Develia sets 2025 target at 3,100-3,300 flat sales, expects record handovers

Develia has announced its ambitious targets for 2025, aiming to sell between 3,100 and 3,300 residential units, maintaining a performance level comparable to the previous year. The company also plans to hand over 2,900 to 3,100 flats, surpassing its record-breaking 2,865 handovers in 2024.

The developer currently has over 3,000 units available for sale and intends to introduce another 3,100-3,300 apartments to the market this year. Construction activity will be aligned with market demand, ensuring flexibility in response to buyer preferences. As of the end of 2024, Develia’s land bank had the potential for 13,500 residential units, with preliminary agreements secured for land accommodating an additional 3,200 flats.

“For the second consecutive year, we have achieved record sales, securing buyers for 3,197 flats in 2024—20% more than the previous year and exceeding our target,” said Andrzej Oślizło, President of Develia. “We expect market stabilization in 2025 and aim to sustain or slightly exceed this level. Our strategy includes launching the construction of at least 3,100 residential units. We continuously monitor demand trends and adjust our projects accordingly, ensuring that our diverse land bank gives us the flexibility to deliver what buyers seek. A prime example is our latest investment at Królowej Jadwigi 51 in Poznań, catering to customers looking for a prestigious city-center project.”

Expansion into the Living Segment and Commercial Divestment

In addition to its residential targets, Develia is set to launch at least two projects in the living segment this year. In January 2024, the company acquired a prime plot in central Wrocław, where it plans to develop a student residence featuring 600 rooms and two commercial units.

Another key focus for 2025 is the finalization of the Arkady Wrocławskie sale. Develia signed a preliminary agreement with Vastint Poland in December 2023 for the sale of the multi-purpose Arkady Wrocławskie complex, at a net price of €42.9 million. The company has secured a legally binding demolition permit, a critical step toward completing the transaction, with the demolition process set to begin in mid-February.

“Finalizing the Arkady Wrocławskie sale marks the completion of our commercial property divestment strategy,” said Paweł Ruszczak, Vice-President of Develia. “We enter 2025 with a strong financial position and the ability to seize new investment opportunities, despite a challenging market environment.”

With record-breaking performance in 2024, an expanding portfolio, and a clear investment strategy, Develia is poised to further strengthen its position in the Polish real estate market in 2025.

Czech industrial real estate market sees record construction activity

The Czech industrial and logistics market is experiencing unprecedented growth, with a record 1.5 million square meters of industrial space currently under construction or completed to a shell & core finish, according to the latest Savills European Industrial and Logistics Occupier Markets report. This surge in development activity is being driven by economic growth, technological advancements, and increased demand for ESG-compliant facilities.

The Karlovy Vary, Plzeň, and Moravian-Silesian regions have emerged as the most active areas, collectively accounting for 763,000 sqm of ongoing construction at the end of 2024. Leading developers in these regions include Panattoni and CTP Invest, both of whom are heavily investing in new industrial projects.

ESG and Automation Shaping Market Trends

As the market stabilizes, there is a growing emphasis on sustainable features such as solar panels, heat pumps, and electric vehicle charging stations. These ESG-friendly upgrades are becoming a top priority for tenants seeking modern industrial spaces.

“We anticipate a stabilization of demand and a gradual absorption of speculative warehouse developments completed in the past year,” said Ondřej Míček, Head of Industrial Agency at Savills. “With ESG becoming more important, tenants are increasingly prioritizing properties with green energy solutions. Additionally, we expect heightened activity in the Ústí nad Labem region by 2025 and 2026, given its proximity to the future TSMC gigafactory in Dresden, set to begin production in 2027.”

Prime Locations for Industrial Expansion

With large-scale projects underway, companies looking for new warehouse or production facilities in 2025 will find the most availability in the Moravian-Silesian and Plzeň regions, as well as on the northern and western outskirts of Prague.
• Moravian-Silesian Region:
• 172,900 sqm of available space within projects under construction.
• Over 700,000 sqm of land ready for further development, with handover possible within 10-15 months of signing a lease agreement.
• Plzeň Region:
• 126,700 sqm of available industrial space.
• Includes the largest vacant unit in the Czech Republic – a 50,000 sqm facility that could be occupied within 4-6 months.
• An additional 320,000 sqm has received construction permits for future development.
• Ústí nad Labem Region:
• Strategically positioned for supply chain integration with Dresden’s upcoming gigafactory.
• 79,000 sqm of ongoing construction space available.
• 456,000 sqm available for built-to-suit projects, with additional sites open for custom-built facilities.

“Companies now have a unique opportunity to secure modern warehouse or production spaces that align with the latest ESG and technological standards,” adds Míček. “These properties are not only available in a short timeframe but can also be tailored to meet tenants’ specific needs.”

Technology Driving Demand for Industrial Space

In addition to sustainability concerns, automation and digitalization are reshaping the industrial market. Warehouse automation is gaining momentum due to rising labor costs and workforce shortages, making technology-driven efficiency a top priority.

Advancements in artificial intelligence and robotics are expected to accelerate in 2025, aided by monetary policy easing and lower financing costs. However, as these technologies require significant energy consumption, companies are also focusing on securing reliable energy sources and transitioning to clean energy solutions.

At the end of 2024, 48% of industrial space under construction in the Czech Republic was still available for lease, reflecting strong market potential for businesses seeking modern logistics hubs. With sustained demand, ongoing infrastructure investments, and a rising focus on automation and sustainability, the Czech industrial market is poised for further expansion in the coming years.

Source: Savills
Photo: Urbanity Campus Tachov

The Shire – Beyond Coworking expands to Wilanów with new flexible office space

Premium flexible office operator The Shire – Beyond Coworking has opened its latest location in Warsaw’s Wilanów district, securing 3,200 square meters in the Be the One building within the Wilanów Office Park complex, owned by Polski Holding Nieruchomości (PHN). The new office, located on Branickiego Street, offers over 300 serviced workstations, catering to the growing demand for flexible workspace solutions. The lease agreement was facilitated with support from Savills’ office space rental experts and the Workthere team.

A Modern, Fully Serviced Office Experience

Operating since January, The Shire – Beyond Coworking in Wilanów provides tenants with fully equipped private office modules, conference rooms with video conferencing systems, quiet workspaces, phone booths, and open common areas for collaboration and relaxation. The location also includes reception services and benefits from its campus-like atmosphere, thanks to the surrounding greenery and the low-rise office buildings within Wilanów Office Park.

The addition of a new tram line has further improved connectivity, making the area more accessible for employees using public transport.

“The opening of The Shire – Beyond Coworking in Wilanów is a strategic step in expanding our network in Poland,” said Oskar Odziemczyk, Managing Partner at The Shire – Beyond Coworking. “We are seeing a rising demand for flexible office solutions in this district. Together with PHN, we will manage over 3,000 square meters of fully serviced office space across two floors, offering more than 300 workstations in a variety of private offices.”

Growing Presence in Warsaw and Beyond

Wilanów marks the third Warsaw location for The Shire – Beyond Coworking. Since late 2023, the company has operated offices in Małachowskiego Square, followed by a launch in Warsaw Spire in April 2024. Another expansion is planned for March 2025, with a new premium office space set to open in a modernized tenement house at 37 Poznańska Street. The operator is also present in Wrocław and Kraków.

“We are excited to begin our partnership with The Shire – Beyond Coworking in Wilanów Office Park,” said Maciej Klukowski, Member of the Management Board for Real Estate Asset Management at PHN. “This co-management model is a new experience for us, and it opens up fresh opportunities for both PHN and The Shire – Beyond Coworking.”

A Unique Management Agreement Model

Unlike a traditional lease, the agreement between The Shire – Beyond Coworking and PHN is structured as a management contract, allowing both parties to co-manage the office space. Under this arrangement, The Shire – Beyond Coworking will oversee day-to-day operations, including technical services, security, cleaning, internet, and reception.

“This project was a pleasure to work on, and we are particularly pleased to support a non-traditional agreement where the owner and operator manage the space together,” said Thomas Jodar, Head of Workthere Poland at Savills. “The management agreement model is becoming increasingly popular, as it allows operators greater flexibility while enabling property owners to generate higher revenues and enhance the value of their buildings.”

A Boutique Approach to Flexible Office Solutions

The Shire – Beyond Coworking distinguishes itself with a boutique office design approach tailored for established businesses that prioritize prestige and high-end services. In addition to flexible contracts and full-service office management, the company offers a marketplace solution that connects tenants with IT, HR, recruitment, legal, and marketing support services.

Designed to inspire creativity and motivation, The Shire – Beyond Coworking provides a fully functional and aesthetically refined environment that fosters business development and collaboration. With its continued expansion, the company is reinforcing its position as a leader in Poland’s premium flexible office market.

Photo: Thomas Jodar, Head of Workthere Poland at Savills

Bankruptcies surge in Austria in 2024, business registrations decline amid economic uncertainty

The number of bankruptcies in Austria soared by approximately 23% in 2024, reaching 6,545 cases, according to preliminary data from Statistics Austria. At the same time, the number of new business registrations declined by around 5% compared to 2023, signaling a challenging economic environment for entrepreneurs.

“The ongoing economic crisis and significant uncertainties are driving up insolvencies while dampening business formation,” said Tobias Thomas, Director General of Statistics Austria. “The sharp rise in bankruptcies at the end of 2024 underscores the difficult conditions facing businesses.”

In the fourth quarter of 2024 alone, 1,713 enterprises filed for insolvency—about 21% more than in the same quarter of 2023 and 12% more than in the previous quarter. This marks the highest number of bankruptcies recorded since Statistics Austria began tracking insolvencies in 2019. The service sector was particularly affected, followed by construction and trade.

Business Failures Widespread Across Industries

Bankruptcies increased across nearly all sectors in 2024. The largest spikes were seen in manufacturing, financial services, and personal services. Compared to the third quarter of the year, the most significant increases were observed in manufacturing, wholesale and retail trade, and construction.

In the fourth quarter of 2024, the highest number of bankruptcies occurred in:
• Financial services/other services: 461 cases
• Wholesale and retail trade: 300 cases
• Construction: 267 cases
• Accommodation and food services: 222 cases

Sectors with relatively lower bankruptcy rates included information and communication (53 cases) and transportation and storage (115 cases). Compared to the fourth quarter of 2023, the wholesale and retail trade sector surpassed construction in terms of insolvency filings.

Business Registrations Decline Amid Uncertainty

New business registrations also dropped in 2024, with a total of 61,779 legal unit registrations—approximately 3,000 fewer than in 2023, marking a 5% decline. In the fourth quarter alone, there were 13,812 new registrations, reflecting a 10% decrease compared to the same period in 2023 and a 7% drop from the third quarter of 2024.

The most registrations were recorded in:
• Financial services/other services: 4,048
• Personal services: 3,214
• Wholesale and retail trade: 2,595

Meanwhile, the lowest registration numbers were seen in transportation and storage (641) and construction (725).

Although registering a legal unit does not necessarily translate into an active business operation, it serves as an early indicator of economic trends. The decline in registrations suggests continued caution among entrepreneurs amid ongoing economic challenges.

With bankruptcies at their highest level since record-keeping began and business formation slowing, Austria’s economic landscape in 2024 remains under pressure, raising concerns about long-term stability and growth in key sectors.

Source: Statistik Austria

EQT expands evergreen portfolio with launch of EQT Nexus Infrastructure

EQT has announced the launch of EQT Nexus Infrastructure, a new evergreen investment strategy designed to provide both institutional and individual investors with diversified exposure to the infrastructure sector. The move comes as investors increasingly seek customizable private market portfolios, reflecting a growing trend toward evergreen strategies.

EQT Nexus Infrastructure offers access to EQT’s well-established infrastructure strategies, including direct investments in portfolio companies and the same investment approach that EQT’s institutional clients have benefited from for over 15 years. As one of the world’s largest infrastructure investors, EQT ranks fifth on the Infrastructure Investor 100 list based on capital raised over the past five years. The firm’s infrastructure platform, which manages approximately EUR 75 billion in assets, operates across three dedicated strategies: Value-Add Infrastructure, Active Core Infrastructure, and Transition Infrastructure.

The new strategy is designed to identify and develop high-quality infrastructure businesses that provide essential services to society. It will focus on investments across key sectors, including digital infrastructure, energy and environmental solutions, transport and logistics, and social infrastructure. EQT’s extensive network of more than 600 industrial advisors and experienced local teams will support the initiative, ensuring strategic capital deployment across its infrastructure portfolio.

“Expanding our portfolio of evergreen strategies is a key focus for our firm,” said Peter Beske Nielsen, Partner at EQT. “We are seeing two key trends in this space: individual investors increasingly want flexibility in how they build their portfolios, and institutional investors are also recognizing the benefits of evergreen strategies. EQT Nexus Infrastructure provides access to our infrastructure investments through a single fully-funded investment with a streamlined fee structure.”

The EQT Nexus Infrastructure Advisory team will be led by William Vettorato, Advisory Head of Fund Strategy. Commenting on the new launch, Vettorato highlighted the rising demand for evergreen infrastructure investments. “EQT Nexus Infrastructure allows individuals and institutions to support businesses that deliver essential services while benefiting from EQT’s disciplined investment approach. By addressing traditional barriers to entry, such as high minimum investment periods and lengthy lock-ups in closed-ended funds, we’re making infrastructure investment more accessible.”

With the launch of EQT Nexus Infrastructure, EQT continues to strengthen its presence in the evergreen investment space, offering investors new opportunities to participate in the long-term growth and stability of the global infrastructure sector.

ABG Real Estate Group expands leadership team with new appointments

ABG Real Estate Group has strengthened its leadership team with the addition of Andre Schmöller and Dr. Viktoria Varens, two experienced professionals in the residential and legal sectors.

Andre Schmöller (51) has taken on the role of Head of Business Development Residential as of February 1, 2025. With nearly 30 years of experience in the residential real estate sector, Schmöller will focus on expanding investment and asset management within ABG’s residential segment. His extensive background includes leadership roles at Patrizia Deutschland, Domicil, Corpus Sireo, and the Adldinger Group.

Meanwhile, Dr. Viktoria Varens (41) joined ABG Real Estate Group as Head of Legal on January 1, 2025. A corporate lawyer (Syndikusrechtsanwältin), she brings strong expertise in real estate and corporate law, having previously worked at MAN, a major industrial company, and the commercial law firm Arnecke Sibeth Dabelstein.

With these strategic appointments, ABG Real Estate Group aims to further strengthen its residential real estate expertise and legal capabilities, positioning itself for continued growth in the sector.

UOKiK fines HRE Investments and subsidiaries for withholding information

The President of the Office of Competition and Consumer Protection (UOKiK) has imposed fines totaling PLN 4.21 million on HRE Investments and nine affiliated companies for failing to provide requested information during an investigation into practices affecting consumer rights. The companies delayed their responses and ultimately submitted the required documents late.

UOKiK President Tomasz Chróstny emphasized the importance of swift action in consumer protection cases, highlighting that businesses are legally required to cooperate fully and submit requested documentation on time. Companies that ignore these obligations risk financial penalties of up to 3% of their turnover.

The highest fine, PLN 3.2 million, was imposed on HREIT S.A., with additional penalties ranging from PLN 42,000 to PLN 179,000 for other companies in the group, including Apartments Barona, South Star Development, West Star Development, and BDC Development.

These decisions are not yet legally binding, and the companies have the right to appeal to the Court of Competition and Consumer Protection.

The penalties stem from a broader UOKiK investigation into HRE Investments’ business practices, which resulted in rulings against three companies last year. The regulator found that consumers had been unlawfully encouraged to invest in shares of real estate development projects, which were misleadingly marketed as safe and highly attractive investments, without adequately disclosing potential risks.

Two managers were also sanctioned in connection with the case. UOKiK continues to monitor compliance within the HRE Investments Capital Group to ensure consumer rights are protected.

Brookfield commits €20 billion to AI and Data Center expansion in France

Brookfield Asset Management has announced a major €20 billion investment plan aimed at expanding artificial intelligence (AI) infrastructure and data center development in France. This strategic commitment marks one of the largest foreign investments in the French digital economy, reinforcing the country’s position as a key player in AI and cloud computing.

The investment will focus on the construction of new data centers equipped to handle the increasing demands of AI-driven applications, cloud storage, and high-performance computing. The initiative aligns with France’s ambition to become a European leader in AI and digital transformation, supported by government policies and funding aimed at fostering innovation and technological advancement.

“France has a rapidly growing digital ecosystem, and our investment will help strengthen the infrastructure needed to support AI and data-intensive industries,” said Bruce Flatt, CEO of Brookfield. “This commitment underscores our confidence in France as a strategic hub for the future of AI and cloud services.”

The expansion project will be rolled out over the next decade, with Brookfield partnering with local technology firms, energy providers, and government bodies to ensure the sustainable development of data centers. A significant portion of the investment will be dedicated to enhancing energy efficiency and incorporating renewable energy sources, aligning with France’s carbon neutrality goals.

With AI adoption increasing across industries—from finance and healthcare to manufacturing and entertainment—demand for data center capacity has surged. France, with its skilled workforce, regulatory support, and strategic location, has positioned itself as an attractive destination for global technology investments.

The French government has welcomed Brookfield’s announcement, viewing it as a boost to economic growth, job creation, and digital innovation. “This investment will further strengthen France’s digital infrastructure and competitiveness in the global AI race,” said Economy Minister Bruno Le Maire. “We are committed to supporting initiatives that advance technological sovereignty while ensuring sustainability and security in the digital sector.”

Brookfield’s move follows similar investments from tech giants such as Microsoft, Google, and Amazon Web Services, all of which have expanded their data center operations in Europe. As AI development accelerates, securing robust and energy-efficient data storage facilities has become a top priority for companies looking to scale their operations.

This €20 billion commitment signals not only Brookfield’s long-term confidence in the French market but also highlights France’s growing prominence as a European technology hub. The first phase of the expansion is expected to begin in late 2025, with the construction of multiple data centers across key strategic locations in the country.

Germany faces stagnation: Economic growth expected to lag behind industrialized nations

Germany is set to remain at the bottom of the league of industrialized nations, with a projected growth rate of just 0.4% by 2025, according to the latest Economic Experts Survey conducted by the ifo Institute and the Institute for Swiss Economic Policy. The survey, which gathered insights from 1,398 economic experts, paints a concerning picture of Germany’s economic trajectory.

“Germany urgently needs a shift in economic policy to reignite growth,” warned ifo researcher Niklas Potrafke. He emphasized that Germany has lost significant ground in the global competition for business attractiveness, calling for market-oriented reforms from the government to address these challenges.

On a global scale, economic growth projections appear more optimistic. The surveyed experts predict a 2.9% global growth rate for 2025, a modest increase from the 2.6% forecast for 2024. Africa (3.9%) and Asia (3.8%) are expected to see the strongest growth, while Europe (2.1%) and North America (2.4%) anticipate more modest increases.

Looking ahead, the outlook for the global economy remains positive, with 3.2% growth projected for 2026 and 3.1% for 2028. While Germany’s growth expectations improve slightly to 1% in 2026 and 1.3% in 2028, they still fall significantly below the average of other industrialized nations.

The findings reinforce growing concerns about Germany’s economic stagnation, highlighting the urgent need for policy changes to enhance competitiveness and stimulate long-term growth.

Source: ifo Institute and the Institute for Swiss Economic Policy

Controversy over new glass building on Prague’s Vltava riverbank

A newly constructed glass pavilion on Dvořák’s Embankment, part of the InterContinental hotel redevelopment, is drawing criticism for allegedly disrupting the historic character of the Prague waterfront. Critics argue that the modern structure, featuring two glass floors, will contribute to light pollution, increased heat retention in summer, and further commercialization of the area.

The building, named Concept Store, will be leased by KodlContemporary Gallery for exhibitions of contemporary Czech and international art. However, critics from heritage and civic groups—including Richard Biegel, chairman of the Club for Old Prague, and Tomáš Bajusz, head of the Citizens of Prague 1 association—have voiced strong opposition.

“This glass cube cannot escape key views from Čech’s Bridge and Dvořák’s Embankment, altering the visual connection between the surrounding historical buildings,” said Biegel, referring to the neoclassical law faculty designed by Jan Kotěra, the InterContinental Hotel built by Karel Filsak, and the previously open space between them.

Biegel also warned that the new development represents the privatization of public space, stating, “This is not a temporary kiosk; it signals how utilitarian development begins to encroach on public areas.” He pointed to recent city decisions, including an international architectural competition for Miloš Forman Square, as indications that more development may follow.

Bajusz expressed concerns about the building’s environmental impact, emphasizing that its glass façade will increase light pollution at night and contribute to the urban heat island effect during Prague’s increasingly hot summers. “While the larger glass structure planned for Miloš Forman Square was canceled due to public pressure, developers continue seeking ways to challenge its undevelopable status,” he stated.

KodlContemporary Gallery, founded by Jakub Kodl, son of auction house owner Martin Kodl, is scheduled to open in mid-2025. Terezie Kaslová, the gallery’s director of communications, defended the project, stating, “This is a gallery space, and our focus is art. The primary lighting will be on the exhibits, not the surroundings.”

The InterContinental hotel, owned by R2G, has been undergoing renovation since 2021 and is expected to reopen this spring. The Concept Store is one of two glass structures originally planned for the redevelopment. The second, a Brand Store, was scrapped following opposition from Prague’s ministries of culture and regional development.

Despite this concession, critics remain skeptical, fearing further commercial expansion in the city’s historic center. As Prague officials reconsider the future of Miloš Forman Square, the fate of additional development projects in this sensitive area remains uncertain.

Source: CTK

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