Ústí nad Labem region offers most affordable housing in Czech Republic

The Ústí nad Labem Region in northwest Czech Republic remains the most affordable place in the country to buy an apartment, according to a new analysis by the RE/MAX real estate network. At the end of 2024, residents earning the average regional salary of CZK 42,203 could afford to purchase 1.47 square meters of an older apartment—making homeownership significantly more accessible than in any other region.

In stark contrast, Prague continues to be the least affordable location for prospective homebuyers. With an average salary of CZK 59,870, it was only possible to purchase around half a square meter of an older flat in the capital. The average price per square meter in Prague reached CZK 112,000 last year, nearly three times higher than in Ústí nad Labem.

RE/MAX Czech and Slovak CEO Jan Hrubý noted that housing affordability across the country remains among the worst in the European Union. He attributed this to sluggish construction rates, an undersupply of new housing, and wages that have not kept pace with property price growth. Over the past decade, real estate prices in the Czech Republic have surged by 123%, while disposable incomes have increased by just 83%.

Hrubý explained that the high housing accessibility in the Ústí Region is largely due to persistently low property prices, influenced by low demand, aging housing stock, and broader socio-economic challenges. Paradoxically, these conditions have made the region an attractive destination for property investors. He added that future investment potential is expected to grow with the planned construction of a high-speed rail line linking Ústí nad Labem to Prague, which would significantly shorten commuting times.

The analysis also identified the Moravian-Silesian, Liberec, and Karlovy Vary regions as areas where average wages still allow the purchase of at least one square meter of an older apartment. According to Hrubý, these regions face similar structural and economic challenges to the Ústí Region, which helps moderate pressure on real estate prices. Among the most affordable towns are Litvínov, Most, Bílina, Chomutov, Orlová, and Karviná.

Meanwhile, the South Moravian Region follows Prague as one of the least affordable areas. In this region, with an average monthly income of CZK 48,804, residents could afford just 0.62 square meters of housing. The situation in Brno, the regional capital, is reportedly even worse than the regional average.

“In Prague, demand for housing is driven by attractive employment opportunities, higher salaries, well-developed infrastructure, and a wide range of civic amenities,” Hrubý explained. “Property prices for new apartments are now so high that only the upper middle class, entrepreneurs, or wealthy foreign buyers can afford them. In the most desirable parts of the city, prices often exceed CZK 200,000 per square meter.”

Due to soaring prices in the capital, buyer interest has shifted to surrounding areas in the Central Bohemian Region. Cities like Kladno, Brandýs nad Labem, and Beroun have seen significant real estate development in recent years. According to the analysis, homebuyers can save up to a third on property prices in these areas compared to Prague and are increasingly opting to commute to the city for work.

Source: RE/MAX and CTK

Slovak mortgage market eases, but housing prices expected to climb

The Slovak mortgage market is showing early signs of relief following the European Central Bank’s recent decision to cut key interest rates. However, analysts warn that this easing could lead to rising property prices, particularly in urban areas.

Peter Horčiak, a financial analyst with the Simplea Group, noted that the ECB’s move to reduce all three benchmark rates by 25 basis points in early March will result in cheaper borrowing conditions for both households and businesses. For prospective homeowners, this could mean access to lower interest rates on new loans. For those with existing mortgages, the decision opens the door to potentially beneficial refinancing options.

“Clients who are waiting for even lower rates may want to reconsider. While further rate cuts could materialize more rapidly in 2025, the impact of ongoing fiscal consolidation is likely to exert upward pressure on property prices,” Horčiak said. “Given these dynamics, now is a sensible time to consider purchasing property.”

He emphasized the importance of preparation and financial resilience for those planning to finance home purchases through a mortgage. “Buying a home is often a once-in-a-lifetime financial decision. It’s essential to build a sufficient buffer to handle unexpected life situations that may affect repayment capacity,” he added.

Horčiak also highlighted state support programs for younger buyers. Slovak residents under the age of 35 may be eligible for mortgage subsidies of up to €100 per month, provided they meet certain criteria. In addition, the State Housing Development Fund offers favorable financing options for young families, helping to ease entry into the housing market.

For clients unable to meet the financial requirements for a mortgage, Horčiak recommends considering rental housing as a short-term alternative. “Paying rent can offer the flexibility needed to build savings and assess one’s ability to eventually manage long-term debt,” he said.

On the topic of refinancing, Horčiak urged caution. “Refinancing can result in significant savings, but it is not suitable for every borrower. Before pursuing this option, clients should explore existing state support measures such as mortgage subsidies. These can reduce monthly payments by up to €150—or €1,800 annually—under the right conditions.”

He also advised borrowers to consult their current lenders about revising interest rates before seeking a new loan from another institution. “Refinancing should only be considered if the new interest rate is at least one percentage point lower than the existing rate,” he stated.

Borrowers should also be aware of additional costs tied to refinancing, including account setup fees at new banks, loan processing charges, and administrative fees related to property registration.

Source: TASR

Poland and the Euro: A decision best left for the future

Poland’s potential entry into the eurozone remains a recurring topic in public debate, and with good reason. The implications of adopting the euro extend far beyond simple currency exchange; they touch on the country’s long-term economic trajectory, financial stability, and political alignment within the European Union. Yet despite these stakes, the prevailing sentiment among the Polish public is clear: now is not the time.

A recent survey by the Warsaw Enterprise Institute shows that 74% of Poles are opposed to adopting the euro, while just 26% are in favor. The trend is steadily moving away from support. A similar poll in 2024 showed 33% in favor, and in 2023, 35%. The sharp decline in approval suggests that economic uncertainty and concerns about national autonomy continue to shape public attitudes. Supporters of the euro tend to be older or business-oriented individuals who emphasize benefits like reduced currency risk, easier international trade, and greater macroeconomic stability. Meanwhile, critics worry primarily about rising prices and reduced living standards (51%), loss of monetary sovereignty (26%), and increased dependence on Brussels (17%).

The debate, however, is more complex than a binary choice between adopting or rejecting the common currency. The euro is not a panacea, nor is it an inherent threat. It can offer real benefits—but only if Poland joins under the right circumstances. Entering the eurozone prematurely, without the economic resilience and institutional strength required for such a transition, could do more harm than good.

Poland is still in a phase of convergence with Western economies. Its growth cycle, inflation profile, and wage dynamics differ significantly from those of countries already using the euro. Giving up control over monetary policy—especially in times of crisis—would remove a vital lever of national economic management. This is a risk that cannot be overlooked.

Beyond economics, social and political readiness must also be considered. The euro remains a divisive issue domestically, and public trust in European institutions fluctuates. Pushing ahead with euro adoption in the face of widespread skepticism could undermine confidence and create deeper divisions.

Poland’s goal should not be to join the eurozone as a quick fix or a political gesture, but to enter as a strong and prepared partner. That means prioritizing economic development, fiscal discipline, and institutional reform. Once those foundations are in place, the euro can serve as the next logical step in Poland’s European integration—not the beginning of the journey, but its culmination.

Author: Łukasz Wojdyga, Director of the Center for Strategic, WEI

Slovakia falls behind as wage growth lags behind regional neighbours and the EU average

Salary growth in Slovakia continues to trail not only the wealthier nations of Western Europe but also some of its closest Central and Eastern European neighbours, raising concerns about the country’s long-term competitiveness and ability to retain skilled workers. While Slovaks grapple with stagnant wages and rising costs of living, other countries in the region—particularly Poland and Austria—are seeing wages rise at a much faster pace, widening the income gap even further.

The contrast is most striking when compared with neighbouring Austria, where wages are not only significantly higher but are also growing more rapidly. The disparity between the two economies has become increasingly difficult to ignore for Slovak workers, especially those living near the border or commuting daily to Austria for better-paid jobs. According to recent Eurostat data, Austria remains among the top performers in wage growth within the European Union, offering a level of income and living standards that Slovakia is struggling to match or catch up with.

Across the EU, wage costs per hour show stark differences between member states. At the top of the list is Luxembourg, where companies paid an average of €55.20 per hour worked in 2024. The country, known for its thriving financial sector and favourable tax environment, has attracted a concentration of international banks, insurance providers, and investment firms, which in turn contributes to its exceptionally high wage levels. Luxembourg’s competitiveness in finance has driven up salaries in that sector and, by extension, across its broader economy.

At the other end of the spectrum, companies in Bulgaria paid an average of only €10.60 per hour last year. The Bulgarian economy, heavily reliant on tourism, is subject to seasonal fluctuations and a high proportion of low-wage employment. Unlike Slovakia, Bulgaria lacks a significant industrial base, particularly in automotive manufacturing, which often drives higher wage sectors in Central Europe. The absence of large industrial employers has contributed to an ongoing outflow of skilled Bulgarian workers seeking better pay abroad.

Even among post-communist EU members, Slovakia is not keeping pace. Slovenia, long considered the most successful of the former Eastern Bloc countries in terms of economic transformation, reported average hourly labour costs of €27.10—more than double Slovakia’s figures. Slovenia’s wage levels have now surpassed those in Spain (€25.50), Malta (€19.10), and Portugal (€18.20), countries with longer EU membership and more developed social safety nets.

Brussels remains aware of these disparities and continues to channel cohesion funds toward newer member states to help close the gap. These funds have been critical in supporting infrastructure, healthcare, and education in countries like Poland, where smart allocation of EU resources has driven substantial development. Poland has invested heavily in roads, railways, hospitals, and research parks—projects that have both improved public services and increased the country’s economic appeal to returning professionals.

This strategic use of European funds has also bolstered Poland’s labour market. As of 2024, Poland reported the fastest wage growth in the European Union, with average hourly pay rising by 19 percent year-on-year to €17.30. This remarkable performance not only signals a stronger domestic economy but also reflects a successful model of wage growth that hasn’t deterred private sector competitiveness. The increase comes amid a continent-wide labour shortage, with Polish employers proving capable of managing higher labour costs while maintaining business viability.

In Slovakia, by contrast, wage growth remains tepid. Despite a relatively strong industrial base—particularly in the automotive sector—the country has yet to see substantial gains in real wages for workers across key sectors. Many experts attribute this to structural issues in the labour market, a lack of investment in high-value industries, and insufficient innovation in wage-setting practices. Additionally, slower wage growth may discourage talent retention, with younger and more skilled workers increasingly eyeing opportunities abroad.

The consequences of slow wage growth extend beyond economic frustration. Slovakia risks deepening its dependency on external labour markets while losing domestic productivity. With inflation putting additional pressure on household budgets, the urgency for meaningful wage reform is growing.

As Poland and other regional peers continue to surge ahead, the message is becoming clear: catching up will require more than just economic stability—it demands a coordinated national strategy focused on wage competitiveness, innovation, and effective use of EU development tools. Without decisive action, Slovakia may find itself increasingly isolated in a fast-converging European economy.

Source: Eurostat

BEOS acquires office and warehouse complex near Düsseldorf airport

BEOS AG has acquired a commercial property located in the Lichtenbroich district of Düsseldorf from MEAG, the asset manager for Munich Re and ERGO. The site, situated near Düsseldorf Airport at Wanheimer Straße and Mündelheimer Weg, includes approximately 26,200 square metres of total space, comprising 17,000 square metres of office space and 9,200 square metres of hall space.

The acquisition process was supported by Loschelder Rechtsanwälte Partnerschafts mbB, Baker Tilly Steuerberatungsgesellschaft mbH & Co. KG, TÜV Süd Advimo GmbH, and Landplus GmbH on behalf of BEOS. MEAG received advisory support from Savills and Norton Rose Fulbright.

According to BEOS, the company plans to focus on improving the energy efficiency of the site, upgrading the space to modern standards, and reducing vacancy levels. Sandra Sievernich, project manager at BEOS, noted that the property’s layout and structural condition provide a solid foundation for these plans.

Jochen Butz, Deputy Branch Manager at BEOS, highlighted the potential for repurposing vacant office areas to accommodate a broader range of commercial uses. He emphasized the flexibility of the property and the company’s intent to engage with the existing tenant mix as part of its asset management strategy.

The commercial park benefits from a strategic location, close to Düsseldorf Airport and approximately ten minutes by car from the city centre. It is also near the Düsseldorf Nord motorway junction, offering access to the A40, A52, and A3 highways. Public transport links, including nearby bus and train connections, further enhance the site’s accessibility.

CA Immo sells IntercityHotel Berlin Hauptbahnhof

CA Immo has completed the sale of the IntercityHotel Berlin Hauptbahnhof, located on Washingtonplatz in Berlin’s Europacity district. The transaction was concluded at a price above the property’s book value.

The hotel, developed by CA Immo and completed in 2013, is situated on Katharina-Paulus-Strasse, adjacent to Berlin’s main railway station. It offers approximately 20,600 square metres of net floor area, including 412 hotel rooms and 10 meeting rooms. The building was constructed in accordance with sustainability guidelines and became the first hotel in Germany to receive a platinum certificate from the German Sustainable Building Council (DGNB).

The sale aligns with CA Immo’s ongoing portfolio strategy, which centres on focusing investment in high-quality office assets located in core urban markets. According to the company, proceeds from such disposals are typically used to fund internal development projects, support liquidity needs, or finance selective external investments.

Legal and tax advice for CA Immo was provided by P+P Pöllath + Partners, with Eastdil Secured acting as financial advisor on the transaction.

KGAL acquires Streitfeld Lofts Office complex in Munich

KGAL has acquired the Streitfeld Lofts office complex in Munich’s Berg am Laim district for one of its institutional special funds. The property, completed in 2020, offers 8,400 square metres of rental space and includes 54 underground parking spaces. It was purchased from a real asset fund managed by BlackRock.

The complex consists of a modern extension and a fully refurbished building originally constructed in 1967. It is located in the eastern part of Munich, in a district known for its mix of cultural venues, creative spaces, and growing commercial activity. The area is part of Munich’s broader Art District and has attracted a variety of tenants, particularly from the IT and consulting sectors.

The office spaces feature loft-style layouts, roof terraces, and high-quality interior finishes. The property is certified “Excellent” under the BREEAM sustainability standard and incorporates several ESG-aligned features, including district heating powered by renewable energy, full LED lighting, e-charging stations, and access to public transportation. Natural light is a prominent feature in the design of the workspace.

KGAL noted that this acquisition marks its fourth office property purchase in the past six months. According to Portfolio Manager Christian Schlüter, current market conditions offer opportunities to secure high-quality assets with long-term potential.

The company plans to continue its investment activity with further acquisitions in both the commercial and residential real estate sectors in the coming months.

Photo: KGAL

Prologis acquires logistics park near Warsaw

Prologis has acquired a logistics park in the Warsaw region from P3, adding nearly 70,000 square metres of warehouse space to its portfolio. The property, known as Prologis Park Grodzisk, consists of four warehouse buildings located in Grodzisk Mazowiecki, about 30 kilometres west of central Warsaw.

The logistics park is positioned close to the A2 motorway, offering access to key transport routes that connect Poland to other parts of Europe. The location supports both regional and national distribution and is currently leased to a range of tenants in logistics, retail, and manufacturing sectors.

The acquisition is part of Prologis’ ongoing focus on established logistics areas in Central and Eastern Europe. The Warsaw region remains a key market due to its proximity to major transportation corridors and consistent demand for warehousing space. The buildings meet modern specifications and are nearly fully occupied.

The purchase aligns with Prologis’ investment strategy in the region. The company already owns logistics facilities across Poland and other Central European countries, including the Czech Republic and Slovakia. The newly acquired site will be incorporated into its broader regional operations.

P3 stated that the sale is consistent with its portfolio management plans and will allow the company to focus on new developments and other assets in its pipeline.

Poland’s logistics property sector has seen steady activity in recent years, driven by infrastructure improvements and continued demand from distribution and e-commerce operators. The transaction reflects ongoing investor interest in core warehouse markets within the region.

OECD calls for stronger global cooperation to sustain growing ocean economy

The global ocean economy has doubled in real terms over the past quarter-century, reaching a value of USD 2.6 trillion in 2020, according to a new report by the Organisation for Economic Co-operation and Development (OECD). However, the report warns that without coordinated international action and strengthened policies, this growth may not be sustainable in the long term.

The OECD’s Ocean Economy to 2050 report outlines key challenges and opportunities that will shape the future of ocean-based industries. Sectors such as offshore oil and gas, marine and coastal tourism, fishing, aquaculture, maritime transport, and port operations have all contributed significantly to economic expansion, accounting for 3–4% of global gross value added over the past 25 years. Despite this steady growth, future gains are far from guaranteed.

According to the OECD, emerging threats such as climate change, shifting demographics, disruptions in global trade, and a lack of investment in productivity-enhancing and green technologies could undermine continued economic progress. In the absence of proactive policy and investment, global ocean economic activity could fall by as much as 20% below 2020 levels by mid-century. On the other hand, if governments accelerate the shift to cleaner energy and invest in innovation, modest but sustainable growth in the ocean economy could continue.

“The case for improving ocean governance and boosting international cooperation is not only environmental, it’s economic,” said OECD Secretary-General Mathias Cormann. “Science-based policymaking, better marine management, and the adoption of digital tools are vital to protecting the jobs, food security, and livelihoods of hundreds of millions of people who rely on the ocean.”

The past decade has seen advances in how countries manage their ocean resources, with the adoption of national ocean strategies, maritime spatial planning, and better ocean economy accounting. International efforts on marine biodiversity, climate policy, fisheries, and reducing emissions from shipping have also made progress. Nonetheless, challenges such as growing market concentration, illegal activities, and uneven policy enforcement remain unresolved.

The OECD report urges countries to strengthen collaboration on ocean governance, particularly in areas where collective action is needed to address global risks. It also calls for greater investment in the energy transition from fossil fuels to renewables in ocean-related industries, along with the integration of advanced digital technologies to improve data collection and monitoring.

In addition to technological and environmental goals, the report emphasizes the need to enhance cooperation with developing nations. Ensuring that economic gains from the ocean are widely shared and contribute to wellbeing, employment, and the preservation of marine ecosystems is a priority. Protecting vulnerable marine environments, while promoting sustainable use and restoration, is framed as both a moral and economic necessity.

The OECD’s conclusions are grounded in new calculations derived from its Inter-Country Input-Output (ICIO) database, offering a detailed picture of how ocean-based industries contribute to global economic output. By modelling future scenarios based on historical productivity data, the report presents a range of possibilities for the ocean economy to 2050—some of which depend heavily on decisive policy choices made today.

Entrepreneurship surges in Czech Republic as early 2025 sees strong start

The Czech Republic has seen a sharp rise in entrepreneurial activity in the first two months of 2025, with 15,431 individuals starting a business and 8,163 ceasing their operations. This results in a net gain of 7,268 entrepreneurs—already representing four-fifths of the net increase recorded for the entire previous year. The data comes from a recent analysis by CRIF – Czech Credit Bureau.

Analyst Věra Kameníčková of CRIF noted that January and February typically show high activity in business formation. This year was no exception, with 8,860 new entrepreneurs entering the market in January and 6,858 in February. After accounting for business closures, the net increase was 4,182 in January and 3,086 in February—both figures notably higher than the same period last year.

Over the past 12 months, a total of 82,179 people began a business, up 9% from the previous year and marking the highest number recorded in the last five years. Prague led the country with 15,925 new entrepreneurs, followed by Central Bohemia with 11,253 and South Moravia with 9,064. At the other end of the spectrum were the Karlovy Vary Region with 1,864 and the Liberec Region with 3,092 new businesses.

The strongest year-on-year growth in new businesses occurred in Prague (18%), Pilsen (11%), and Pardubice (10%). Meanwhile, the number of business closures dropped by 62% compared to the previous year, indicating a continued upward trend in entrepreneurial activity that began in the second half of 2024.

In total, 67,003 people closed their businesses in the past year. Prague again recorded the most closures (9,542), followed by Central Bohemia (8,257) and South Moravia (7,043). The Karlovy Vary Region reported the fewest business closures, with just 2,240.

The report also highlights the continued rise of Ukrainian entrepreneurs in the Czech Republic. Since the beginning of the war in Ukraine three years ago, the number of Ukrainian nationals running businesses in the country has grown by 16,820. Ukrainians now make up 3% of all self-employed individuals in the Czech Republic, with around 56,632 currently registered. Two-fifths of them work in construction, 17% in manufacturing, and a significant share in real estate.

New business activity increased in nine of the Czech Republic’s regions over the past year. Prague led with 17 new entrepreneurs for every 10 who exited the market, followed by Central Bohemia (14) and South Moravia (13). Pardubice and Moravia-Silesia each recorded a ratio of 12 to 10. Four regions—Pilsen, Zlín, Liberec, and Vysočina—saw stable numbers, while the Karlovy Vary Region was the only one where entrepreneurial numbers declined, with just eight new businesses started for every 10 closures.

From March 2024 to February 2025, most new entrepreneurs registered in construction (11,396), professional, scientific and technical services (10,030), and manufacturing (9,878). The most rapid growth occurred in mining and quarrying (27% increase), education (23%), and construction (19%).

While most sectors experienced growth, some continued to show signs of strain. Cultural and recreational activities led with 36 new businesses for every 10 that closed, followed closely by mining and quarrying (35) and information and communication services (29). On the decline were trade, accommodation and catering, and real estate, all of which have been experiencing a sustained drop in entrepreneur numbers.

Source: CRIF

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