All posts by fletcher@cijeurope.com.

Colliers appoints Felix von Saucken as CEO for Germany

Colliers has announced the appointment of Felix von Saucken as Chief Executive Officer (CEO) of Colliers in Germany, effective 1 March 2025. He will report to Davoud Amel-Azizpour, CEO, EMEA, and will also become an equity partner in the company.

Von Saucken, who has led Colliers’ Residential division in Germany since 2018, is recognized for his expertise in local and cross-border capital markets, particularly in residential assets. With over 25 years of experience, he has established strong client relationships across various asset classes and service lines in the German and international real estate markets.

Expressing his outlook on the new role, von Saucken emphasized Colliers’ commitment to strengthening its market position in transaction services and professional services. He noted that despite the challenges of 2024, Colliers achieved leading market share positions in Lease Advisory and Capital Markets. He highlighted the company’s regional presence and global reach as key advantages for continued growth.

Von Saucken will succeed Achim Degen, who will remain with the company as Managing Director and will focus on establishing a Professional Services division in collaboration with von Saucken.

Commenting on the leadership transition, Davoud Amel-Azizpour, CEO, EMEA, acknowledged Degen’s leadership in navigating the German business through a challenging economic phase. While the market has not yet fully recovered, he noted signs of increased transaction volumes and improving sentiment. He expressed confidence that von Saucken’s experience and strategic approach will help drive Colliers’ growth in Germany. As an equity partner, von Saucken is expected to play a key role in shaping the company’s direction and enhancing its services for clients and stakeholders.

Western European investors dominate Romanian real estate market with €1.75 Billion in acquisitions

Western European investors, particularly from Austria, the Netherlands, Belgium, and the United Kingdom, have been the most active buyers of real estate assets in Romania over the past five years, investing a total of €1.75 billion. This represents 39% of the total transaction volume of €4.5 billion recorded between 2019 and 2024, according to real estate consultancy Cushman & Wakefield Echinox.

Romanian investors followed with acquisitions worth nearly €1.2 billion, accounting for 26% of the market. Investors from Central and Eastern Europe purchased real estate assets valued at €560 million (13% market share), while Middle Eastern investors contributed €388 million. South African investors saw a decline in activity, holding only a 7% share of the market.

Despite market volatility and global economic challenges, the Romanian real estate sector has continued to attract new international investors. Among the newcomers are M Core (UK), Supernova (Austria), Adventum Group (Hungary), Fortress (South Africa), Oresa Industra (Sweden), BT Property (Romania), Vectr Holdings (India), Vincit Union (Latvia), W&E Assets (USA), and AYA Properties (Belgium).

Existing players in the market made significant acquisitions, with Pavăl Holding, CTP, and AFI Europe leading the way. Pavăl Holding and AFI Europe expanded their office portfolios, while CTP focused on industrial and logistics parks. These transactions marked the exit of Austrian group CA Immo from Romania, NEPI Rockcastle’s withdrawal from the office sector, and Globalworth’s departure from the industrial segment.

According to Cristi Moga, Head of Capital Markets at Cushman & Wakefield Echinox, the Romanian real estate market has attracted capital from over 20 countries across four continents. European investors, including Romanian ones, accounted for approximately 80% of the total transaction volume. While Western European investors continue to demonstrate strong acquisition interest, growing activity from Central and Eastern European investors is also being observed.

Between 2020 and 2024, 159 real estate transactions were recorded in Romania, with an average transaction value exceeding €28 million. Office buildings were the most frequently traded assets, accounting for over €2.2 billion, nearly 50% of the total volume. Retail projects represented 24%, while industrial properties accounted for 19%.

Approximately 60% of the investment volume was directed toward Bucharest, while more than 25% involved portfolio acquisitions of properties in multiple Romanian cities.

EU housing costs surge: Rents up 19%, house prices climb 47% amid growing affordability crisis

Between 2010 and the third quarter of 2024, house prices in the European Union (EU) surged by 54.1%, while rents increased by 26.0%, according to Eurostat data. This significant rise in housing costs has outpaced both wage growth and inflation, intensifying affordability challenges across the bloc.

The housing crisis is particularly pronounced in countries like Spain, where rents have escalated by 80% over the past decade, compelling nearly half of the tenants to allocate 40% of their income to housing expenses. In response, the Spanish government has proposed a 12-point plan aimed at constructing affordable social housing, implementing rent caps, and imposing taxes on non-EU property buyers. However, these measures face political opposition and skepticism regarding their potential effectiveness.

Germany’s housing market is also under pressure, with house prices projected to climb by 3.5% in 2025. This increase is driven by strong demand and anticipated interest rate cuts by the European Central Bank. Nevertheless, rising construction costs and economic uncertainties pose risks to this forecast.

In Ireland, the housing shortage is acute, necessitating the construction of 93,000 homes annually until 2031, significantly surpassing the government’s target of 60,000 per year. Proposed solutions include reclaiming land for new developments and adjusting tax policies to encourage the construction of smaller dwellings.

The European Parliament has established a new committee to address the escalating housing crisis, acknowledging that average house prices have risen by 48% across the EU in less than a decade. This committee aims to explore comprehensive strategies beyond merely increasing housing supply, focusing on ensuring affordable and quality housing for all citizens.

Overall, the rapid escalation of housing costs in the EU underscores the urgent need for multifaceted policy interventions to enhance housing affordability and accessibility for all residents.

Eurofound Survey: Decline in life satisfaction and optimism across the EU

A new Eurofound survey has revealed a decline in life satisfaction and optimism across the European Union, with respondents in 2024 reporting lower expectations for the future compared to previous years. Findings from the Living and Working in the EU e-survey indicate a steady decline in optimism across all age groups since 2020, with the most significant drop among respondents aged 35–49 and 50–64. Younger participants, while the most optimistic, also reported a decline, with only 47% expressing confidence about the future—four percentage points lower than in 2023. The 50–64 age group recorded the lowest level of optimism at 24%.

The Quality of Life in the EU 2024 factsheet presents initial findings from the Eurofound survey, conducted online in spring 2024. The study captures Europeans’ current outlook and concerns in a post-pandemic environment, focusing on key challenges such as the rising cost of living, healthcare access, mental health, work-life balance, and telework opportunities.

The decline in optimism was found to be greater among women than men and was more pronounced in low-income households, widening the disparity in outlook between the wealthiest and poorest respondents. The optimism gap has expanded from 18 percentage points in 2020 to 29 points in 2024.

At the national level, the lowest levels of optimism were recorded in Greece and Italy, where only 20% of respondents expressed a positive outlook. In contrast, Ireland (49%) and Denmark (48%) had the highest levels of reported optimism.

Alongside declining optimism, life satisfaction also fell between 2023 and 2024, returning to levels observed in spring 2021. After rising between 2021 and 2023, satisfaction levels declined, particularly among respondents aged 35–49 and 50–64. In contrast, those aged 65 and older reported the highest life satisfaction scores, continuing an upward trend in 2024.

Commenting on the findings, Daphne Ahrendt, Eurofound Senior Research Manager, highlighted the widespread sense of uncertainty across Europe. “Life satisfaction and optimism are influenced by various factors, including income, employment, education, and disability status. However, these results, combined with an overall decline in mental well-being, particularly among younger groups, indicate a broader sense of malaise and a lack of hope for the future across the region.”

Obermeyer Helika advances conveyor bridge and warehouse project for Škoda Auto in Mladá Boleslav

Obermeyer Helika is overseeing the design and construction of fully automated conveyor bridges and a high-rise warehouse for car body transport and storage at the Škoda Auto production site in Mladá Boleslav. The project presents significant technological and logistical challenges, with the first phase involving the launch of the automated high-rise warehouse (HRL). The planning and construction documentation began in 2023.

The company is responsible for a range of tasks, including conducting comprehensive survey work using digital 3D scanning technology, preparing documentation for planning and construction approvals, and obtaining necessary permits. It is also managing construction scheduling, documentation updates, and author supervision during project execution.

The conveyor bridge network spans approximately 1.2 km across the Mladá Boleslav automotive plant, passing through existing facilities, over rooftops, and across exterior areas. The project also includes a high-rise warehouse with a capacity for 900 car bodies, designed to support a planned new paint shop.

According to Ing. Tomáš Zelenka, senior project engineer at Obermeyer Helika, the project integrates the conveyor bridges into existing site infrastructure while addressing utility relocations and road improvements. He emphasized the system’s automation and efficiency in managing car body transport within production processes.

The project represents a major contract for Obermeyer Helika, reaffirming its expertise in industrial facility design. Collaboration with Škoda Auto and the use of advanced technologies have enabled the project team to meet targets and deadlines effectively. A team of specialists is managing the project’s technical and organizational aspects to ensure seamless execution and coordination with stakeholders.

Project Manager and Deputy Director of the Architecture and Civil Engineering Division, Ing. Jan Korbut, MBA, highlighted the complexity and strategic importance of the project. He noted that collaboration with the automotive sector, known for its technological innovation, has required continuous planning and adaptation to meet client requirements.

The introduction of automated conveyor bridges and a high-rise body storage facility at Škoda Auto Mladá Boleslav is expected to enhance production efficiency and competitiveness at the automotive plant.

Mortgage payments and rents converging in the Czech Republic, but renting remains cheaper

The gap between mortgage payments and rents in the Czech Republic has narrowed in recent months, making rental housing a more viable financial option. In some regions with lower housing demand, taking out a mortgage has become increasingly cost-effective. Experts note that homeownership offers long-term security and wealth accumulation, particularly for retirement, whereas renting provides greater flexibility.

According to data from Banky.cz and Hyponamíru.cz, in 2020, the average monthly mortgage payment in the Czech Republic was CZK 10,567, compared to CZK 12,817 for rent. The biggest discrepancy between renting and mortgage payments occurred in August 2022, when the monthly cost of a mortgage for an average 52.6 square meter apartment exceeded rent by more than CZK 10,000.

Recent figures indicate a shift in affordability. In the Ústí Region, mortgage payments are now CZK 1,494 lower than rent. In the Central Bohemian and Moravian-Silesian Regions, rents remain CZK 2,000 cheaper than mortgages. However, in high-demand areas like the South Moravian Region, homeownership remains significantly more expensive. A 60 square meter apartment in this region costs approximately CZK 4.72 million. With 20% savings of CZK 944,484 and a mortgage of CZK 3.78 million, the monthly installment reaches CZK 21,603, compared to a rental price of CZK 15,300 per month.

Interest rates have declined by 1.2 percentage points over the past two years, currently standing at 4.78%, with further reductions expected. House price growth has slowed, bringing the housing market closer to equilibrium. However, rental prices continue to rise, increasing six to seven percent annually, a trend that is expected to accelerate in 2025, according to Miroslav Majer, Executive Director of Hyponamíru.cz.

Despite these trends, Jakub Vysocký, President of the Association of Rental Housing (ANB) and owner of SIAN, disagrees that mortgages have become more attractive than renting. He notes that the average mortgage payment rose six percent year-on-year in the third quarter of 2024. By the end of 2025, mortgage interest rates are projected to be around four percent, while housing prices are expected to rise by at least ten percent.

According to the Swiss Life Hypoindex, the average mortgage rate declined slightly in early February 2025, dropping by 0.02 percentage points to 5.11%, the lowest level since spring 2022. At this rate, the monthly payment for a CZK 3.5 million mortgage (covering 80% of a property’s value) with a 25-year maturity is CZK 20,692, approximately CZK 1,000 less year-on-year.

An analysis by UlovDomov.cz revealed that rental prices increased by seven percent year-on-year, averaging CZK 16,473 per month in the fourth quarter of 2024. While the costs of homeownership and renting continue to converge, the financial advantages of each option remain dependent on location, market conditions, and individual preferences.

Source: CTK

Renewable energy production in Czech Republic increases by 11.5% in 2024

Renewable energy sources (RES) in the Czech Republic produced 9.3 gigawatt hours (GWh) of electricity in 2024, marking an 11.5% increase compared to the previous year. Most of this energy was generated by photovoltaic power plants, which saw the most significant growth among renewable sources. Despite this increase, industry representatives indicate that the overall development of renewable energy remains slow, with solar energy being the only sector showing substantial progress, while others remain stagnant. According to data from the Chamber of Renewable Energy Sources, renewables now account for 16.5% of total electricity consumption. The Czech government aims to raise this share to 30% by 2030.

The expansion of renewable energy is primarily driven by new photovoltaic installations, which contributed nearly 3.6 GWh to the national grid in 2024, reflecting a 24% year-on-year increase. According to Štěpán Chalupa, Chairman of the Chamber of Renewable Energy, a significant portion of new solar capacity consists of self-consumption and local installations, typically constructed on rooftops. This decentralized model is beneficial for both system owners and grid stability.

Other renewable sources also showed varying trends. Hydropower production increased by 12.4% year-on-year, reaching 2.65 GWh, primarily due to higher rainfall. Wind power generation experienced a slight increase of 0.5%, totaling 705 MWh. Meanwhile, biogas plant production declined by 1.4% to 2.38 GWh. Chalupa noted that the stagnation in wind, hydro, and biogas energy is concerning, as biogas could serve as an essential alternative to imported natural gas and provide electricity during periods of low wind and solar output. He highlighted the potential for more than 1,200 additional wind power plants across the country, which, if realized, could cover nearly one-third of the Czech Republic’s annual electricity consumption. Encouragingly, municipal and regional interest in wind energy projects has been increasing.

Looking ahead, the Czech government envisions renewable energy as a key component of the national energy mix, complementing nuclear power. At the end of 2024, the government approved a climate-energy plan, outlining a strategy to increase the share of renewables in total energy consumption to more than 30% in the coming years.

Source: CTK

PPF Group acquires Hilton Prague, the largest hotel in the Czech Republic

PPF Group, owned by Renáta Kellnerová and her family, has completed the acquisition of Quinn Hotels Praha, the owner of Hilton Prague, the largest hotel in the Czech Republic. The transaction, facilitated by CBRE, represents the largest single hotel property sale in Central and Eastern Europe. Although the purchase price was not disclosed, previous estimates by Hospodářské noviny suggest the deal was worth several billion Czech crowns.

“There are few hotels in Europe as well-equipped to serve the needs of today’s global congress tourism market as Hilton Prague. Investor interest was high throughout the selection process, as we anticipated last July,” said Kenneth Hatton, head of CBRE’s European Hotels Division.

Since 2018, Hilton Prague has received over €50 million (approximately 1.3 billion CZK) in investments aimed at modernization, according to CBRE. The Czech Office for the Protection of Competition approved the sale in late January. Originally built as the Atrium Hotel, the property was completed in 1991 by Čedok in collaboration with French company CBC Paris. The hotel spans 11 floors and features 791 rooms, having hosted numerous dignitaries, including U.S. Presidents Bill Clinton, George Bush, and Barack Obama, along with various film and music celebrities. The congress center within the hotel offers approximately 5,000 square meters of conference space.

Quinn Hotels Praha is owned by Irish investors, with its sole shareholder being Quinn Group Luxembourg Hotels, according to its 2023 annual report. The company reported a net turnover of 1.3 billion CZK in the previous financial year but ended 2023 with a loss of 160 million CZK, compared to a 239 million CZK profit in 2022. The company’s valuation, based on an independent CBRE assessment, stood at €250.4 million (over six billion CZK) as of December 2022.

PPF Group has confirmed that PPF Real Estate facilitated the acquisition of Quinn Hotels Praha. Reports indicate that PPF Group and billionaire Michal Strnad have formed a joint venture for real estate investments. Since December 19, 2023, Majestic Hospitality has been registered in the Commercial Register, with PPF Real Estate holding 70% and Strnad’s Industry SPV owning 30%. This partnership was established shortly after PPF announced the agreement to acquire Quinn Hotels Praha.

Czech pension system reports deficit of CZK 50.7 billion in 2024, marking year-on-year improvement

The Czech pension insurance system recorded a deficit of CZK 50.7 billion in 2024, representing an improvement of CZK 22.1 billion compared to the previous year. This reduction marks the first time in years that revenue from contributions has grown faster than pension expenditures and administrative costs. Total revenues amounted to CZK 716.5 billion, reflecting a CZK 24.1 billion increase from the previous year. Contributions from employees, employers, and certain self-employed individuals totaled CZK 665.8 billion, an increase of CZK 46.2 billion over 2023, according to data released by the Ministry of Finance.

Despite the improvement, the system remains in deficit. In January 2025 alone, the pension fund showed a negative balance of CZK 5.3 billion, although this shortfall was smaller than those recorded in the past two years. At the end of 2024, the Czech Social Security Administration (CSSA) distributed 2.37 million old-age pensions, 415,600 disability pensions, and 65,300 survivor pensions. The average old-age pension stood at CZK 20,680, while pension schemes managed by the Ministries of Defense, Interior, and Justice provided higher benefits to tens of thousands of beneficiaries.

Total pension expenditures reached nearly CZK 710 billion in 2024, a year-on-year increase of CZK 24.7 billion. Administrative costs amounted to CZK 6.5 billion, down from CZK 7 billion in the previous year. Overall spending increased by 3.5%, while revenue from pension contributions rose by 7.5%, amounting to CZK 665.8 billion. Historically, pension expenditures have outpaced revenue growth, but in 2024, the trend reversed due to economic recovery, high employment, wage increases, and government-led adjustments to pension policies. The opposition ANO movement opposed these reforms and filed a complaint with the Constitutional Court, which was ultimately dismissed.

As of January 2025, pensions increased by an average of CZK 358, bringing the average old-age pension to CZK 20,680. Pension system expenditures for January amounted to CZK 62.2 billion, CZK 1.2 billion higher than in the same month the previous year. Revenue also rose, surpassing CZK 57.4 billion, an increase of CZK 4 billion year-on-year.

The government aims to curb further pension system deficits through a pension reform enacted in 2025. The reform introduces slower pension growth rates, a gradual reduction in new pension calculations, and the establishment of a minimum pension floor equivalent to 20% of the average wage, ensuring that pension benefits do not fall below a certain threshold.

The 2024 pension deficit was the fourth highest since 2000 in nominal terms. The record deficit of CZK 72.8 billion was recorded in 2023, followed by deficits of approximately CZK 55 billion in 2012 and 2013. However, during those years, total expenditures and contribution revenues were significantly lower, making the deficit equivalent to 16% of revenue in 2012, 11% in 2023, and 7.6% in 2024.

Source: CTK

The Shire Beyond Coworking expands to Unity Tower in Cracow

The Shire Beyond Coworking, a growing provider of premium serviced office space, has leased 1,800 square meters in Unity Tower, a key component of the Unity Centre complex in Cracow. The newly leased space spans the 22nd, 23rd, and 24th floors, marking the highest office levels in the building. The transaction was facilitated with advisory support from Walter Herz representing the tenant and JLL representing the landlord, a company controlled by UNIQA Real Estate with GD&K as a local partner.

The Shire Beyond Coworking operates in multiple locations across Poland, including Warsaw Spire, Malachowski Square, and Wilanów Office Park. The brand is also expanding its presence in Cracow and Wroclaw, with additional premium spaces set to open in a modernized building on Poznańska Street in Warsaw this March. The company’s flexible office spaces are known for high-quality services, offering tenants access to IT, HR, recruitment, legal, and marketing solutions, as well as networking opportunities through business events.

Unity Centre is one of Cracow’s major mixed-use business hubs, located on Lubomirskiego Street. It consists of five buildings, including Unity Tower, a 102.5-meter Class AA office building, two additional office structures, a four-star Radisson RED Hotel, a luxury apartment building, and an array of retail and dining options. The development offers 50,000 square meters of space, with Unity Tower alone comprising 17,000 square meters dedicated to office and retail use. The complex also features Unity Square, a green public space designed for meetings and cultural events. The environmentally friendly project has received LEED certification for its sustainability efforts.

According to Pavel Novák, Managing Partner at The Shire Beyond Coworking, Unity Tower was selected due to its prime location and high visibility in Cracow’s competitive office market. The top floors provide panoramic city views, making it a strategic choice for businesses looking for premium serviced office space. Oskar Odziemczyk, also Managing Partner at The Shire Beyond Coworking, emphasized that the transaction allows the company to create prestigious flexible office spaces that will attract both domestic entrepreneurs and international firms seeking modern, well-designed work environments.

The leasing process required extensive negotiations to meet both parties’ requirements. Mateusz Strzelecki, Partner and Head of Tenant Representation at Walter Herz, stated that securing this deal involved complex preparations to ensure optimal conditions. He noted that the expansion of The Shire Beyond Coworking into Unity Tower will enhance the range of high-end office options available in Cracow.

The location of Unity Tower in central Cracow, near Mogilskie Roundabout, the city’s largest transport hub, further adds to its appeal. Agnieszka Majka-Pietruszka, New Clients Director at JLL, highlighted that this will be Cracow’s tallest coworking space, offering access to conference facilities, hotels, and restaurants within the Unity Centre. Włodzimierz Jędruszak, Leasing and Marketing Director at GD&K Consulting, stated that securing this contract represents a significant milestone for Unity Tower, reinforcing its position as a symbol of modernity and success in Cracow’s commercial landscape.

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