HIH signs two lease agreements totalling 36,000 sqm in logistics properties

HIH Invest Real Estate (HIH Invest) has signed two lease agreements covering a total of 36,000 square metres across logistics properties in Großbeeren and Bremen.

In Großbeeren, south of Berlin, a logistics service provider has extended its lease for approximately 29,000 square metres ahead of schedule. The site is used for last-mile distribution in the Berlin metropolitan area and as a hub between Germany and Eastern Europe. Located at Märkische Allee 4-10 within the GVZ Großbeeren freight centre, the property includes 168 parking spaces and a rooftop photovoltaic system. It was built in 2010/11 and acquired by HIH Invest in 2021 for the open-ended special fund ‘Deutschland Logistik Invest.’ The lease has been extended until spring 2028.

In Bremen, a technology company has signed a new lease for nearly 6,200 square metres at Bordeaux-Straße 3, running until the end of 2029. The property, constructed in 2011/12 on a 13,000-square-metre site, includes 5,853 square metres of hall space and 340 square metres of office and social space, along with a rooftop photovoltaic system. HIH Invest acquired the property in 2022 for its open-ended special fund ‘Deutschland+ Core Logistik Invest.’

Both properties are located in established logistics areas with access to regional and international transport networks.

Retail turnover in Slovakia fell in March 2025 as household goods and online sales declined

Retail turnover in Slovakia continued its downward trend in March 2025, marking the second consecutive month of decline. According to data released by the Statistical Office of the Slovak Republic, retail turnover decreased by 2.5% year-on-year, with the majority of retail categories recording lower sales compared to the same period last year.

After seasonal adjustment, retail turnover also fell month-on-month by 1%. The decline was mainly driven by lower sales in hypermarkets, supermarkets, and stores selling household goods, which together make up a significant portion of the sector. Hypermarkets and supermarkets, accounting for around 40% of the retail industry’s turnover, saw their sales decrease by 4.5% year-on-year.

In contrast, specialized stores selling textiles, footwear, drugstore products, and pharmacy goods experienced growth. Their turnover rose by 6.4% year-on-year, continuing an 18-month streak of increases in constant prices.

However, other retail categories recorded notable declines. Turnover in hobby markets, furniture outlets, and electronics stores fell by 9% year-on-year. Online retail and mail-order sales also declined, posting a 3.2% drop. Smaller retail sectors, such as specialized food and beverage shops, tobacco outlets, and stores selling sports equipment, books, and toys, also saw their turnover shrink by more than 9%. Sales through market stalls and similar outlets followed the same downward trajectory.

Despite the overall decline, some segments performed better. Retailers of information and communication technology equipment recorded a significant year-on-year increase in turnover. Fuel sales also rose slightly.

For the first quarter of 2025 as a whole, retail turnover in Slovakia fell by 1.5% compared to the same period last year. Seven out of nine retail segments recorded a decline in turnover during this period.

Elsewhere in the internal trade sector, other areas showed positive developments. Sales and repairs of motor vehicles increased by 10.6% year-on-year in March 2025. The food and beverage service sector saw turnover rise by 5.3%, while wholesale turnover increased by 12.1%. Accommodation turnover, however, edged down slightly by 0.4% compared to March 2024.

Month-on-month data showed that motor vehicle sales and repairs rose by 6% in March 2025 after seasonal adjustment, while turnover in food and beverage services increased by 2.2%. By contrast, wholesale turnover fell by 0.3% and accommodation turnover declined by 5.2% over the same period.

Looking at the first three months of 2025 overall, wholesale turnover increased by 8.2% year-on-year, food and beverage services rose by 2.6%, and accommodation turnover was marginally higher by 0.3%. Meanwhile, turnover from the sale and repair of motor vehicles declined by 1.9% compared to the first quarter of 2024.

The figures indicate that while select retail segments and broader trade categories showed resilience, the overall retail sector faced ongoing challenges, particularly in household goods and online sales.

Source: SOSR

Industrial production in Czechia rises 0.7% year-on-year in first quarter of 2025

Industrial production in the Czech Republic increased by 0.7% in the first quarter of 2025 compared to the same period last year, according to official data. On a quarter-on-quarter basis, production rose by 1.5%. The number of working days was unchanged from the first quarter of 2024, providing a consistent comparison.

The data show that industrial production in early 2025 remained largely stable relative to the previous year, edging just 0.8% above the level recorded in 2021. Growth was primarily supported by the electricity, gas, steam and air conditioning supply sector, which benefitted from a lower comparative base in 2024. In contrast, mining and quarrying activities saw a decline, while manufacturing output stagnated, recording a slight decrease of 0.2% year-on-year.

The modest increase in overall industrial output was driven by several manufacturing activities. Positive contributions came from the repair and installation of machinery and equipment, which grew by 6.3%; the manufacture of machinery and equipment, up 2.2%; and the manufacture of food products, which rose by 2.9%. However, declines in key sectors weighed on the broader result. The manufacture of motor vehicles, trailers and semi-trailers fell by 2.1%; production of other transport equipment dropped by 11.6%; manufacture of computer, electronic and optical products declined by 3.6%; and chemical production contracted by 2.5%.

Sales from industrial activities, measured at current prices, rose by 0.2% year-on-year in the first quarter. Export sales increased by 2.4%, while domestic sales – including indirect exports – fell by 2.3%. Growth in sales was led by the food industry, which saw a 4.9% increase; machinery and equipment, up 4.3%; and repair and installation of machinery, which expanded by 10.9%. Meanwhile, the largest declines in sales were recorded in the manufacture of other transport equipment, basic metals, and motor vehicles.

New orders in surveyed industrial sectors decreased by 0.5% year-on-year at current prices. Non-domestic orders fell by 0.3%, while domestic orders declined by 0.7%. The downturn in orders was mainly attributed to the manufacture of motor vehicles, which dropped by 4.7%; chemical products, down 3.8%; and paper and paper products, which fell by 3.5%. On the positive side, new orders grew for machinery and equipment by 9.9%; fabricated metal products by 4.3%; computer, electronic and optical products by 2.6%; and other transport equipment by 6.5%.

Employment in the industrial sector also contracted. The average registered number of employees in industry during the first quarter was 2.0% lower compared to the same period last year.

The figures suggest a broadly stable industrial sector supported by energy supply and select manufacturing industries, but held back by weak automotive and related production.

Source: CSO

Construction output in Czechia rises 7.4% in first quarter of 2025

Construction activity in the Czech Republic expanded in the first quarter of 2025, with total output increasing by 7.4% year-on-year, according to newly released data. The growth was driven by both building construction and civil engineering sectors. Compared to the final quarter of 2024, construction production rose by 3.4%.

Building construction posted a 6.8% increase from the same period last year, contributing 4.9 percentage points to overall growth. Meanwhile, civil engineering construction saw a stronger rise of 9.1%, adding 2.5 percentage points.

Construction companies employing 50 or more workers secured contracts worth CZK 99.3 billion in the first quarter, marking a 15% increase year-on-year. While new building construction orders fell by 4.2% to CZK 42.1 billion, civil engineering orders climbed 34.9% to CZK 57.2 billion. The average value of newly awarded contracts rose sharply to CZK 7.9 million, up 70.9% from a year earlier.

The total value of construction projects permitted in the first quarter was CZK 115.5 billion, down 18% from the previous year. This decline was largely attributed to fewer new civil engineering projects and a high comparison base from 2024. Despite the overall decrease, approvals for non-residential buildings and transport-related constructions recorded year-on-year gains. Higher levels of planned investment were noted in Prague, the Central Bohemian Region, and the South Moravian Region.

Housing construction also showed mixed results. A total of 8,297 dwellings were started in the first quarter, a 2.9% increase year-on-year. Growth was led by a 14.9% rise in multi-unit residential projects and a notable increase in conversions of existing buildings. In contrast, new single-family home construction continued to slow, with starts falling 15.9% compared to the same period last year. Conversions of family homes and new dwellings in non-residential buildings also declined. The highest number of housing starts was reported in Prague, the Central Bohemian Region, and the South Moravian Region.

Completions fell across the board. A total of 6,642 dwellings were completed in the first quarter, representing a 17.3% year-on-year decline. All categories of residential construction posted decreases, with completions of single-family homes recording the steepest drop. Only conversions of family homes posted a slight increase. The highest numbers of completed dwellings were in the Central Bohemian Region, Prague, and the South Moravian Region.

The latest figures highlight a construction sector still balancing growth in large infrastructure and multi-family projects against ongoing challenges in the housing market, particularly for family homes.

Source: CSO

Finland’s real estate market office, industrial, and residential sectors in Q1 2025

The Finnish real estate market kicked off 2025 with contrasting dynamics across its key sectors, according to the latest quarterly reports for the office, industrial & logistics, and residential markets from CBRE. The data reveals signs of stabilization in some segments, while others continue to face lingering challenges tied to financing costs, shifting demand, and macroeconomic uncertainties.

Office Market Remains Cautious but Stable
The office sector in Finland maintained a steady pace in Q1 2025, though challenges around occupancy and rent growth persist. Prime office yields remained stable, holding close to their levels from late 2024, while the spread between prime yields and the 10-year government bond rate showed no significant narrowing. This indicates that while investors remain active, risk premiums have not yet contracted, suggesting caution in underwriting assumptions.

Leasing activity remained subdued in secondary locations, whereas demand for prime assets in central Helsinki held up relatively well, driven by occupier demand for high-quality, ESG-compliant spaces. However, vacancy rates have edged slightly higher, particularly in non-core submarkets, reflecting ongoing pressure from hybrid work trends and space optimization by occupiers.

Industrial & Logistics: Resilient Demand with Supply Challenges
The industrial and logistics sector continued to be the outperformer of Finland’s property markets. Investor appetite remained robust in Q1 2025, particularly for modern logistics assets near key transport nodes. However, limited new supply in pipeline projects constrained transaction volumes, and upward pressure on construction costs delayed some planned developments.

Occupier demand remained healthy, bolstered by strong e-commerce and manufacturing activity. Vacancy rates in prime logistics locations remained low, pushing rents upward in certain hotspots. Yet, a widening gap between buyer and seller pricing expectations was observed, contributing to fewer large-scale transactions compared to peak years.

Residential Sector Faces Financing Hurdles Despite Stable Demand
In the residential market, demand for rental units remained stable in Q1 2025, supported by demographic drivers and continued urbanization. However, higher financing costs continued to weigh on both developers and investors. Transaction volumes remained below long-term averages as elevated interest rates dampened appetite for leveraged acquisitions.

Developers faced headwinds from persistent construction cost inflation and financing hurdles, leading to cautious launch schedules for new projects. Meanwhile, institutional interest in Finland’s residential market remained evident, although investors adopted a more selective approach, prioritizing projects with proven leasing performance and sustainable credentials.

Outlook: Gradual Recovery with Diverging Sector Performance
Market participants remain cautiously optimistic for the remainder of 2025, with the industrial and logistics sector expected to maintain its lead, while the office and residential segments continue gradual recoveries. “The Finnish market is showing signs of resilience, but transaction activity is still adjusting to new financing conditions and evolving occupier needs,” noted a market analyst familiar with the reports.

Stakeholders across all sectors are closely monitoring the potential for interest rate cuts later in the year, which could improve liquidity and narrow pricing gaps, offering a boost to investment volumes. Meanwhile, ESG compliance and asset quality remain central themes shaping investor and occupier decision-making across Finland’s real estate landscape.

Source: CBRE

Romanian real estate market faces uncertainty and opportunity: Legal experts weigh in

CIJ EUROPE recently explored the outlook for Romania’s commercial real estate sector amid changing economic and political conditions. Three prominent legal professionals—Daiana Assoum of Stratulat Albulescu, Florian Nițu of Popovici Nițu Stoica & Asociații, and Sorin Aungurenci of Biris Goran—offered their perspectives on the challenges and opportunities ahead, as well as the legal approaches investors and developers should consider to navigate the evolving landscape.

While perspectives varied, all three lawyers acknowledged both challenges and opportunities ahead, underscoring the importance of careful legal planning.

Cautious Optimism Meets Structural Risks

Daiana Assoum sees a “cautiously optimistic” future for Romania’s real estate sector, buoyed by the resilience the country has demonstrated in recent years. “Logistics and retail remain the strongest segments, with Romania’s strategic position supporting continued demand for warehousing and supply chain facilities,” Assoum noted. She pointed to retail parks and shopping centres coexisting as consumer preferences evolve, while the office sector shows gradual recovery as occupancy rates improve.

Importantly, she highlighted Romania’s comparative stability in property yields and operational costs, factors she believes make it attractive to long-term investors seeking growth in a less competitive environment. “We expect Romania to remain a stable market, with ample room for expansion across asset classes,” she said.

In contrast, Florian Nițu offered a more sobering outlook. “Romania faces challenges similar to those that led to the complex crisis of 1999,” he warned, citing recent political instability and potential economic fallout. He drew parallels to the 2008–2009 financial crisis and raised the possibility of Romania’s investment grade rating slipping into junk status, which could drive financing costs even higher. “This could lead to a paralysis in the real estate sector,” Nițu cautioned, calling for political, economic, and institutional stability as a precondition for market recovery.

Sorin Aungurenci maintained a measured optimism, pointing to continued investor interest in logistics and industrial assets. “Romania’s position within the EU and shifting European supply chains are sustaining demand,” he explained. While the office sector is adjusting to hybrid work trends, well-located buildings continue to attract tenants, and retail is stabilizing in secondary cities. “Investor confidence will depend on regulatory predictability,” Aungurenci noted, emphasizing the importance of transparent permitting and stable legislation to support long-term growth.

Legal Strategies for an Evolving Market

When asked how investors and developers should position themselves, all three lawyers emphasized the central role of legal strategy in mitigating risks and unlocking value.

Assoum underscored the importance of robust due diligence extending beyond title verification to zoning, urban planning, and permitting risks. She advised incorporating safeguards into contracts to account for potential approval delays. “We’re seeing a move away from standard joint ventures toward hybrid structures that balance control with flexibility,” she added. Lease agreements also require careful alignment with development obligations to protect long-term asset value and reduce disputes.

Nițu urged a reassessment of financing arrangements, suggesting some projects might benefit from shifting from bank loans to investor capital or joint venture structures. “Whoever moves quickly to address challenges or secure deals will be better positioned,” he said, forecasting an increase in corporate claims and legal disputes as market pressures intensify.

Aungurenci recommended integrating environmental compliance and sustainability considerations into legal frameworks from the outset. “Institutional investors and international tenants increasingly expect leases and contracts to reflect energy efficiency and sustainability standards,” he explained. He also highlighted the need for vigilance over legislative changes in urban planning, construction, and tax policy, warning that regulatory shifts could materially affect project viability. Establishing strong local partnerships and retaining experienced counsel were among his recommendations for reducing uncertainty and navigating administrative processes.

Balancing Risk and Opportunity

Despite differing views on the scale of upcoming challenges, all three experts agreed that legal foresight and proactive risk management will be crucial for investors and developers operating in Romania. Whether through adjusting financing structures, strengthening due diligence, or embedding sustainability into contracts, market players will need tailored legal strategies to weather potential volatility while capitalizing on Romania’s continued growth potential in logistics, retail, and industrial real estate.

As the market responds to both local and global forces, the next few years will test the adaptability of investors—and their legal teams—as Romania charts its course through economic uncertainty and evolving regulatory landscapes.

Photo: Florian Nițu of Popovici Nițu Stoica & Asociații, Daiana Assoum of Stratulat Albulescu and Sorin Aungurenci of Biris Goran

Poland’s property investment market maintains positive momentum in early 2025

Poland’s property investment market started 2025 on stable footing, continuing the upward trend that began last year. According to the latest market report by Avison Young, total investment transaction volume in the first quarter of 2025 reached €686 million, a 64% increase compared to the same period in 2024. This marks a sustained recovery, following a doubling of total transactions in 2024 over the previous year, reflecting improving investor sentiment across real estate sectors.

The first quarter’s transaction structure was shaped by strong activity in the retail sector—particularly retail parks—and non-core office assets. Although deal sizes remained moderate, with just four transactions valued between €50 million and €75 million, the pace of activity points to ongoing investor confidence. Domestic investors contributed 17% of the total disclosed investment volume, demonstrating the growing role of Polish capital in the market.

Industrial real estate continued to perform strongly, representing 29% of total investment volume. The sector recorded five transactions worth €202 million, including deals for large-scale logistics assets in Warsaw and the Tricity region, as well as a modern cold storage facility in Warsaw’s core zone. A notable milestone was the sale of GLP’s Polish portfolio to Ares Management, part of a broader international M&A deal, underscoring sustained institutional interest in logistics and warehousing.

The retail market saw 14 transactions in the first quarter, amounting to €189 million in total investment volume. Retail parks dominated investor attention, accounting for 56% of the sector’s activity. Key transactions included BIG Shopping Centres’ acquisition of Power Park Olsztyn, Newgate Investment’s purchase of Comfy Park Bielik in Bielsko-Biała, and a retail park portfolio acquired by Terg. Convenience-oriented shopping centres outside major cities accounted for more than a third of retail investment volume, with Focus Estate Fund’s purchase of three Plaza Centres in Silesia being the largest transaction in this segment.

Office investments totalled €176 million in the first quarter, with activity driven largely by value-add and opportunistic strategies. While eight out of twelve transactions took place in regional cities, these accounted for slightly over 40% of total volume. The largest office deal was Uniqa Real Estate’s acquisition of Wronia 31 in Warsaw—the quarter’s sole core transaction. Investors focused on repositioning opportunities, with core capital remaining cautious in light of ongoing geopolitical and economic uncertainties.

In the living sector, three deals were finalised in the first quarter, amounting to more than €100 million. The largest was AFI Europe’s forward funding of PRS Metro Szwedzka. Other notable transactions included NREP’s acquisition of co-living project Nad Stawem and Xior Student Housing’s purchase of a PRS asset from Syrena Real Estate. The sector also attracted new entrants such as Polski Holding Nieruchomości, which announced plans to repurpose vacant properties into PRS units, aiming to deliver 800 units by 2030.

A growing trend involves investors targeting older office buildings for conversion into residential or student housing. Avison Young reports increased demand for technical due diligence on such assets, noting that conversions are technically feasible under current regulations and, in many cases, more straightforward than converting residential properties into office use.

Looking ahead, Poland’s property market is expected to remain one of Central Europe’s most attractive investment destinations, supported by solid fundamentals and investor interest in high-quality assets meeting ESG standards. A gradual narrowing of the pricing gap between buyers and sellers is anticipated, helped by projected interest rate cuts. Meanwhile, environmental and sustainability considerations are becoming more prominent, with both investors and lenders placing greater emphasis on net-zero and green financing requirements.

Despite selective investor behaviour, Poland’s market outlook for 2025 remains optimistic, as opportunities emerge across industrial, retail, office, and residential segments, attracting both domestic and international capital.

Source: Avison Young

German state aid during pandemic proved most effective for micro and small enterprises, study finds

Government support provided to businesses in Italy and Spain during the coronavirus pandemic had the strongest positive impact on micro and small enterprises, according to a new study by the German Institute for Economic Research (DIW Berlin) in collaboration with the European Commission’s Joint Research Centre (JRC). The research examined the effects of state aid in the two countries, both of which were heavily affected by the pandemic and introduced extensive support programmes.

Two years after the pandemic began, micro and small enterprises that received government aid reported notably better outcomes than comparable businesses that did not benefit from support. In Italy, sales among supported businesses were more than four percent higher in 2022 compared to their unsupported counterparts. In Spain, the difference was 2.7 percent. In contrast, the study found no significant effects for medium-sized and large companies.

“The results demonstrate that temporary government support can play a key role in preserving economic structures during a crisis,” said Tomaso Duso, Head of the Business and Markets Department at DIW Berlin.

The study also highlighted an increase in investment among supported small businesses. In Spain, aided small enterprises expanded their total assets by 7.1 percent in 2020, while in Italy the increase was around five percent. Importantly, investment was directed not only towards physical assets but also towards intangible assets such as software and digital infrastructure. Many small firms used the period of disruption to modernise their operations and expand digital sales channels in response to the closure of in-person retail options during the pandemic.

Based on these findings, the study concludes that temporary, targeted aid is an effective tool for strengthening economic resilience, particularly for micro and small businesses. However, the authors caution against extending similar broad-based aid to large companies, citing limited effectiveness and increased risks of market distortion.

“Government aid can be valuable during acute crises if it remains targeted and temporary,” Duso explained. “Micro and small businesses, in particular, show measurable benefits from this support. By contrast, permanent or broad subsidies for large firms risk distorting markets and using public funds inefficiently.”

The study’s findings come at a time when the European Union is considering future policy directions under initiatives like the EU’s Clean Industrial Deal, raising questions about how state support should be structured to balance economic resilience with fair competition.

Bydgoszcz: Expanding industrial and logistics market drives regional growth

Bydgoszcz is reinforcing its status as a key industrial and logistics hub in north-central Poland, building on a long-standing economic tradition and evolving infrastructure. According to a recent report by Immo Consulting, Local Landscape – Report on the Warehouse and Industrial Market in Bydgoszcz 2025, the city and the wider Kuyavian-Pomeranian region have seen warehouse capacity increase more than fivefold over the past decade. High occupancy levels, coupled with consistent demand, are encouraging developers to launch new projects and expand existing facilities.

Historically, Bydgoszcz’s position at the intersection of major trade routes shaped its early economic development, fostering a strong culture of trade and craftsmanship. This foundation paved the way for the city’s industrial expansion after Poland regained independence, with factories in chemicals and electrical engineering playing a major role. The post-war period continued this trajectory, with companies like Eltra, Jutrzenka, Zachem, Kobra, and Romet emerging as leading employers.

Since the political and economic transition of 1989, Bydgoszcz has diversified, investing in technology, education, and tourism infrastructure to align with market economy demands. Today, major companies such as PESA, Unilever, and Atos exemplify this blend of industrial heritage and innovation.

The city’s robust transport infrastructure supports its industrial ambitions. Bydgoszcz benefits from proximity to key expressways like the S5 and S10, linking it to the A1 motorway and facilitating regional and national connections. Investments in urban infrastructure, including road improvements, upgraded lighting, and new cycling paths, continue to enhance accessibility for residents and businesses.

Rail and water transport further strengthen the city’s logistics network. Bydgoszcz hosts one of Poland’s largest railway junctions, with recent modernisation projects boosting freight transport speeds and capacity. The E65 line between Bydgoszcz and Warsaw, now allowing trains to operate at 160 km/h, exemplifies these improvements. Additional works, including upgrades to routes connecting Gdynia, Poznań, and Toruń, are set to expand the city’s reach. Complementing this network, the river port operated by Żegluga Bydgoska connects Bydgoszcz to the MDW E70 waterway, linking Western and Eastern Europe. Bydgoszcz International Airport, located just 3 km from the city centre, provides air cargo handling, including services for hazardous goods.

Labour market indicators reflect Bydgoszcz’s economic vitality. In July 2024, the unemployment rate stood at 2.3%, below the national average. Employment is concentrated in industry, trade, construction, transport, and warehousing. Higher education institutions attract over 30,000 students annually, with strong demand for engineering and economics programmes.

Business development is bolstered by institutional support. The Pomeranian Special Economic Zone and Bydgoszcz Technology Park offer investment incentives, tax exemptions, and assistance with administrative processes, encouraging both domestic and foreign investment.

The city’s industrial base extends beyond traditional manufacturing. Bydgoszcz is a hub for the defence sector, home to firms like Military Aviation Works, Nitro Chem, Belma, and Teldat. The tool and polymer processing industries also play a significant role, supplying moulds and plastic products to sectors including automotive, food, medical, and packaging. The Bydgoszcz Industrial Cluster Tool Valley coordinates activities and supports businesses in these fields.

Emerging industries are adding new dimensions to Bydgoszcz’s economy. Companies such as Sybilla Technologies, Pegasus Aerospace, and Cilium Engineering are advancing projects in satellite systems, ground observation technologies, and aerospace engineering, positioning the city in the growing space economy.

The warehouse and industrial property market reflects these broader trends. In 2024, over 51,000 sqm of space was leased in Bydgoszcz, with a further 34,000 sqm leased in early 2025. Key deals included Nissin Logistics at Panattoni Park Bydgoszcz IV (42,000 sqm), LPP Logistics at Panattoni Park Bydgoszcz II (18,000 sqm), and Rohlig Suus at 7R Park Bydgoszcz (16,500 sqm). The vacancy rate in the city is 2.78%, prompting developers to respond with new projects totalling over 300,000 sqm.

Facilities such as P3 Bydgoszcz and Fortress Logistics Park Bydgoszcz illustrate the city’s focus on sustainability and adaptability. Developments are designed to accommodate diverse tenant needs, with build-to-suit options and sustainable features including rooftop photovoltaic systems, LED lighting with smart controls, and advanced building management systems to optimise energy use.

Rental rates have stabilised after recent increases, with base rents ranging from €3.30 to €4.20 per sqm per month and effective rents, after incentives, between €2.90 and €3.40. The market’s stability and availability of incentives are attracting tenants from sectors including logistics, food production, and manufacturing.

With its combination of industrial expertise, modern infrastructure, and supportive economic policies, Bydgoszcz continues to attract investors, developers, and tenants seeking opportunities in Poland’s growing industrial and logistics market. The city’s trajectory reflects both its historical foundations and its capacity to adapt to evolving economic demands.

Source and Image: Immo Consulting

Staff shortages at building authorities slow down apartment approvals in Prague

The Czech Statistical Office reported today that 2,856 apartments were approved in Prague during the first quarter of this year, including 2,297 units in apartment buildings. This marks an increase of approximately 63% compared to the same period last year. Despite this positive result, experts caution that the trend may not continue in the coming months.

The recent approvals largely reflect projects that were submitted and processed many months ago, under the previous version of the Building Act. According to developers and industry representatives, the current situation for projects awaiting approval is more challenging. The introduction of the new Building Act and the launch of a digital permitting system, which was rolled out without sufficient testing, have led to operational disruptions. Many staff members at building authorities have left their posts, resulting in significant staffing shortages.

Developers report that the permitting process has become slower than under the previous system. This has forced some companies to delay or revise plans for large residential projects, raising concerns about a decline in new housing supply. A prolonged slowdown could contribute to renewed upward pressure on housing prices if demand continues to outpace new construction.

Authorities have outlined plans to overhaul the digital permitting system by 2028, but improvements are needed sooner to address the backlog. Increasing staffing at building offices would help process applications more efficiently, but recruitment efforts have faced challenges.

One proposed solution is to consolidate smaller building authorities, many of which operate with minimal staff. Similar consolidation efforts were carried out previously in other sectors, such as postal services. Officials and experts suggest that a unified permitting system could allow applications to be redirected from overburdened offices to those with greater capacity, potentially improving processing times without relying solely on new hires.

Until structural solutions are implemented, developers warn that continued delays in permitting may affect the pace of new housing development and limit progress in addressing Prague’s housing needs.

Source: Central Group

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