AVICO launches new residential project with green urban space in Angyalföld

AVICO Group has begun development of a new residential complex, Spring Garden, located in one of the greener areas of Angyalföld in Budapest’s 13th District. The project includes 218 residential units and incorporates a large urban park that will connect the buildings to the nearby Rákos Stream.

The development site is on Szent László Street, in a suburban-style neighbourhood with access to green spaces and within reach of the city centre. The U-shaped building will open toward the landscaped streamside area, creating direct access for residents to the newly rehabilitated green zone.

Spring Garden is designed to include modern one- to five-room apartments, most with balconies or terraces. Ground-floor homes will feature private gardens. The architectural plan incorporates light-coloured facades, glass surfaces, and metal railings to maximise light and maintain privacy. Sustainability features, such as green roofs and a heat pump-based cooling system, are part of the project.

AVICO’s design places emphasis on the connection between built and natural environments. Landscape elements will include a large inner courtyard with walking paths, seating areas, and communal spaces. A fitness room will also be located within the complex. The development will include 259 parking spaces, 206 storage rooms, and electric vehicle charging points, along with bicycle storage.

The project follows AVICO’s recent developments in Budapest, including Univery in Józsefváros and GreenTop and BlueSide in Angyalföld. The company has been active in the residential market in Hungary for over two decades and has delivered more than 1,700 apartments to date. Ongoing and upcoming projects include the construction of an additional 620 flats in the capital.

“With Spring Garden, we are creating a residential park that offers not only homes but a genuine green urban park for its residents. From the beginning, we focused on achieving harmony between the built and natural environments, so that people can enjoy both the benefits of modern technology and a peaceful, landscaped green setting,” emphasized Ákos Rónai, Sales Director of AVICO Group.

Spring Garden is designed with future adaptability in mind. The flats will be prepared for the integration of smart home technologies, such as remote-controlled systems for heating, cooling, and lighting.

AVICO’s current developments reflect a continued focus on mixed-use, resident-friendly environments that integrate residential buildings with outdoor green spaces and modern infrastructure.

Jana Gerhátová joins P3 Logistic Parks as Marketing Manager for Czech Republic and Slovakia

P3 Logistic Parks has appointed Jana Gerhátová as Marketing Manager for the Czech Republic and Slovakia. In this role, she will oversee marketing efforts aimed at strengthening the company’s position as a long-term investor in sustainable industrial real estate with a focus on customer service.

Gerhátová brings six years of experience in the property development sector. At Crestyl, a residential developer, she was responsible for communications and community engagement in the DOCK and Hagibor projects. Before that, she worked at Skanska, where she contributed to launching office branches under the Business Link brand.

Brendan Donnellan, Group Marketing Director at P3 Logistic Parks, noted that Gerhátová’s experience and results-oriented mindset will support the company’s activities in its key markets.

P3 currently owns and manages 96 industrial buildings across 16 parks in the Czech Republic and operates six additional parks in Slovakia.

Commenting on her appointment, Gerhátová said she welcomes the opportunity to apply her previous experience to the industrial development sector and looks forward to new projects and collaboration with her colleagues.

In addition to her professional background in communications and event implementation at international firms, Gerhátová has spent time working abroad. Outside of work, she enjoys travelling, running, and reading.

Polish business sentiment improves slightly in April as optimism holds

Business sentiment among Polish entrepreneurs improved slightly in April, according to the latest Monthly Economic Index (MIK) published by the Polish Economic Institute. The index rose to 102.9 points, up 1.2 points from March, matching February’s figure and continuing a five-month streak above the neutral 100-point threshold. Compared to April 2024, the index is 2.6 points higher.

The April reading reflects a broadly optimistic outlook, with four of the seven measured components—sales value, employment, wages, and financial liquidity—remaining above the neutral level. The data also shows increases in the indicators for sales value, new orders, and investment activity.

Gains in Sales and Investment, Despite Mixed Sector Results

April’s increase was driven by positive movements in key areas such as sales and investment. The sales value indicator climbed by 7.3 points month-on-month to reach 101.8, its highest since November 2023. New orders rose by 4.9 points to 96.7, while the investment index reached 90.6—its strongest result since November 2023—marking a 5.9-point monthly gain and a year-on-year improvement of over 21 points.

Although several indicators remain above the neutral level, others showed declines. The wage index fell by 6.5 points to 110.6, its lowest level so far in 2025. Employment also decreased, dropping 2.4 points month-on-month to 100.8. Financial liquidity dipped slightly, down 2.3 points from March to 121.1.

Sectoral Breakdown and Economic Context

According to Dr. Katarzyna Zybertowicz from the Polish Economic Institute’s foresight team, current MIK readings suggest economic stability. She points to a steady unemployment rate (5.4% in February), and real wage growth outpacing inflation (4.9% in March) as signs of resilience. The industrial sector’s PMI of 50.7 also indicates moderate improvement.

Sector-wise, companies in manufacturing, construction, and transport-logistics (TSL) reported more positive sentiment. However, service and trade sectors recorded MIK readings below the neutral threshold, reflecting lower activity and weaker demand in early 2025.

Operating Costs Remain Primary Challenge

Rising employee costs continue to be the most commonly reported challenge for businesses, cited by 69% of respondents—unchanged from March. Other concerns saw slight increases: economic uncertainty was mentioned by 60% of firms, unavailability of staff by 45%, payment delays by 44%, and financing costs by 34%.

Energy prices were less of a concern in April, with the share of firms flagging it as a barrier falling by 4 percentage points to 51%. Similarly, complaints about product unavailability dropped slightly to 17%.

Industry-specific responses revealed differences: TSL companies more frequently cited high employee costs, uncertainty, payment delays, and financing costs. Service firms expressed particular concern over energy prices (64%), while construction firms were more affected by staff shortages (60%). Manufacturing (24%) and retail (21%) were least concerned about personnel availability.

Source: PIE

Businesses brace for trade war fallout as tariff uncertainty rises

Growing global trade tensions are prompting businesses to reassess their risk strategies, with rising tariffs and geopolitical uncertainty leading to a sharp increase in demand for credit insurance. Recent trade measures announced by the United States are reshaping global supply chains and heightening concerns about payment defaults and business insolvencies.

President Trump’s 2025 tariff policies—including a universal minimum tariff and increased rates for selected countries—have pushed the average US tariff rate to levels not seen in over a century. While a temporary halt in tariffs was granted to several trade partners, others, including China, face significant increases, with some duties rising to 125%. The lack of clarity on future measures is adding to market uncertainty.

Industries with complex international supply chains—such as machinery, motor vehicles, and electronics—are expected to be the most affected. Global growth projections for these sectors have already been revised down, with machinery forecast to lose 5 percentage points of growth in 2025–2026. Domestically focused sectors like food and beverage are less directly exposed but are likely to feel the impact of broader economic consequences, including rising prices and declining consumer demand.

The narrowing gap between the announcement and implementation of tariffs has left businesses with limited time to prepare. As a result, many are turning to credit insurance as a protective measure. Insurers anticipate increased demand for short-term policies, though the longer-term implications remain uncertain due to policy volatility and the potential for a broader economic slowdown.

According to Atradius, global trade growth forecasts have been adjusted downward to 2.5% for both 2025 and 2026, compared to previous estimates of 3.3% and 3.0%. Tariffs are expected to weigh on demand and deter investment, especially in capital-intensive industries. The resulting inflationary pressures could also lead to tighter monetary policy, further raising costs for businesses.

Credit insurers report a growing expectation of claims, particularly in sectors such as automotive, construction, and commodities. The Berne Union’s latest survey shows an anticipated rise in payment defaults, reflecting the increased strain on businesses already facing sluggish growth and existing financial pressures.

Despite the challenging environment, some trade activity is expected to continue in the short term, albeit along rerouted supply chains. Credit insurance is seen as a vital safeguard, offering businesses greater confidence as they navigate uncertain conditions. However, the broader picture remains cautious, with many companies adopting a “wait and see” approach, delaying investment and avoiding major new commitments.

As trade dynamics shift, the role of credit insurance in managing commercial risk is likely to become increasingly central. The ongoing tension between major economies, combined with rising protectionism, is creating a fragile trade environment that demands careful planning and financial protection.

Source Author: Silvia Ungaro, Senior Advisor, Atradius N.V.

GCC corporate earnings show mixed performance in Q4 and full year 2024

GCC Corporate Earnings Show Mixed Performance in Q4 and Full Year 2024

The fourth quarter of 2024 saw a slowdown in corporate earnings across the Gulf Cooperation Council (GCC), as a decline in energy and utilities sector profits weighed on overall results. According to Kamco Invest’s Q4 2024 report, aggregate net profits for GCC-listed companies dropped 5.0% quarter-on-quarter to USD 57.3 billion—marking a three-quarter low. However, compared to the same period in 2023, profits were up by a marginal 2.0%.

Country-Level Breakdown

Oman led the region in year-on-year Q4 profit growth at 83.4%, followed by Bahrain (43.2%) and Kuwait (37.1%). Saudi Arabia, the region’s largest market, posted modest growth of 3.1%, while Dubai and Qatar saw earnings rise around 20%.

For the full year 2024, total net profits across the GCC declined 1.4% to USD 241.1 billion. This marks the second consecutive annual drop, driven mainly by declines in Saudi Arabia and Abu Dhabi, which offset gains in Dubai, Qatar, and Kuwait.

Sector Performance
• Energy: The energy sector experienced the steepest decline in Q4, with profits falling 16.6% year-on-year to USD 25.7 billion. For the full year, Saudi Aramco’s profit alone declined 13.0% to USD 105 billion due to lower crude oil prices and refining margins.
• Utilities: The sector posted a net loss of USD 1.3 billion in Q4, largely due to increased losses at Saudi Electricity Co., which reported a Q4 loss of USD 2.0 billion.
• Telecoms: This sector recorded the strongest year-on-year growth in Q4, up 171.0% to USD 5.3 billion, mainly due to gains from Saudi Telecom Co. Annual profits in the telecom sector rose 78% across the GCC.
• Banking: Banks in the region saw a 16.2% increase in Q4 earnings to USD 14.4 billion. Full-year banking sector profits reached USD 60.1 billion, a 10.3% increase year-on-year, with gains spread across all markets except Bahrain.

Country Highlights
• Kuwait: Full-year profits grew 7.1% to USD 9.1 billion. The banking sector contributed the most, led by National Bank of Kuwait and Commercial Bank of Kuwait. Real estate and diversified financials also showed strong performance.
• Saudi Arabia: FY 2024 profits dropped 3.2% to USD 150.9 billion. The energy sector was the main drag, while banks and telecoms (particularly STC and Mobily) posted robust growth.
• Dubai: Companies listed in Dubai recorded a 16.0% profit increase to USD 25.4 billion in 2024, driven by the banking, real estate, and utilities sectors. Emaar and Dubai Islamic Bank were among the top performers.
• Abu Dhabi: Profits fell 7.1% year-on-year to USD 36.2 billion. The drop was mainly due to a sharp decline in the Food, Beverage & Tobacco sector. Banks in Abu Dhabi, however, posted strong growth.
• Qatar: FY 2024 earnings rose 8.5% to USD 14.1 billion, thanks to solid performances from the banking and energy sectors. QNB and Qatar Islamic Bank led the gains.
• Bahrain: Annual profits declined by 12.5% to USD 2.0 billion due to lower banking sector earnings. However, the materials sector, led by Aluminum Bahrain, posted strong growth.
• Oman: Oman’s listed companies saw a 13.7% drop in full-year earnings to USD 3.4 billion, mainly due to a 43.8% decline in energy sector profits. However, banking and utilities showed notable growth.

Outlook

While banking and telecom sectors helped stabilise regional earnings in 2024, volatility in energy prices and cost pressures in utilities affected overall performance. The report suggests that sector-specific developments and macroeconomic conditions will continue to shape earnings in 2025.

Source: GCC Corporate Earnings Report – Q4 2024, Kamco Invest.

HelloParks begins construction on two new logistics halls near Budapest

HelloParks has launched construction on two new logistics facilities in Fót and Páty, located north and west of Budapest, respectively. Together, the new developments will add approximately 88,000 square metres of industrial space to the company’s national portfolio. Upon completion, HelloParks will operate 11 buildings across its megapark network by the end of 2025.

The new buildings are being constructed in response to sustained demand, with existing warehouses at both sites nearing full occupancy. The facilities are being developed to comply with the highest sustainability standards, including BREEAM’s “Outstanding” certification and the requirements of the EU Taxonomy for sustainable activities.

At the Páty site, located in the western agglomeration of Budapest, construction of the fourth building (PT5) is progressing, with structural work completed and concrete flooring next in line. The 42,000 sqm BigBox facility is scheduled for delivery in Q3 2025. Once finished, it will increase the total industrial space in HelloParks’ Páty megapark to 184,000 sqm. The park currently has an 84% occupancy rate and is home to companies such as dm-Drogerie Markt, DHL, Gebrüder Weiss, and Transdanubia. The 87-hectare park is situated near key motorway connections including the M1, M0, and M7.

In Fót, to the north of Budapest, groundwork has begun on the FT3 warehouse, a 46,000 sqm BigBox unit expected to be completed by the end of 2025. Once operational, the Fót megapark will comprise four buildings with a combined total of 164,000 sqm of leasable space. The location, adjacent to the M0 and M3 motorways, currently hosts tenants such as BYD and Samsung. The park has capacity for up to 254,000 sqm of industrial space, and all completed buildings have achieved EU Taxonomy compliance.

HelloParks’ broader development strategy includes megaparks in Fót, Páty, Alsónémedi, and Maglód, with all new properties built according to BREEAM and EU Taxonomy standards. Five buildings in the company’s portfolio have received BREEAM’s highest “Outstanding” rating, and two others are rated “Excellent.”

Both FT3 and PT5 will incorporate features such as heat pump-based heating and cooling, rooftop solar panels, and advanced building management systems to improve energy efficiency and monitor building operations. The facilities will also include water and energy infrastructure capable of detecting leaks and tracking utility usage.

Tenants will have access to HelloParks’ mobile application, which connects with the building management systems and enables remote control of HVAC, lighting, and other operational settings.

According to the company, development activity is aligned with demand, and the focus remains on providing modern, energy-efficient industrial spaces that support long-term operational needs.

Construction progresses on L33 office building in Ljubljana, completion expected in early 2026

Construction is underway on the L33 office building located on Letališka cesta 33 in Ljubljana, with completion and handover expected between the fourth quarter of 2025 and the first quarter of 2026. The project, managed by Alfi RE and marketed by Colliers, has received its building permit and is progressing according to the planned timeline.

The development will offer 9,731.9 square metres of leasable office space across two underground levels, a ground floor, and five upper floors. A total of 151 parking spaces will be available, including underground and outdoor options. The building is targeting a DGNB Gold certification for sustainability, aimed at reducing operating costs for tenants.

The site is located near major transport routes and amenities. It is approximately 500 metres from Ljubljana’s ring road and just over a kilometre from BTC City, a major shopping and business hub. Public transport connections, restaurants, and parking facilities are all within close proximity.

The L33 office building is designed with flexible floor plans to accommodate various tenant needs. Features include a low add-on factor, economically competitive terms, and the possibility of early access in late 2025.

The project is backed by Alfi RE, Slovenia’s largest alternative real estate fund, with a portfolio valued at EUR 155 million and 16 properties across the country. The fund will retain responsibility for property management following project completion.

Colliers is currently accepting expressions of interest from prospective tenants. Interested parties are asked to indicate their preferred rental area, number of parking spaces, desired move-in date, and company details to receive a tailored offer.

France’s consumer prices edge up in March, annual inflation steady at 0.8%

France’s Consumer Price Index (CPI) rose by 0.2% in March 2025 compared to the previous month, following a stable reading in February, according to final data released by INSEE. On an annual basis, the inflation rate remained unchanged at 0.8%.

The monthly increase in prices was driven mainly by seasonal factors, notably higher prices for manufactured goods (+1.1%), especially clothing and footwear (+5.7%). Food prices also rose slightly (+0.3%) after a minor decline in February, while service prices remained stable. Energy prices, however, continued to fall, decreasing by 1.5% month-on-month, largely due to lower petroleum product costs.

When adjusted for seasonal variations, consumer prices fell by 0.2% in March, following a 0.5% drop in February.

Year-on-Year Trends

On an annual basis, headline inflation was held at 0.8% for a second consecutive month. This figure reflects a mix of contrasting price movements across major categories:
• Energy prices declined by 6.6% year-on-year, led by drops in diesel (–7.8%), petrol (–7.2%), and electricity (–12.8%). In contrast, gas prices increased sharply by 18.9%.
• Manufactured product prices fell by 0.2%, with health products declining by 1.4%. Clothing and footwear saw a modest rise of 0.5%.
• Service prices increased by 2.3%, largely driven by insurance costs, which rose 11.6%. Other service categories such as accommodation and cultural services recorded slower price growth.
• Food prices saw a slight acceleration to +0.6% annually, supported by higher prices for fresh produce (+3.8%). Non-fresh food items saw smaller increases, while dairy products posted a continued but slowing decline (–0.8%).

Core Inflation and HICP

Core inflation, which excludes volatile items such as energy and fresh food, remained stable at 1.3% year-on-year. The Harmonised Index of Consumer Prices (HICP), used for EU comparisons, also increased by 0.2% month-on-month and remained at 0.9% annually.

Revised Figures

The final CPI and HICP figures for March confirmed the provisional estimates released at the end of March, with no revisions in either the monthly or annual inflation rates.

Source: Insee

Construction costs in Sweden show slight monthly increase, annual decrease in March 2025

In March 2025, Sweden’s Construction Cost Index (CCI) for multi-dwelling buildings experienced a modest month-on-month rise of 0.4%, while registering a 0.3% decrease compared to March 2024. This marks the second consecutive month of annual decline, following a 0.6% drop in February.

Monthly Developments

The monthly uptick was primarily driven by a 0.6% increase in contractors’ costs, which constitute 82% of the total index. In contrast, construction clients’ costs, accounting for the remaining 18%, decreased by 0.3%.

Within contractors’ expenses, the ‘transport, fuel, and electricity’ category saw a 1.9% increase, with electricity prices rising by 5.4% and diesel oil by 3.3%. Building material costs also went up by 0.8%, notably with painting materials increasing by 8.5% and wood products by 2.7%.

Annual Trends

Year-over-year, contractors’ costs rose by 2.8%, while construction clients’ costs declined by 10.5%, influenced by a 23.5% reduction in interest expenses. Among building materials, wood products and painting materials experienced the most significant annual increases, at 9.3% and 8.4% respectively.

These figures suggest a stabilization in construction costs, with material prices exerting upward pressure, while reduced financing costs for clients contribute to the overall annual decrease.

Source: SCB-Statistics Sweden

Christoph Schmidt appointed Managing Director of Drees & Sommer Hungary

Drees & Sommer, an international consulting firm specialising in real estate, industrial, and infrastructure projects, has appointed Christoph Schmidt as the new Managing Director of its Hungarian operations. He takes over from Philipp Gansch, who will now focus on corporate and business development across several European markets, including Hungary, as part of the Drees & Sommer Group partnership.

Schmidt will work alongside Ákos Koloszár, who continues to manage the company’s activities in Hungary. In his new role, Schmidt will focus on leading industrial projects, with an emphasis on the automotive sector, while also contributing to the company’s broader regional and international project coordination.

Before this appointment, Schmidt served as Lead of Automotive for Central and Eastern Europe (CEE) and Austria. His work has included projects in automotive production, retail, and mobility for both global brands and local firms. Since joining Drees & Sommer in 2017, he has primarily worked with the Austrian branch as a Senior Project Manager, managing industrial and real estate projects and maintaining relationships with key accounts.

Drees & Sommer’s services in Hungary include support in process and plant planning, Smart Factory supply concepts, business case analysis, digitalisation strategies, and e-mobility infrastructure. The company operates in both greenfield and brownfield development contexts, providing advisory and implementation services across sectors.

Schmidt stated that his goal is to strengthen Drees & Sommer’s presence in Hungary’s automotive and industrial sectors by drawing on experience from Germany and Austria, while tailoring solutions to meet the specific needs of the Hungarian market.

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