Rents in the Czech Republic rise by 9% year-on-year in Q2 2025

The average monthly rent in the Czech Republic reached CZK 17,586 in the second quarter of 2025, marking a 9% year-on-year increase and a 1% rise compared to the previous quarter, according to a report by real estate platform UlovDomov.cz.

While rents in major cities such as Prague and Brno remained relatively stable year-on-year, notable increases were recorded in cities like Ostrava, Pilsen, and Olomouc. In Prague, the average monthly rent for a 2+kk apartment stood at CZK 22,170, and in Brno at CZK 17,490. The same apartment type rented for CZK 12,250 in Ostrava and CZK 15,480 in Olomouc.

For smaller 1+kk apartments, the lowest rents were found in Ostrava at CZK 8,930 per month, while Prague remained the most expensive at CZK 16,700.

According to UlovDomov.cz director Michal Hrbatý, high mortgage interest rates continue to steer people toward renting rather than buying. Although rental prices stabilized in the second quarter, renting generally remains more affordable than mortgage repayments. In cities like Prague and Brno, monthly mortgage costs for a 2+kk apartment are typically twice as high as rent.

An exception is Ostrava, where purchasing property may be more cost-effective than renting. The city is currently the only major market in the country where mortgage payments are lower than equivalent rental costs, in contrast to the national trend.

Source: CTK

Demand for micro-apartments in the Czech Republic rises sharply

Demand for micro-apartments in the Czech Republic grew by 56% year-on-year in the second quarter of 2025, according to a market analysis by Sreality. These compact units, typically ranging from 16 to 30 square metres, are gaining popularity as traditional housing becomes increasingly unaffordable.

The study shows that micro-apartments spend the shortest time on the market among all apartment types. On average, they remain listed for less than two months—a 41% decrease compared to the same period last year. The trend reflects a growing shift toward more affordable housing solutions as property prices continue to climb across the country.

The average asking price for apartments in the Czech Republic rose by 16% year-on-year to CZK 111,700 per square metre. In Prague, prices increased by 12% and now average CZK 141,338 per square metre.

According to analysts, the pace of price growth remains consistent. In the first half of the year, advertised prices increased between 16.5% and 17.7% year-on-year. The strongest growth was recorded in the Moravian-Silesian Region (+26%), Ústí nad Labem Region (+24%), and Hradec Králové Region (+22%). In contrast, the Liberec Region saw the smallest rise at 9%.

Data from the FérMakléři platform indicate that older apartments in major cities experienced a 27% year-on-year price increase and a 7% rise compared to the previous quarter. The average price per square metre for these units now stands at CZK 77,343, with the most notable gains seen in Ústí nad Labem and Ostrava—locations that have historically offered some of the country’s most affordable housing.

Source: CTK

Seniority reform from 2026 to benefit up to 5 million Poles

Beginning in January 2026, new regulations will come into force in Poland that redefine how work experience is calculated. The changes will extend to as many as five million people, including those who previously worked under civil law contracts or operated sole proprietorships (JDG). According to experts from Personnel Service, the reform presents both opportunities for workers and significant challenges for HR departments.

The adjustment will allow non-traditional forms of employment—such as civil contracts and self-employment—to be officially included in seniority calculations. For employees, this opens the door to rights previously reserved for full-time workers, such as longer annual leave and eligibility for severance pay. According to Krzysztof Inglot, labour market expert and founder of Personnel Service, “This reform is a milestone in levelling the playing field between traditional and non-standard forms of employment.”

Greater Benefits and Career Opportunities

In practical terms, the reform means that many workers will now surpass the 10-year service threshold, entitling them to 26 days of paid leave annually. It also expands access to longer notice periods and severance packages.

For those seeking employment in public administration or state-owned institutions, previously inaccessible positions may now become available. Civil law contracts and periods of self-employment will now count towards the required experience, broadening eligibility for candidates who had previously been excluded from such recruitment processes.

Administrative and Operational Impact on Employers

For employers, the upcoming changes require immediate attention. HR departments will need to audit historical records to identify eligible former contract workers and self-employed individuals. This includes preparing internal systems for data entry, updating payroll processes, and verifying documentation submitted by employees.

The new rules are expected to increase operational costs. These include the financial burden of additional paid leave and severance pay, as well as the administrative load of processing revised seniority claims. Recruitment policies may also need to be adjusted, as seniority will now play a greater role in candidate evaluation and salary levels.

Inglot notes that early preparation will be key: “Employers that start now will be better positioned to manage the transition without disruption. These changes can also be an opportunity for companies to improve transparency and strengthen organisational culture.”

Background Context

According to a Ministry of Finance report, sole proprietorships account for over 80% of business activity in Poland. Meanwhile, more than 2.4 million people were working under civil contracts as of late 2024, with nearly half combining this with other forms of employment.

While the proportion of such workers is significant, their legal entitlements have historically lagged behind. The 2026 reform marks a shift in recognising diverse forms of work and aligning them more closely with standard employment protections.

As implementation approaches, both workers and employers are urged to prepare for the wide-reaching effects of this legislative change.

One in three Poles could only cover one month of expenses if income stops

Despite rising wages and a declining number of unreliable debtors, the latest survey from BIG InfoMonitor shows that many Poles remain financially vulnerable. While 83% of adults report having some level of savings, for one in three respondents, these funds would last no more than one month in the event of sudden income loss.

At the same time, 17% of Poles say they have no savings at all—a figure nearly unchanged from last year. Only 26% of respondents reported savings sufficient to cover more than six months of living expenses without income. Younger adults under 25 are particularly exposed, with many lacking a financial cushion.

According to Dr. Waldemar Rogowski, Chief Analyst at BIG InfoMonitor, financial security is often defined as having six months’ worth of net income saved. Based on the median Polish salary—PLN 4,645 net per month—this buffer would amount to approximately PLN 27,870. Survey results indicate that only about 40% of Poles have achieved this level of savings.

The survey also reveals significant disparities in savings levels. Approximately 28% of Poles have reserves under PLN 5,000. The largest proportion of savers—18%—report savings between PLN 10,000 and PLN 30,000. Meanwhile, 15% of respondents have accumulated more than PLN 100,000. Overall, the percentage of people with over PLN 50,000 in savings has risen from 22% in 2023 to 28% this year, while those with less than PLN 5,000 fell from 39% to 28% in the same period.

There are also notable gender differences: 46% of women hold savings between PLN 1,000 and PLN 10,000, compared to 40% of men. Men are more likely to have larger reserves, with 44% reporting savings of PLN 30,000 or more, versus 35% of women.

Despite some signs of improvement, financial strain remains for many households. Over the past six months, one in three Poles has had to use savings to cover basic living expenses. While rising incomes and falling inflation support savings growth, high costs of living and existing debts continue to limit financial flexibility.

As of May 2025, the number of unreliable debtors in Poland has decreased by more than 116,000 compared to a year earlier, and the total value of unpaid debt dropped by over PLN 194 million. However, 2.5 million consumers still owe a combined PLN 86.5 billion—an average of PLN 34,644 per person. For many with limited savings, repaying debt remains a challenge, increasing the risk of deeper financial problems.

Dr. Rogowski concluded that while the trend in savings is modestly positive, greater financial resilience will require continued progress in both income stability and household budgeting.

EU and Euro area budget deficits narrow in Q1 2025 to 2.9% of GDP

In the first quarter of 2025, the seasonally adjusted general government deficit stood at 2.9% of GDP in both the euro area (EA20) and the European Union, according to the latest data released by Eurostat. This marks a slight improvement from the previous quarter, when deficits reached 3.2% in the euro area and 3.3% in the EU.

In the euro area, total government revenue was 46.6% of GDP, down marginally from 46.7% in Q4 2024. Although revenue rose in absolute terms by approximately €11 billion, this was outpaced by nominal GDP growth. Total expenditure also declined as a share of GDP to 49.5%, compared to 49.9% in the prior quarter.

For the EU as a whole, revenue remained steady at 46.2% of GDP, with a quarterly increase of €21 billion in absolute terms. Meanwhile, expenditure declined to 49.1% of GDP, even though it rose by €5 billion in absolute terms.

National Variations

Among EU Member States, deficits varied significantly:
• Poland posted a deficit of -5.1% of GDP, an improvement from -7.6% in Q4 2024.
• France remained among the highest with a deficit of -5.6%.
• Belgium’s deficit widened to -5.5%, while Romania stood at -7.5%.
• Ireland recorded a notable surplus of 2.3%, following a volatile 2024.
• Greece registered a strong fiscal performance with a 4.2% surplus, continuing its recent trend of improvement.

The improvements in Q1 2025 reflect a continued normalization of public finances across much of the EU, following earlier periods of elevated deficits due to pandemic- and energy-related support measures.

While some Member States such as Greece, Cyprus, and Ireland have transitioned to budget surpluses, others—including Poland, Hungary, and Romania—remain under pressure to reduce their budget imbalances.

The figures are based on the European System of Accounts (ESA 2010) and follow the Excessive Deficit Procedure framework. All Q1 2025 figures are provisional and subject to revision. Final annual government finance statistics will be verified by Eurostat ahead of the October 2025 Excessive Deficit Procedure notification.

Government debt rises to 88.0% of GDP in the Euro area in Q1 2025

According to Eurostat data for the first quarter of 2025, the euro area’s general government gross debt stood at 88.0% of GDP, marking an increase from 87.4% in the fourth quarter of 2024. In the European Union as a whole, the ratio rose to 81.8%, up from 81.0% in the previous quarter.

Compared to the same period last year, the debt-to-GDP ratio increased slightly in both the euro area (from 87.8%) and the EU (from 81.2%).

Debt instruments continued to be dominated by debt securities, which accounted for 84.2% of total government debt in the euro area and 83.6% in the EU. Loans comprised 13.3% in the euro area and 13.9% in the EU, while currency and deposits made up the remainder.

Intergovernmental lending (IGL), largely related to financial assistance between EU countries, was recorded at 1.4% of GDP in the euro area and 1.2% in the EU.

Member State Overview

The highest government debt-to-GDP ratios were recorded in:
• Greece (152.5%)
• Italy (137.9%)
• France (114.1%)
• Belgium (106.8%)
• Spain (103.5%)

The lowest ratios were noted in:
• Bulgaria (23.9%)
• Estonia (24.1%)
• Luxembourg (26.1%)
• Denmark (29.9%)

From Q4 2024 to Q1 2025, debt ratios rose in 16 EU Member States, remained unchanged in Czechia, and declined in 10 countries. The largest quarterly increases were observed in Austria and Slovakia (both +3.5 pp), Slovenia (+2.9 pp), and Italy (+2.5 pp). The biggest decreases were in Ireland (-3.7 pp), Latvia (-1.2 pp), and Greece (-1.1 pp).

Year-on-year comparisons revealed a rise in the debt ratio in 13 Member States, with Poland (+6.1 pp), Finland (+5.1 pp), and Austria and Romania (both +4.1 pp) experiencing the most significant increases. Greece (-9.3 pp), Cyprus (-8.2 pp), and Ireland (-6.1 pp) saw the sharpest declines.

Poland’s government debt reached PLN 2.12 trillion in Q1 2025, representing 57.4% of GDP. This reflects a 2.2 percentage point increase over the previous quarter and a 6.1 pp rise compared to Q1 2024, the largest annual increase in the EU.

The debt figures are based on the Maastricht definition and follow the European System of Accounts (ESA 2010). They include the consolidated gross debt of the general government sector in the form of currency and deposits, debt securities, and loans, valued at nominal face value.

All Q1 2025 data are considered provisional and are subject to revision. The next comprehensive review of government debt levels will be included in the Excessive Deficit Procedure notification due in October 2025.

Specjał Capital Group expands logistics operations at MLP Poznań

The Specjał Capital Group has expanded its logistics operations at the MLP Poznań logistics centre by leasing an additional 6,400 sqm of warehouse space, including cold and freezer storage. The company also extended its existing lease, which includes more than 15,000 sqm of warehouse space and over 760 sqm of office space. With this expansion, Specjał now occupies more than 22,000 sqm at the site. The move also includes the relocation of its Śrem branch to the Poznań location. Newmark Polska advised the tenant during the leasing process.

The company stated that its growing footprint at MLP Poznań reinforces its logistics capacity in western Poland, particularly in the distribution of fresh and frozen goods. The flexibility of the landlord in accommodating refrigeration infrastructure requirements played a role in the decision.

Representatives from MLP Group highlighted that Specjał’s continued presence strengthens the park’s position as a strategic logistics hub, benefiting from proximity to the S11 expressway and the A2 motorway. The company also leases space at MLP Czeladź, positioning it among MLP Group’s significant clients in the food logistics segment.

Newmark Polska, which has supported Specjał in site selection and lease negotiations, noted the long-standing cooperation as a reflection of mutual trust and alignment with the group’s development strategy.

MLP Poznań is being developed under MLP Group’s “build & hold” model, which emphasizes long-term ownership and direct management of assets. Upon completion, the logistics park is expected to offer around 90,000 sqm of warehouse and production space.

The Evolving Workplace: How Hybrid Models and Well-Being Are Reshaping Office Design

In a detailed conversation with CIJ EUROPE, Christophe Weller, CEO and Founder of COS Romania, explored how client expectations for office fit-outs have shifted in 2025. With hybrid work now firmly established as the norm, office design has entered a new era, one defined by flexibility, employee well-being, technology integration, and a deepening focus on sustainability.

According to Weller, the hybrid workplace model has become the standard across industries. Companies are no longer experimenting with hybrid work—they are actively trying to define the right formula based on their operational needs. While some opt for full-time office presence, others are embracing a 50–70 percent hybrid ratio, calculated according to employee attendance patterns. The trend away from fully remote work is clear. Remote work may diminish, but hybrid, Weller says, “is here to stay.”

This new model has prompted companies to rethink how much office space they really need. Rather than building offices for their full headcount, they now tailor workstations to expected attendance. Yet this downsizing hasn’t led to major cost savings. In fact, Weller notes that the cost per square metre has increased, as companies invest more in quality environments that make the office a desirable destination.

The focus has shifted toward creating workplaces that employees enjoy using. As Weller explains, when people come to the office, they need to feel good, inspired, and supported. Many companies are responding by designing spaces that reflect elements of home—comfortable seating, informal lounges, welcoming cafeterias, and collaborative hubs that facilitate both planned and spontaneous interaction. These shifts are also influenced by the changing needs of younger generations, many of whom report feeling disconnected or unmotivated in traditional work environments.

Technology has played a transformative role in this new office landscape. The pandemic made virtual meetings routine, and the tools needed to support these interactions—screens, microphones, Bluetooth devices, and video conferencing systems—are now standard in fit-out projects. Offices today are designed to support hybrid meetings at every level, ensuring seamless communication between on-site and remote participants. Furniture manufacturers are even integrating technology directly into their products to enhance functionality and improve the hybrid meeting experience.

Sustainability has become another defining feature of the modern office. Weller points out that environmental responsibility is no longer a branding exercise; it is a real business and legal imperative. Companies are increasingly demanding carbon-neutral or even carbon-negative products, such as flooring made from recycled materials or reconditioned furniture. COS Romania has committed to this direction, working closely with suppliers who align with their sustainability objectives and improving their own certifications, including EcoVadis and ESG standards.

This focus on responsibility extends beyond the environment to employee health. Weller describes how mental well-being has taken center stage. Burnout and stress are serious concerns, and companies are investing in features like quiet rooms, relaxation areas, wellness programs, and recreational zones to support mental health in the workplace. This is especially evident in service centres and call centres, where high-density environments require both functional noise reduction and spaces for employees to decompress.

In terms of cost management, companies are adapting by reducing overall leased space while spending more on fit-out quality. Weller estimates that companies are now spending 15 to 20 percent more per square metre than before the pandemic, and sometimes even higher, due to advanced acoustic materials, privacy features, and upgraded technologies. Elements like sound-absorbing ceilings, privacy screens, and noise-dampening panels are becoming commonplace, aimed at creating a more comfortable and focused work environment.

Reflecting on these developments, Weller draws a parallel to the social movements of the 1970s. He believes we are living through a kind of modern-day workplace revolution, driven by a desire for freedom, balance, and personal well-being. Today’s workforce wants flexibility, purpose, and spaces that support their whole lives—not just their job performance. There is a noticeable shift away from the single-minded career focus of past decades toward a more holistic view of work and life.

Weller notes that this transformation brings both opportunity and uncertainty. Employers now face the challenge of motivating teams in an environment where traditional rules no longer apply. He describes how employers are trying to offer more freedom without losing productivity and cohesion. The pandemic, he says, forced people to reassess their priorities, and many have emerged with a stronger focus on family, health, and happiness. Offices must now support these values if they hope to attract and retain talent.

As offices continue to evolve, Weller believes they will serve not just as places of work, but as tools for human connection, creativity, and well-being. While technology and efficiency are accelerating, companies are also striving to preserve the human element, encouraging collaboration and physical presence in a world that often leans toward digital detachment.

Ultimately, Weller sees the role of the office as both practical and symbolic. It is a place where people come together, feel valued, and perform at their best. And while no one can predict the long-term impact of AI or further workplace revolutions, one thing is clear: the office of 2025 is more human, more thoughtful, and more responsive to the needs of its people than ever before.

Poland’s population continues to decline: Latest figures as of 1 January 2025

The Central Statistical Office (GUS) has released updated data outlining Poland’s demographic profile as of 1 January 2025. The country’s population has declined to 37.58 million, continuing a downward trend observed in recent years. Meanwhile, the total area of Poland remains unchanged at 312,696 square kilometres.

The population is unevenly distributed across regions. Mazowieckie remains the most populous province, with 5.48 million residents, followed by Śląskie with 4.28 million. On the other end of the spectrum, Opolskie and Lubuskie recorded the smallest populations, with 947,000 and 982,000 inhabitants respectively. Population density was highest in Śląskie (360 persons per km²), Małopolskie (227), and Mazowieckie (151), while Warmińsko-Mazurskie recorded the lowest density at 58 persons per km².

Among counties, the largest urban populations were reported in Warsaw (1.794 million), Kraków (804,000), and Łódź (642,000). The least populated counties included Bieszczady (20,500) and Sejny (21,100).

In terms of administrative structure, more than half of Poland’s population resides in urban and urban-rural municipalities, while about 40% live in rural areas. Warsaw, Kraków, and Wrocław are the country’s most populated municipalities. The smallest are Krynica Morska and Jaśliska.

The report highlights ongoing demographic shifts, including depopulation trends in several regions. These changes are likely to influence regional development strategies, spatial planning policies, and future allocations of public resources.

Business sentiment in Poland mixed across sectors in July 2025

According to Statistics Poland’s latest business tendency survey, July 2025 presented a mixed picture across sectors, with stabilisation or deterioration dominating the overall business climate. The general business climate indicators, which assess both current and expected economic conditions, showed little month-on-month improvement, except in transportation, storage, and construction.

The most optimistic outlook came from the financial and insurance sectors, where the general business climate indicator stood at +24.6. However, this was still below the long-term average of +25.4. Manufacturing showed the weakest sentiment with an indicator of -7.7, reflecting persistent pessimism in the sector.

In manufacturing, both the diagnostic and forecasting components deteriorated slightly compared to June. Construction showed a modest improvement from -4.7 to -3.3, while wholesale trade held relatively steady at -0.3. Retail trade declined further from -0.9 to -3.6, signaling weakening sentiment among consumer-facing businesses.

Transportation and storage saw a notable upswing, moving from -0.8 to +1.1, while accommodation and food services, although still positive at +11.5, dropped from +17.3 the previous month. Information and communication remained stable at +9.0.

The July survey also included special questions on the war in Ukraine and its impact on Polish businesses. The vast majority of respondents reported either no impact or only minor effects, with 91–96% of firms in all sectors falling into these categories. Serious effects or threats to company stability were more frequently cited in manufacturing and transport.

Price pressures remain a concern. In the short term, most businesses expect input costs to rise, although at a slower pace. Over the next 12 months, a similar trend is anticipated, with energy, labour, and rental costs seen as the primary drivers of rising operating expenses.

Regarding financing conditions, a significant proportion of businesses indicated that higher borrowing costs may lead to deferral of investments (17–26%) and hiring limitations (18–22%) over the coming year.

Overall, while a few sectors show resilience, broader sentiment reflects caution as inflationary pressures and geopolitical uncertainty continue to influence business expectations across Poland.

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