INREV appoints Lucy Fletcher as new chair, expands Management Board

The European Association for Investors in Non-Listed Real Estate (INREV) has announced the appointment of Lucy Fletcher as its new Chair. Fletcher, a board member since 2021, brings more than 26 years of global real estate experience to the role. She has previously served on INREV’s Investor Advisory Council and held senior positions at organisations including JLL in Chicago and Bank of America Merrill Lynch in Asia Pacific. She is currently a Fund Manager with CBRE’s Indirect Private Real Estate team, where she oversees fund strategy and performance.

In addition to Fletcher’s appointment, the INREV Management Board has been expanded with three new members: Robert-Jan Foortse, Head of European Property Investments at APG Asset Management; Dennis Lopez, CEO of QuadReal; and Mahdi Mokrane, Co-Head of Fund Management at PATRIZIA. Rainer Komenda of Bayerische Versorgungskammer has also been reappointed for a second consecutive three-year term.

The organisation also acknowledged the contributions of outgoing Chair Martin Lemke of AM Alpha, along with Ray Adderley of Nuveen Real Estate and Jenny Buck, who are stepping down from the board.

Speaking on her appointment, Fletcher expressed enthusiasm about her new responsibilities, stating that she looks forward to working with the board, the INREV team, and the wider community to continue promoting transparency in the non-listed real estate sector—an objective she described as increasingly vital in the current market environment.

INREV CEO Casper Hesp welcomed Fletcher’s appointment, noting her strong commitment to the organisation and highlighting the relevance of her international experience in navigating a real estate market that is becoming more global, diverse, and cross-sectoral. He added that the expertise brought by the new board members would support INREV’s efforts to offer its members greater access to international standards and insights beyond traditional fund strategies.

What types of homes are selling fastest in Poland’s major cities?

The speed at which new apartments are sold varies significantly across Poland’s largest cities and is not solely determined by price. While lower-priced units often sell quickly, market analysis from BIG DATA RynekPierwotny.pl suggests that other factors, including location, target demographic, and urban infrastructure, also play a critical role.

In cities like Warsaw and Gdańsk, where average prices are among the highest nationally, apartments are still selling relatively fast — typically within 14 months. This contrasts with Kraków, Poznań, and Wrocław, where average selling times stretch to 20–21 months, and Łódź, where buyers may wait up to 26 months to close a sale.

In Wrocław, mid-priced apartments (around PLN 9,000–10,000 per sqm) are selling the fastest, often within nine months. This trend is attributed to demand from young professionals and investors targeting rental properties. In Kraków, the fastest-selling units are those at the lower end of the price range (PLN 10,000–12,000 per sqm), reflecting continued interest in affordable options. In contrast, higher-end and premium apartments take longer to sell, requiring more time to match with suitable buyers.

According to Grzegorz Woźniak, President of Q3D Locum, tailoring residential offerings to local market characteristics is crucial. He notes that successful developments often combine competitive pricing with good connectivity and proximity to essential services. In an increasingly cautious market, details such as the design and quality of shared spaces have also become more relevant in influencing buyer decisions, particularly in larger cities where affordability is a growing concern.

Location continues to be a decisive factor in housing demand. In cities such as Kraków, the “15-minute city” concept — which prioritises access to workplaces, schools, shops, and services within a short walking or cycling distance — is gaining traction. Projects built around this model are proving attractive to buyers seeking a more balanced urban lifestyle.

Krzysztof Tętnowski, CEO of Tętnowski Development, emphasises that well-connected residential areas, even outside city centres, are likely to see increasing demand. Developments such as Nowa Drożdżownia in Kraków reflect this trend by integrating access to public transport and local amenities. He argues that such neighbourhoods not only improve quality of life but also support sustainable urban growth and local entrepreneurship.

The current data suggests that while price remains an important factor in housing sales, buyers are increasingly focused on broader aspects of livability. Developers are expected to respond by designing residential projects that combine affordability, accessibility, and functionality in line with evolving urban planning trends.

Czech Senate to finalise decision on housing support legislation

The Czech Senate is expected to complete the approval process for the Housing Support Act today. The legislation, put forward by the government, aims to assist individuals facing housing insecurity and to strengthen preventative measures against homelessness.

Key elements of the proposed law include the creation of a network of contact points offering advisory services to prevent housing loss, the introduction of a voluntary guarantee scheme for private landlords—referred to as “liability housing”—and financial incentives for municipalities that make their housing stock available to individuals in need.

Supporters of the law, including the For Housing initiative, argue that it provides a necessary framework for addressing systemic housing issues and combating exploitative practices in the rental market.

The Senate will also decide whether to support a constitutional amendment proposed by senators that would extend the authority of the Supreme Audit Office to include oversight of Czech Television and Czech Radio. If approved, the proposal would be submitted to the government and the Chamber of Deputies for further consideration.

In addition to the housing and constitutional matters, senators will review the outcomes of a recent public hearing on the future of Czech Post, including the operation and potential restructuring of its branch network. The session is set to conclude with the presentation of the Office for Personal Data Protection’s annual report on its activities in the previous year.

Source: CTK

Polish local governments record highest-ever Q1 budget surplus in 2025

Local government units (JST) in Poland reported a record-high budget surplus of PLN 41.3 billion for the first quarter of 2025, according to data from financial reports. This result significantly exceeds the PLN 23.6 billion surplus recorded in the same period last year and contrasts with the full-year deficit of PLN 38.6 billion planned by local authorities.

Revenues for the first three months of the year totalled PLN 140 billion, accounting for 30.5% of the annual revenue plan. Compared to Q1 2024, this marks an increase of 23.6%. Expenditures in the same period reached PLN 98.7 billion, or 19.8% of the annual spending plan, representing a 10.1% rise year-on-year.

The current income exceeded current expenditure by PLN 44.6 billion, substantially outperforming the planned current surplus of PLN 17.6 billion for the full year. This level of surplus, driven by strong revenue collection, is the most favourable result recorded by local governments at this stage of the year in many years. While 404 local government units had forecast current deficits totalling PLN 1.7 billion for 2025, all recorded surpluses at the end of the first quarter.

The debt level of local government units stood at PLN 108.9 billion at the end of March, showing no significant change. Debt as a share of planned total income declined slightly to 23.7%, compared to 23.9% in the same period last year.

The strong budgetary performance is seen as a sign of improved financial health among local governments, largely attributed to the implementation of reforms under the new Act on local government income.

Construction and assembly production prices in Poland rise by 3.4% year-on-year in April 2025

According to preliminary data released by Statistics Poland, prices in the construction and assembly production sector increased by 0.2% in April 2025 compared to March. On a year-on-year basis, prices rose by 3.4% compared to April 2024.

Price growth was observed across all major segments of the construction sector. Civil engineering recorded a monthly increase of 0.3%, while both building construction and specialised construction activities saw price rises of 0.2% and 0.1%, respectively. Compared with the same period last year, civil engineering and building construction each posted a 3.5% increase, while specialised construction activities grew by 3.2%.

The data also shows a continued upward trend in construction costs since the beginning of 2024, although at a more moderate pace in recent months. Compared to December 2023, the most significant increase was noted in civil engineering, with prices rising by 5.3%.

The overall price index for the construction and assembly production sector in the first four months of 2025 stands at 103.4 compared to the corresponding period of 2024, reflecting consistent cost pressures in the industry.

This continued growth in prices may have implications for investment planning, procurement, and project delivery timelines in the construction sector. The figures suggest that despite economic headwinds, pricing in the sector remains resilient, driven by demand and broader inflationary trends affecting materials and labour.

CA Immo reports solid first-quarter performance in 2025 despite ongoing portfolio streamlining

CA Immo has reported a strong start to the year, delivering improved operational results in the first quarter of 2025, despite a continued strategy of disposing non-core assets. The company recorded growth across key performance indicators, supported by higher rental income and disciplined cost management.

Net rental income rose by 12% year-on-year to €54.1 million, largely due to increased income from investment properties and the successful completion of development projects. Recurring earnings (FFO I) reached €34.2 million, representing a 28% increase compared to the same period last year. EBITDA was up 33% to €49.1 million, while consolidated net profit rose by 40% to €22.5 million.

The occupancy rate for CA Immo’s investment portfolio increased slightly to 93.5% by the end of March, up from 93.1% at the end of 2024. Leasing activity totalled around 35,000 sqm in the quarter, with achieved rents averaging approximately 16% above estimated rental values. Around 22% of the vacant space at the reporting date has already been leased with future occupancy scheduled.

The company’s development pipeline progressed in line with expectations. Two office buildings are under construction near Berlin’s main train station—Upbeat, which is fully pre-let and on track for completion in early 2026, and Anna Lindh Haus, which broke ground in late 2024. Preparations for additional projects in central Berlin are underway, including two new developments and a refurbishment of an existing asset.

Three properties were sold in the first quarter: one office property each in Budapest and Warsaw, and a parking garage in Cologne. These sales were part of a broader capital rotation strategy aimed at focusing on core assets. Since the reporting date, CA Immo has sold its final asset in Serbia and a hotel property in Berlin, and has signed agreements to sell five additional assets, including land plots in Munich, a logistics asset in Berlin, and an office property in Vienna.

Despite these disposals, rental income rose by 7.1% to €68.5 million. This increase was attributed to gains from retained investment properties, which offset the impact of sales and asset reclassifications. Indirect expenses declined by over 21% to €8.8 million, primarily due to reduced personnel costs.

The company’s total property assets amounted to approximately €4.9 billion at the end of March, compared with €5.0 billion at year-end 2024. Investment properties represent 85% of the total, with the remainder in developments or held for sale. Germany continues to account for the largest share of the portfolio at 69%, followed by Central and Eastern Europe at 26%, and Austria at 5%.

CA Immo’s balance sheet remains strong, with an equity ratio of 42.3%, net loan-to-value (LTV) of 34.7%, and cash and deposits totaling €897.9 million. The IFRS NAV per share rose to €26.65, while EPRA NTA per share reached €32.22.

Looking ahead, the company is closely monitoring market conditions amid elevated interest rates and political uncertainty, including trade policies affecting European economic performance. CA Immo anticipates further divergence in office market performance, with central, high-quality assets expected to retain value better than peripheral or ageing stock.

The company is also exploring unsolicited interest in its CEE portfolio and may consider a full or partial exit from Austria and CEE depending on pricing and investor appetite. While no final decision has been made, CA Immo remains committed to selling assets that do not align with its long-term strategic focus.

Strategic priorities for 2025 include simplifying the business model, scaling in core markets, continuing development of income-producing assets in Berlin and Munich, maintaining financial discipline, and returning capital to shareholders. The company’s full-year FFO I target will be published with the second-quarter results.

PORR reports strong first quarter in 2025, boosted by order growth and stable earnings

PORR began the year with a solid performance, driven by a significant rise in new orders and a stable operating result. The company reported an EBIT of EUR 12.6 million for the first quarter, marking an 11.7% year-on-year increase. Total production output amounted to EUR 1.27 billion, with revenue holding steady at EUR 1.26 billion.

The order intake reached EUR 1.54 billion in the first quarter, up 17.4% compared to the same period in 2024. The order backlog grew to EUR 8.81 billion, reflecting a 4.4% increase and providing a positive outlook for the coming quarters. PORR attributes the growth primarily to new large-scale projects, particularly in Germany, where order intake in the DE segment rose by over 80%. Key projects include a school in Berlin, residential developments in several German cities, a rail link in the Czech Republic, and a hospital extension in Warsaw.

The civil engineering sector remains a central growth area, supported by investment in transportation and energy infrastructure. In building construction, demand continues in healthcare, data centres, and industrial facilities. PORR has positioned itself in these sectors as an integrated service provider.

Despite a slight decline in production volume due to seasonal conditions, core segments performed well. The AT/CH region grew by 10.4%, while the International Infrastructure segment posted a 24.9% increase. The EBIT margin improved from 0.9% to 1.0%, supported by cost controls that offset rising personnel expenses.

PORR’s equity increased to EUR 833.7 million, and the equity ratio rose slightly to 19.8%, despite hybrid capital repayment. Net debt rose to EUR 259.5 million, largely due to strategic acquisitions, including a majority stake in Germany’s Knape Bahnbau GmbH, and the repurchase of treasury shares.

The company’s stock also showed strong growth, closing at EUR 26.25 at the end of March—an increase of nearly 85% compared to the previous year. PORR’s market capitalisation reached approximately EUR 1.0 billion, and the company was awarded first place in the Mid Cap category at the Vienna Stock Exchange Prize 2025.

Looking ahead, PORR’s Executive Board expects a moderate increase in performance and earnings for the full year. The company is targeting an EBIT margin of 2.8% to 3.0% for 2025 and aims to reach 3.5% to 4.0% by 2030. While current global trade uncertainties may pose challenges, PORR believes its strategy—focused on deglobalisation, decarbonisation, digitalisation, and demographic change—positions it well for long-term resilience and growth. The company notes that further business development will depend on economic and geopolitical conditions in its key markets.

Prague Office Market: IT in Karlín, finance in city centre, manufacturing in Vysočany

The Prague office market has evolved into twelve established business districts, each shaped by the industries they attract and the pace of their development, according to the latest Prague Office Hubs 2025 report by Savills. The analysis outlines how distinct business sectors have contributed to the character and function of each location, highlighting the impact of corporate tenancy on the urban environment.

Three districts — Karlín & Invalidovna, Pankrác & Budějovická, and the City Centre — stand out for their volume of high-quality (Grade A) office space. These areas also led the city in new leasing activity between 2022 and 2024, recording the highest number of lease transactions.

From 2022 to 2024, the Technology and IT sector accounted for 23% of all net office take-up in Prague, with significant leasing activity in Karlín, Pankrác, and Holešovice. Financial companies ranked second, showing a preference for locations in the City Centre and Vinohrady. Manufacturing firms tended to lease space in districts such as Vysočany, Butovice, and Stodůlky, drawn by available floor space and logistical access.

In Radlice and Jinonice, most new leases were signed by companies in the energy and extractive sectors, while Dejvice saw a concentration of pharmaceutical and medical tenants.

Pavel Novák, Head of Office Agency at Savills, notes that location choices increasingly reflect the operational and employee needs of tenants. “Companies are no longer only looking for office space — they’re selecting environments that align with their brand and staff expectations,” he said. Factors such as district reputation, transport access, and amenities are shaping leasing decisions.

Novák also points out that the type of business in a district influences its development. “In tech-focused districts like Karlín or Holešovice, there’s been a rise in cafés and bistros catering to younger workforces. In areas with manufacturing or logistics firms, such as Vysočany or Butovice, facilities tend to prioritise parking and traditional dining options,” he added.

The report identifies Karlín & Invalidovna as the top location for new Grade A leases between 2022 and 2024, accounting for 19% of total volume, followed by Pankrác & Budějovická at 15%, and the City Centre at 14%. These areas combine strong transport links, modern buildings, and comprehensive services.

Looking ahead, new developments are likely to extend the city’s technology business zones beyond the established hubs. Areas such as Roztyly, Chodov & Opatov, Libeň & Palmovka, and Anděl & Smíchovské nádraží are emerging as potential new locations for fast-growing firms, supported by ongoing infrastructure investment and office construction.

The report concludes that Prague’s office market continues to reflect broader economic trends, with district specialisation shaping the city’s business landscape and creating diverse environments suited to a range of industries.

New section of Galeria Twierdza Kłodzko retail park opens to the Public

Galeria Twierdza Kłodzko, managed by EPP, has expanded its retail offering with the opening of a new section of its retail park on 15 May 2025. The extension adds nearly 4,200 square metres of space and was fully commercialised several weeks ahead of the opening.

The expanded tenant mix includes the regional debuts of TK Maxx and the dm drugstore chain. TK Maxx’s entry into the Kłodzko Valley is particularly notable, as the brand does not currently operate in neighbouring Czech markets. The dm drugstore also marks its first presence in the region, enhancing the centre’s health and beauty offer.

Reserved, a brand from the LPP Group, has moved into a larger space within the new section, where it has launched an expanded store concept. The former Reserved unit is scheduled to be taken over by Sinsay later in the year.

According to Magdalena Małycha, Asset Manager at EPP, the expansion supports two key strategic objectives: introducing previously unavailable brands to the region and adapting space to better suit tenant needs. She noted that the development benefits both local customers and those from neighbouring regions, including cross-border visitors.

Galeria Twierdza Kłodzko comprises more than 27,000 square metres of retail space and includes a traditional shopping centre with a Carrefour hypermarket and dining area, as well as a retail park. The complex features over 60 stores, among them CCC, H&M, Mohito, Martes Sport, Douglas, Rossmann, Apart, YES, Pandora, home&you, Leroy Merlin, and JYSK. Food and service options include KFC, Sushi dla Mnie, and Bello pizzeria. Entertainment amenities include the Kids Play interactive zone and a three-screen Multikino cinema with a combined capacity of over 750 seats.

Located near the northern bypass of Kłodzko, the centre offers approximately 1,050 parking spaces. It has also received the “Barrier-Free Facility” certification from the Integration Foundation, recognising its accessibility for individuals with reduced mobility.

Dekpol Budownictwo to construct logistics centre for Żabka near Łódź

Dekpol Budownictwo has been selected as the general contractor for a new logistics facility for the Żabka Group, to be located near Łódź. The project will be delivered under a ‘Design and Build’ contract and will cover an area of approximately 42,000 square metres.

The scope of the investment includes a high-bay warehouse, freezer and cold storage units, an automated picking area, and office and social facilities. Dekpol will also be responsible for constructing supporting infrastructure, including part of the adjacent public road.

The logistics centre will be Żabka’s ninth such facility in Poland. Its central location is intended to improve network efficiency in the region and reduce the load on existing logistics infrastructure. The new site also aligns with Żabka’s expansion plans, which include the launch of around 1,000 new outlets across the country this year.

The building is being prepared to meet BREEAM certification standards. Completion is scheduled for the second half of 2026.

Dekpol Budownictwo, part of the Dekpol Group, has operated in the Polish construction market for over three decades. The company provides general contracting services in sectors such as industrial, logistics, commercial, residential, and hospitality construction. It has operational offices in Gdańsk, Pinczyn, and Poznań, with a sales office in Gliwice.

The company also operates its own machinery fleet for earthworks and infrastructure construction and uses prefabricated elements produced at group facilities located in Pinczyn, Działdowo, Lubawa, and Toruń.

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