Renewable energy production in Czech Republic increases by 11.5% in 2024

Renewable energy sources (RES) in the Czech Republic produced 9.3 gigawatt hours (GWh) of electricity in 2024, marking an 11.5% increase compared to the previous year. Most of this energy was generated by photovoltaic power plants, which saw the most significant growth among renewable sources. Despite this increase, industry representatives indicate that the overall development of renewable energy remains slow, with solar energy being the only sector showing substantial progress, while others remain stagnant. According to data from the Chamber of Renewable Energy Sources, renewables now account for 16.5% of total electricity consumption. The Czech government aims to raise this share to 30% by 2030.

The expansion of renewable energy is primarily driven by new photovoltaic installations, which contributed nearly 3.6 GWh to the national grid in 2024, reflecting a 24% year-on-year increase. According to Štěpán Chalupa, Chairman of the Chamber of Renewable Energy, a significant portion of new solar capacity consists of self-consumption and local installations, typically constructed on rooftops. This decentralized model is beneficial for both system owners and grid stability.

Other renewable sources also showed varying trends. Hydropower production increased by 12.4% year-on-year, reaching 2.65 GWh, primarily due to higher rainfall. Wind power generation experienced a slight increase of 0.5%, totaling 705 MWh. Meanwhile, biogas plant production declined by 1.4% to 2.38 GWh. Chalupa noted that the stagnation in wind, hydro, and biogas energy is concerning, as biogas could serve as an essential alternative to imported natural gas and provide electricity during periods of low wind and solar output. He highlighted the potential for more than 1,200 additional wind power plants across the country, which, if realized, could cover nearly one-third of the Czech Republic’s annual electricity consumption. Encouragingly, municipal and regional interest in wind energy projects has been increasing.

Looking ahead, the Czech government envisions renewable energy as a key component of the national energy mix, complementing nuclear power. At the end of 2024, the government approved a climate-energy plan, outlining a strategy to increase the share of renewables in total energy consumption to more than 30% in the coming years.

Source: CTK

PPF Group acquires Hilton Prague, the largest hotel in the Czech Republic

PPF Group, owned by Renáta Kellnerová and her family, has completed the acquisition of Quinn Hotels Praha, the owner of Hilton Prague, the largest hotel in the Czech Republic. The transaction, facilitated by CBRE, represents the largest single hotel property sale in Central and Eastern Europe. Although the purchase price was not disclosed, previous estimates by Hospodářské noviny suggest the deal was worth several billion Czech crowns.

“There are few hotels in Europe as well-equipped to serve the needs of today’s global congress tourism market as Hilton Prague. Investor interest was high throughout the selection process, as we anticipated last July,” said Kenneth Hatton, head of CBRE’s European Hotels Division.

Since 2018, Hilton Prague has received over €50 million (approximately 1.3 billion CZK) in investments aimed at modernization, according to CBRE. The Czech Office for the Protection of Competition approved the sale in late January. Originally built as the Atrium Hotel, the property was completed in 1991 by Čedok in collaboration with French company CBC Paris. The hotel spans 11 floors and features 791 rooms, having hosted numerous dignitaries, including U.S. Presidents Bill Clinton, George Bush, and Barack Obama, along with various film and music celebrities. The congress center within the hotel offers approximately 5,000 square meters of conference space.

Quinn Hotels Praha is owned by Irish investors, with its sole shareholder being Quinn Group Luxembourg Hotels, according to its 2023 annual report. The company reported a net turnover of 1.3 billion CZK in the previous financial year but ended 2023 with a loss of 160 million CZK, compared to a 239 million CZK profit in 2022. The company’s valuation, based on an independent CBRE assessment, stood at €250.4 million (over six billion CZK) as of December 2022.

PPF Group has confirmed that PPF Real Estate facilitated the acquisition of Quinn Hotels Praha. Reports indicate that PPF Group and billionaire Michal Strnad have formed a joint venture for real estate investments. Since December 19, 2023, Majestic Hospitality has been registered in the Commercial Register, with PPF Real Estate holding 70% and Strnad’s Industry SPV owning 30%. This partnership was established shortly after PPF announced the agreement to acquire Quinn Hotels Praha.

Czech pension system reports deficit of CZK 50.7 billion in 2024, marking year-on-year improvement

The Czech pension insurance system recorded a deficit of CZK 50.7 billion in 2024, representing an improvement of CZK 22.1 billion compared to the previous year. This reduction marks the first time in years that revenue from contributions has grown faster than pension expenditures and administrative costs. Total revenues amounted to CZK 716.5 billion, reflecting a CZK 24.1 billion increase from the previous year. Contributions from employees, employers, and certain self-employed individuals totaled CZK 665.8 billion, an increase of CZK 46.2 billion over 2023, according to data released by the Ministry of Finance.

Despite the improvement, the system remains in deficit. In January 2025 alone, the pension fund showed a negative balance of CZK 5.3 billion, although this shortfall was smaller than those recorded in the past two years. At the end of 2024, the Czech Social Security Administration (CSSA) distributed 2.37 million old-age pensions, 415,600 disability pensions, and 65,300 survivor pensions. The average old-age pension stood at CZK 20,680, while pension schemes managed by the Ministries of Defense, Interior, and Justice provided higher benefits to tens of thousands of beneficiaries.

Total pension expenditures reached nearly CZK 710 billion in 2024, a year-on-year increase of CZK 24.7 billion. Administrative costs amounted to CZK 6.5 billion, down from CZK 7 billion in the previous year. Overall spending increased by 3.5%, while revenue from pension contributions rose by 7.5%, amounting to CZK 665.8 billion. Historically, pension expenditures have outpaced revenue growth, but in 2024, the trend reversed due to economic recovery, high employment, wage increases, and government-led adjustments to pension policies. The opposition ANO movement opposed these reforms and filed a complaint with the Constitutional Court, which was ultimately dismissed.

As of January 2025, pensions increased by an average of CZK 358, bringing the average old-age pension to CZK 20,680. Pension system expenditures for January amounted to CZK 62.2 billion, CZK 1.2 billion higher than in the same month the previous year. Revenue also rose, surpassing CZK 57.4 billion, an increase of CZK 4 billion year-on-year.

The government aims to curb further pension system deficits through a pension reform enacted in 2025. The reform introduces slower pension growth rates, a gradual reduction in new pension calculations, and the establishment of a minimum pension floor equivalent to 20% of the average wage, ensuring that pension benefits do not fall below a certain threshold.

The 2024 pension deficit was the fourth highest since 2000 in nominal terms. The record deficit of CZK 72.8 billion was recorded in 2023, followed by deficits of approximately CZK 55 billion in 2012 and 2013. However, during those years, total expenditures and contribution revenues were significantly lower, making the deficit equivalent to 16% of revenue in 2012, 11% in 2023, and 7.6% in 2024.

Source: CTK

The Shire Beyond Coworking expands to Unity Tower in Cracow

The Shire Beyond Coworking, a growing provider of premium serviced office space, has leased 1,800 square meters in Unity Tower, a key component of the Unity Centre complex in Cracow. The newly leased space spans the 22nd, 23rd, and 24th floors, marking the highest office levels in the building. The transaction was facilitated with advisory support from Walter Herz representing the tenant and JLL representing the landlord, a company controlled by UNIQA Real Estate with GD&K as a local partner.

The Shire Beyond Coworking operates in multiple locations across Poland, including Warsaw Spire, Malachowski Square, and Wilanów Office Park. The brand is also expanding its presence in Cracow and Wroclaw, with additional premium spaces set to open in a modernized building on Poznańska Street in Warsaw this March. The company’s flexible office spaces are known for high-quality services, offering tenants access to IT, HR, recruitment, legal, and marketing solutions, as well as networking opportunities through business events.

Unity Centre is one of Cracow’s major mixed-use business hubs, located on Lubomirskiego Street. It consists of five buildings, including Unity Tower, a 102.5-meter Class AA office building, two additional office structures, a four-star Radisson RED Hotel, a luxury apartment building, and an array of retail and dining options. The development offers 50,000 square meters of space, with Unity Tower alone comprising 17,000 square meters dedicated to office and retail use. The complex also features Unity Square, a green public space designed for meetings and cultural events. The environmentally friendly project has received LEED certification for its sustainability efforts.

According to Pavel Novák, Managing Partner at The Shire Beyond Coworking, Unity Tower was selected due to its prime location and high visibility in Cracow’s competitive office market. The top floors provide panoramic city views, making it a strategic choice for businesses looking for premium serviced office space. Oskar Odziemczyk, also Managing Partner at The Shire Beyond Coworking, emphasized that the transaction allows the company to create prestigious flexible office spaces that will attract both domestic entrepreneurs and international firms seeking modern, well-designed work environments.

The leasing process required extensive negotiations to meet both parties’ requirements. Mateusz Strzelecki, Partner and Head of Tenant Representation at Walter Herz, stated that securing this deal involved complex preparations to ensure optimal conditions. He noted that the expansion of The Shire Beyond Coworking into Unity Tower will enhance the range of high-end office options available in Cracow.

The location of Unity Tower in central Cracow, near Mogilskie Roundabout, the city’s largest transport hub, further adds to its appeal. Agnieszka Majka-Pietruszka, New Clients Director at JLL, highlighted that this will be Cracow’s tallest coworking space, offering access to conference facilities, hotels, and restaurants within the Unity Centre. Włodzimierz Jędruszak, Leasing and Marketing Director at GD&K Consulting, stated that securing this contract represents a significant milestone for Unity Tower, reinforcing its position as a symbol of modernity and success in Cracow’s commercial landscape.

Prague’s office market faces supply shortage amid record demand

The demand for office space in Prague reached an unprecedented level in 2024, with companies seeking a total of 637,000 square meters. However, only 24,600 square meters of new office space is expected to be delivered in 2025, exacerbating the existing supply shortage. Analysis by Savills indicates that office development in Prague has been in steady decline since 2021, with just 72,800 square meters of office space completed in 2024. This ongoing reduction in supply has created a significant imbalance in the market.

Before 2020, annual office development in Prague averaged 150,000 square meters, but has since declined by more than 50%. Currently, around 164,000 square meters of office space is under construction across the city, but much of this has already been secured. Approximately 60% of the new space is pre-leased, with an additional 25% reserved, leaving less than 15% available for new tenants. The most pronounced shortages are in prime locations, including Prague’s city center and Karlín, where modern office occupancy rates exceed 95%, according to Pavel Novák, Head of Office Agency at Savills.

Larger office projects are not expected to enter the Prague market before 2027 to 2029. Novák notes that while several projects are in advanced planning stages, no substantial increase in supply is anticipated over the next two to three years. Companies planning future expansions have the opportunity to assess these upcoming projects now, securing key details and gaining early access to available spaces. Additionally, extensive experience among local developers, architects, and construction firms will likely contribute to the quality of these new office developments.

One of the primary reasons for the decline in new office construction is the lengthy and complex permitting process in the Czech Republic. In some cases, project approvals can take ten years or longer, during which time costs continue to rise. Increased expenses for labor, materials, and energy further contribute to higher development costs. Although interest rates have declined, they remain elevated compared to previous levels, adding to financial pressures. These cost increases translate into higher rental prices, which must align with market expectations to ensure project viability. Prague’s competitiveness is also affected by faster approval processes in neighboring Central European countries such as Poland.

The persistent demand for premium office space in the city center, combined with construction cost increases, has led to further rental price growth. By the end of 2024, headline rents for modern office spaces in central Prague ranged from €28.50 to €29.50 per square meter per month, reflecting a 7% year-on-year increase. In other districts of Prague, headline rents have risen by an average of 4% over the past year, reaching €18.50 to €19.50 per square meter per month.

The market is also experiencing the effects of deferred demand, where companies unable to secure office spaces with required specifications choose to extend their existing leases instead. This delay in decision-making could lead to additional market pressure once new office spaces become available, further shaping the office sector in the coming years, according to Novák. The Prague office market is now at a critical juncture, with demand continuing to outstrip supply and development constraints limiting future expansion.

Source: Savills Czech Republic

Future Mind Study: Generative AI usage and public perception in Poland

A recent study by Future Mind reveals that generative artificial intelligence (GenAI) is increasingly becoming part of everyday life in Poland. According to the report titled How Does AI Change the Everyday Life of Poles? Artificial Intelligence in Work and Personal Life, 7% of Poles use GenAI daily, while 17% interact with such tools at least once a week. Every fourth respondent reported using GenAI at least once a month or less.

The study highlights that GenAI applications extend beyond the professional sphere, assisting individuals in developing personal interests, managing daily responsibilities, and organizing leisure activities. Respondents envision AI playing an even greater role in the future, with 44% believing it will aid in knowledge expansion and skill development, 30% anticipating its role as a personal assistant, and 14% seeing AI as a potential co-worker. Additionally, 12% of respondents suggested that AI could take on the role of a therapist, reflecting a growing acceptance of its application in mental well-being support.

Jakub Nawrocki, lead UX researcher at Future Mind, noted that generative AI has established a strong presence in the lives of younger users, particularly those aged 20 to 34. Among this demographic, 55% reported using GenAI to some extent, ranging from daily to sporadic interactions. The percentage decreases with age, with 45% usage among respondents aged 35 to 49 and 37% among those aged 50 to 65. This trend indicates that familiarity with innovative technologies significantly influences adoption rates across different age groups.

Despite the benefits associated with GenAI, concerns remain regarding its potential risks. Privacy violations were identified as the most significant concern by 44% of respondents. Additionally, 43% pointed to the risks of disinformation and manipulation, 37% expressed fears about the development of advanced weaponry, and 34% cited surveillance by AI algorithms as a major issue. Beyond these global-scale concerns, respondents also highlighted potential societal consequences, such as the dehumanization of interpersonal relationships (35%) and the reduction of critical thinking skills (25%). Nawrocki emphasized that while AI presents vast innovative potential, careful regulation is essential. According to the study, 50% of participants support stricter legal standards for AI development and implementation.

The introduction of the Artificial Intelligence Act, which came into force on 1 August 2024, represents the world’s first regulatory framework specifically addressing AI governance. The legislation is based on a risk assessment approach, requiring compliance measures proportional to the level of potential threats posed to citizens, societies, and economies. However, debates surrounding AI regulation persist, particularly regarding the extent of governmental oversight. The study found that 48% of respondents believe AI should be more strictly regulated by public institutions such as national governments or the European Union, while 28% consider the current regulatory framework sufficient. In contrast, 10% of respondents believe that AI should be subject to fewer legal restrictions. This division of opinion underscores the necessity for a balanced approach to regulation that aligns with both public concerns and technological progress.

The study was conducted by SW Research on behalf of Future Mind using computer-assisted web interviewing (CAWI). The data was collected from an online panel between 25 October and 5 November 2024, with a sample size of 1,020 respondents. These findings provide valuable insights into how AI is reshaping daily life in Poland while highlighting the ongoing discourse on its ethical, societal, and regulatory implications.

Source: Future Mind and ISBnews

MLP Group expects stable leasing in 2025 with improved margins

MLP Group anticipates leasing a similar amount of warehouse space in 2025 as in the record-breaking year of 2024, when tenant demand reached approximately 305,000 m², according to company president Radosław T. Krochta. However, he emphasized that this year’s contract structure will focus more on higher-margin leases in the German and Austrian markets.

“Our excellent results last year were driven by our strategy of concentrating on major cities where demand is strongest and favorable market conditions. We are well-positioned to secure contracts in 2025 and 2026, and long-term demand remains promising,” said Krochta.

He added that while leasing volumes are expected to remain stable this year, a larger share will come from Germany and Austria, leading to higher-margin contracts that will positively impact 2025 financial results.

On 19 February, MLP Group announced that it had leased a total of 305,000 m² of space in 2024, with 225,000 m² from new lease agreements—an 82% increase compared to the previous year. During this period, the company gained 22 new clients, while 20% of total demand came from existing tenants.

“We are very comfortable with our goals, particularly given how we ended last year,” Krochta noted, reaffirming confidence in the company’s strategic direction.

On 24 February, MLP Group announced a new lease agreement with JD.com, one of the largest players in global e-commerce. Through its subsidiary, JD Logistics, the company has leased 9,600 m² of modern warehouse and office space at MLP Pruszków II, customized to its operational needs. The facility is set to become operational in March 2025, with full readiness expected by June.

“We continue to see strong growth potential in Pruszków. Our park is strategically located on the route between Warsaw and the planned Central Transport Hub (CPK). We believe this corridor will be crucial for future development, and many tenants recognize that the CPK will materialize sooner or later,” Krochta explained.

MLP Group is a developer, owner, and manager of logistics and industrial parks as well as business parks for light industrial production. It operates in Poland, Germany, Austria, and Romania. The company has been listed on the Warsaw Stock Exchange (WSE) since 2013 and is part of the sWIG80 index. In 2023, MLP Group reported consolidated revenues of PLN 360.8 million.

Source: ISBnews

Business bankruptcies decline while registrations rise in EU

In the fourth quarter of 2024, the number of bankruptcy declarations among businesses in the European Union fell by 0.7% compared to the previous quarter. At the same time, business registrations increased by 2.6%, reflecting overall economic resilience and growth across all sectors.

Data indicate that business registrations rose in every sector of the economy compared to the third quarter. The most significant increases were seen in transportation and storage, which grew by 5.7%, followed by industry at 3.5%, and the information and communication sector at 2.3%. The construction sector recorded the smallest rise, with a 0.9% increase in registrations.

While bankruptcies declined in most sectors, certain industries experienced notable increases. The education and social activities sector saw a significant 17.7% rise in bankruptcy declarations, while industry recorded a smaller increase of 1.6%. Conversely, the steepest declines in bankruptcies were observed in the information and communication sector, which dropped by 25.6%, accommodation and food services, which fell by 12.2%, and transportation and storage, which saw a 10.1% decrease.

These trends highlight shifting dynamics in the EU business landscape, with growth in new business formations and a decline in insolvencies across most industries, despite challenges in specific sectors.

Source: eurostat

Metropolitan Warsaw secures green energy contract, delivering cost savings and CO₂ reductions

Metropolitan Warsaw has signed a Power Purchase Agreement (PPA) that will lower energy costs and reduce CO₂ emissions over the next three years. The agreement, one of the first of its kind in Poland’s property market, ensures the supply of green energy from traceable renewable sources, benefiting both tenants and the environment.

Through this agreement with green energy trading expert Ekovoltis, part of the energy supplied to Metropolitan Warsaw will come from photovoltaic panels, while the remainder will be sourced from Poland’s renewable energy market. Over the contract’s duration, nearly 20 gigawatt hours (GWh) of electricity will be provided under certified, traceable conditions. The photovoltaic panels supplying the energy are located within Poland, supporting the local renewable energy sector.

Optimizing electricity purchases through the PPA will reduce total energy costs for tenants by nearly PLN 2 million over three years, representing an estimated 15% reduction in energy expenses compared to projected market prices. These financial savings, combined with a commitment to renewable energy, strengthen tenants’ ESG compliance and sustainability efforts. By occupying spaces powered by green energy, tenants can enhance their environmental credentials, meet sustainability targets, and build stakeholder trust.

The agreement will also lead to a reduction in CO₂ emissions by approximately 11,200 tonnes over the contract period. This impact is comparable to removing 2,240 cars from the roads annually or supplying power to 1,120 households for three years.

“A PPA is a relatively new approach in Poland, and Metropolitan Warsaw is among the first office buildings to implement it for tenants. This contract brings direct financial advantages through effective cost management while also supporting sustainability by lowering emissions through renewable energy,” said Joanna Kowalska-Szymczak, founder and CEO of EBRU Capital, the asset manager of Metropolitan Warsaw.

A Power Purchase Agreement (PPA) is a long-term contract between an energy producer and a buyer, ensuring price stability and a direct energy source. It helps secure investments, minimize price risks, and provide long-term value to properties adopting this approach.

The tender process for energy supplies under the PPA, as well as contract negotiations, were overseen by Westbridge Poland, a leading advisor in energy and sustainability for the real estate industry. Hajo Engelke, Managing Director of Westbridge Poland, emphasized that the agreement is a significant step toward a more sustainable energy supply in Poland’s real estate sector. “This contract demonstrates how environmental responsibility and economic benefits can be effectively combined, delivering advantages to both tenants and the wider environment,” he said.

Metropolitan Warsaw is a premium office and commercial complex located at Plac Marszałka Józefa Piłsudskiego, adjacent to Saski Garden and the Royal Route. The building offers 33,722 sqm of high-quality office space and 3,300 sqm of commercial and service areas with direct street access. The three interconnected seven-story blocks also house exclusive boutiques, a fitness club, and other premium amenities.

The property features 441 underground parking spaces, including public parking and charging stations for electric vehicles. Infrastructure for cyclists is also available. Metropolitan Warsaw has received multiple sustainability and safety certifications, including a BREEAM Excellent rating, a WELL Health-Safety Rating, and a WiredScore Platinum certification for digital connectivity and emergency planning.

With its commitment to energy efficiency, tenant well-being, and sustainability, Metropolitan Warsaw continues to set an example in Poland’s real estate market.

Supersam in Katowice undergoes transformation with new gastronomic zone

Supersam, a well-known mixed-use facility in Katowice, is set to introduce a new gastronomic zone as part of its ongoing redevelopment. The owner and manager, Globalworth, has initiated demolition and preparatory work for the project, which is scheduled to open in December 2025. The new culinary area will occupy nearly 1,000 square meters on the ground floor and will include a seasonal outdoor garden.

The introduction of a dedicated food space marks a new phase in Supersam’s development, aligning with a strategy outlined two years ago. The modernization process has involved the consolidation of commercial space, with the expiration of three lease agreements in early February 2025 allowing for a 900-square-meter area to be repurposed. Dismantling work is already underway, with fit-out construction expected to begin in April 2025 before the handover to tenants in autumn.

According to Artur Apostoł, Managing Director of Real Estate Operations at Globalworth in Poland, the addition of a gastronomic component is expected to enhance Supersam’s appeal to urban customers. The project follows Globalworth’s experience in multifunctional spaces, including Hala Koszyki in Warsaw and Wrocław’s Renoma, both of which incorporate food-oriented concepts.

Supersam has held a strong position in the Katowice retail market, but the demand for a comprehensive dining experience has been growing among both visitors and prospective tenants. Barbara Wójcik, Asset Management & Retail Leasing Director at Globalworth, stated that the company’s previous experience in developing food-focused areas, such as Basketroom and the PeDeT food & chill zone in Wrocław, has provided insights into designing a functional and attractive gastronomic space. She emphasized that the new zone aims to cater to office workers, fitness center users, and the wider local community, with the potential to become a standalone culinary destination in Katowice.

The project will introduce nine dining spaces with a shared seating area, offering a mix of international cuisine and local eateries. The design concept will feature warm tones, natural materials, and ample greenery, creating distinct seating areas. Additionally, a seasonal outdoor garden will provide an open-air dining option on the north side of the building.

The entire renovation process is expected to take 10 months, with the official opening of the gastronomic zone planned for December 2025.

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