Rising fit-out costs shift expectations in Poland’s office market

Increasing office fit-out costs and a declining supply of ready-to-occupy space are influencing how both tenants and landlords approach leasing decisions in Poland. Budgets that previously covered standard office arrangements are no longer sufficient, while tenants are facing higher upfront contributions or longer lease commitments.

One of the most visible changes in recent years concerns the cost and availability of fully fitted office space.

Karolina Słysz, Head of Regional Markets, Office Agency at AXI IMMO, said: “Before the pandemic, it was still possible to secure an office fully prepared for occupation

One of the most visible changes in recent years concerns the cost and availability of fully fitted office space.

Słysz said: “Before the pandemic, it was still possible to secure an office fully prepared for occupation, financed by the developer, within a budget of around EUR 550-600 per sqm. Pricing was calculated from the shell and core condition, meaning space delivered in a raw, developer-standard state requiring full fit-out. At that time, such a budget allowed for an average standard of finish. Today, comparable offers are increasingly rare. Tenants wishing to move into ready-made space must expect to pay a premium for this convenience. Alternatively, they may be required to sign a longer lease, often seven or even ten years instead of the standard five”.

Market practice has shifted towards three broad fit-out standards, each with distinct cost levels and specifications.

At the lower end, cost-focused tenants typically opt for basic finishes, including standard flooring, suspended ceilings, simple layouts and minimal partitioning. These projects are now estimated at roughly EUR 700-900 per sqm.

Mid-range offices, previously considered standard, now incorporate higher-quality materials, branded design elements, LED lighting and more developed common areas. Costs for this segment are currently in the range of EUR 1,000-1,200 per sqm.

Premium offices, based on bespoke designs and higher-end materials such as stone or advanced acoustic solutions, can reach between EUR 1,300 and EUR 2,000 per sqm or more, depending on complexity.

Słysz noted that cost increases are not only linked to construction and material prices but also to changing tenant expectations: “It is worth noting that rising fit-out costs are driven not only by higher prices of materials and construction services, but also by tenants’ growing expectations regarding office space quality. Increasingly, offices must meet additional criteria, ranging from acoustics and ergonomics to ESG compliance and environmental certifications such as LEED or BREEAM. As a result, what is perceived as a mid-standard fit-out today may include solutions that just a few years ago were reserved exclusively for the premium segment.”

At the same time, companies seeking faster relocations are increasingly considering second-generation office space. However, adapting existing layouts often involves more extensive work than initially expected, particularly when technical systems or layouts need to be altered.

Under typical five-year lease agreements, landlord contributions for fit-outs currently range between EUR 500-650 per sqm for shell and core space, leaving tenants to bridge the gap for mid or higher-standard offices. For already fitted space, available budgets are usually lower, often between EUR 150-350 per sqm, which can still fall short of requirements.

Słysz concluded: “The current market situation is forcing companies to adopt a more conscious approach to relocation planning and fit-out budgeting. Differences between fit-out standards are becoming increasingly pronounced, while available budgets are ever more disproportionate to actual costs. As a result, decisions regarding space selection, lease length and the scope of arrangement works are becoming one of the key elements of every organisation’s office strategy”.

Source: AXI IMMO

Ownership of Prague 3 brownfield site transfers to Logport and J&T Real Estate joint venture

A land transaction involving a brownfield site on the edge of central Prague has been completed, with advisory firm Colliers supporting the process.

The deal concerned the transfer of a full ownership stake in LUSIMA AD Property s.r.o., which controls a plot on Spojovací Street in Prague 3. The vendors included JSK Investments, Notino and associated partners. The buyer is a joint venture formed by Logport and J&T Real Estate.

The site covers approximately 37,000 square metres and has historically been used for industrial purposes, dating back to the 1970s when it housed Autodružstvo Praha. The existing buildings remain occupied by tenants, although the area is expected to attract redevelopment interest due to its location near the wider city centre.

Tomáš Szilágyi, Associate Director at Colliers, said: “I am very pleased to have been able to contribute to the completion of such an interesting and complex transaction. We thank the sellers for their trust in our services and wish the new owners every success in realizing this ambitious project.”

Legal support was provided on both sides of the transaction. The sellers were advised by Tauber Špačková, Axialis Legal and HLADKY.LEGAL, while the buyers were represented by WHITE & CASE and OHBS.

Manova Partners and Mapfre acquire Dublin office asset for SIEREF 2 fund

Manova Partners and Mapfre have acquired the One Haddington Buildings office property in Dublin for their joint vehicle, the Stable Income European Real Estate Fund 2 (SIEREF 2).

The four-storey building, located on Haddington Road in the city’s central business district, provides approximately 3,800 sqm of office space along with 23 parking spaces. Originally completed in 1995, the property was refurbished in 2022 and holds a BER A3 rating as well as Nearly Zero Energy Building (NZEB) status.

The asset is fully leased to four tenants on long-term agreements across a mix of sectors, offering what the investors describe as stable income characteristics. Its location benefits from access to public transport, including tram, rail and bus connections, and is within walking distance of a range of amenities.

Christian Göbel, Co-CEO at Manova Partners, said: “With One Haddington Buildings, we are acquiring a future-proofed and ESG-compliant office property in one of Dublin’s most established office locations. The property impresses with its high-quality tenancy and attractive yield. With this acquisition we continue our current anticyclical investment strategy to expand our office portfolio in prime locations.”

Laetitia Treves, Head of Transactions Europe at Manova Partners, added: “We believe now is an opportune moment in the cycle to invest in the Dublin office market, which has significantly re-priced with growing momentum in the leasing market. One Haddington Buildings is a quality Grade A office in a vibrant location in Dublin providing attractive yield profile compared to other European cities.”

Carlos Díaz Gridilla, Managing Director at Mapfre Inmuebles, said: “An acquisition like One Haddington Buildings fits perfectly into Mapfre’s real estate strategy, which prioritizes investment in high-quality office buildings in prime locations that can provide a stable source of income over the long term. Our investment strategy in alternative assets has proven successful in recent years, and we will continue to explore this avenue in partnership with our top-tier partners.”

The transaction marks the fourth acquisition for SIEREF 2, a fund targeting core office assets across Europe on behalf of Spanish institutional capital. The strategy follows an earlier vehicle launched in 2018 and focuses on markets outside Spain.

With this acquisition, Dublin becomes the third city represented in the current portfolio after Berlin and London. The fund managers indicated that remaining capital will be deployed over the next 12 to 18 months to further diversify both geographic exposure and lease maturity profiles.

VIA Outlets completes expansion of Landquart Fashion Outlet in Switzerland

VIA Outlets has completed an extension of its Landquart Fashion Outlet in eastern Switzerland, increasing the scheme’s total leasable area to approximately 27,000 sqm. The project adds just under 5,000 sqm of space, representing an increase of more than 20%.

Located in the Graubünden region, near the borders with Austria and Liechtenstein, the outlet serves both local visitors and tourists travelling դեպի alpine destinations such as St. Moritz, Davos and Klosters.

The extension introduces 15 additional retail and food and beverage units and reconfigures part of the centre’s layout, including improvements to the southern entrance. Following the works, the scheme comprises around 100 stores and more than 170 brands across fashion, lifestyle and sports categories.

Otto Ambagtsheer, CEO of VIA Outlets, said: “Our investment in the new extension of Landquart Fashion Outlet reflects our focused market repositioning of the centre in the past 12 years. Through our 3R strategy of Remodelling, Remerchandising and Remarketing, it has attracted many new premium brands and driven strong growth in brand sales and footfall. Landquart Fashion Outlets’ success is further evidence of the broader trend in pan-European retail markets, with premium brands increasingly drawn to the fashion outlet centre format.”

New tenants include international brands such as Coach, Carhartt WIP, American Vintage, Eleventy, L’Oréal, Läderach and Birkenstock. Existing tenants including Nike, Calvin Klein and PME Legend have expanded or relocated within the scheme. The development also includes what the company describes as the largest Nike factory store in Switzerland.

In parallel with the retail extension, a new multi-storey car park has been delivered, increasing total capacity to approximately 1,550 spaces. The site also includes an electric vehicle charging facility with a mix of fast and standard charging points.

Marianne Wesselo, Regional Business Director at VIA Outlets, commented: “This expansion marks the next step in a journey that began in 2014 when VIA Outlets acquired Landquart Fashion Outlet. Following continuous upgrades in recent years, this new extension enables us to further strengthen the destination as a place where brands can grow and guests enjoy an experience defined by quality, contemporary design, and attention to detail all while advancing the sustainability initiatives that underpin our ambition to reach our Net Zero emissions target by 2050 across the portfolio.”

Special Notarial Bonds remain key tool for asset-backed lending in South Africa

Special Notarial Bonds (SNBs) continue to play an important role in South Africa’s secured lending framework, allowing creditors to take security over specified movable assets without requiring physical possession. The mechanism is governed by the Security by Means of Movable Property Act 57 of 1993, which sets out the legal basis for registering such rights.

An SNB enables a creditor to secure obligations against clearly identified movable property, including tangible assets such as machinery, vehicles and equipment, as well as certain intangible rights like shares or lease interests. The defining feature is that the debtor retains use of the asset, while the creditor benefits from a registered security interest.

For the bond to be valid, the assets must be described with sufficient precision to ensure they can be easily identified. The instrument must be executed before a notary public and registered with the Deeds Registry. Once completed, the bond creates a real right that is enforceable against third parties, strengthening the creditor’s position in the event of default.

In an enforcement scenario, SNB holders benefit from a preferential claim over the secured assets. Under the Insolvency Act 24 of 1936, proceeds from the sale of the encumbered assets, after costs, may be applied toward settling the creditor’s claim. This feature has made SNBs a widely used instrument in asset-based financing structures.

However, the scope of assets that can be secured under an SNB is not unlimited. Certain categories of movable property fall outside the regime due to separate regulatory frameworks. These include ships and aircraft, which are subject to dedicated registration systems. For example, security over vessels is governed by the Ship Registration Act 58 of 1998, while aircraft-related interests are addressed through international conventions incorporated into domestic law, including the Convention on International Interests in Mobile Equipment Act 4 of 2007.

These parallel systems are designed to ensure consistency with international standards and avoid duplication with the Deeds Registry. As a result, assets such as aircraft, drones or ships must be secured through their respective registries rather than through an SNB.

For businesses and lenders, the distinction is material when structuring secured transactions. Ensuring that assets fall within the scope of the applicable legislation, are properly identified, and are correctly registered is essential to maintaining enforceability.

SNBs remain a practical and effective financing tool in the South African market, but their reliability ultimately depends on strict adherence to statutory requirements and a clear understanding of the assets that qualify for this form of security.

Source: CMS

Legal Risks and Execution Challenges Continue to Shape Investment in Romania (Part 2)

While Romania’s investment framework is evolving, the execution of transactions continues to reveal a range of legal and operational risks that foreign investors must carefully navigate. Based on extensive deal experience, Silviu Stratulat, Managing Partner at Stratulat Albulescu Attorneys highlights recurring issues that frequently emerge during due diligence and post-acquisition integration.

Tax exposure remains one of the most common findings in transaction processes. Issues related to transfer pricing, employee incentives and their potential reclassification often create unexpected liabilities. Although tax due diligence is typically conducted by specialised advisors, its outcomes significantly influence deal structure and pricing.

Employment-related risks also feature prominently. Companies may rely on service agreements or other arrangements that, under Romanian law, risk being reclassified as employment relationships. Such requalification can trigger substantial financial consequences, including back taxes and penalties.

In industrial and operational assets, environmental compliance is a recurring concern, particularly for legacy sites. Fire safety regulations represent another critical area, where non-compliance or incomplete permitting can expose investors not only to financial risk but also to potential criminal liability in extreme cases.

Data protection compliance continues to be underestimated, despite the direct applicability of GDPR. Many companies, particularly in business-to-business sectors, fail to fully align their operations with data protection requirements, including the handling of employee data. This creates exposure to significant fines, calculated as a percentage of turnover.

In real estate transactions, Romania presents a distinct set of challenges compared to other EU markets. Title risks remain relatively common, reflecting historical restitution claims and ongoing cadastral inconsistencies. Overlapping land records and documentation gaps can complicate acquisitions, making title insurance a more frequent requirement than in other jurisdictions.

Beyond due diligence, post-transaction integration introduces additional complexities. Regulatory approvals and permit transfers must be carefully managed, particularly in cases involving change of control. Contractual provisions in financing agreements and supplier contracts may also impose restrictions, requiring lender consent or renegotiation.

Operational integration can present less visible but equally significant challenges. Rapid implementation of new governance structures or compliance systems can disrupt existing organisations, affecting employee retention and performance. Managing cultural alignment is therefore a key factor in successful integration.

Looking ahead, several regulatory developments are expected to shape Romania’s investment environment. European digital legislation, including the AI Act, Data Act and cybersecurity frameworks, will introduce new compliance layers for businesses. At the same time, the energy transition, particularly in renewables, offshore wind and emerging technologies, will create both opportunities and regulatory complexity.

Fiscal policy remains a central variable. Future changes in taxation, alongside broader EU harmonisation initiatives, will influence investment decisions across sectors. Infrastructure development, supported by EU funding, is also expected to play a significant role, provided that implementation remains consistent and predictable.

Further reforms in insolvency and restructuring are anticipated, with potential to improve investor confidence, particularly in higher-risk or capital-intensive sectors.

From a structural perspective, Romania still has room to strengthen its investment ecosystem. Stratulat points to Poland as a relevant benchmark, particularly in areas such as investment fund structures, tax incentives and corporate governance flexibility. Encouraging the development of locally domiciled funds and expanding institutional capital could support broader market growth.

In the current market context, a more cautious economic sentiment has created what may be a favourable entry point for investors. While consumption and overall confidence have moderated, this environment may offer opportunities to deploy capital at more attractive valuations.

Stratulat remains optimistic about Romania’s medium-term outlook, citing its strategic location and growth potential. Sectors such as infrastructure, construction, food production and technology are expected to see increased activity, supported by both domestic demand and regional developments.

With expectations of stronger growth beginning from 2027, the current period may represent a window of opportunity for investors willing to navigate the complexities of the market.

Part 1 (Romania Eases FDI Framework as It Positions for a New Investment Cycle)

Slovakia’s inflation slows to 15-month low, but housing and energy costs remain elevated

Consumer price growth in Slovakia eased in March, reaching its lowest level in over a year, according to data published by the Statistical Office of the Slovak Republic. Despite the slowdown, housing and energy costs continue to exert upward pressure on inflation.

Annual inflation stood at 3.5 percent in March, down from previous months and marking the lowest rate in 15 months. On a monthly basis, prices increased by 0.1 percent, unchanged from February and significantly below January levels.

The moderation in inflation was driven largely by weaker price growth across most categories, particularly food and non-alcoholic beverages, as well as recreation and hospitality-related services. At the same time, lower food prices contributed to the subdued month-on-month increase, with broad declines across key categories such as dairy, oils and cereals.

However, rising costs in housing and transport partially offset this trend. Prices in the housing and energy segment increased both month-on-month and year-on-year, remaining a key driver of overall inflation. Energy costs for heating rose sharply compared to a year earlier, alongside higher imputed rents and service charges linked to housing.

Transport costs also contributed to inflationary pressures, with fuel prices increasing significantly during the month. This reversed the earlier trend of declining transport costs and had a noticeable impact on overall price development.

Across the consumer basket, prices rose year-on-year in all main categories, with the strongest increases recorded in financial and insurance services, as well as housing-related costs. By contrast, price growth slowed considerably in food and beverage categories, helping to moderate overall inflation.

Core inflation, which excludes regulated prices and administrative effects, reached 1.9 percent year-on-year, while net inflation stood at 2.6 percent. These indicators suggest that underlying price pressures remain more contained than headline inflation.

The latest data also reflect methodological changes introduced at the start of 2026, including an updated consumer basket and revised weighting of expenditure categories. Housing and energy now account for just under 22 percent of household spending, while food and non-alcoholic beverages represent just over 20 percent.

Overall, while inflation in Slovakia is easing, the data indicate that structural pressures—particularly in housing and energy—continue to shape price dynamics in the economy.

Inflation picks up in Czech Republic as housing costs remain a concern

Consumer price growth in the Czech Republic accelerated in March, driven mainly by fuel costs, while housing-related expenses continue to put pressure on overall inflation, according to data from the Czech Statistical Office.

Annual inflation reached 1.9 percent in March, up from 1.4 percent in February, while prices increased by 0.6 percent month-on-month. The rise brings inflation close to the Czech National Bank target of 2 percent, with analysts expecting further increases in the coming months.

Fuel prices were the main contributor to the latest increase. Pavla Šedivá from the statistical office noted that diesel and petrol prices reached their highest levels in recent periods. “The most significant impact on consumer prices was the fuel price in March. Diesel was sold at petrol stations for an average of 42 Kč/l and petrol Natural 95 for 38.10 Kč/l. In the case of Natural 95 petrol, this was the highest value since July 2024 and in the case of diesel even from November 2022,” she said.

According to Zdeněk Pikhart, earlier factors that had helped contain inflation—such as adjustments to renewable energy payments and lower food prices—have now been offset by higher fuel costs.

“The supply shock to fuel prices thus caught the economy in a relatively favorable situation in March, with briskly rising economic activity and inflation below the target. However, the month-on-month fuel price increase has largely exhausted this pillow and put inflation back in close proximity to two percent,” Pikhart said.

Beyond energy, analysts highlight housing-related costs as a key structural driver of inflation. Petr Dufek pointed to rents and imputed rent as major contributors.

“This is mainly due to the increasing rent and the so-called imputed rent, which reflects the high prices of apartments in the real estate market. Only these two items are behind almost half of the current annual inflation,” he said.

Rents rose by 6.1 percent year-on-year, while imputed rent, reflecting the cost of home ownership, increased by 5.4 percent. Service prices overall were up 4.7 percent, compared with only marginal growth in goods prices.

In a broader European comparison, inflation in the Czech Republic remains relatively moderate, although it is higher in neighbouring markets including Slovakia, Austria, Poland and Germany.

Analysts expect inflation to rise further in April, largely due to continued pressure from oil prices. Miroslav Novák said: “In April, inflation is very likely to accelerate further due to high oil prices. In my opinion, the price caps on margins and the lower excise tax on diesel will have only limited effects.”

The central bank expects inflation to remain contained over the full year, with average growth projected to stay below 3 percent, although external factors such as geopolitical tensions and commodity prices continue to pose risks.

Source: CTK

Slovakia extends dual diesel pricing and removes refuelling cap

The government of Slovakia has decided to extend its system of dual diesel pricing for a further 30 days, while removing the existing €400 cap on individual refuelling transactions. The move confirms earlier statements by Prime Minister Robert Fico and comes despite criticism from the European Commission.

Under the measure, diesel sold to vehicles with foreign licence plates remains priced at a higher level than for domestic users. The government has, however, lifted limits on the volume and value of fuel purchases, a change previously requested by Slovak transport operators. Motorists are still restricted to refuelling directly into vehicle tanks and, in limited cases, into a single container of up to 10 litres.

“The decision on double prices makes sense. Therefore, we will again put this provision into the preparation of the government regulation so that the Ministry of Finance can go down this path,” Fico said.

The price for foreign vehicles is calculated as an average of diesel prices in neighbouring countries, including the Czech Republic, Poland and Austria, based on data from the European Commission. This currently stands at around €2.00 per litre, compared with approximately €1.75 per litre on the domestic market.

The policy was introduced in March in response to increased cross-border demand, often described as fuel tourism, after Slovak fuel prices fell below levels in neighbouring countries following disruptions linked to the conflict in the Middle East. The European Commission has argued that the dual pricing mechanism is discriminatory and may be incompatible with EU law.

Slovakia implemented the regulation under a state of oil emergency declared earlier this year after supplies through the Druzhba oil pipeline were interrupted. Although some restrictions have since been eased, the government has opted to maintain selected measures.

State-owned refinery Slovnaft, part of the MOL Group, has resumed near-full operations and is sourcing crude oil via the Adria pipeline, including shipments from Libya and Saudi Arabia. According to CEO Gabriel Szabó, the company is continuing technical adjustments to enable processing of non-Russian crude, with completion expected next year.

At the same time, uncertainty around regional supply remains. Volodymyr Zelenskyy said that flows through the Druzhba pipeline could resume by the end of April, following earlier disruptions linked to the ongoing conflict.

The Slovak government maintains that the measures are necessary to stabilise the domestic fuel market, while discussions with EU institutions on their compliance continue.

Source: CTK

Czech rental market sees quarterly dip, annual growth remains strong

Rents across the Czech Republic declined slightly in the first quarter of 2026 compared with the end of last year, although year-on-year growth remains significant, according to data from Bezrealitky.cz.

Average asking rents fell by around 2 percent quarter-on-quarter to CZK 365 per sqm, while increasing by 13 percent compared with the same period last year. The data suggests that rental price growth is slowing, with some signs of stabilisation emerging across the market.

According to the analysis, supply levels are gradually increasing, while demand is becoming more constrained by affordability. Hendrik Meyer, head of the EEC Group, said the market is adjusting to more price-sensitive tenants.

“They have a clear budget and have no problem sharing it with apartment owners. By increasing the number of apartments on offer, sooner or later they will come across someone who will make a concession in price rather than look for a tenant for another month and thus lose a twelfth of the annual profit,” Meyer said.

Among major cities, Prague remains the most expensive rental market. Average rents reached approximately CZK 456 per sqm in the first quarter, equivalent to around CZK 27,350 per month for a 60 sqm apartment. Prices increased both quarter-on-quarter and year-on-year, with annual growth reaching up to 14 percent. Demand also remains strong, with an average of 45 applicants per listing.

In the surrounding Central Bohemian Region, rents declined by around 5 percent compared with the previous quarter, although they rose by 13 percent year-on-year. Average rents stood at CZK 309 per sqm. While towns closer to Prague continue to record increases, more distant locations such as Příbram or Rakovník saw declines.

In Brno, rents were largely stable for a third consecutive quarter, averaging CZK 346 per sqm, with a slight quarterly decrease of around 1 percent. Meyer noted that supply growth is influencing the short-term trend.

“The current situation does not mean that rents in Brno will not increase in the long term. The optics of comparisons during the rolling year grew by 12 percent. However, the market is responding to the current growing number of apartments on offer, which is increasing with each passing month,” he added.

Elsewhere, the largest quarter-on-quarter decline was recorded in Olomouc and its surrounding area, where rents fell by around 11 percent, although they remain higher than a year ago.

Overall, while rents have not declined on an annual basis in any major city, the first quarter data indicates a shift towards a more balanced market, with affordability constraints and rising supply beginning to moderate price growth.

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