Gen Z returns to the office: Young workers show renewed interest in on-site work

Contrary to common assumptions, members of Generation Z are increasingly drawn to working in offices. While flexibility remains important, recent data suggest that young employees in Poland and abroad are choosing in-person work more often than their older counterparts. The findings come from Personnel Service’s “Barometer of the Polish Labour Market” and international research by JLL.

In Poland, the preferred work model among Gen Z is hybrid. Nearly half of young workers favour up to three days of remote work per week, and 11% prefer to work entirely on-site. Only 6% prefer working from home four days a week, while fully remote work appeals to about 24% of respondents. These preferences highlight that while flexibility is important, physical office space still holds significant value for younger employees.

According to Krzysztof Inglot, labour market expert and founder of Personnel Service, the office environment offers more than a desk and chair—it provides context, mentorship, and a sense of community. Many young workers, whose education and early work experiences were shaped by the pandemic, now seek real-world interaction to support their personal and professional development.

This shift is also visible in how young people perceive their career prospects. One in four rates their current situation as negative, while 34% describe it as neutral, and 38% see it as good or very good. Despite some uncertainty, a majority expects stability or improvement in their careers over the coming year.

International data further supports these findings. JLL’s research shows that employees under the age of 24 spend an average of 3.1 days per week in the office—more than Generation X (2.5 days) and Millennials (2.7 days). For Gen Z, the office is not viewed as outdated but rather as a space that fosters growth, networking, and collaboration. Face-to-face interactions and informal exchanges, which are difficult to replicate online, are key attractions.

However, some young employees express frustration with the absence of senior colleagues and managers, who often continue to work remotely. This lack of visibility can reduce the value of office time. In response, some companies have introduced initiatives such as hiring junior staff in concentrated locations to form larger in-person teams or setting up dedicated hours for open interaction with leaders.

Inglot notes that a productive office experience for younger staff relies on more than physical presence. It should include shared projects, mentoring opportunities, and collaboration. The goal is to ensure the time spent in the office adds value, not just fills time.

This renewed interest in office life is also playing out on social media platforms like TikTok. Popular content under themes like “corporate girlies” and “day in the life” gives insight into the professional routines of young office workers, drawing millions of views. These videos reflect the curiosity and enthusiasm of a generation eager to learn and engage with the working world in a tangible way.

Source: Personal Service

Asylum applications in the EU declined in February 2025

According to data released by Eurostat, a total of 59,085 first-time asylum seekers applied for international protection in the European Union in February 2025. This represents a 23% decrease compared with the same month in 2024, when 77,170 applications were recorded, and a 12% drop from January 2025, which saw 66,800 applications.

In addition to first-time applicants, there were 7,630 individuals submitting subsequent asylum claims in February 2025. This figure marks a 6% increase from February 2024, but a 6% decrease compared to January 2025.

The largest group of asylum seekers in February came from Venezuela, with 8,345 first-time applicants. They were followed by nationals of Afghanistan (5,610) and Syria (4,630).

Most applications were concentrated in four EU countries. Spain received the highest number with 12,805 applicants, followed by Germany (11,185), France (10,725), and Italy (10,715). Combined, these four countries accounted for 77% of all first-time asylum applications in the EU during the month.

Relative to population size, the highest rates of first-time asylum applications were recorded in Greece, with 40.2 applicants per 100,000 people, followed by Spain (26.3) and Luxembourg (25.6). The EU average was 13.2 applicants per 100,000 people.

In February 2025, 1,720 unaccompanied minors applied for asylum in the EU for the first time. The majority of these children originated from Syria (300), Afghanistan (210), and Egypt (200). Germany received the most applications from unaccompanied minors (575), followed by Spain (330) and Greece (245).

Czech producer price trends – April 2025

According to data published by the Czech Statistical Office on 20 May 2025, producer prices in April showed mixed developments across different sectors. Agricultural producer prices rose both month-on-month and year-on-year, while industrial producer prices continued to decline. Construction and service sectors recorded moderate price growth.

Agricultural producer prices increased by 3.2% compared to March and were 15.7% higher year-on-year. The month-on-month increase was driven by price growth in eggs (+12.1%), cattle for slaughter (+4.6%), pigs for slaughter (+3.1%), cereals (+1.3%), and milk (+1.1%). Prices fell for potatoes (-4.0%), oilseeds (-0.8%), and poultry (-0.5%). Year-on-year, crop production prices rose by 17.3%, with notable increases in fruit (+38.5%), oilseeds (+25.4%), cereals (+14.9%), and fresh vegetables (+14.4%), while potato prices declined (-4.9%). In animal production, prices increased by 14.4%, with eggs up by 42.5%, cattle for slaughter by 25.8%, milk by 19.6%, and poultry by 4.3%. The only decline was in pig prices, which dropped 14.1%.

Industrial producer prices fell by 0.8% compared to March and were 1.3% lower year-on-year. Price decreases were most evident in energy-related sectors such as ‘coke and refined petroleum products’ and ‘electricity, gas, steam and air conditioning’ (-3.0%). Prices also declined in chemicals (-2.7%). Some segments posted gains, including ‘preserved meat and meat products’ (+2.1%), ‘processed fruit and vegetables’ (+2.3%), and ‘wood products’ (+2.1%). Year-on-year, energy prices dropped 5.9%, while intermediate goods declined by 0.5%. Non-durable consumer goods and capital goods increased by 1.9% and 1.4%, respectively. When excluding energy, industrial producer prices rose 0.6%.

Construction work prices increased by 0.4% month-on-month. Year-on-year, estimated prices for construction work rose by 3.6%, while prices of materials and products used in construction grew by 0.7%.

Service producer prices in the business sector grew by 1.0% compared to March and by 4.0% year-on-year. Significant month-on-month increases were observed in ‘programming and broadcasting services’ (+9.8%), ‘advertising and market research’ (+9.4%), and ‘employment services’ (+3.9%). Declines were recorded in ‘land transport services’ (-0.5%) and ‘motion picture and related media services’ (-3.2%). Excluding advertising, service prices grew by 0.3% month-on-month and by 3.2% year-on-year.

In the broader EU context, preliminary Eurostat data for March 2025 show a 1.6% monthly decline in industrial producer prices across the EU27. The largest decreases were seen in Estonia, Spain, and Italy. Prices declined slightly in Germany and Czechia, remained unchanged in Poland and Slovakia, and rose in Austria, Greece, Luxembourg, and Slovenia. Year-on-year, EU27 industrial prices rose by 2.1%. Notable increases were recorded in Bulgaria, Ireland, and Denmark, while prices declined in countries including Poland, Czechia, and Germany.

Source: CSO

Prague approves land sale for Nové Holešovice development project

The Prague City Council has approved the sale of land near the Nádraží Holešovice metro station to Nové Holešovice, a joint venture involving the Prague Public Transit Company (DPP), Karlín Group, and CPI Property Group. The decision follows over a year of political disagreement that had delayed the proposed redevelopment of the area.

The joint venture was established in 2021 to revitalize the metro station and surrounding land, with DPP expected to contribute land and later share in the profits from the development. However, the project was stalled in early 2024 after Deputy Mayor Zdeněk Hřib (Pirates) reversed his initial support, raising concerns about the joint venture’s structure.

Following a prolonged deadlock among coalition parties, a working group was formed to review the agreement and present alternatives. Four options were considered: the city joining the joint venture, entering a contractual agreement with it, revising the original plan, or dissolving the venture and developing a new model. The council ultimately supported the revised sale option, backed by councilors from the Spolu alliance (ODS, TOP 09, KDU-ČSL) and STAN.

According to Finance Councilor Zdeněk Kovářík (ODS), the city has completed its part of the process. Final approval now depends on the DPP and joint venture partners agreeing to updated contractual terms. The final sale price, originally estimated at CZK 173 million, is expected to be higher, though an exact figure has not been confirmed.

Karlín Group’s Jan Ludvík welcomed the decision, noting that while the project had lost time and incurred legal costs, development will now resume from where it was paused in February 2024.

The Pirates, however, maintain their opposition. Hřib reiterated concerns about potential links between individuals involved in the project and the Dozimetr corruption case, as previously reported by Lidovky.cz. He also questioned the procedure of the vote, arguing that it did not comply with DPP’s formal governance requirements. The Pirates may pursue legal action if the project continues based on what they consider a flawed resolution.

Opposition figures criticised the delays. Adam Scheinherr (Prague Sobě) said the project has only seen minor adjustments despite more than a year of political obstruction. Ondřej Prokop (ANO) warned that prolonged inaction could result in financial losses or arbitration risks, and argued that the current state of the station reflects missed opportunities. He suggested similar partnerships could be considered for other deteriorating metro areas, such as Roztyly.

Source: CTK

Sofidel Expands Operations at CTPark Budapest West with New 18,000 sqm Lease

Sofidel Hungary Kft. has signed a lease agreement for nearly 18,000 square metres of space at CTPark Budapest West in Biatorbágy, strengthening its long-term presence at the site. The new unit is located in a BREEAM “Very Good” certified logistics facility and will support the company’s ongoing operational and sustainability objectives.

Sofidel, a producer of tissue paper products, has operated in Hungary for several years and chose to expand within the same logistics park due to the site’s infrastructure and proximity to transport routes. The decision also reflects the existing relationship with CTP Hungary and the desire for a consistent, scalable operational base.

According to Dr. Ferenc Gondi, Managing Director of CTP Hungary, the park is designed to offer flexible, long-term solutions for tenants. The agreement with Sofidel reinforces the company’s focus on stability and infrastructure that meets evolving logistics and energy efficiency requirements.

The expanded space will enable Sofidel Hungary Kft. to increase production capacity and optimise its logistics processes. The location provides access to advanced infrastructure, supporting the company’s commitment to efficient and environmentally responsible operations.

Jim Barker, Country Operations Manager at Sofidel Hungary Kft., noted that the new unit supports the company’s goal of strengthening its position in Hungary through the use of modern, sustainable facilities aligned with broader business and environmental strategies.

KGAL Core 5 acquires residential property in The Hague as part of Pan-European expansion

KGAL Core 5 Acquires Residential Property in The Hague as Part of Pan-European Expansion

Grünwald, 20 May 2025 – KGAL has added a fully leased residential property in The Hague to its pan-European real estate fund, KGAL Core 5. The building, completed in 2024, comprises 36 apartments with a total area of around 3,000 square metres. The asset meets advanced energy efficiency and sustainability standards and is located in a competitive rental housing market.

This acquisition follows earlier investments by KGAL Core 5 in Ireland and Spain and brings the fund’s total invested equity above €100 million. All properties in the fund meet the criteria of Article 9 of the EU Sustainable Finance Disclosure Regulation (SFDR), reflecting a focus on sustainability. The fund currently reports an occupancy rate of approximately 97% and achieves returns in the high single-digit range based on full equity investment.

The residential units in The Hague have an average size of 83 square metres and are designed to meet the demand for modern, efficiently planned housing. The property also includes 29 parking spaces.

Rainer Pohl, Head of Transaction Management at KGAL, stated that despite ongoing market challenges, the acquisition presented an opportunity to secure a core asset with no development or leasing risks. He noted that constrained new supply in many European cities continues to support long-term demand in the residential sector. Further acquisitions are planned, with a focus on newer, ESG-compliant properties in liquid and high-growth urban markets.

Philipp Langbehn, portfolio manager of KGAL Core 5, added that the new acquisition aligns with the fund’s strategy of geographic diversification and long-term value creation in demographically and economically stable locations.

Legal and tax due diligence was carried out by Dirkzwager. DW Real Estate (Netherlands) handled commercial due diligence, SGS was responsible for technical analysis, and Oterea conducted the ESG review.

NEPI Rockcastle reports 12.6% increase in net operating income for Q1 2025

NEPI Rockcastle NV reported a 12.6% year-on-year increase in net operating income (NOI) to €152 million in the first quarter of 2025. The result reflects contributions from two major acquisitions in Poland completed in the second half of 2024, as well as operational adjustments across the portfolio. On a like-for-like basis, NOI grew by 5%.

Lower inflation moderated rental indexation compared to previous years, but this was partially offset by active asset management strategies such as space reconfiguration and improvements in lease structures. Short-term income and higher cost recovery also supported NOI growth.

Tenant sales rose by 3.7% year-on-year on a like-for-like basis (excluding hypermarkets). Average basket size increased by 9.7%, influenced by both acquisitions and a continued trend toward higher per-visitor spending. Footfall was marginally lower by 0.7%, with variations partially attributed to the timing of Easter.

EPRA retail vacancy was 1.7% as of 31 March 2025, with overall portfolio vacancy at 2.0%. Rent collection for Q1 stood at 98%.

Leasing and Development Activity

NEPI Rockcastle signed 411 leases and lease renewals in Q1 2025, covering over 96,500 sqm. New leases accounted for 21% of gross lettable area, with international retailers representing 74% of new leasing volume. Notable new tenants include Zara, Avitela, Mohito, Boss, and Lego, with recent openings across Hungary, Poland, Romania, and Croatia.

Major development projects remain on track. In Bucharest, 68% of the additional retail area at Promenada has been pre-leased ahead of its scheduled opening in Q1 2027. Construction is progressing at Bonarka City Center and Arena Mall Budapest, and the extension of Pogoria Shopping Centre in Poland is underway, with 90% of new space pre-leased.

The Promenada Plovdiv project in Bulgaria is pending a building permit, expected in Q3 2025, with 40% of retail space already under negotiation. A similar permitting timeline applies to the Galati Retail Park development in Romania.

Green Energy Investments

The group continues to expand its renewable energy capacity. Phase two of its green energy initiative includes 15 MW of solar installations across 23 properties in Poland, Bulgaria, Hungary, and Croatia. Seven additional installations in Slovakia and Czechia are in procurement. Phase three includes two large photovoltaic plants in Romania (159 MW total), with construction already underway for the first.

As of 31 March 2025, the total value of projects under construction or in permitting, including green energy infrastructure, is approximately €788 million. €250 million had been invested by the end of the quarter.

Financial Position

NEPI Rockcastle reported cash and committed credit facilities totalling nearly €1.2 billion as of 31 March 2025. The loan-to-value ratio was 31.2%, remaining below the company’s 35% strategic threshold. Following the April 2025 dividend payment, estimated LTV rose slightly to 32.9%.

The company continues to operate within covenant requirements:
• Solvency Ratio: 0.38 (maximum allowed: 0.60)
• Consolidated Coverage Ratio: 4.89 (minimum required: 2.00)
• Unencumbered assets to unsecured debt ratio: 266% (minimum required: 150%)

Average cost of debt was 3.2% in Q1. Exposure to variable interest rates is limited to 14% of total debt, primarily linked to the IFC loan.

Outlook

The Board maintains its February 2025 guidance for distributable earnings per share to increase by approximately 1.5% compared to 2024, assuming no major geopolitical or macroeconomic disruptions and the continuation of current trading trends. The 90% dividend payout ratio remains unchanged. This forward-looking statement is subject to future revision and has not been reviewed by the company’s auditors.

Deka Immobilien sells office complex in Paris for EUR 430 million

Deka Immobilien has signed an agreement to sell an office complex in Paris for approximately EUR 430 million. The property was part of the Deka-ImmobilienEuropa open-ended real estate fund. The buyer is Gecina, a major French real estate company.

The complex consists of three interconnected buildings originally constructed in 1911, 1935, and 1964. Following a restructuring in 2013, the site was unified into a single complex comprising the Rocher and Vienne buildings. The total leasable space amounts to around 32,000 square metres, with an additional 197 parking spaces for cars and 77 for motorcycles. Located in Paris’ 8th arrondissement near the Saint-Lazare railway station, the property holds LEED Gold certification and a BREEAM “Very Good” rating for sustainability.

The Vienne building remains fully leased to four tenants, while the Rocher building became vacant in April 2025. Deka-ImmobilienEuropa had held the asset for 14 years and is now selling it at a price above both its book value and original acquisition cost. According to the fund’s management, the decision to sell reflects the current favourable investment climate and the opportunity to reduce exposure to potential vacancy or conversion risks. Proceeds from the sale are intended to support new investment opportunities.

Home Concept Interior Design Centre in Katowice expands to 17,000 sqm with third building

The Home Concept Interior Design Centre in Katowice has completed its expansion with the addition of a third building, bringing the total leasable area of the complex to 17,000 square metres. Located in the Roździeń district near the revitalised Aleja Kasztanowców, the facility now hosts 40 interior design showrooms representing a broad spectrum of furniture and design brands. All new showrooms in the third building will open to customers on 2 June.

The new building adds 2,200 square metres of exhibition space and is fully leased. Tenants include BoConcept, which is returning to Katowice with a 400 sqm showroom, along with Dion and Bizzarto, who are relocating from existing spaces within the complex. Other new brands include Jawor-Parkiet (wooden flooring), Mirad (tiles and bathroom fittings), and furniture retailers Moco Home, Vongai Concept, and Wajnert.

With this expansion, Home Concept continues to position itself as a comprehensive resource for interior design, offering access to products across categories such as kitchens, bathrooms, lighting, flooring, windows, and furnishings. In addition to major brands like IWC Home, Maxfliz, Senpo, and MyBed, the centre now includes a diverse range of suppliers catering to both residential and commercial design needs.

The centre is designed to support direct customer engagement, offering opportunities to physically experience products and consult with specialists. Common areas, such as a rooftop terrace and shared patio space integrated into Aleja Kasztanowców, are also intended to provide visitors with a more relaxed environment in which to consider their design decisions.

Events for professionals are part of the centre’s regular programming. In April, for example, the Puszman showroom hosted a design-focused breakfast attended by architects and designers, including a talk by Oskar Zięta. These gatherings reflect Home Concept’s strategy of fostering ongoing dialogue between brands, design professionals, and end-users.

The centre is also developing co-working areas where designers can meet clients, and plans to continue hosting educational and promotional events. According to Krzysztof Kołaszewski, President of AB Development and the investor behind the project, the goal is to support informed decision-making and provide an accessible, centralised environment for all aspects of interior design.

The third building’s opening strengthens Home Concept’s role as the largest interior design centre in the Silesia region, offering a consolidated destination for high-quality furnishings and professional expertise.

Office demand rises amid limited new supply in Poland

In the first quarter of 2025, demand for office space in Poland’s key markets increased by 25% compared to the same period last year, despite a continued slowdown in new office development. Tenants remain focused on high-standard properties in central locations, while the market sees minimal additions to existing stock.

In Warsaw, total office leasing activity reached over 160,000 square metres in Q1, with new lease agreements making up the majority of transactions. In regional markets, demand was even stronger, amounting to nearly 180,000 square metres. More than half of this figure came from lease renegotiations, indicating sustained interest in existing office locations.

Mateusz Strzelecki, Partner and Head of Tenant Representation at Walter Herz, notes that financial terms, accessibility, and location continue to drive office space decisions. He also highlights the limited pipeline of new developments, estimating that only around 135,000 square metres of new space will be added to Warsaw’s total office stock this year. Older, less efficient office buildings are gradually being removed from the market, partially offsetting the modest pace of new construction.

Investor activity has slowed, but lower interest rates and improved financing conditions could support future growth. The presence of international investors completing large transactions in Poland is also expected to contribute to a gradual market recovery.

In terms of completions, the first quarter of 2025 saw minimal additions. Warsaw’s total stock, currently standing at 6.39 million square metres, grew by just 5,600 square metres with the completion of a single project. In regional cities, the only new delivery was an office building in Poznań.

Approximately 210,000 square metres of office space is now under construction in Warsaw. Key developments expected to be completed in 2025 include The Bridge (51,400 sqm) and Office House (31,100 sqm). Other ongoing projects are Upper One (35,900 sqm), Studio II Phase (26,600 sqm), Vena (15,400 sqm), Skyliner II (22,000 sqm), and the V Tower refurbishment (26,200 sqm).

Among regional markets, Cracow and Wrocław are leading in both demand and development. Cracow, with a total office supply of 1.81 million square metres, recorded demand of 57,000 square metres in Q1 and currently has around 86,000 square metres under construction. Wrocław, with a 1.42 million square metre stock, saw 44,000 square metres leased in Q1 and has 27,000 square metres of space being built.

Rental rates and service charges have remained stable since late 2024. In central Warsaw, monthly asking rents range from EUR 18 to 27 per square metre, while in non-central locations, they fall between EUR 10 and 17. Rents in regional cities vary from EUR 9 to 19.5 per square metre per month.

Vacancy rates differ by location. Warsaw’s overall vacancy rate has dropped to just above 10%, with only 7% of offices available in central areas. In outer districts, such as Służewiec, vacancy exceeds 20%. In regional cities, the average vacancy rate remains above 17%. Cracow and Katowice are experiencing a slight decline in vacancy, while Wrocław and Poznań have seen vacancy rates increase.

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