Polish retail sales growth slows in June 2025, despite strong year-on-year performance

Retail sales in Poland rose by 2.2% in June 2025 compared to the same month last year, according to Statistics Poland. The year-on-year growth was lower than in June 2024, when sales increased by 4.4%. On a month-to-month basis, sales fell by 1.8% compared to May.

Over the first half of the year, retail sales increased by 3.7% compared to the same period in 2024, which had seen stronger growth at 4.9%. After adjusting for seasonal factors, June retail sales were 4.2% higher than a year earlier and rose by 0.7% compared to the previous month.

Sales trends varied across sectors. The most notable year-on-year increases at constant prices were recorded in the categories of textiles, clothing and footwear (up 11.8%), furniture and household electronics (up 10.2%), motor vehicles and parts (up 7.7%), pharmaceuticals and cosmetics (up 5.8%), and fuels (up 5.7%). However, food, beverages and tobacco products, which account for the largest share of total retail sales, declined by 1.0%. A 4.0% drop was also reported in the “other” category.

Online retail continued to grow, with e-commerce sales rising by 8.0% year-on-year. The share of online sales in total retail increased from 8.2% in June 2024 to 8.7% this year. Categories with notable online activity included clothing and footwear, which saw their e-commerce share rise from 21.6% to 23.0%, and furniture and household electronics, where the share increased from 17.2% to 17.7%. However, sales of books, newspapers, and specialised store items saw a decrease in online share from 21.4% to 20.1%.

June’s slower annual growth rate was partly influenced by a lower number of trading days compared to the previous year. Despite this, some sectors continued to show resilience, particularly in categories tied to durable goods and non-food retail.

Statistics Poland’s data highlights a mixed outlook for the retail sector, with moderate growth tempered by varying performance across categories and ongoing changes in consumer behaviour, including increased reliance on online shopping.

Prague to build underpass as part of Libeň bridge reconstruction near Palmovka

Prague to Build Underpass as Part of Libeň Bridge Reconstruction Near Palmovka

Prague will build a new pedestrian underpass beneath the reconstructed section of the Libeň Bridge near Palmovka, connecting to Vojenova Street. The city council approved the proposal and tasked the Road and Motorway Directorate (TSK) with overseeing the construction. The underpass will run beneath a portion of the bridge currently under construction, which replaced a segment demolished in May 2024.

A feasibility study commissioned by the city estimates the construction cost at approximately CZK 50 million, with an additional CZK 25 million expected for the relocation of utility infrastructure. Final costs will be determined during the detailed planning phase. The underpass will form part of the broader reconstruction of the Libeň Bridge complex, which includes several technical and design updates from the original plans.

The bridge reconstruction project has faced scrutiny from the Office for the Protection of Competition (ÚOHS), which has ruled that only those works corresponding to the originally approved project may proceed. This decision followed a complaint by the construction firm Eurovia and relates to changes introduced after the original contract was awarded. The most significant modification involves replacing the historic bridge over the Vltava River with a replica built on the original piers, rather than restoring the original structure.

As a result of these revisions, ÚOHS determined that some aspects of the project may require new tenders. City councilor Zdeněk Kovářík (ODS) stated that the council has requested a comprehensive overview of the changes introduced by TSK and the city’s transportation department, along with their expected impact on the timeline and budget. He acknowledged that parts of the project may need to be re-tendered and that costs are likely to rise.

Opposition councilor Ondřej Prokop (ANO) criticised the ongoing planning, questioning the city’s decision to move forward with aspects of the project that ÚOHS has flagged as non-compliant. He argued that continuing in this manner risks violating contractual obligations and called for greater accountability from city leadership.

The reconstruction of the Libeň Bridge was awarded to Metrostav TBR following a tender launched by TSK in early 2022. Construction began in September of that year. In 2024, the so-called flood bridge section leading toward Palmovka was demolished, with replacement work beginning in May 2025. TSK has indicated plans to issue a new tender for the demolition and reconstruction of the main span over the Vltava River.

The Libeň Bridge complex, consisting of six interconnected bridges, was designed by architect Pavel Janák and completed in 1928. It had never undergone a major repair until this reconstruction effort. While previous administrations considered demolishing and replacing the entire structure, more recent plans shifted toward preservation and partial reconstruction. The decision to build a replica of the main bridge section was influenced by updated safety standards introduced following the 2018 bridge collapse in Genoa, Italy.

Ramenownia to open at SOHO by Yareal in Warsaw’s Kamionek district

In 2026, the SOHO by Yareal development in Warsaw’s Kamionek neighbourhood will see the addition of a new culinary venue as Ramenownia prepares to open its second location in the capital. The restaurant, which focuses on traditional Japanese ramen, will occupy over 123 square metres on the ground floor of the under-construction SOHO 12 building. The space, situated along the complex’s linear park, has been leased for a 10-year term.

Ramenownia, originally established in Łódź, is known for its emphasis on authenticity and quality. Its first Warsaw location opened at LIXA City Gardens in the Wola district—also developed by Yareal Polska. The company’s expansion to Kamionek will bring its ramen offerings to the city’s right bank, targeting a new customer base while maintaining its established culinary standards.

SOHO 12 is part of the fourth and final phase of the SOHO by Yareal residential development. It is located between the SOHO 10 and SOHO 14 buildings along ul. Żupnicza. The building’s design will feature a white plaster façade with a decorative pattern on the street side, and a brick tile finish facing the linear park. The ground floor will incorporate Corten steel, continuing the architectural style used in earlier phases. Completion is expected in the fourth quarter of 2025.

SOHO by Yareal is a mixed-use project that integrates residential, retail, office, and recreational functions within a modern urban layout. Developed with the principles of the 15-minute city in mind, it includes both new buildings and renovated industrial structures. The project has received the BREEAM Communities certification for sustainable urban planning and is designed to promote walkability and community engagement through limited car access and shared public spaces such as a linear park, courtyards, and terraces.

The commercial portion of SOHO by Yareal includes over 11,300 square metres of retail and service space. Food and beverage concepts form a key part of the offer. Existing tenants include cafés such as Waszyngton × Soho and etc. Speciality coffee shop. In May 2026, Green Caffè Nero is expected to open its first location in Kamionek. A historic brick building within the complex will be converted into a dining hub featuring Bułkę przez Bibułkę, Pollypizza NEOpolitan, and Baken in the second half of 2026.

Beyond dining, the complex provides a range of services. These include a preschool, a children’s play centre, a grocery store in Carrefour’s “300” format, beauty salons, and a flower shop. A large Hebe store is also scheduled to open in early 2026.

Construction is ongoing on the final residential buildings: SOHO 10, SOHO 12, and the NEFRYT apartment building. Their completion in late 2025 will mark the conclusion of the residential development at SOHO by Yareal.

Wolseley signs first lease at Greenbox Darlington logistics park

Greenbox Darlington, a recently completed logistics park in North East England, has secured its first tenant. Wolseley, a UK-based distributor specialising in plumbing, heating, cooling, and infrastructure products, has agreed to lease Unit 2, a 107,775 sq ft facility within the development.

The site, delivered through a joint venture between Partners Group and logistics developer Citivale, was completed in March 2025. It comprises three industrial units ranging from 84,950 to 215,360 sq ft and was developed with a focus on sustainability. All units meet BREEAM ‘Excellent’ and EPC ‘A’ standards and were built to achieve Net Zero Carbon performance in both construction and operation.

Wolseley’s new facility is intended to support its national branch network, offering modern distribution capacity aligned with the company’s environmental objectives. The facility is located near the A66 and A1(M), providing logistical access across the UK.

Citivale CEO James Appleton-Metcalfe noted that securing Wolseley as the first tenant demonstrates the growing demand for energy-efficient logistics space in the region.

Greenbox Darlington is part of a broader effort to meet increased demand for low-carbon logistics infrastructure. The development was marketed by HTA Real Estate and Savills, with Wolseley represented by Lambert Smith Hampton.

Ostrava’s brownfields see increased investor interest, with Lenzing Biocel as a recent example

The Moravian-Silesian region recorded the highest number of brownfield sites in the Czech Republic in 2024, according to CzechInvest’s publication Podnikatelské nemovitosti a brownfieldy. A total of 709 such locations were documented in the region, which, along with Ústí nad Labem and Central Bohemia, continues to attract significant investor attention. Several former industrial sites in Ostrava have already been redeveloped into functional logistics and industrial zones, including Contera Park Ostrava D1, the adjacent Hrušov development area, Ostrava City Logistics Zárubek, P3 Ostrava Central, and the DMC Paskov industrial park.

One of the latest additions to this trend is Lenzing Biocel, which has become the primary tenant of a newly developed industrial hall at DMC Paskov. The facility is situated on the grounds of the former Paskov coal mine. Developed by Demaco, the project benefits from its proximity to the D56 motorway and access to a rail siding connected to a nearby transshipment terminal. Savills, which brokered the lease, confirmed that Lenzing Biocel has taken up 13,000 square metres of space at the site. The company is a significant producer of viscose pulp, serving both domestic and European markets.

Ondřej Míček, Head of Industrial at Savills and originally from Ostrava, noted that the region offers several logistical advantages, including its location along the Baltic–Adriatic rail corridor, a well-developed motorway network, and an international airport. He also pointed to future possibilities in inland waterway transport. Poland has plans to extend navigability of the Odra River up to the Czech–Polish border at Bohumín. If realised, this could enable Ostrava to develop a river port, further enhancing its transport capabilities.

Míček also highlighted the strengths of the local workforce. Ostrava’s history with heavy industry has created a labour pool familiar with large-scale industrial operations. He noted that workers in the region often prioritise long-term employment and job stability, which can be an advantage for companies seeking reliable labour.

As interest in repurposing brownfield sites continues to grow, projects like the Lenzing Biocel facility at DMC Paskov illustrate how such developments can meet modern logistical needs while revitalising former industrial areas.

EU’s draft budget offers record funds for Poland, but raises questions on fiscal sovereignty

The European Commission has presented a draft of the European Union’s 2028–2034 multiannual financial framework, proposing a record €2 trillion budget. If approved, it would become the largest financial package in the EU’s history. Poland is positioned as the top recipient, with an expected allocation of over €123 billion. Prime Minister Donald Tusk has welcomed the development, framing it as a recognition of Poland’s role within the EU and a success of his administration’s European policy.

The budget outlines major funding for key policy areas, including over €450 billion to support competitiveness across the EU economy, more than €300 billion for agriculture, and €131 billion for defense and security—five times higher than in previous cycles. Additional allocations are planned for digitalization, energy transition, migration management, Erasmus+, and climate change initiatives. Poland is expected to benefit significantly in areas such as regional development, infrastructure upgrades, and the shift to cleaner energy sources.

However, the budget also introduces a new financing structure for the EU itself. To support increased spending, the European Commission proposes expanding its own sources of revenue, including new levies that would bypass direct national parliamentary approval. These would include a carbon border adjustment mechanism (CBAM), a share of revenues from the emissions trading system (ETS), an e-waste fee, a common corporate tax on large multinationals (CORE), and higher excise duties on tobacco and nicotine products. Together, these measures are projected to generate over €40 billion annually.

While these new funding mechanisms are presented as tools for advancing climate policy, health, and tax fairness, they also signal a shift toward greater fiscal centralization. For Poland, which is expected to receive the highest volume of funding, the implications are complex. The country’s heavy reliance on coal and gas could make it particularly vulnerable to the expanded ETS and CBAM, which will raise costs in sectors like steel, cement, and fertilizer. The CORE tax, though aimed at large companies, is likely to be passed on to consumers. Environmental and excise fees could further affect households and small businesses.

These developments mark a growing role for the European Commission in shaping tax policy across member states. Critics argue this creates a parallel taxation structure within the EU, without direct citizen oversight or sufficient involvement of national legislatures. While shared investment is necessary for collective goals, the shift in fiscal authority has prompted concerns about democratic accountability and the ability of member states to maintain control over domestic economic policies.

Although Poland stands to gain significantly from the proposed budget, it may also shoulder a disproportionate share of the associated fiscal burden. The introduction of conditionality mechanisms, new levies, and centralised spending priorities could reduce national flexibility and increase dependency on EU-defined frameworks. The Polish government may face growing pressure to advocate for limits on EU fiscal expansion and to ensure that funding remains tied to the principle of subsidiarity and national accountability.

Source: WEI (Warsaw Enterprise Institute)

Germany: Brownfield developments account for majority of new logistics construction in H1 2025

Brownfield developments made up 52 percent of Germany’s new logistics construction volume in the first half of 2025, surpassing greenfield projects for the first time. According to data from logistics real estate consultancy Logivest, this shift represents a ten-percentage-point increase compared to the previous year and reflects a growing reliance on industrial land revitalisation amid constrained land availability.

The total volume of new logistics space built in the first six months reached approximately 1.7 million square metres. Of this, over half was constructed on previously used industrial land. In contrast, around 60 percent of logistics developments in 2024 were built on greenfield sites. The trend reversal is attributed to increasingly limited greenfield allocations and Germany’s national target to reduce daily land consumption to under 30 hectares by 2030.

Several major developments exemplify the shift. The largest project in the country during the reporting period, the MLP Business Park Schalke, spans nearly 72,000 square metres and is being built on the site of a former Thyssen wire plant in Gelsenkirchen. Another significant project – a 63,000-square-metre facility by Dietz AG for the winkler group – is also located on a brownfield site in Langenau, near Ulm.

While brownfield projects remain limited in regions such as Swabia, they now account for around 90 percent of logistics developments in the Ruhr area. This reflects how the logistics sector has adapted to regional structural changes by redeveloping former industrial zones.

In addition to land-use efficiency, the current wave of brownfield projects places increased emphasis on environmental sustainability. Many of the leading developments include photovoltaic roof systems, landscaped outdoor areas, and energy-efficient building concepts, contributing to broader environmental and climate goals.

Crosspoint Real Estate reports over 6,000 sqm of office leases in first half of 2025

Crosspoint Real Estate, the Romanian associate of Savills, completed office leasing transactions exceeding 6,000 square meters during the first half of 2025. The firm secured deals with tenants from sectors including technology, military equipment manufacturing, construction, and agricultural finance. These transactions bring the total value of office space leased through Crosspoint to more than €45 million.

According to Managing Director Valentin Neagu, the results reflect the company’s continued focus on strengthening its office division. He noted that the profile of tenants involved in the first-half transactions aligns with sectors currently generating the most leasing demand. Two-thirds of the leased space was located in Bucharest, occupied by new market entrants in tech, defence, and finance. The remainder involved a lease renewal in Cluj-Napoca by a technology firm for a space exceeding 2,000 square meters.

Mădălina Marinescu, Head of Office Agency at Crosspoint, observed a renewed interest in office space from IT companies. After a period of conservative space usage, more firms are now expanding, supported by a return of employees to physical offices. She sees this as a sign of stabilizing market conditions and growing confidence in the economic outlook.

Across Bucharest, total office leasing activity reached 112,225 square meters in the first half of the year, marking a 31% decrease compared to the same period in 2024. Net take-up stood at 62,718 square meters, down 23% year-on-year. The financial and banking sector led demand, accounting for 31% of all leased space, followed by technology at 16%, professional services at 15%, consumer and leisure services at 12%, and business services at 10%. Despite the shift, the technology sector maintained its lead in net demand, with over 13,000 square meters leased in new agreements.

The vacancy rate in Bucharest remained close to 12%, as no major new office deliveries entered the market during this period. Prime rents remained stable at €22 per square meter per month. However, Ilinca Timofte, Head of Research at Crosspoint, noted that rising energy prices, inflation, and higher taxes expected in the second half of the year may exert further pressure on rent and maintenance costs, potentially dampening tenant demand and expansion plans.

Leasing activity was concentrated in key office submarkets, led by the Center-West area with 32% of the total, followed by the Central Business District with 24%, and the Floreasca-Barbu Văcărescu area with 20%.

DHL extends lease and upgrades facility at CTPark Budapest East

DHL Supply Chain has extended its lease at CTPark Budapest East and has taken possession of a refurbished 8,600 sqm facility tailored to its operational requirements. The site will continue to serve as a key centre for warehousing, storage, and third-party logistics (3PL) services.

The new long-term lease agreement with CTP builds on more than 20 years of collaboration between the two companies. The updated facility reflects DHL’s ongoing need for infrastructure that supports its logistics operations while meeting evolving technical and environmental standards.

The building has undergone significant upgrades, including new office space, modernised mechanical systems, the installation of rooftop solar panels, and the integration of a heat pump system for energy efficiency. These improvements aim to enhance operational sustainability and align with DHL’s environmental targets.

Zoltán Kemény, Managing Director of DHL Supply Chain Hungary Kft., noted the importance of reliability and infrastructure in choosing to remain at the site, citing CTP’s long-term approach and flexibility in project execution as key factors.

The refurbished premises include LED lighting, intelligent building management systems, and heating and cooling via heat pumps. The facility has received a BREEAM “Very Good” certification, reflecting its adherence to sustainable building practices.

DHL’s long-standing presence at CTPark Budapest East has been supported by regular updates to the property. Past improvements include a new fan-coil system and liquid chiller, enabling the facility to remain compliant with current technical requirements.

CTP views the project as part of its broader strategy to maintain and modernise its existing properties to meet client needs. Péter Tar, Business Development Regional Lead at CTP Hungary, highlighted the focus on delivering high-quality, adaptable spaces that support long-term growth for occupiers.

Savills to oversee leasing of Biura przy Warzelni in Warsaw Brewery complex

Savills’ Landlord Representation department has been appointed as the exclusive leasing agent for Biura przy Warzelni, the largest office property in the Browary Warszawskie complex in Warsaw. The building is owned by DEKA Immobilien, which also owns other assets in the complex, including Willa Fabrykanta and the Warzelnia building that houses the Nine’s restaurant.

Completed in September 2020, Biura przy Warzelni is a modern, seven-storey office building with a total leasable area of 29,600 square metres. It includes a two-level underground car park with 180 spaces and is currently fully leased to tenants such as Grupa Żywiec, Allen & Overy, Instytut ADN, Point72, and Playtika. The ground floor is occupied by restaurants and a fitness facility, while the underground section connects to restored wine cellars. The property forms part of the larger, award-winning Browary Warszawskie complex, known for integrating contemporary architecture with revitalised historic structures.

In addition to Biura przy Warzelni, Savills will also be responsible for leasing Generation Park Z, an 11-storey, LEED Platinum-certified office building located at 28 Towarowa Street. The building, offering 17,500 square metres of office space, was added to Savills’ portfolio in March 2024. A further 4,000 square metres will become available in February 2027.

Jakub Parys, Associate Director at Savills, will lead the leasing efforts for both Biura przy Warzelni and Generation Park Z. He rejoined the company in early 2025 and is also responsible for Mokotowska Square at 49 Mokotowska Street. Savills continues to represent several DEKA Immobilien properties in Warsaw, including International Business Center, Grzybowska Park, North Gate, and Wise Point, as well as Andersia Tower in Poznań.

Browary Warszawskie is located in the central Wola district and is an example of post-industrial urban renewal in Warsaw. The mixed-use development brings together modern office space with preserved elements of the original brewery buildings, creating a setting that serves both commercial and public functions.

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