July sees record apartment sales in Romania ahead of VAT increase, report finds

Romania’s residential market experienced a pronounced surge in July, recording unusually high apartment sales in Bucharest and other major cities as buyers rushed to secure purchases under the reduced VAT rate before it increased from 19% to 21% on 1 August.

In Bucharest, slightly more than 5,000 homes changed hands—marking the third strongest monthly performance in the past two and a half years—especially concentrated in Sectors 3 and 6, reinforcing their status as development hotspots . Cluj-Napoca emerged as another market with pronounced activity, where July saw over 1,000 transactions, the highest level in approximately three and a half years . In contrast, Timișoara posted modest gains, and Iași experienced a noticeable slowdown in sales.

Comparing the first seven months of 2025 with the same period in 2024 reveals diverging trends: Bucharest recorded a 7% decline, Timișoara slipped by 3%, and Iași dropped sharply by 25%, while Cluj-Napoca posted a robust 14% year-on-year increase. On aggregate, the national market remains broadly on par with the previous year.

Colliers attributed the July surge to buyers and developers accelerating transactions ahead of the VAT shift. Pre-contracts signed by 1 August enabled buyers to retain eligibility for the reduced VAT, provided the properties are delivered by 1 August 2026.

Real estate analysts warn that the VAT hike may put upward pressure on housing prices, though actual pricing outcomes will depend on the supply-demand balance. Some developers have indicated they may absorb some or all of the increase, at least temporarily, to maintain sales momentum. Nevertheless, environmental factors—such as new taxes, higher property levies, rising energy costs, and a weakening economic backdrop—may weigh on demand in the coming months.

Additional data from the property sector highlights a significant year-on-year jump in national apartment sales for July: a 16.7% increase compared to July 2024, with strong regional growth—Cluj up 20.2%, Iași up 27.3%, and Timiș up 15.4% . Experts noted that this surge exceeded even previous record-setting years like 2021 and 2022.

Children from flood-hit Kłodzko to spend summer at Borussia Dortmund football camp

In the summer of 2024, the town of Kłodzko and surrounding areas were severely affected by flooding that damaged homes, schools, and community facilities. More than a year later, rebuilding continues, and support initiatives remain in place for residents still dealing with the consequences.

The Robert Dobrzycki Foundation, which last year coordinated cleanup efforts with volunteers from Panattoni and provided more than PLN 600,000 in aid, has launched a new initiative in cooperation with the Łukasz Piszczek Academy Foundation and partners. Together, they are organizing a football camp with Borussia Dortmund for children from families impacted by the disaster.

The day camp will take place between 18 and 22 August 2025 at the Sports and Recreation Center in Kłodzko, a facility that previously served as an emergency response hub during the floods. The program will include daily training sessions with licensed Borussia Dortmund coaches, meals, supervision by qualified staff, and the provision of training kits. At the end of the camp, participants will receive medals, diplomas, and small gifts.

Local officials and organizers highlighted the importance of the initiative. “Kłodzko is still rebuilding after last year’s flood. Every initiative that brings joy and a sense of normality to our community is of great importance,” said Mayor Michał Piszko. According to Michał Zioło, Director of the Łukasz Piszczek Academy Foundation, the project demonstrates the value of long-term support: “A year after the flood, children can once again enjoy safe and active holidays. This proves that working together really does bring results.”

Organizers also emphasized the symbolic role of the Sports and Recreation Center, which has shifted from a site of emergency relief to a venue for children’s activities. “The same place that once hosted response efforts is now providing space for play, development, and new friendships,” noted Tomasz Perczyński, Director of the Center.

According to Malwina Pawłowska, Director of the Robert Dobrzycki Foundation, the camp is intended to provide children with positive experiences after a difficult period. “After their dramatic experiences, we want to give them the chance to play, develop, and feel remembered,” she said.

Survey finds most Romanian employees seek greater employer support

A survey by Genesis Property shows that nearly six in ten Romanian employees believe their employers could do more to support both professional and personal development. The study, conducted on a nationally representative sample of 1,012 respondents, highlights rising expectations in a period marked by economic pressures and slower wage growth.

More than half of those surveyed said they would like to see additional benefits from their employers. Close to half expressed interest in performance-based bonuses, while many also called for more time off or access to wellness-related services such as massage and psychotherapy. The findings suggest that employees increasingly value non-monetary support to balance professional growth with personal well-being.

Commenting on the results, Elena Panait, Head of Leasing & ComYunitY at Genesis Property, said professional advancement and personal development are now inseparable. She noted that environments fostering learning, reflection, and authenticity help employees not only remain with their employers but also grow and contribute more fully.

The study also found that more than 80 percent of Romanian employees continue to see the office environment as essential for career development. This aligns with broader research showing that teleworking remains less widespread in Romania compared with other EU countries, largely due to the structure of the national workforce.

Context from the wider labor market underscores why employees place growing emphasis on benefits and supportive workplace cultures. A Randstad Romania survey earlier in 2025 showed that most employers planned salary increases of between six and ten percent, yet many workers viewed this as insufficient. Other research by Undelucram.ro reported that 43 percent of Romanian employees are dissatisfied with their current pay, and nearly two-thirds would consider changing jobs for higher salaries.

At the same time, studies suggest that salary alone does not determine satisfaction. Research published in Sustainability has shown that greater flexibility in work arrangements and access to supportive workplace resources can significantly boost job satisfaction.

Genesis Property notes that these trends are informing its long-term plans, including the completion of YUNITY Park in Bucharest. The project’s next stage, the Innovation Center, is due to open following an additional €20 million investment, continuing efforts to create office environments that combine professional and personal growth opportunities.

Colliers: Prague could see 600,000 m² of new office space by 2029

Prague’s office market may expand by as much as 600,000 square meters by 2029, according to a new report from Colliers. The forecast comes as construction activity picks up despite a historically low level of completions in 2025.

In the second quarter, only two projects were finalized, adding 11,300 square meters to the market. For the year as a whole, completions are expected to reach 26,600 square meters—one of the lowest levels of new supply ever recorded in the city. At the same time, four new projects were launched, bringing the total area under construction to 212,600 square meters.

Colliers projects that between 2027 and 2029, new deliveries could total up to 600,000 square meters, although not all planned projects are expected to move forward. By the end of 2025 alone, construction is scheduled to begin on five projects totaling 119,500 square meters, all located in Prague 4. This could reestablish Pankrác, Brumlovka, and Roztyly as key office hubs after a period of limited development.

The vacancy rate in Prague continues to decline, standing at 6.6% at the end of the second quarter—down 1.3 percentage points year-on-year. Conditions vary by submarket, with Karlín reporting vacancy at 3.9%, Pankrác at 5.4%, and the city center at 4.4%. Higher vacancy persists in areas such as Chodov (12.7%) and Stodůlky (11.4%).

Demand remained stable. Gross take-up in the first half of 2025 was 253,100 square meters, in line with recent years. Net demand reached 97,400 square meters, roughly equal to the volume of renegotiations and subleases (94,700 square meters). Several major owner-occupier deals were recorded, including ČEZ securing three buildings in the Smíchov City project for its future headquarters and Creditas Bank beginning construction of its new offices in Rohan City. Together, these transactions accounted for about 61,000 square meters.

Lease renegotiations continue to play a major role in market activity, representing 53% of second-quarter demand. Colliers notes that negotiation timelines can now extend to 12 months or longer, creating challenges for tenants who delay decision-making in a market with limited availability.

Rental benchmarks remain steady, with prime rents in central Prague at €30 per square meter per month. In the wider center, rents rose slightly to €20.50, while peripheral areas remain at €16.50. Based on current activity, Colliers expects upward pressure on rents in both the city center and wider central zones, potentially reaching €35 and €25 per square meter respectively.

Looking ahead, Colliers highlights that while Prague’s office market continues to attract investors due to its transparency and competitiveness, limited supply is shifting conditions toward landlords. Tenant commitments prior to construction may become increasingly important for projects to secure financing, marking a change from the traditionally low level of pre-construction leasing in the market.

CBRE highlights hotel transaction activity and Romania’s investment outlook

CBRE reported a year of strong activity for its Hotels Central and Eastern Europe (CEE) team, advising on close to €1 billion in hotel transactions across the CEE and SEE regions, alongside around 20 operator search and selection processes. Among the most significant transactions was the sale of Hilton Prague, one of the largest single-asset hotel deals recorded in the region.

The firm’s activity also included advisory work, valuations, and operator search mandates in major regional capitals and leisure destinations, linking local opportunities with international investors and hotel brands.

According to CBRE data, Romania’s hotel market recorded 20 million overnight stays in 2024, an increase of 2% compared to the previous year. Bucharest was the main driver of growth, with overnight stays rising 8% and international arrivals up by 12%. Air traffic also supported growth, with Romanian airports handling 26 million passengers in 2024, a 6% increase year-on-year.

Leisure tourism remained resilient, with Constanța on the Black Sea coast and mountain resorts in Brașov and Prahova among the strongest performers. Hotel investment has accounted for between 4% and 8% of total real estate activity in recent years, and the proportion continues to trend upward.

Local investors remain most active, particularly in mid-sized transactions and hotel conversions. International investors tend to focus on prime assets in Bucharest and established leisure markets, often seeking branded hotels and institutional-grade properties.

With over 13 million passengers in 2024, Bucharest’s air traffic remains below that of Warsaw, Prague, and Budapest, but the capital has seen stronger relative growth, driven by limited branded hotel supply and rising international demand. New branded projects in the upscale and lifestyle categories are expected to help narrow the gap with other CEE capitals within the next three to five years.

“Romania’s hotel market is entering a new growth cycle, supported by healthy demand and a clear shift towards branded projects that raise the bar for quality,” said Iulia Szabo, Consultant, Investment Properties & Hotels, CBRE Romania. “Interest from both domestic and international investors is rising, with Bucharest leading the way and regional leisure destinations increasingly on the radar. The next few years will bring significant opportunities for those ready to invest in upgrading assets and introducing fresh concepts to the market.”

Currently, unbranded hotels dominate the Romanian market, many of which require substantial investment to meet international standards. Developers also face lengthy permitting and urban planning processes, while market liquidity remains lower than in more mature CEE countries.

Growth over the next three to five years is expected to be supported by rising international arrivals, infrastructure improvements, and the opening of new branded hotels in Bucharest and regional cities. Resort areas on the Black Sea coast and in the Carpathian Mountains are also seen as having untapped potential. CBRE is currently advising on projects in Bucharest, Brașov, and other leisure markets, including both new developments and repositioning of existing hotels.

Photo: Iulia Szabo, Consultant, Investment Properties & Hotels, CBRE Romania

Construction progresses on Hila building in Brumlovka

Passerinvest Group is continuing construction of the multifunctional Hila building in Prague’s Brumlovka district. The project combines office, retail, and residential space within a single complex. Work has now entered the above-ground phase, with the second floor nearing completion. A new floor is expected to be added each month, allowing the shell of the office section to be finished by the end of 2025. The fifteen-story building is scheduled for completion at the end of 2026, with rental apartments on the upper floors set to be available in the first half of 2027. Final works will include resurfacing Jemnická Street and planting 48 new trees.

According to Eduard Forejt, Director of Development and Sales at Passerinvest Group, construction is proceeding on schedule and the building is expected to be ready for occupancy by January 2027. With more than 20,000 square meters of office space, Hila is among the larger projects currently underway in Prague, where new supply remains limited. Forejt noted that demand for the building is already visible among prospective tenants.

On the eastern side of the development, two rainwater retention tanks with a combined capacity of 200 cubic meters are under construction to support irrigation of more than 50 trees around the site. The building is being equipped with heat pumps, photovoltaic systems, and a smart building management system. Additional planned features include an air ionization system, enhanced fresh air supply, and radiant ceiling systems for heating and cooling, which are expected to improve comfort and reduce operating costs. Hila is designed to meet LEED Gold certification, achieve an A-rated energy performance certificate, and comply with EU Taxonomy requirements.

The project will combine three primary functions. The ground floor will house 2,300 square meters of retail space, while floors two through eight will provide 20,200 square meters of offices. The ninth to fifteenth floors will contain 71 rental apartments ranging from one-room to four-room units, all with loggias. The development will also include 418 underground parking spaces, with charging stations for electric vehicles.

NEPI Rockcastle reports 12.1% NOI growth as portfolio surpasses €8 billion

NEPI Rockcastle N.V., Europe’s third-largest listed retail real estate company by portfolio value, reported strong results for the first half of 2025. The company’s net operating income rose by 12.1% year-on-year to €307 million, supported by acquisitions completed in 2024 and active asset management across its portfolio. This performance lifted the value of the group’s investment property portfolio to more than €8 billion for the first time in its history, with vacancy at just 1.6%.

Chief Executive Officer Rüdiger Dany said the first half of 2025 consolidated growth achieved through consistent investment in premium properties. “We also continue to add value through developments, not least in the renewable energy sector, which has the potential to become an important growth segment for the Group once the current ongoing major investments therein are completed,” he noted. He added that distributable earnings per share increased by 3.1% compared to the first half of 2024, while the company maintained a conservative loan-to-value ratio of 32.1%. According to Dany, this balance allows NEPI Rockcastle to distribute 90% of its earnings as dividends, a rate higher than most peers.

The Board declared a dividend of 27.95 euro cents per share for the first half of 2025, corresponding to a 90% payout ratio. Shareholders may elect to receive the payment as a capital repayment in cash or as a dividend out of distributable profits.

Operational metrics showed resilience in consumer spending. While footfall was largely stable, tenant sales rose 3.9% on a like-for-like basis, excluding hypermarkets, with the average basket size increasing by 9.7%. Categories such as entertainment and health and beauty recorded double-digit growth, while fashion sales edged up by 0.7%. By mid-August, the company had collected more than 99% of reported revenues for the first half of the year. The European Public Real Estate Association (EPRA) occupancy rate stood at 98.2% as of 30 June 2025.

Leasing activity remained strong, with 167,000 square metres of space signed in new leases or extensions during the period. New leases accounted for just over a quarter of this figure, including agreements with international retailers such as Chanel, Sports Direct, and Tous. Rental uplifts averaged 5.3% above indexation.

The group continued to advance development projects and renewable energy investments. About €66 million was invested in developments, photovoltaic plants, and capital expenditure in the first half of 2025. Major ongoing projects include the extension of Promenada Bucharest, scheduled to open in early 2027, and the redevelopment of Bonarka City Center in Krakow, set for completion in 2026. Refurbishment at Arena Mall in Budapest is due in 2028, while expansions are underway at Pogoria Shopping Centre in Poland. In addition, the company is progressing with large-scale photovoltaic projects in Romania, including a 54 MW plant expected to be operational by year-end and a 105 MW facility targeted for 2026.

NEPI Rockcastle maintained a solid financial position with liquidity of €1.1 billion, including €386 million in cash and €690 million in undrawn committed credit facilities. The company reported no significant debt maturities until October 2026 and secured a portfolio fair value gain of €108 million compared to year-end 2024. Fitch Ratings affirmed its investment grade at BBB+ with a stable outlook, while S&P upgraded its outlook to positive, reflecting improved credit strength.

Looking ahead, the Board revised its guidance upward, now expecting distributable earnings per share for 2025 to be 2.5–3% higher than the 60.17 euro cents reported in 2024. This outlook assumes stable trading conditions and does not account for potential disruptions from geopolitical or macroeconomic instability.

INTREAL reports mid-year growth in assets under administration

IntReal International Real Estate Kapitalverwaltungsgesellschaft mbH (INTREAL) reported an increase in assets under administration (AuA) during the first half of 2025, reaching approximately €68.7 billion by the end of June. This represents growth of €2.1 billion, or 3.2 percent, compared to the end of 2024.

The number of real estate funds under management rose from 325 to 330, and the number of properties grew by 34 to a total of 2,807. The company also expanded its workforce, employing 545 people as of 30 June 2025, after six new hires in the second quarter. Recruitment focused in particular on automation and artificial intelligence expertise.

Camille Dufieux, Managing Director of INTREAL, said: “Our growth regained momentum during the first six months of 2025 when compared to the same period last year. During the first half of 2024, our AuA increased by 483 million euros while increasing by approximately 2.1 billion euros during the first half of 2025. In other words: we grew approximately four times faster during the first half of 2025 than we did during the prior-year period. I therefore take an optimistic view for the second half of the year. We are aware of several new funds being prepared – even if their number still falls short of the number we saw prior to the interest rate reversal.”

The Partner Funds division remains the company’s largest business unit, managing around €36.6 billion across 160 funds, which accounts for over 53 percent of total AuA. The division added €229 million in the second quarter and €407 million in the first half of the year. It also onboarded Hauck Aufhäuser Lampe Privatbank (HAL REIM) as a new fund partner, with one institutional real estate fund already launched.

The AIFM Services division, which provides administrative support to other licensed AIF management companies, was the main driver of growth in the second quarter. AuA in this division rose by €758.6 million, reaching €32.1 billion. This segment now represents 47 percent of INTREAL’s total AuA. Services offered by the unit include reporting, management accounting, fund accounting, equity investment management, and risk management.

Commenting on the division’s performance, Managing Director Malte Priester said: “The fact that many AIFMs require more flexibility and an efficient back office has resulted in an increasing demand for our services. In this context, our strong position in the areas of digitisation and automation plays a crucial role in the decision to collaborate with us.”

Oil prices slip below $70 amid oversupply concerns and geopolitical talks

Oil prices dropped below USD 70 per barrel in early August after briefly touching a five-week high at the end of July, according to the Oil Market Monthly Report – August 2025 published by Kamco Invest. The report states that Brent crude and WTI both fell to around USD 66 per barrel as markets reacted to speculation that the United States may soften its stance toward Russia, easing fears of fresh sanctions that could disrupt supply.

Earlier strength in oil prices was attributed to expectations of tighter restrictions on Russian and Iranian exports, but the outlook shifted as negotiations signaled possible changes in U.S.–Russia relations.

The report highlights that additional downward pressure came from weaker U.S. economic data, fresh production increases announced by OPEC+, and ongoing doubts about the pace of demand recovery in China. However, renewed speculation about potential U.S. Federal Reserve interest rate cuts provided some support for crude prices.

OPEC+ has pledged further hikes in production, raising concerns of a growing supply glut. Refiners and traders are also monitoring demand signals in Asia, particularly in China, where sluggish economic momentum continues to weigh on oil consumption forecasts.

Despite near-term headwinds, Kamco Invest notes that any substantial policy shift by major central banks or unforeseen supply disruptions could quickly alter the outlook (Kamco Invest, Aug. 2025). The report concludes that oil market volatility is expected to persist in the coming months as geopolitical and economic developments continue to shape supply and demand dynamics.

Source: Kamco Invest, Aug. 2025

Logicor to open public green park at logistics complex in Mysłowice

Logicor is developing Serenity Park, a 40,000 m² green space within its logistics center in Mysłowice, with completion expected in October 2025. The project, fully funded by the company, will combine ecological, educational, and recreational uses, making it the first initiative of its kind in Poland. According to Ernest Ziółkowski, Head of Project Management CEE at Logicor Poland, the park reflects the company’s strategy of creating shared spaces that serve both employees and the local community. Planned features include walking and cycling paths, community seating areas, children’s play zones, a scenic viewpoint, educational boards on local flora and fauna, and habitats designed to support wildlife. Located near the S1 expressway and A4 motorway, Serenity Park will be integrated into the Logicor Mysłowice complex, which provides A-class warehouse facilities. The company emphasizes that the initiative demonstrates how logistics development can incorporate sustainable design and community-oriented infrastructure alongside its industrial operations.

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