimated to consume significant water resources, and consumption could rise sharply as capacity expands.

This makes cooling technology and local water availability increasingly important considerations when selecting future sites. New facilities may rely more heavily on closed-loop systems, recycled water, desalination or other technologies designed to reduce pressure on municipal supplies.

These requirements are beginning to make data centres resemble infrastructure projects as much as conventional real estate developments. A major campus may require extensive land not only for server buildings but also for substations, cooling facilities, backup power, energy storage and telecommunications infrastructure.

This creates opportunities beyond the data-centre property itself. Large developments require electrical equipment, cooling technology, construction materials, network infrastructure and specialist maintenance services. Suppliers serving these facilities can create additional requirements for industrial and logistics property nearby. Data-centre investment can therefore become a catalyst for wider industrial development.

For property investors, this changes the characteristics that make a site valuable. Cheap land alone is unlikely to attract major AI infrastructure. A successful location needs a combination of available land, sufficient grid capacity, dependable electricity, fibre connectivity and a regulatory environment capable of supporting very large projects.

States able to provide these conditions could attract investment that previously would have been concentrated in Mumbai, Chennai or other established markets. Mumbai is unlikely to lose its position as India’s leading data-centre centre in the immediate future. Its connectivity, existing infrastructure and large customer base remain difficult to replicate.

But the scale of future AI computing requirements means that India’s digital infrastructure market is likely to become more geographically diverse. Hyderabad is strengthening its position as a major established market, while developments in Visakhapatnam and Jamnagar demonstrate the potential for large projects to create entirely new digital infrastructure clusters.

India’s data-centre expansion is therefore entering a different phase. The first stage was largely driven by cloud adoption, digital services and rising internet consumption. The next will increasingly be influenced by the enormous computing requirements of artificial intelligence.

That transition will change the buildings themselves, but its greatest impact may be on where they can realistically be developed. For the next generation of India’s data centres, the decisive question may no longer be where technology companies want to locate their servers, but where developers can find enough land, electricity, connectivity and cooling capacity to operate them.

Ryšánka Shifts to Rental Housing as BTR Group Takes Over Leasing and Management

A residential development in Prague is moving from an original apartment-sales strategy to a professionally managed rental model, highlighting the growing role of institutional rental housing within the Czech capital’s residential market.

The Ryšánka project, being developed under the Realia Home brand, will provide 51 rental apartments ranging from one-bedroom-style studios to larger three-room units. BTR Group has now been selected to handle the exclusive leasing of the apartments and will assume responsibility for property management and resident services once the development becomes operational.

BTR Group has been involved in Ryšánka since the construction phase, although the property was initially designed as a conventional development in which individual apartments would be sold. Following the decision to retain the building for rental purposes, the company was brought in to help adapt the scheme to the requirements of a professionally operated residential property.

Its work included reviewing the apartment mix and layouts and developing interior specifications appropriate for the rental market. Following a subsequent tender, the relationship has been extended from development consultancy to the operational phase of the investment.

The change in strategy is particularly relevant as Prague’s rental market attracts increasing attention from investors and developers looking for alternatives to the traditional build-and-sell residential model. Retaining an entire building for rental operation requires a different approach to apartment configuration, interiors, operating costs and long-term asset management than selling individual units following completion.

Ryšánka is being positioned towards the higher end of Prague’s rental market. The development will be set within a landscaped garden and will combine residential accommodation with services intended for tenants. Sustainability measures and interior design are also being incorporated into the scheme.

The appointment gives BTR Group responsibility for bringing the apartments to market as well as managing the completed property. This creates continuity between decisions taken during development and the subsequent operation of the building, where occupancy, rental income, maintenance costs and resident retention will ultimately determine investment performance.

For Realia Home, the conversion also changes the financial profile of the project. Instead of generating proceeds primarily through individual apartment disposals, Ryšánka will become an income-producing residential asset, making leasing performance and long-term operating efficiency more important to its economics.

The project provides a relatively small example of a broader change taking place within Prague residential development. Professionally managed rental housing is creating another route for properties that might previously have been developed almost exclusively for individual ownership, particularly where investors are prepared to hold residential assets over longer periods.

Marketing of the apartments is scheduled to begin towards the end of 2026. The development is expected to become operational in the second quarter of 2027, when the first tenants are due to move into the property.

Ryšánka’s transition from apartments intended for sale to a single professionally managed rental property illustrates how operating strategy can increasingly influence residential projects before construction is completed. As Prague’s institutional rental sector develops, decisions over apartment design, management and leasing are likely to become progressively more integrated with development and investment strategy.

Tram Construction Accelerates Transformation of Prague’s Žižkov Brownfield

The redevelopment of Prague’s former Žižkov Freight Station is moving into a new phase as transport infrastructure begins to advance alongside the residential and commercial projects planned across one of the capital’s largest regeneration areas.

Construction of a new tram connection between Olšanská and Habrová began on 31 August, adding an important piece of infrastructure to the emerging district. The route will run close to several planned developments in the area, including Yards Žižkov, a residential-led project being prepared by Cresco Real Estate.

The new Malešická and Nad Kapličkou stops are expected to improve public transport access across the former railway site and provide connections towards central Prague. Passenger services on the new section are scheduled to begin in 2027.

The tram investment is significant for the wider transformation of the Žižkov Freight Station because development of the extensive brownfield depends not only on delivering new housing but also on creating sufficient transport capacity, public amenities and connections with established surrounding neighbourhoods.

Cresco’s Yards Žižkov forms part of this broader redevelopment. The scheme is planned as a mixed urban neighbourhood combining residential buildings with commercial premises, public spaces and community facilities.

A kindergarten is included in the plans, while ground-floor areas are intended for shops and services. The development will also incorporate a new square and a pedestrian promenade running alongside the future tram corridor.

The urban and architectural concept has been prepared by QARTA Architecture. The design seeks to connect the new development with the existing character and scale of Žižkov while drawing on the industrial history of the former freight station.

Rather than functioning as a predominantly residential enclave, the project is being planned around a mixture of housing and everyday services. This approach is also intended to encourage walking, cycling and public transport for shorter journeys within the district.

The arrival of the tram infrastructure could prove particularly important as the population of the former industrial area increases. Large brownfield projects can place considerable pressure on surrounding roads and existing public transport when residential construction advances faster than supporting infrastructure.

At Žižkov, the challenge is larger because several individual developments are contributing to the transformation of the former railway land. Their long-term success will depend partly on how effectively housing, transport, streets, public spaces, schools, services and green areas are connected across the wider district.

Cresco argues that reducing the distance between homes and everyday amenities can decrease the need for residents to travel across Prague for routine activities. While the eventual travel patterns of residents will depend on employment locations and the range of services that ultimately occupy the development, the combination of mixed uses and improved public transport should provide alternatives to car-dependent development.

For Prague’s property market, the transformation of the Žižkov Freight Station represents more than the addition of another residential pipeline. It is gradually converting a major former industrial and railway site into an extension of the existing city.

With tram construction now underway and private developments progressing across the area, the focus is increasingly shifting from individual projects to whether the different components can be delivered as a coherent district. The coordination of transport infrastructure with residential development will be one of the most important factors determining how successfully this substantial part of Žižkov is integrated into Prague.

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