Cordia unveils ambitious 1,000+ apartment development in Budapest for 2025

Hungary’s new home market is poised for significant growth in 2025, with strong momentum already evident in late 2024. Property sales in Budapest surged in Q4, nearly matching the total transactions for the entire previous year. In response, Cordia, the country’s leading residential developer, is set to launch over 1,000 new apartments, spanning nearly 120,000 sqm, providing a diverse range of real estate investment opportunities.

New Home Sales on the Rise

Experts predict that Hungary’s housing market will see sustained growth, driven by increasing demand. In Budapest alone, 2,600 new apartments were sold in Q4 2024, marking the highest quarterly figure since 2018. This surge has led to a sharp decline in available inventory, with just 6,000 new units remaining—barely sufficient to meet demand for the coming year unless new projects enter the market. In total, 7,300 newly built apartments were sold in Budapest last year, nearing the dynamic sales levels of 2016–2018.

Rapid Expansion Underway

Cordia is responding swiftly to this market shift, launching multiple projects in early 2025. The developer will introduce more than 1,000 new apartments this year, with 75% hitting the market in Q1 alone—boosting Budapest’s supply of new homes by 20% compared to the previous year-end figures.

The company’s diverse portfolio includes everything from compact city-center studio apartments ideal for investors to family-friendly homes in green-belt areas and luxury penthouses with panoramic views. A major highlight is the Marina City development, a 14-hectare, car-free riverside project along the Danube. The third phase of this sought-after district is set to launch in 2025, with the fourth phase planned for the latter half of the year. The Marina City area accounted for 14% of all new apartment sales in Budapest during Q4 2024, reflecting its high popularity.

Cordia is also advancing the next phases of Sasad Resort, one of Buda’s premier residential communities, and the much-anticipated fifth phase of Thermal Zugló in District 14. In District 9’s Millennium Quarter, the second phase of the Woodland project is now underway, offering energy-efficient, long-term value-retaining homes.

Prime Investment Opportunities

Early-stage investment in new developments typically yields the best returns, as developers offer the most attractive pricing at the outset. With a conservative 5% annual appreciation, an apartment valued at HUF 100 million (approx. €245,000) could rise to HUF 116 million (€284,000) over a typical three-year construction period, generating a gross profit of HUF 16 million (€39,000).

To further enhance investment potential, Cordia is introducing a 10/90 financing model in February. This structure allows buyers to secure a property with just 10% of the purchase price, deferring the remaining 90% until completion—potentially increasing overall returns.

Property price trends have already outpaced the projected 5% appreciation. In 2024, average prices per square metre rose by 13% in Buda (to HUF 1.93 million / €4,700) and by 9% in Pest (to HUF 1.58 million / €3,870), signaling a strong upward trajectory.

Higher Rental Yields for New Builds

Newly built apartments continue to command higher rental prices compared to older properties. In Budapest’s Corvin Promenade, Cordia’s studio apartments achieve average monthly rents of HUF 270,000 (€662), one-bedroom units rent for HUF 330,000 (€809), and two-bedroom apartments fetch approximately HUF 500,000 (€1,225)—averaging 25% more than older properties in the same area.

With a thriving residential market, strong investor appeal, and rising demand for high-quality living spaces, Cordia’s ambitious 2025 development plan is well-positioned to meet Budapest’s growing housing needs while offering lucrative investment opportunities.

Develia acquires prime Wrocław site for 600-room student housing development

Develia has acquired a plot of land in Wrocław’s city center, where it plans to develop a student dormitory with approximately 600 rooms and two commercial units. The property, located at Plac Orląt Lwowskich, was purchased from a company within the Puro Hotels financial group for PLN 40.6 million.

Karol Dzięcioł, a member of Develia’s management board, emphasized the strategic importance of the location, noting its excellent transport connections to universities and other parts of the city. He highlighted that this investment aligns with Develia’s strategy to diversify its core residential development business. Poland ranks among the leading European countries in terms of student population, yet the availability of student accommodation remains low. The average dormitory coverage rate stands at just 9.4%, with private student housing accounting for only 1.2%—significantly below the levels observed in Western Europe. Dzięcioł pointed out that the PBSA (Purpose-Built Student Accommodation) market in Poland is far from saturation and has strong growth potential.

The newly acquired 3,200-square-meter site is located at Plac Orląt Lwowskich 13-18, just 300 meters from Wrocław’s Świebodzki Railway Station. The sale of the property aligns with Puro Hotels’ revised post-pandemic strategy, which prioritizes expansion into new markets. According to Przemysław Wieczorek, CEO of Puro Hotel Development, the group is focusing on growing its hotel portfolio, with plans to open a second hotel in Warsaw at Canaletta Street 4 in the coming days. Additionally, Puro Hotels is currently developing two properties abroad in Budapest and Prague, with further investments planned.

Develia’s preliminary schedule envisions construction of the Wrocław student dormitory beginning in 2026, with completion expected two years later.

Poland’s economic outlook indicator drops again in January, no signs of imminent recovery

The Economic Outlook Indicator (WWK), which provides early signals on economic trends, declined by 0.6 points in January 2025 compared to December, signaling ongoing economic stagnation. Despite hopes for improvement, key indicators such as new manufacturing orders, corporate investment credit, and mortgage demand show no significant recovery. Inflation remains persistently high, further dampening economic activity.

While stock market sentiment has seen a minor rebound, pushing main indices slightly higher, this uptick is not yet strong enough to confirm a sustained trend.

Among the eight components of the WWK index, three showed slight improvements, three deteriorated, and two remained unchanged. The most significant decline was observed in new order inflows for the manufacturing sector, a trend that has worsened since last spring. In January, the percentage of companies reporting declining orders exceeded those seeing an increase by more than 22 percentage points. Of the 22 industries surveyed by the Central Statistical Office (GUS), only the pharmaceutical sector reported stable demand. The hardest-hit industries include leather production, mineral processing, and metal manufacturing. Additionally, capital goods producers continue to struggle, indicating that a broader economic rebound is unlikely in the near term.

Business leaders’ confidence in their companies’ financial health also deteriorated in January, reversing a brief improvement seen in December. Managers attribute this decline to reduced sales of industrial products, leading to lower revenues, along with rising operational costs, particularly labor expenses.

The real M3 money supply, adjusted for seasonal factors, fell slightly from the previous month, accompanied by a decline in cash circulation. Demand for consumer bank credit, including mortgages, remains weak, highlighting continued caution among businesses and households amid economic uncertainty.

Source: BIEC

Poland’s New General Plan Law: A planning revolution or a bottleneck for development?

A major shift in urban planning is underway in Poland as new legislation mandates that every municipality adopts a general plan, outlining specific planning zones. While the law aims to promote sustainable urban development, experts warn that it may inadvertently reduce land availability, particularly for residential projects, leading to higher housing costs and market distortions.

Under the amendment to the Planning and Development Act, which took effect on 24 September 2023, municipalities have until 1 January 2026 to enact general plans. These plans, now recognized as local law, must define various planning zones, including those designated for multi-family residential, single-family residential, and homestead development.

“The general plans will not replace or amend existing local development plans but will serve as guiding frameworks for future zoning decisions,” explains Michał Zajączkowski, Senior Associate at Wolf Theiss. “However, the new legislation limits the size of areas designated for housing development based on a formula that calculates the future demand for residential space. This could significantly reduce the supply of land available for investment, particularly in areas not yet covered by local development plans.”

Concerns Over Land Supply and Market Impact

Experts predict that as a result of these restrictions, municipalities may effectively prohibit residential development in areas that would otherwise be suitable for housing. By allocating zones for alternative uses or restricting development entirely, cities could see a shrinking land supply for new housing.

According to the Ministry of Development and Technology, 1,500 out of Poland’s 2,477 municipalities have already begun working on their general plans, reporting spatial data to meet the new requirements. This means over 60% of municipalities are actively engaged in restructuring their zoning frameworks.

“The intention behind the amendment was to curb urban sprawl and promote sustainable city development,” notes Anna Herbetko, Associate at Wolf Theiss. “However, instead of considering the actual spatial dynamics of a city, the new law imposes arbitrary limits on residential expansion based on undeveloped land absorption formulas. This may lead to a land supply shortage, fueling price increases. A better approach would be to create incentives for higher-density development while discouraging sprawl through carefully structured infrastructure costs.”

Potential Risks for Property Owners and Local Governments

Beyond limiting new residential developments, the new regulations pose further risks for landowners. Many plots located on the outskirts of cities may not be viable for non-residential projects, nor would they be profitable, making them effectively undevelopable.

“This amounts to a form of planning expropriation,” argues Zajączkowski, “as owners will be unable to develop their land for housing, yet they won’t be entitled to compensation under the law, as no zoning plan is technically being changed or revoked.”

The transition to general plans could also lead to social tensions. In Warsaw, for instance, 55% of the city lacks valid zoning plans, relying instead on outdated planning documents from 2006. As the city races to meet the new legal requirements, residents in districts like Białołęka, Wilanów, and Wesoła have already begun protesting potential restrictions on future development.

“The urgency of implementing these plans raises concerns,” says Herbetko. “If rushed, the process may result in decisions that do not reflect the interests of residents, developers, or landowners. Protests could further delay implementation, leading to even greater uncertainty in the real estate market.”

A Necessary but Flawed Reform?

Few dispute that Poland’s urban planning system needed reform. A 2023 report by the Supreme Audit Office (NIK) highlighted major inefficiencies in the current system, which had been in place since 2003. The report found that previous regulations failed to ensure rational urban development, lacked social oversight, and contributed to spatial chaos—which experts estimate costs Poland more than PLN 83 billion annually.

The old system allowed large residential estates to be built in areas without proper sewage systems, roads, or public transport, forcing municipalities to bear the costs of retroactively providing infrastructure. However, Herbetko and Zajączkowski argue that the new regulations do not introduce effective mechanisms for infrastructure cost recovery, relying instead on the existing betterment levy—a tax that allows municipalities to recover up to 50% of the land’s increased value after infrastructure improvements.

“The reform is well-intentioned but incomplete,” Herbetko concludes. “Without new, more effective ways for municipalities to finance infrastructure, the new system may fail to achieve its goals, instead creating new barriers for development and housing affordability.”

As municipalities work against the clock to implement general plans by 2026, developers, landowners, and policymakers will be closely watching to see whether this legislative overhaul brings clarity and efficiency to urban planning—or exacerbates existing market challenges.

Source: Wolf Theiss

Catella sells Luxembourg office property from Sarasin Sustainable Fund

Catella Real Estate AG (CREAG) has completed the sale of the ‘Rue de Bruyeres 60’ office building in Howald, Luxembourg, on behalf of the fund Sarasin Sustainable Properties – European Cities. The transaction marks a strategic divestment for the fund, which benefited from stable cash flow and positive capital appreciation over a four-year holding period.

The modern, 8,961 sqm office building, developed in 2021 by Lafayette, features six above-ground floors and two underground parking levels, offering 104 parking spaces. The BREEAM ‘Very Good’ certified property integrates high environmental standards, including energy-efficient triple glazing, LED lighting, integrated sun blinds, a rainwater utilization system, and ten charging stations for electric vehicles. The building’s L-shaped design enhances its architectural integration into the rapidly evolving Howald district, which is transitioning from an industrial and retail hub into a thriving mixed-use area.

Located on the south-eastern edge of Luxembourg City, the property benefits from direct access to the A3 motorway and is well-connected to public transport, including the new railway station and Luxembourg’s expanding tram system.

CREAG was supported by Catella IM Benelux B.V. (CIMB) for transactional advisory, while legal, technical, and tax matters were handled by Stibbe, Drees & Sommer, and Deloitte.

Commenting on the transaction, Jaime Sarrà, Senior Investment Manager at CIM, noted: “After a four-year holding period, the SSP Fund successfully secured a stable cash flow for this property. The positive capital gains achieved in a turbulent office market environment are highly valued by our investors.”

Ralph Willems, Senior Acquisition Manager at CIMB, highlighted Luxembourg’s resilience in the European office market: “Luxembourg continues to attract strong tenant demand, particularly from financial institutions and public sector entities. While office assets remain important, we are closely monitoring opportunities in the Benelux region, particularly in the highly sought-after logistics and residential sectors.”

This sale reflects Catella’s ongoing strategy of optimizing its European office portfolio while exploring new investment opportunities in high-demand asset classes.

Union Investment acquires “Panda” office building in Munich’s Werksviertel district

The “Panda” office building in Munich’s Werksviertel district has officially been transferred to Union Investment’s portfolio, following its completion. The acquisition, originally agreed upon in 2021 under a forward funding arrangement, was made jointly for the special real estate fund UII German Prime Select and UII MSI ges. InvKG, the latter managed by Union Investment on behalf of Bayerische Versorgungskammer. The project developer and seller was PANDION AG.

The 45,000 sqm office complex is fully leased on a 15-year contract to the Bundesanstalt für Immobilienaufgaben for use by the German Patent and Trade Mark Office, which relocated 1,500 employees to the building earlier this year.

“Panda is an attractive new addition to our portfolio. Munich topped the German office market in 2024, with take-up exceeding 600,000 sqm, ahead of Berlin. In the Werksviertel district, vacancies stand at just three percent, with prime rents surpassing EUR 40 per sqm. This area is the most dynamic submarket in Munich,” said Alejandro Obermeyer, Head of Investment Management DACH at Union Investment.

Located on the southern edge of the Werksviertel, the former Zündapp production site has been transformed into a modern business hub. The striking architectural design and high-quality office spaces make it a prestigious addition to the area. The location also offers excellent transport connections, with Munich Ostbahnhof—Bavaria’s third-largest railway station—just steps away, alongside multiple underground, S-Bahn, and bus links.

With its prime location and strong leasing fundamentals, “Panda” further strengthens Union Investment’s position in Munich’s thriving office market.

Garbe to develop EUR 23 million logistics hub in Hildesheim district in Lower Saxony

Garbe Industrial Real Estate is strengthening its presence in Lower Saxony, acquiring a 32,000-square-metre plot in Bockenem, approximately 20 kilometres southeast of Hildesheim. The company plans to develop a modern logistics centre spanning 18,500 square metres, with an investment volume of €23 million.

The new facility will be located in the Bockenem-Süd business park, strategically positioned near the A7 motorway, a key north-south transport route connecting Hanover and Hamburg to the north and Kassel, Würzburg, and Ulm to the south. The motorway junction is just a few hundred metres away, ensuring seamless logistics access without requiring vehicles to pass through the town.

“Bockenem’s central location and direct motorway access make it an attractive hub in southern Lower Saxony,” said Adrian Zellner, Member of the Executive Board at Garbe Industrial Real Estate. “This site offers ideal conditions for logistics providers and distribution companies that depend on strong transport links.”

The new development will feature a hall area of 17,000 square metres, complemented by 820 square metres of office space and 790 square metres of warehouse space. It will include 17 dock levellers and two ground-level sectional doors, with parking for 50 cars and four trucks.

Designed to meet KfW 40 energy efficiency standards, the facility will incorporate sustainable energy solutions. A 2-megawatt photovoltaic system will be installed on the roof, and Garbe is exploring the potential use of a nearby biogas plant to generate electricity and heat. The company aims to secure Gold Standard certification from the German Sustainable Building Council.

To enhance flexibility, the property will be divisible into two units. A protective foil will be placed beneath the floor slab to comply with the German Water Resources Act (WHG).

Site preparation will involve levelling height differences of up to nine metres, which must be completed before construction can begin. Discussions with potential tenants are already underway, and negotiations with a prospective user are progressing well, with occupancy expected in 2026.

This project follows Garbe’s previous development in Harsum, north of Hildesheim. That 17,000-square-metre facility in the Nordfeld industrial estate is fully leased to Iron Mountain, a company specialising in document digitisation and archiving.

With this latest expansion, Garbe Industrial Real Estate continues to strengthen its footprint in Lower Saxony, offering sustainable and strategically located logistics solutions.

Urbanity starts transport infrastructure project in Bruntál

Urbanity, a real estate group specializing in premium commercial projects, has commenced the construction of new transport infrastructure in V Tábor Street, Bruntál. The development includes a new access road to the existing industrial zone, which will divert heavy traffic away from residential areas, significantly reducing noise and congestion. The project also features the addition of a new public transport bus stop, improving connectivity for residents.

Urbanity, which obtained a building permit last June for the construction of a modern manufacturing campus in an industrial brownfield in Bruntál, is committed to supporting both the town’s economic growth and the well-being of its residents. “We are thrilled to contribute to Bruntál’s development not only through our modern manufacturing campus, which will connect local talent with international opportunities, but also by upgrading its transport infrastructure. The new road will alleviate truck traffic in residential zones and enhance public transport access, making everyday life better for residents,” said Roland Hofman, Co-founder and CEO of Urbanity.

The project encompasses much more than a new road. It includes utility relocations, public lighting, traffic signage, and a connection to Opavská Street. A key element is the new public transport stop, which will improve mobility for local residents and link the area to other parts of the city. Once completed, the infrastructure will be managed by the City of Bruntál.

Bruntál Mayor Martin Henč praised Urbanity’s efforts, noting the positive impact the project will have on the town. “Through our strong collaboration with Urbanity, the area bordered by the I/11 road and the Olomouc-Opava East railway line is undergoing a significant transformation. The new road aligns seamlessly with the construction of Bruntál’s south-eastern bypass, currently underway. This investment in transport infrastructure is a catalyst for the area’s overall development, and I hope the Urbanity Campus Bruntál will further boost social infrastructure and contribute to our vision of a sustainable and exemplary neighborhood,” said Henč.

Deputy Mayor Petr Rys echoed these sentiments, emphasizing Urbanity’s role as a key partner in Bruntál’s modernization efforts. “Urbanity’s commitment to improving Bruntál’s quality of life is evident in their actions. The new infrastructure will not only reduce traffic in residential areas but also make this part of the city a more attractive place to live,” Rys added.

The V Tábor Street road will also serve as the main access route to Urbanity’s new industrial complex. Beyond enhancing the region’s economic landscape, the project aims to create a modern working environment equipped with amenities for employees and the local community.

Urbanity’s track record includes a similar manufacturing campus in Tachov, which has received numerous awards for its sustainability, architectural design, and community engagement. The group has set equally high aspirations for the Bruntál campus.

Colliers Poland: Tenants ay premium rents for sustainable office buildings

Tenants are increasingly willing to pay higher rents for office spaces in modern, sustainable buildings, driven by energy efficiency and enhanced amenities, according to Colliers’ latest report, “CEE Office Markets on the Green Path – Decarbonisation Potential.” This trend is evident in capital cities across Central and Eastern Europe (CEE), where vacancy rates in certified newer office buildings are significantly lower than in older stock. In Warsaw, for example, the vacancy rate in buildings up to seven years old stands at just 5%, compared to 15% in older properties. Rental rates also reflect this demand, with averages of €17.7/sq m in Prague, €21.0/sq m in Warsaw, and €28.5/sq m in Athens.

Certified Green Buildings Dominate New Construction

The report highlights that nearly all new office buildings in Warsaw (98%) constructed in the last seven years have green certifications, demonstrating a strong commitment to sustainability by developers and tenants alike. Bucharest follows with 93% certified buildings in this age category, while Bratislava and Athens each report 80%. Conversely, Sofia (29%) and Tallinn (38%) lag in the adoption of green certification for newer office spaces.

Warsaw’s office market stands out as a regional leader, offering a total of almost 6.3 million sq m of office space across 566 buildings, with more than 450 of these certified. Even older properties in Warsaw show impressive levels of sustainability, with 90% of buildings aged 8–14 years and 70% of those over 15 years certified. According to Paweł Skałba, Senior Partner at Colliers’ Office Space Department, this commitment to green standards reflects the combined efforts of property owners and tenants to prioritize energy efficiency and align with ESG strategies.

Decarbonisation Challenges and Opportunities

The report underscores that, while green certification is becoming a standard for new office projects in cities like Warsaw and Bucharest, even relatively new buildings (2–3 years old) may require upgrades to meet stricter EU sustainability regulations. In markets with a higher proportion of older, non-certified buildings, such as Bratislava, Budapest, Riga, and Tallinn, significant investments are needed to improve energy efficiency.

In Poland, commercial real estate outside the office sector shows the greatest potential for decarbonisation, highlighting the need for greater alignment with sustainability goals in other types of properties. Monika Dmitruk, Sustainability Manager and Director of Building Advisory Services at Colliers, notes that advancing decarbonisation in older assets presents both a challenge and an opportunity for market growth.

An Investor Magnet

Warsaw’s high percentage of green-certified and energy-efficient office buildings makes it an attractive market for institutional investors. The growing demand for sustainable office spaces has not only reduced emissions but also driven higher rental values, showcasing the financial benefits of green modernization. Skałba emphasizes that Warsaw serves as a prime example of how sustainability can enhance market competitiveness and appeal to global investors.

The report analyzed office markets across key CEE cities, including Bratislava, Bucharest, Budapest, Prague, Sofia, Warsaw, Athens, Riga, Tallinn, Tirana, and Vilnius. The findings underline the importance of sustainability in shaping the future of the region’s office real estate landscape and its potential to deliver long-term value for investors and occupiers alike.

Source: Colliers Poland
Photo’s: Paweł Skałba, Senior Partner at Colliers’ Office Space Department and Monika Dmitruk, Sustainability Manager and Director of Building Advisory Services at Colliers

Slovak industrial producer prices decline in 2024, while farmers and construction see varied trends

Industrial producers maintained a downward trend in prices in December 2024, closing the year with a significant year-on-year decline. Meanwhile, agricultural producers saw their prices rise for the third consecutive month, and construction firms posted moderate price increases for services, though material costs fell slightly.

Industrial Producer Prices: A Steep Decline in 2024

Industrial producer prices for the domestic market in December 2024 were 7.1% lower compared to the same month in 2023. Among the 16 industrial sectors, only five recorded price decreases, but the significant drop in energy prices—by more than 19%—was enough to drive the overall decline in average industrial prices. On a month-to-month basis, however, prices rose by 1.3%.

For the full year, industrial producer prices for the domestic market fell by an average of 10.1%. This decrease was reflected in 10 of the 16 sectors, with electricity, gas, and steam supply experiencing a sharp 22% reduction. Other notable declines included prices in the manufacture of coke and refined petroleum products (down 5%), the wood and paper industries, the chemical sector, and the manufacture of computers and electronics.

In contrast, industrial producer prices for the non-domestic market saw a slight year-on-year increase of 0.6% in December. Month-on-month, these prices rose by 0.1%. However, on average for 2024, prices in this segment were 1.1% lower compared to 2023.

Agricultural Product Prices: Rising but Slowing Growth

Agricultural prices continued their upward trajectory in December 2024, with farmers selling products at prices 4.7% higher than in December 2023. Crop product prices rose by 2.8% year-on-year, driven by cereals (+12.9%), legumes (+21.9%), and oilseeds and fruits (+15.4%). However, some segments experienced declines, with vegetable prices dropping by 15.9% and potatoes by 8.9%.

Prices for animal products increased by 8.1% in December, with notable rises in slaughter cattle and hen eggs (both over 10%) and cow’s milk (+6.7%).

For the full year, agricultural product prices declined by 3.4%, with crop product prices falling 5.1% and animal product prices decreasing by 0.9%. Cereals saw a significant price reduction of over 10%, while legumes experienced a more moderate decline. Conversely, vegetables and potatoes saw price increases of more than 10% over the year. Livestock products like milk, sheep’s wool, and eggs experienced price decreases for most of the year, though egg prices surged sharply in the final months of 2024. Prices for slaughter cattle, pigs, sheep, and fish rose compared to 2023.

Construction Prices: Moderate Increases

Prices for construction work rose by 4.1% year-on-year in December 2024, the lowest growth rate since mid-2021. On a month-to-month basis, prices increased by 0.7%. For the entire year, construction work prices rose by 5.4%.

Material prices used in construction showed a slight upward trend in December, increasing by 0.8% compared to November and 2% year-on-year. However, for the whole of 2024, material prices declined by 0.6% on average.

Key Takeaways

2024 was marked by significant declines in industrial producer prices, especially in energy and manufacturing sectors, reflecting broader global trends in supply chain adjustments and energy markets. In agriculture, prices displayed mixed dynamics, with certain sectors such as cereals and legumes experiencing sharp declines, while others like vegetables and livestock products saw gains. Construction prices remained stable, with modest increases for services offset by slight reductions in material costs.

As these trends develop into 2025, the interplay between global economic conditions, local market dynamics, and sector-specific factors will likely shape the trajectory of prices across these industries.

Source: Statistical Office of the SR

« Previous 1 … 404 405 406 407 408 … 495 Next »

Latest news

All posts by fletcher@cijeurope.com.