Czech Inflation Accelerates in April as Energy and Fuel Costs Rise

Consumer price growth in the Czech Republic accelerated in April, reaching 2.5% year-on-year after standing at 1.9% in March, according to preliminary figures published by Czech Statistical Office.

On a monthly basis, prices increased by 0.5%, with analysts attributing much of the rise to higher fuel and energy costs following tensions in the Middle East and disruptions affecting global oil markets.

The latest figures indicate that the earlier decline in energy-related prices has ended. While energy prices had still been falling in March, April recorded renewed annual growth in this category.

Among major consumer groups, alcoholic beverages and tobacco recorded the strongest annual increase, while food prices continued to decline compared with the same period last year. Services inflation also remained significantly higher than goods inflation.

Miroslav Novák, chief analyst at Citfin, said the increase in inflation was driven mainly by fuel prices, which rose sharply year-on-year.

Analysts noted that higher fuel costs are likely to spread gradually into broader areas of the economy through transportation and production expenses, potentially putting additional pressure on inflation in the coming months.

According to Martin Komrska, economist at UniCredit Bank, continued disruptions to oil and energy supplies linked to the situation around the Strait of Hormuz could contribute to further increases in consumer prices if global energy shortages intensify.

Despite the renewed acceleration in inflation, economists generally do not expect Czech National Bank to raise interest rates immediately. Analysts instead believe the central bank will continue to monitor whether the current rise represents a temporary external shock or a broader inflationary trend.

David Marek, chief economist at Deloitte, said the combination of external energy pressures, domestic demand and fiscal conditions would require closer monitoring from policymakers.

Inflation had remained below the Czech National Bank’s 2% target during the first quarter of 2026, reaching its lowest level in February. Analysts said earlier moderation in inflation was partly supported by government measures shifting renewable energy support costs away from households and onto the state budget.

Hungary Opens Investigation Into State Contract Network Following Political Transition

Hungarian authorities have launched investigations into companies that received significant state communications contracts during the years of government led by former Prime Minister Viktor Orbán, according to reports from international media and anti-corruption organisations.

The inquiry comes shortly after Hungary’s parliamentary election in April 2026, which ended the long period of rule by Orbán’s Fidesz party. The incoming administration led by Péter Magyar has pledged to strengthen oversight of public spending and review major state procurement agreements awarded under previous governments.

The investigation reportedly involves businesses linked to media entrepreneur Gyula Balasy, whose companies managed large-scale government communication and advertising campaigns over recent years. Hungarian authorities confirmed that bank accounts connected to the case had been frozen while financial transactions were being examined.

Balasy publicly acknowledged the freezing of several company accounts and stated that he would be willing to transfer ownership of the businesses to the Hungarian state. He argued that the firms had operated closely alongside public-sector institutions for many years.

Companies associated with Balasy, including New Land Media and Lounge Design, were among the largest recipients of state communications contracts during the Fidesz administration, according to data cited by anti-corruption groups and international media reports.

While the investigation is reportedly examining financial practices linked to public procurement and state-funded contracts, no formal charges against Balasy or former Prime Minister Orbán have been publicly announced. Hungarian police have not identified any individual suspects by name at this stage.

The new government has indicated that it intends to review the awarding of public contracts and increase institutional transparency following years of criticism from European institutions and watchdog organisations over governance standards and public spending practices in Hungary.

According to Transparency International, companies linked to Balasy secured state contracts worth hundreds of billions of forints between 2019 and 2021. Separate research by the Corruption Research Center Budapest identified a substantial increase in government-related business awarded to the group during the same period.

Hungary has regularly ranked among the lowest-performing European Union member states in international corruption perception studies. The country has also faced repeated disputes with EU institutions over judicial independence, procurement practices and the concentration of political influence within state institutions.

Péter Magyar has described the investigations as part of a broader effort to restore confidence in public administration and strengthen institutional accountability following the change in government. However, analysts note that the investigations remain at an early stage and that legal conclusions have not yet been reached.

Poverty Levels Ease in Slovakia, but Regional and Family Gaps Persist

The share of people facing poverty or social exclusion in Slovakia declined in 2025 after several years of deterioration linked to the pandemic period, inflation and rising living costs. However, significant differences between regions and household types remain, according to new data published by Statistical Office of the Slovak Republic.

The survey found that 16.7% of Slovakia’s population experienced at least one form of poverty or social exclusion during 2025, representing more than 895,000 people. Compared with the previous year, the number of affected residents fell by almost 85,000, marking the first notable improvement after four consecutive years of worsening indicators.

The study examines three main areas linked to social vulnerability: insufficient income, inability to afford essential goods and services, and very low participation in the labour market.

The number of people affected by all three dimensions simultaneously also decreased. According to the survey, around 77,000 residents were exposed to the most severe form of social exclusion, down significantly from the previous year.

Although national figures improved overall, regional disparities remained pronounced. The lowest levels of poverty risk were recorded in the Bratislava, Žilina and Trnava regions, where fewer than one in ten residents were affected. Conditions were considerably more difficult in eastern and central parts of the country, particularly in the Prešov, Banská Bystrica and Košice regions.

Prešov Region recorded the highest level of vulnerability, with almost 30% of residents affected by at least one poverty-related factor. In Banská Bystrica Region, more than a quarter of the population faced similar challenges.

The report noted that six out of Slovakia’s eight regions recorded year-on-year improvements. Bratislava Region saw the sharpest decline in the share of affected residents, while Žilina Region also posted a significant reduction.

Household composition continued to play a major role in determining financial vulnerability. Single-parent households remained the group most exposed to poverty risk, with around half of all people living in these households affected. Conditions also worsened among families with three or more dependent children, where more than one third of residents faced financial hardship.

Among households without children, women under the age of 65 living alone were identified as the group most exposed to economic pressure.

Low income remained the most common form of poverty in Slovakia. In 2025, approximately 652,000 residents lived below the nationally defined poverty threshold. For a single-person household, the threshold corresponded to an annual income of less than €7,794, or roughly €650 per month.

The report also examined material deprivation, which measures the inability of households to afford common living expenses and activities. Around 7% of the population experienced serious material and social deprivation during 2025.

The most common financial difficulties included the inability to afford a one-week holiday away from home, problems covering unexpected expenses and delays in replacing worn-out furniture.

A separate indicator focused on households with very low work intensity showed that around 3.1% of the population lived in homes where working-age adults were employed only minimally during the year.

The Statistical Office stated that updated methodology introduced for the latest survey incorporated additional administrative data from the Social Insurance Agency in order to improve the quality and accuracy of income measurements while maintaining comparability with previous years.

Czech Households Continue to Face High Electricity Costs Despite Recent Declines

Households in the Czech Republic remained among the most affected by high electricity prices in the European Union during 2025, even as energy costs started to ease across much of the continent.

Recent data published by Eurostat shows that Czech consumers paid some of the highest electricity bills in the EU during the second half of last year. While several countries recorded even higher nominal prices, the Czech market continued to stand out because of the overall burden on households relative to income levels and regulated charges included in final bills.

At the same time, gas prices in the Czech Republic remained below the European average, providing some relief for consumers after several years of volatility in energy markets.

Industry representatives noted that electricity prices for Czech households declined compared with the previous year, while gas costs recorded one of the sharpest annual drops within the EU. Analysts attribute part of this trend to lower wholesale energy prices, government measures linked to renewable energy charges and stabilising market conditions after the energy crisis of recent years.

According to experts from the Czech energy sector, the final cost paid by consumers is shaped by a combination of factors beyond the market price of electricity itself. These include network charges, regulated fees, taxation and the structure of the domestic energy system.

Bohuslav Čížek from the Confederation of Industry and Transport of the Czech Republic said that although electricity traded on regional exchanges has become more competitive, the overall amount paid by Czech households remains relatively high compared with several other European markets.

He added that further investment and modernisation of the energy sector would be necessary if the country wants to improve its long-term position within the European market.

Analysts also pointed to the impact of historical support schemes for renewable energy projects, particularly photovoltaic installations developed more than a decade ago, which continue to influence regulated components of electricity bills.

Despite the high ranking in European comparisons, market specialists argue that many Czech households could reduce their energy costs by switching suppliers or selecting more suitable tariff structures. According to energy consultants, some consumers remain on less competitive contracts even though cheaper options are available.

Experts also noted that the way energy prices are measured can significantly affect international comparisons. While some rankings compare absolute prices, others adjust costs according to purchasing power and household income levels, which can place the Czech Republic even higher among Europe’s most expensive electricity markets.

Separate Eurostat figures also showed that natural gas prices across the EU returned in 2025 to the more typical seasonal fluctuations seen before the energy crisis of 2022 and 2023. Average household gas prices, including taxes, increased during the second half of 2025 to €12.28 per 100 kWh, compared with €11.43 in the first half of the year. However, prices remained broadly stable compared with the same period in 2024, while taxation levels across the EU changed little over the previous three reporting periods.

Significant differences between member states also persisted. Sweden recorded the highest household gas prices in the EU at €20.92 per 100 kWh, followed by the Netherlands and Italy. At the other end of the scale, Hungary, Croatia and Romania reported the lowest household gas prices.

The share of taxes and levies included in consumer gas bills also varied considerably between countries. The Netherlands, Denmark and Sweden recorded the highest proportion of taxes within household gas prices, while Croatia, Greece and Belgium reported some of the lowest shares.

Meanwhile, energy companies and analysts expect relative stability in household energy costs during 2026 unless geopolitical tensions or commodity market disruptions create renewed pressure on prices.

Logicor Expands Czech Team with Two New Appointments

Logicor has expanded its team in the Czech Republic with the appointment of Milan Růžička as Asset Manager and Simona Štotová as Analyst.

The appointments come as the logistics real estate company continues to grow its activities in the Czech industrial market, including portfolio expansion and leasing activity.

Milan Růžička joins Logicor with experience gained at advisory firms including Colliers International and JLL. Most recently, he worked as Senior Associate at Colliers, where he focused on business development, client advisory and leasing transactions in the logistics and industrial sector.

During his career, he advised international occupiers and developers on location selection, lease negotiations and transaction structuring.

At Logicor, he will be responsible for supporting the company’s asset management strategy across its Czech portfolio, including leasing transactions, strategic asset management and portfolio value enhancement.

Simona Štotová joins the Prague office with experience in financial operations and asset management. Prior to her current role, she worked within Logicor’s Luxembourg operations and previously held a position at PPG Industries focused on trade payables and financial processes.

According to Logicor, her experience includes investment operations, financial management and working within international corporate environments.

“Milan and Simona come to Logicor at the right time,” said Pavel Rufert, Director of Logicor Czech Republic.

“Milan’s transactional experience and deep knowledge of the logistics real estate market will be key to further developing our platform in the Czech Republic. Simona’s financial knowledge and international perspective will further strengthen our asset management operations in the region. We are pleased to have them as part of the team,” he added.

Logicor has recently completed several logistics developments in the Czech Republic, including the 21,000 sqm Logicor Prague–Průmyslová project in Prague, designed for last-mile logistics operations, and Logicor Příšovice, a logistics park developed on a former brownfield site.

The company’s Czech portfolio currently includes more than 100,000 sqm of logistics space, alongside additional land designated for future development in Pilsen.

GEMO Completes Modernisation of Olomouc Regional Office Building

GEMO has completed the reconstruction of the Regional Office of the Olomouc Region following an extensive modernisation programme carried out between September 2024 and March 2026.

The project included a new facade, upgraded elevators, photovoltaic systems and a range of energy-efficiency improvements, while the building remained fully operational throughout the construction period.

The redevelopment had a total value of CZK 95.8 million and focused on improving the building’s energy performance, safety standards and user comfort.

According to GEMO, the facade underwent the most visible transformation, while works also included the replacement of windows, upgrades to electrical systems, installation of intelligent building management technology and roof modifications.

“The fundamental challenge for us was the need to coordinate the demanding construction work while maintaining the daily operation of the regional office,” said Radek Nepustil, Project Manager at GEMO.

“Increased emphasis was placed on safety, phasing of work and maintaining the comfort of the building’s users throughout the construction period. The implementation was carefully planned and coordinated in order to minimize the impact on employees and the public,” he added.

The project was completed in phases, with each floor undergoing a 14-day construction cycle that included window and lighting replacement, electrical upgrades and the installation of KNX intelligent control systems and measurement and regulation technologies.

The modernisation also introduced photovoltaic systems installed on the roofs of both buildings, combined with a new energy management system intended to reduce operational energy consumption and running costs.

New aluminium-framed windows with triple-glazed insulating glass and reflective solar coatings were installed throughout the building, alongside motorised external blinds. The facade was upgraded using ventilated metal cassette cladding and mineral wool insulation systems.

The redevelopment also included the installation of a new evacuation elevator and the replacement of two panoramic elevators positioned within newly constructed glass shafts on the facade of the building.

Additional works included new lightning protection systems, facade lighting and improvements to accessibility and fire safety standards.

GEMO stated that the project was carried out in line with the European Union’s “Do No Significant Harm” principles. According to the company, 73% of construction and demolition waste generated during the works was recycled or reused.

“The reconstruction of the Olomouc Region building was a complex project that combined technically demanding solutions with high demands on architectural quality and operational reliability,” Nepustil said.

“We are pleased that we were able to implement a building that will serve the public in the long term,” he added.

Takko Fashion Pre-Lets 60,000 sqm at Garbe Industrial Logistics Development in Salzgitter

Takko Fashion has signed a lease for almost 60,000 sqm at a logistics development owned by Garbe Industrial in Salzgitter, Lower Saxony, with the agreement completed while construction of the scheme is still underway.

The facility will support the retailer’s store distribution network and the continued expansion of its online business operations.

The logistics development is being delivered on a site of almost 200,000 sqm in Salzgitter-Heerte, acquired by Garbe Industrial together with joint venture partner BlackRock. The site was previously used for gypsum fibreboard production between 1971 and 2003.

According to Garbe Industrial, the former industrial buildings were dismantled, demolition materials recycled and the land remediated before construction of two logistics properties with a combined area of approximately 71,000 sqm. The total investment volume amounts to around €80 million.

“The fact that the building has been almost fully let even before its completion shows that we got everything right with our forward-looking approach to the project: even in challenging economic times, it is worth investing in future-oriented developments if the location is attractive and the property is of high quality,” said Luisa Elfendahl, Regional Manager for Central Germany in Project Development at Garbe Industrial.

Takko Fashion has leased the larger of the two units, which includes approximately 52,600 sqm of warehouse space, 3,600 sqm of mezzanine storage and 3,100 sqm of office and social areas. The building also includes a 4,000 sqm canopy designed for side unloading of trucks.

The second hall unit, offering around 10,000 sqm of warehouse space and approximately 400 sqm of office and social space, remains available for lease.

“To expand and to consolidate our logistics capacity, we were looking for a single, contiguous warehouse space of between 50,000 and 60,000 square metres,” said Timo Esleben, Director Supply Chain & Logistik at Takko Fashion.

“The new building in Salzgitter meets our requirements exactly. It will make a decisive contribution to the consistent implementation of our growth strategy,” he added.

The property is located close to the A39 motorway, providing connections to Brunswick, Wolfsburg and the A2 and A7 motorway corridors.

Both logistics buildings are being developed to the BEG 40 energy efficiency standard and are prepared for the future installation of photovoltaic systems. Garbe Industrial is targeting DGNB Gold certification for the development.

BNP Paribas Real Estate acted as advisor in the leasing transaction.

Igor Kuzminsky, Head of Real Estate Asset Management at BlackRock Germany & Netherlands, said: “Our goal was to create a high-quality, rare product for long-term tenants with the future-oriented development of a 70,000-square-meter logistics property. The industrial location of Salzgitter impresses with its excellent infrastructure, strong demand base, and stable tenant market. In this way, we offer our clients access to a resilient, future-proof investment.”

Art-Invest Real Estate Rebrands Living Office Düsseldorf as D’Carree Following New Leasing Agreements

Art-Invest Real Estate has signed three new lease agreements at its Living Office property in Düsseldorf, securing approximately 6,177 sqm of additional occupancy as part of a broader repositioning and refurbishment programme for the asset, which will be renamed D’Carree.

The new tenants include ERGO Group, NTT Germany and fitness operator aGYM.

ERGO Group moved into approximately 2,018 sqm on the fourth floor in early 2025, where it now operates its ERGO Campus. NTT Germany took occupancy of around 1,129 sqm across the second and third floors in March 2025.

Fitness operator aGYM has also signed a lease for approximately 2,655 sqm and plans to open its facility in early 2027. The concept will include training areas and fitness facilities within the redeveloped complex.

The property is currently undergoing refurbishment works alongside a wider repositioning strategy. The scheme, formerly known as Living Office, will operate under the new D’Carree branding, with completion of the redevelopment planned for early 2027.

Upgrade measures include the redesign of entrance foyers and the inner courtyard, the addition of balconies overlooking landscaped outdoor areas, and improvements to the underground parking garage, which contains 378 parking spaces. A new parking management system will also be introduced.

According to Art-Invest Real Estate, approximately 8,000 sqm of space remains available within the complex, including office, makerspace, restaurant and showroom areas.

“We are delighted with the lease agreements and the positive market signals following our acquisition in autumn 2024,” said Arne Hilbert, Managing Director at Art-Invest Real Estate.

“D’Carree impresses with its established urban character and unique architecture, featuring exciting spaces for networking and interaction. We are offering precisely what tenants currently value at this location in Düsseldorf. The repositioning as D’Carree and the extensive investments in the property create an attractive offering for all tenants,” he added.

Swiss Life Asset Managers Secures Full Letting for First Phase of Cologne West Project

Swiss Life Asset Managers has signed a long-term lease agreement with POHA House for approximately 6,800 sqm of gross floor area within the “Cologne West” redevelopment project in Cologne-Braunsfeld. The agreement fully lets the first development plot of the wider mixed-use scheme.

The property at Eupener Straße 137, formerly an office tower within the area’s former technology park, will be converted into a co-living development offering 171 apartments alongside co-working areas, fitness facilities and communal spaces aimed at temporary urban living.

The lease runs for 20 years and supports the planned transformation of the existing building into an energy-efficient residential-led asset. The redevelopment forms part of the broader Cologne West urban quarter, where approximately five building plots are planned with a mix of office, residential, education, wellness and event-related uses.

The project will follow a “back-to-the-structure” redevelopment model, with the existing office building stripped back to its structural frame before reconstruction begins. Swiss Life Asset Managers said it is targeting DGNB Platinum certification for the completed property.

“The signing of the lease agreement with POHA House marks a significant milestone for the project development. The conversion into a vibrant co-living concept impressively demonstrates the potential inherent in the sustainable redevelopment of existing properties,” said Mario Böttger, Head of RE Development Living Region Cologne at Swiss Life Asset Managers in Germany.

Demolition works are expected to begin in summer 2026, while completion is scheduled for summer 2028.

POHA House said the project aligns with its focus on community-oriented urban living concepts.

“POHA House was created precisely for projects like this: to revitalize an existing building with energy, purpose, and human connection,” said Yianni Tsitouras, CEO of POHA House.

“Our co-spaces are an answer to loneliness and the question of how we can make urban life more sustainable,” he added.

Leonie Heuschäfer, Head of Expansion at POHA House, said: “Together with Swiss Life Asset Managers, we want to show that urban living in the future will be more flexible, more conscious, and above all, more human.”

Matthias Schmidt, Head of Real Estate Development at Swiss Life Asset Managers in Germany, said the leasing reflects the company’s strategy of pursuing resilient and sustainable real estate concepts with long-term occupiers.

Romania Confronts Political Reset After Government Ousted by Parliament

Romania has entered a period of political transition after lawmakers voted to remove the administration led by Ilie Bolojan, bringing an abrupt end to a government that had already been weakened by the loss of parliamentary backing.

The vote was driven by the Social Democratic Party, with support from the Alliance for the Union of Romanians. Although the two parties combined forces to pass the motion, their cooperation appears limited to this objective, leaving uncertainty over what political structure may follow.

The cabinet will remain in place temporarily, performing a restricted role while the next stage of the process unfolds. Nicușor Dan is expected to consult with party leaders to identify a candidate capable of forming a new government, though the fragmented composition of parliament suggests that negotiations may prove complex.

The political shift has quickly been reflected in financial markets. The national currency weakened following the vote, signalling increased caution among investors and raising questions about the direction of economic policy in the coming months. The reaction comes at a time when Romania is already under pressure to manage its public finances and maintain commitments linked to European funding.

At the heart of the dispute were disagreements over how to address the country’s fiscal imbalance. Measures intended to stabilise the budget placed strain on the governing alliance, ultimately leading to the withdrawal of support that made the administration’s position untenable. What began as policy friction evolved into a broader political rupture, culminating in the parliamentary vote.

Despite the clarity of the outcome, the next steps remain less defined. The parties that supported the motion have not outlined a shared governing plan, increasing the likelihood of prolonged discussions or the emergence of an interim arrangement. In the absence of a clear majority, forming a durable administration may take time.

This uncertainty arrives at a sensitive moment. Romania is in the process of implementing reforms tied to European programmes, with access to significant funding dependent on progress against agreed targets. Any delay in decision-making could slow this process and add further pressure to an already challenging economic environment.

While the country’s institutions continue to function within established rules, the focus has shifted to the direction of policy and the speed at which political stability can be restored. For investors and observers, the coming weeks will be defined by signals of clarity, both in terms of leadership and the continuity of economic strategy.

Romania now finds itself in a holding position, where the framework of governance remains intact, but the path forward depends on the outcome of negotiations that will shape the country’s next phase.

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