Passerinvest to invest CZK 21 billion in Prague development by 2029

Passerinvest Group has announced a long-term investment plan worth CZK 21 billion aimed at expanding and reshaping two major areas in Prague: Brumlovka and Roztyly. By the end of 2029, the developer intends to bring 180,000 square metres of new office, residential, and retail space to the market, alongside 5.5 hectares of revitalised public areas including parks, water features, and leisure zones.

The investment includes the construction of four new office buildings, two of which will also include a total of 200 rental apartments and commercial space. In addition, a separate residential project with 650 housing units for both sale and rent is planned. According to the company, this ongoing development will be the largest private investment in Prague 4 and is expected to contribute to the broader economic growth of the region.

A key part of the strategy was established in 2024 with the launch of the Hila project in Brumlovka. Spanning 27,000 square metres, this development combines office space, rental housing, and retail in a horizontally structured format. Completion is expected between late 2026 and early 2027.

The company has also received a building permit for Orion, a 28,000 square metre mixed-use building in Brumlovka. The structure, currently in the early stages of construction, will integrate office, residential, and retail spaces. Sustainability features include heat pumps, geothermal boreholes, photovoltaics, and advanced air ventilation systems. The building will also feature green roof terraces and landscaped public areas, such as a new pedestrian corridor inspired by San Francisco’s Lombard Street. Orion is designed to meet LEED Platinum certification, PENB A rating, and EU Taxonomy requirements.

Passerinvest recently completed a major land acquisition in Brumlovka after 25 years of negotiations, paving the way for future office development and public space enhancements. The company also received the highest rating—three stars—from the American Fitwel certification system, making Brumlovka the first location in the EU to achieve this distinction. The certification, based on thousands of academic studies, recognises developments that promote user well-being, environmental sustainability, and accessible urban infrastructure.

In addition to Brumlovka, Passerinvest is continuing development in Roztyly. In 2024, it completed the 23,000 square metre Roztyly Plaza office building and secured a permit for the 33,000 square metre Sequoia building, which is now under construction. Sequoia will offer eleven floors of office space and integrate energy-efficient technologies such as pumped-storage heat systems, heat pumps, radiant ceilings, air ionisers, and photovoltaics.

A residential component, the Arboretum project, is also planned in Roztyly, providing approximately 400 apartments for sale and 250 for rent. Across both locations, the developer will enhance 5.5 hectares of public areas with parks, sports fields, playgrounds, and water features, aligning with the goal of creating accessible, multi-functional urban districts.

Eduard Forejt, Business Development Director at Passerinvest, highlighted that tenants and residents increasingly prioritise high-quality working environments, flexible space usage, and access to a full range of amenities. The company’s developments are designed to accommodate these needs by offering integrated solutions for work, living, recreation, and education within a single urban framework.

Veleslavín Castle to be auctioned again, price lowered to CZK 303.45 million

The Office for the Representation of the State in Property Matters (ÚZSVM) will offer Veleslavín Castle for sale for the fifth time in an electronic auction beginning on 6 May at 10:00 a.m. The starting price has been reduced to CZK 303.45 million, down CZK 53.55 million from the most recent attempt in March. Previous auctions attracted no bidders.

Those interested in participating must submit a deposit of CZK 15 million by the day before the auction begins. Bids can be placed in increments of at least CZK 50,000 during the 24-hour auction period. If the auction is successful, the capital city of Prague and the Prague 6 district will be given the opportunity to match the highest bid.

The state previously proposed including Veleslavín Castle in a real estate exchange with the city, but the negotiations did not result in a deal. A request from the city for the property to be transferred without payment was rejected. Although the property’s price has steadily declined from an initial CZK 580 million, earlier offers to the city and Prague 6 were declined on the grounds that the valuation was still too high.

Veleslavín Castle, which includes a historic park, spans approximately three hectares and dates back to around 1725. It was designed by architect Kilián Ignác Dientzenhofer for Empress Amalia of Brunswick. In the early 20th century, the site served as a neurological sanatorium established by Leo Kosák and Oskar Fischer, a co-discoverer of Alzheimer’s disease. Notable patients included Charlotta Garrigue Masaryk and Milena Jesenská.

The property was nationalized after the 1948 communist coup and later rented out to various institutions. It has been under the administration of ÚZSVM since 2015, following its transfer from the Ministry of Labour and Social Affairs. The last major renovation of the complex took place in 1986. Currently, parts of the site are on loan to Prague 6, which opened some of the premises to the public last year.

ÚZSVM is currently offering 47 state-owned properties for sale via public auctions. The most expensive property on offer is the Štiřín Chateau in Central Bohemia, listed at CZK 982.6 million and scheduled for auction next week. In March, the office completed the sale of the U Hybernů House in Prague for CZK 447 million, marking the second highest sale in the agency’s history.

Source: CTK
Photo: Wikidata

REICO Real Estate Fund expands rental housing portfolio with new project in Prague

REICO Real Estate Fund of ČS (REICO RN) has acquired another residential rental project as part of its ongoing expansion in the housing segment. The fund has entered into an agreement with developer FINEP to purchase the Stodůlky Residential project, located in the Western City area of Prague. This is the fund’s second rental housing investment and aligns with its strategy to diversify and stabilize its portfolio in response to real estate market fluctuations.

According to Dušan Sýkora, Chairman of the Board of Directors of REICO IS ČS, the expansion into institutional rental housing addresses a previously absent component in the fund’s portfolio. He notes that, beyond improving portfolio stability through diversification, residential rental assets offer a dual benefit—steady rental income and potential long-term capital appreciation.

The Stodůlky Residential project is part of FINEP’s British Quarter development and will include three residential buildings (A, B1, and B2), comprising a total of 219 apartments across 10,400 square metres of floor space. The site is located near the Stodůlky metro station on line B and is approximately 14 kilometres from Václav Havel Airport. Construction is scheduled to begin in April 2025, with occupancy expected within three years.

FINEP CEO Tomáš Pardubický described the British Quarter as an example of long-term, planned urban development. He stated that the partnership with REICO and investment company Ungelt Group, which is also involved in the project, reflects growing confidence in the rental housing sector. According to Pardubický, rental housing is not only a market opportunity but also a response to changing social needs, offering flexibility, accessibility, and security to residents.

Ungelt Group, which specializes in development and real estate investment, has a history of collaboration with FINEP and will again participate in the project. Dušan Prchlík, a partner at Ungelt, emphasized the importance of delivering housing that meets current standards of quality and sustainability.

REICO RN, established in 2007, is the largest and oldest Czech real estate fund, focusing on conservative investment strategies. Its current portfolio includes 20 properties—nine in the Czech Republic, six in Slovakia, and five in Poland—with a total market value nearing CZK 38 billion. As of the end of March 2025, the fund had approximately 140,000 shareholders and reported a 12-month return of 4.38%.

Poland BIK reports strong growth in housing loan inquiries in March 2025

The BIK Index of Demand for Housing Loans indicates a 33.3% year-on-year increase in the value of loan inquiries in March 2025. This means that, on an average working day in March, banks and credit unions submitted housing loan inquiries to BIK that were over one-third higher than in the same month last year.

The BIK Index measures changes in the total value of housing loan applications submitted by individual clients compared to the same period in the previous year. It serves as a key indicator for analysts and financial institutions, offering insight into housing loan market trends and helping forecast credit demand in the coming months.

In March 2025, 36,940 people applied for housing loans, up from 29,650 a year earlier—an increase of 24.6%. Compared to February 2025, the number of applicants rose by 11.6%. This marks the highest level of activity since January 2024.

The average housing loan amount applied for in March reached PLN 460,100, a 7.0% increase from the previous year and 2.4% more than in February.

Dr. hab. Waldemar Rogowski, Chief Analyst at BIK Group, explained that the significant rise in the March index should be viewed in the context of last year’s lower base. In early 2024, housing loan demand had slowed due to the expiry of the “Safe 2% Loan” program in December 2023 and anticipation surrounding the launch of a new government support initiative.

Rogowski noted that the increasing number of applicants suggests renewed interest in the housing market. This appears to be influenced by falling prices in the secondary housing market and growing impatience among prospective buyers awaiting the new support program. He also pointed out that the number of loan applicants may be higher because more applications are being submitted jointly, rather than individually, which increases the number of inquiries recorded.

The rising average loan amount is another key factor behind the increase in the Index. March 2025 saw a record high in this metric, suggesting that borrowers are increasingly applying for loans to finance more expensive properties. According to Rogowski, this trend is driving a greater share of joint applications and will likely support further growth in housing loan demand in the coming months.

House prices and rents continued to rise in the EU in late 2024

House prices and rents in the European Union continued to increase in the fourth quarter of 2024, according to data released by Eurostat. Compared to the same quarter in 2023, house prices rose by 4.9%, while rents increased by 3.2%. On a quarterly basis, house prices went up by 0.8% and rents by 0.6% compared to the third quarter of 2024.

Over the long term, both indicators show significant growth. Since 2010, house prices in the EU have increased by 55.4%, while rents have risen by 26.7%. The trend for rents has been relatively steady, but house prices have shown more variation, particularly with a marked rise from early 2015 until late 2022. This was followed by a brief period of stabilization before prices began climbing again in 2024.

National data reveals substantial differences across countries. Between 2010 and the end of 2024, house prices increased more than rents in 21 EU member states with available data. The largest increases in house prices were recorded in Hungary (+234%) and Estonia (+228%), with other countries such as Lithuania, Latvia, Czechia, Portugal, Bulgaria, Austria, and Luxembourg also seeing their house prices more than double. In contrast, Cyprus saw no change in house prices over the period, and Italy was the only country to experience a decline, with a 4% drop.

Rent prices also rose in 26 EU countries between 2010 and 2024, with Estonia (+212%), Lithuania (+175%), and Hungary (+114%) showing the highest increases. Greece was the only country to record a decrease in rent prices, falling by 13% over the same period.

These figures highlight ongoing upward pressure in the European housing market, both in ownership and rental segments, with notable differences between countries in terms of price evolution over the past decade.

Source: EUROSTAT

Retail turnover in Slovakia declines in February after over a year of growth

Retail turnover in Slovakia recorded a year-on-year decline in February 2025, marking the first decrease since January 2024. According to data from the Statistical Office of the Slovak Republic, retail turnover fell by 2.6% compared to February of the previous year. On a month-to-month basis, after seasonal adjustment, turnover declined by 0.8%.

The downturn affected nearly all segments of the retail trade, with eight out of nine components reporting lower turnover. The most significant decreases were seen in fuel sales, which dropped by 9.8%, and in stores selling household goods such as furniture, electronics, and hobby supplies, where turnover fell by 9.5%.

Hypermarkets and supermarkets, which represent the largest share of total retail turnover, experienced only a slight decline of 0.4%. A more notable decrease of over 20% was reported in specialized stores offering cultural and recreational goods such as books, sports equipment, and toys. Despite their smaller share in total turnover, this group saw the sharpest decline.

The only retail segment to show growth was specialized stores selling textiles, footwear, drugstore items, and pharmaceuticals. These stores recorded a 5.3% year-on-year increase in February, continuing a trend of positive performance since October 2023.

Overall, retail turnover in Slovakia decreased by 0.9% during the first two months of 2025 compared to the same period in 2024.

In other areas of internal trade, wholesale was the only component to show growth in February, with turnover increasing by 6.6% at current prices. Meanwhile, turnover declined in the sale and repair of motor vehicles and motorcycles by 9.6%, in accommodation services by 4%, and in food and beverage services by 3.4% (all measured at constant prices).

Month-on-month figures showed a mixed performance. After seasonal adjustment, turnover rose in the sale and repair of motor vehicles by 7.1%, in wholesale by 1%, and in accommodation by 6.2%. Conversely, food and beverage services saw a decline of 2.6%.

Cumulatively, for the first two months of 2025, wholesale turnover increased by 6%, accommodation services grew by 0.6%, and food and beverage service activities rose by 1% year-on-year. In contrast, turnover in the sale and repair of motor vehicles dropped by 8.4%.

Source: Statistical Office of the SR

Sekyra Group nears completion of first phase on Rohanský Island development in Prague

Sekyra Group is nearing the completion of the first phase of its large-scale urban development project on Rohanský Island in Prague. The developer has finalized construction of four residential buildings and one office building. The current phase will conclude later this year with the addition of three more buildings. At the same time, work on the second phase of the project is scheduled to begin, comprising four new residential blocks and three office buildings.

The project, located near the city center, began in 2021. The four completed residential buildings offer a total of 220 apartments. The finished office building, Arché, designed by architect Eva Jiřičná, now serves as the headquarters of Sekyra Group. A second office building, which will house Creditas Bank, is set to begin construction this year and was designed by architect Jakub Cígler.

Also planned for this year are two residential towers that will complete the first phase of the project. The second phase will begin with the construction of four residential blocks near the city center, some of which will be designated for rental housing. In addition, three office buildings are to be built along the Rohanský waterfront, with completion targeted for 2028.

Sekyra Group plans to complete the entire district by 2035. The development is expected to provide housing and employment for around 11,000 people, with total investment estimated at CZK 25 billion. The district will also include green spaces, a central square, and a school. A key feature will be a one-kilometre-long promenade along the waterfront, designed as a central public space for the community.

The naming of the streets and public spaces in the new district will reflect a philosophical theme. Streets have already been named after Jan Sokol, Radim Palouš, and Ludwig Wittgenstein. Additional names will include philosophers such as Immanuel Kant, Jacques Derrida, John Stuart Mill, Emmanuel Levinas, and others. Parks will be named after John Locke, Derek Parfit, John Rawls, and Simone Weil. Sekyra Group also plans to name streets in its Smíchov project after notable women.

To reinforce the philosophical identity of the district, an annual philosophy festival will be held starting this September. According to philosopher Adam Lalák, the event aims to present philosophy as an accessible and practical activity, rather than an abstract academic pursuit. The first festival will focus on the theme of “philosophy and space,” and will feature interactive sessions, panel discussions, and cultural programming.

Source: CTK

Generali Adriatic Value Fund sells two office properties in Ljubljana

Generali Adriatic Value Fund, Slovenia’s first regulated alternative investment fund (AIF) focused on real estate, has completed the sale of two office properties in Ljubljana. The fund, managed by Generali Investments and advised by Peakside Capital, sold the southern section of the Stekleni Dvor complex on Dunajska cesta and the Tivoli Center on Bleiweisova cesta.

The Stekleni Dvor property comprises 8,700 square metres of rentable space across eight upper floors, mezzanine levels, a ground floor, and a three-level underground parking structure. It is one of two office buildings in the complex, which share a connected underground garage and are located near the Ljubljana ring road.

The Tivoli Center is located in central Ljubljana and consists of two interconnected office buildings, offering a total gross leasable area of approximately 7,700 square metres.

Both properties were acquired by Agromarket logistic d.o.o., a company based in Kragujevac, Serbia.

These transactions mark the second and third sales from the Generali Adriatic Value Fund. The fund aims to generate returns through a combination of rental income and capital appreciation from commercial real estate investments. It is currently in its final phase, focused on the divestment of assets and the distribution of returns to investors in line with its original investment strategy.

Trei sells Fischerhof residential project in Mainz to family office managed by Berenberg

Trei Real Estate GmbH has completed the sale of its Fischerhof residential development in Mainz to a family office managed by Berenberg Real Estate Management GmbH. The transaction involves a fully occupied property comprising 88 rental apartments with a total residential area of approximately 6,500 square metres. The development was completed in July 2024. The sale price has not been disclosed.

The Fischerhof project is located at the Zollhafen site, a new urban quarter being developed at the former customs port in Mainz. It is Trei’s second completed project at this location, following the adjacent Lotsenhof development, which includes 95 apartments and was sold to Competo Capital Partners GmbH in 2022.

Trei has increasingly pursued the sale of completed residential projects, including three developments in Berlin sold to MEAG in 2024. While the company has historically retained its residential assets in its own portfolio, it is now considering further sales based on market conditions.

The company currently has around 1,150 apartments under development in cities including Berlin, Hamburg, Munich, Düsseldorf, and Wiesbaden.

CBRE acted as advisor to Trei during the transaction, with legal support provided by the law firm Dentons.

Fortis Work leases logistics property in Hamburg port with support from Logivest

Logistics real estate consultancy Logivest has facilitated a long-term lease agreement for Fortis Work GmbH for a logistics property located at Am Genter Ufer 6 in the Hamburg port area. The site comprises approximately 7,500 square metres of total space, including 3,000 square metres of open-air yard. The property is owned by Prologis.

Fortis Work, already operating in Hamburg’s Billbrook district, was seeking additional space closer to the port. Key requirements included a large outdoor area with sufficient load-bearing capacity to accommodate container handling with reach stackers.

Logivest identified a suitable site in the Waltershof area. The property includes approximately 130 square metres of office space, multiple access points via ramps and ground-level gates, and sufficient manoeuvring and parking space for containers.

According to Marvin Hesse, Head of Industrial and Logistics Letting at Logivest and responsible for the Hamburg and Bremen regions, securing suitable space in the port area can be difficult due to high demand and limited availability. The lease agreement reflects continued interest in well-located logistics space in Hamburg.

Fortis Work officially took occupancy of the property on 1 April 2025.

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