EU Cyber Resilience Act Set to Reshape Software and Connected Device Markets

The European Union is moving closer to one of its most significant cybersecurity reforms with the gradual implementation of the Cyber Resilience Act (CRA), legislation that will introduce mandatory cybersecurity standards for software and connected hardware sold across the EU.

Although the regulation entered into force in December 2024, its obligations will be phased in over the next two years. The European Commission has now published detailed implementation guidance clarifying how businesses should determine whether their products fall within the scope of the new rules and what level of compliance they will require.

For technology companies, manufacturers and software developers, the guidance provides greater certainty but also confirms that compliance will extend far beyond traditional cybersecurity products.

A Wide Range of Digital Products Will Be Affected

The legislation applies to products that contain digital functionality and are capable of connecting directly or indirectly to networks or other devices.

This means the rules will cover not only cybersecurity software but also connected consumer electronics, industrial equipment, business applications and many Internet of Things (IoT) devices.

Examples include smart home equipment, enterprise software, networking hardware, industrial control systems and operating systems. Cloud services that are essential to a product’s functionality may also fall within the legislation.

Products developed solely for internal company use and never placed on the market are generally excluded, as are devices without any form of digital connectivity.

Three Levels of Compliance

A central feature of the Cyber Resilience Act is a risk-based classification system that determines the level of regulatory scrutiny required before products can enter the European market.

Most connected products will fall into the standard category, where manufacturers are permitted to assess their own compliance provided they meet the legislation’s cybersecurity requirements and maintain appropriate technical documentation.

Products considered to present greater cybersecurity risks will face stricter assessment procedures. These include technologies such as identity management systems, password managers, operating systems, internet routers, network equipment and security software.

The highest-risk category covers specialised cryptographic hardware and secure infrastructure used in critical sectors, where independent certification will generally be required before products can be marketed within the EU.

The European Commission retains the authority to update these classifications as technology and cyber threats evolve, meaning products could move into more demanding compliance categories over time.

Security Responsibilities Extend Beyond Product Launch

The regulation introduces ongoing obligations that continue throughout a product’s commercial life rather than ending when it is sold.

Manufacturers will be expected to monitor cybersecurity vulnerabilities, provide security updates throughout an appropriate support period and maintain detailed records of software components used within their products.

Many products will require support for at least five years, although equipment expected to remain operational for longer periods may require extended maintenance commitments.

The legislation also introduces stricter reporting obligations for actively exploited cybersecurity vulnerabilities, requiring rapid notification to the European Union Agency for Cybersecurity (ENISA) within defined timeframes.

Software Supply Chains Face Greater Scrutiny

Another significant feature of the legislation is the emphasis on software transparency.

Manufacturers must maintain comprehensive records of third-party software components incorporated into their products, commonly known as Software Bills of Materials (SBOMs). These inventories are intended to improve visibility across increasingly complex software supply chains and allow vulnerabilities to be identified and addressed more quickly.

The requirements reflect growing concern among regulators about the cybersecurity risks created by open-source libraries and externally developed software components that are widely reused across multiple products.

Open-Source Software Receives Special Treatment

The legislation distinguishes between community-driven open-source projects and commercial software built around open-source technologies.

Projects distributed without commercial intent generally remain outside the regulation’s scope. However, companies that package, market or monetise open-source software as commercial products will be subject to the same obligations as other software manufacturers.

The legislation also introduces a separate category for organisations that actively support commercially significant open-source projects. These organisations face lighter regulatory obligations but are still expected to maintain security policies and cooperate with market surveillance authorities where appropriate.

Some Industries Remain Outside the Regulation

Not every connected product will be governed by the Cyber Resilience Act.

Products already subject to sector-specific European legislation with equivalent cybersecurity requirements, including many medical devices, vehicles and aviation systems, are generally excluded from the new framework.

Equipment developed exclusively for national defence or security purposes also falls outside its scope.

Nevertheless, many businesses operating across multiple sectors will need to determine carefully whether individual products remain covered by existing legislation or whether the Cyber Resilience Act applies in full or in part.

Businesses Face a Tight Preparation Window

Although most compliance requirements do not become fully applicable until 11 December 2027, manufacturers have considerably less time to prepare.

Mandatory reporting requirements for actively exploited vulnerabilities and significant cybersecurity incidents begin on 11 September 2026, requiring companies to establish internal monitoring, reporting and incident response procedures well before the broader compliance framework comes into force.

Industry experts expect many businesses to spend the next 18 months reviewing product portfolios, reassessing development processes and strengthening software governance to ensure continued access to the European market.

Cybersecurity Becomes a Product Requirement

The Cyber Resilience Act represents a significant shift in European technology regulation by treating cybersecurity as a mandatory product characteristic rather than an optional feature.

Manufacturers will increasingly be expected to demonstrate not only that products function as intended, but also that they can withstand evolving cyber threats throughout their operational life.

For companies developing software, connected devices and digital services, cybersecurity is becoming a permanent component of product design, supply chain management and regulatory compliance. As implementation deadlines approach, organisations that begin preparing early are likely to be better positioned to meet the new standards while maintaining uninterrupted access to one of the world’s largest technology markets.

Source: CMS

Japan’s Property Sector Powers Up with Renewable Energy and Battery Storage

Japan’s commercial real estate market is increasingly becoming part of the country’s energy transition. As the government works towards its goal of achieving net-zero greenhouse gas emissions by 2050, developers, investors and property owners are expanding their focus beyond traditional building performance to include clean electricity generation, energy storage and long-term energy resilience.

Rather than viewing buildings solely as places to live or work, the industry is beginning to treat them as energy-producing assets capable of lowering operating costs, improving environmental performance and generating new sources of value. This trend is becoming particularly visible across office buildings, logistics facilities, industrial parks and mixed-use developments, where large rooftops and significant electricity demand create favourable conditions for renewable energy projects.

Buildings Become Part of the Energy Network

The integration of renewable energy into commercial property is accelerating across Japan. Developers are increasingly installing rooftop solar systems while securing long-term renewable electricity through corporate power purchase agreements (PPAs). These arrangements allow property owners to source clean electricity directly from renewable energy producers, helping to reduce exposure to volatile energy prices while supporting corporate sustainability targets.

One of the country’s largest initiatives was announced in early 2026 when Nomura Real Estate partnered with Clean Energy Connect to establish a business dedicated to developing hundreds of distributed solar facilities across Japan. Electricity generated by these installations will supply properties within Nomura’s portfolio through long-term agreements, demonstrating how renewable energy can become an integral part of real estate operations rather than a separate infrastructure investment.

The approach reflects a wider shift within Japan’s property sector, where developers are seeking greater control over their energy supply while reducing dependence on conventional electricity sources.

Japanese REITs Accelerate Sustainability

Japan’s listed real estate investment trusts are also expanding renewable energy across their portfolios. Many have introduced rooftop solar installations on office buildings, logistics centres and retail properties as part of broader environmental strategies.

Alongside on-site generation, property companies are increasing their use of renewable electricity certificates and other market mechanisms to support the transition towards cleaner energy supplies across their operational portfolios.

For investors, these measures are becoming increasingly important as environmental performance plays a larger role in investment decisions, tenant expectations and access to sustainable finance.

Battery Storage Gains Strategic Importance

As renewable electricity production grows, battery energy storage is emerging as an essential component of Japan’s energy infrastructure. Solar and wind generation fluctuate depending on weather conditions, making energy storage increasingly valuable for balancing electricity supply and demand.

Battery systems allow surplus electricity generated during periods of high renewable output to be stored and released when demand increases or renewable generation falls. This improves grid stability while helping maximise the use of renewable energy.

Industry organisations have highlighted growing investment in large-scale battery projects as equipment costs continue to decline and renewable energy capacity expands throughout the country.

Real Estate and Energy Storage Are Converging

Battery storage is no longer viewed solely as part of the electricity network. Increasingly, developers are considering battery systems as complementary infrastructure within commercial property developments.

Industrial parks, logistics hubs and business campuses can combine rooftop solar generation with on-site battery storage, allowing buildings to store electricity for later use, reduce peak electricity purchases and improve resilience during supply disruptions.

This integrated approach can also create additional revenue opportunities by allowing stored electricity to participate in electricity balancing markets where regulations permit.

The combination of renewable generation and battery storage is becoming particularly attractive for large commercial assets with predictable energy demand and significant available space.

Major Projects Signal Long-Term Confidence

Japan is also witnessing growing investment in utility-scale battery storage. Companies including PowerX and Banpu Japan are developing large battery facilities in Fukushima and Miyazaki Prefectures that will strengthen regional electricity networks while supporting greater renewable energy integration.

These projects are designed to improve grid flexibility and accommodate increasing volumes of renewable generation as Japan continues to diversify its energy mix.

Although most of these developments operate independently of commercial real estate, they demonstrate the wider investment flowing into energy infrastructure that increasingly complements property development.

Challenges Continue to Shape the Market

Despite growing momentum, several obstacles remain.

Grid connection capacity remains limited in some regions, delaying both renewable generation and battery projects. Developers also continue to face evolving electricity market regulations, while forecasting future revenue from battery storage remains more complex than for traditional real estate investments.

Financing structures are also adapting as lenders and investors evaluate projects that combine property assets with electricity generation and energy infrastructure.

In addition, developers must ensure that renewable energy systems, battery installations and building operations are integrated efficiently while maintaining safety, reliability and long-term asset performance.

A New Investment Theme for Japanese Real Estate

The convergence of commercial property, renewable electricity and battery storage represents one of the most significant structural changes taking place in Japan’s real estate market.

Instead of serving only as locations for business activity, buildings are increasingly becoming active participants in the country’s energy system. Solar generation, long-term renewable electricity contracts and battery storage are creating opportunities to improve operational efficiency while strengthening energy security.

As Japan continues its transition towards a lower-carbon economy, the relationship between property and energy infrastructure is expected to deepen further. Developers who successfully combine sustainable buildings with resilient energy systems are likely to be well positioned to meet evolving tenant expectations while creating more stable long-term investment value.

Source: © CIJ.World Japan Research & Analysis Team

Beyond the Metros: Why India’s Smaller Cities Are Becoming the Next Data Centre Destinations

India’s digital economy is entering a new phase of growth, and the country’s data centre industry is evolving alongside it. For years, Mumbai and Chennai have dominated the sector because of their well-developed infrastructure, international connectivity and concentration of large businesses. While these cities continue to attract the majority of investment, developers are increasingly exploring opportunities in smaller urban centres that can support the next stage of India’s expanding digital infrastructure.

The growing use of cloud services, artificial intelligence, digital payments, online entertainment and connected devices is creating demand for computing capacity closer to businesses and consumers. As digital activity spreads across the country, companies are looking beyond the traditional metropolitan markets to establish facilities that can improve service delivery while supporting regional economic growth.

Industry analysts expect India’s data centre market to continue expanding rapidly over the coming years. Although Mumbai, Chennai and Delhi-NCR remain the largest hubs, several emerging cities are beginning to attract interest from domestic and international investors seeking locations for future developments.

Why Emerging Cities Are Attracting Investment

One of the strongest advantages offered by smaller cities is the availability of land. In India’s largest metropolitan areas, suitable development sites are becoming increasingly difficult and expensive to secure. By comparison, many regional cities offer larger parcels of land at lower prices, allowing developers greater flexibility when planning new facilities.

Construction costs can also be more competitive outside the country’s busiest commercial centres. Lower land values and reduced development expenses can improve project economics, particularly for facilities designed to serve regional markets rather than nationwide operations.

Another important factor is the continued improvement of digital infrastructure across India. The expansion of fibre-optic networks, wider availability of high-speed mobile connectivity and growing investment in power infrastructure are making more locations technically suitable for data centre development than was the case only a few years ago.

Regional Demand Is Growing

Digital services are no longer concentrated in India’s largest cities. Online shopping, financial technology, video streaming, gaming and industrial automation are becoming increasingly popular across smaller cities and towns.

As more users access these services, businesses benefit from processing information closer to where it is generated. Facilities located nearer to customers can reduce delays in data transmission and improve the performance of applications that require rapid response times.

This trend is particularly important for services such as online gaming, real-time financial transactions and connected manufacturing, where even small improvements in speed can enhance the user experience.

Government Policies Are Supporting Expansion

Several state governments have introduced policies designed to attract digital infrastructure investment. These initiatives include simplified approval procedures, financial incentives and support for infrastructure development.

States such as Gujarat and Andhra Pradesh have announced dedicated programmes aimed at encouraging investment in data centres, while cities including Visakhapatnam, Kochi, Ahmedabad, Jaipur and Bhubaneswar are increasingly being considered for future projects.

Competition between states is expected to intensify as governments recognise the economic benefits associated with large-scale digital infrastructure, including employment, technology investment and supporting industries.

Sustainability Is Becoming More Important

Access to reliable electricity remains one of the most important considerations when selecting a location for a data centre. Increasingly, operators are also looking for access to renewable energy as they seek to reduce carbon emissions and meet environmental commitments.

Regions with expanding solar and wind generation are therefore becoming more attractive. Reliable power remains essential because data centres operate continuously, requiring uninterrupted electricity regardless of weather conditions.

Many operators are also investing in more efficient cooling technologies and improved energy management systems to reduce operating costs while limiting environmental impact.

Managing Operational Risk

Expanding into multiple regions also helps companies reduce business risk. Concentrating large amounts of digital infrastructure in only a handful of cities can expose operators to disruptions caused by severe weather, power failures or network outages.

Developing facilities across several locations creates greater resilience and allows businesses to continue operating if one region experiences unexpected problems. This strategy has become increasingly important as digital services play a larger role in the daily operations of businesses and government organisations.

Challenges Still Remain

Despite growing interest, smaller cities must overcome several obstacles before they can compete with India’s established data centre markets.

Reliable electricity remains one of the biggest challenges. Data centres require continuous power, and interruptions can have significant operational consequences. Although power infrastructure is improving, not every emerging location can yet provide the level of reliability expected by global operators.

The availability of highly skilled engineers and specialist technicians is another consideration. Major metropolitan areas continue to offer deeper talent pools and more mature technology ecosystems, making them attractive locations for complex digital infrastructure.

Water availability is also receiving greater attention. Some cooling systems consume significant amounts of water, creating concerns in regions already facing pressure on local water resources. As a result, developers are increasingly adopting technologies that improve efficiency and reduce overall consumption.

Strong telecommunications infrastructure is equally important. Multiple high-capacity fibre connections are essential to ensure continuous service and minimise the risk of network disruption.

A More Balanced Digital Future

India’s next wave of data centre development is unlikely to replace Mumbai or Chennai as the country’s leading digital hubs. Instead, it is expected to create a more balanced national network in which regional cities play an increasingly important supporting role.

Large metropolitan markets will continue to host many of the country’s largest facilities because of their established infrastructure and concentration of enterprise customers. At the same time, emerging cities are well positioned to accommodate regional facilities that improve service delivery, strengthen network resilience and support growing digital demand across India.

As investment continues to spread beyond the traditional metropolitan centres, India’s digital infrastructure is becoming more geographically diverse. This gradual expansion will not only improve connectivity and business continuity but also create new opportunities for regional economic development, helping smaller cities become an increasingly important part of the country’s digital transformation.

Source: © CIJ.World India Research & Analysis Team

WDP Maintains Growth Momentum as European Expansion Accelerates

WDP reported continued growth during the first half of 2026, supported by strong leasing activity, new investments and the proposed merger with French logistics real estate specialist ARGAN, which would create one of Europe’s largest logistics property platforms.

During the first six months of the year, WDP increased its EPRA earnings to €0.79 per share, representing a 5% year-on-year increase. The company attributed the performance to a combination of organic growth, ongoing investments, high operating margins and competitive financing costs.

The proposed combination with ARGAN represents a key milestone in WDP’s #BLEND&EXTEND2030 strategy. If completed, the enlarged platform would manage logistics assets valued at more than €13 billion and generate annual rental income exceeding €700 million, significantly strengthening WDP’s presence across Europe’s logistics property market.

Operational performance remained strong throughout the period. Portfolio occupancy stood at 97.2%, while approximately 75% of leases due to expire during 2026 had already been renewed or secured. WDP signed around 200,000 sqm of new lease agreements, excluding renewals, and completed acquisitions and pre-let developments totalling 190,000 sqm, achieving a net operating income yield of 6.7%.

The company’s property portfolio remained broadly stable in value, recording a positive revaluation of €9.4 million, or 0.1%, during the first half of the year. WDP reported an EPRA Net Initial Yield of 5.5%, while indicating that the portfolio offers further income growth potential as assets continue to mature and rental levels adjust to market conditions.

WDP also maintained a strong financial position, supported by €1.4 billion of available liquidity and annual self-financing capacity of approximately €500 million. The company confirmed that its A3 credit rating has been reaffirmed following the announcement of the proposed ARGAN merger.

Alongside the merger plans, WDP continued expanding its investment programme, securing approximately €300 million of new investments after completing €116 million of selective asset disposals. Its active development pipeline now totals €760 million, supporting future rental growth while facilitating disciplined expansion into markets including Spain and Italy.

The company reaffirmed its guidance for 2026, forecasting EPRA earnings of €1.60 per share, representing annual growth of approximately 5%, together with a proposed dividend of €1.29 per share, payable in 2027.

Romania remains a key growth market

Romania continues to play an important role within WDP’s European portfolio. The company owns logistics assets in the country valued at more than €1.6 billion, representing over 2 million sqm of gross lettable area across more than 80 strategic locations.

Several development projects are currently underway. In Bucharest–Ștefănești, WDP is constructing a 14,000 sqm extension for Auchan, supported by a 10-year lease agreement and an investment of approximately €9.1 million, with completion scheduled for the second quarter of 2027.

A second expansion for Auchan is progressing in Deva, where a 9,400 sqm extension incorporating both ambient and temperature-controlled warehouse space is expected to be delivered during the fourth quarter of 2026 under another 10-year lease. The investment amounts to approximately €7.6 million.

In Sibiu, WDP is developing a new 15,000 sqm industrial facility for Siemens under a 15-year lease agreement. The €14 million project is scheduled for completion in the fourth quarter of 2027 and will support advanced manufacturing through the integration of automation, robotics and digital production technologies.

With a high occupancy rate, a growing development pipeline and continued investment across key European markets, WDP said it remains on track to deliver its medium-term growth objectives while advancing its ambition to build a pan-European logistics real estate platform.

Norges Bank Investment Management and Sonae Sierra Form Joint Venture to Acquire Spanish Shopping Centre Portfolio

Norges Bank Investment Management (NBIM) and Sonae Sierra have agreed to establish a joint venture to acquire a portfolio of eight shopping centres in Spain valued at approximately €1.5 billion, strengthening their presence in the Iberian retail real estate market.

The agreement, signed on 31 July 2026, remains subject to regulatory approval and customary closing conditions.

The portfolio comprises more than 250,000 sqm of gross leasable area and includes Gran Plaza 2, Plaza Norte 2, Plaza Río 2, La Vaguada, Plaza Moraleja 2 and Plaza Loranca 2 in the Madrid metropolitan area, Gran Vía 2 in Barcelona and Plaza Mar 2 in Alicante. The assets are located in densely populated catchment areas with comparatively high purchasing power. The seller is La Sociedad General Inmobiliaria de España (LSGI).

The new joint venture intends to pursue additional shopping centre acquisitions across the Iberian Peninsula that align with its long-term investment strategy and return objectives.

Jayesh Patel, Co-Head of Europe, Real Estate at Norges Bank Investment Management, said the acquisition strengthens the organisation’s exposure to European retail real estate and is consistent with its strategy of investing alongside experienced operating partners. He added that Sonae Sierra’s established management platform and long track record in the Iberian market made it a natural partner for the venture.

As part of the transaction, Sonae Sierra will assume responsibility for managing the acquired portfolio. The company will also acquire 100% of Sociedad de Centros Comerciales de España (SCCE), the retail management platform currently responsible for operating the eight shopping centres included in the transaction as well as ten additional centres owned by third parties.

SCCE employs approximately 130 people, and its integration will further strengthen Sonae Sierra’s asset management capabilities in Spain. Following completion of the acquisition, Sonae Sierra will manage 73 shopping centres across eight countries, with total assets under management of approximately €8.5 billion.

Luis Mota Duarte, Deputy CEO and Executive Director of Investment Management at Sonae Sierra, said the partnership reflects the company’s long-standing strategy of working alongside leading institutional investors with shared long-term objectives. He added that the acquisition of SCCE would further reinforce Sonae Sierra’s operational platform and management capabilities in the Spanish market.

The transaction represents one of the largest retail real estate investments announced in Spain this year and highlights continued institutional demand for dominant shopping centres in established urban markets, despite ongoing changes in the European retail property sector.

KINGSTONE RE Acquires Affordable Residential Development in Wuppertal

KINGSTONE Real Estate has acquired a 78-unit residential development in Wuppertal on behalf of its KINGSTONE Bezahlbares Wohnen Deutschland fund, further expanding its portfolio of affordable housing investments in Germany.

The development, acquired from project developer TEAMRHEINRUHR, comprises two multifamily residential buildings offering approximately 6,100 sqm of residential space. In total, the scheme provides around 7,000 sqm of gross lettable area, including a daycare centre and a commercial unit intended for a café.

Of the 78 apartments, 52 units will be delivered as publicly subsidised affordable housing, while the remaining homes have been designed to meet the needs of senior residents. Construction began in July 2026.

The acquisition has been supported by public financing from NRW.BANK, including subsidised loans with partial debt forgiveness. The financial terms of the transaction were not disclosed.

Dr Tim Schomberg, CEO and Co-Founder of KINGSTONE Real Estate, said the development aligns closely with the investment strategy of the company’s affordable housing fund by combining subsidised residential accommodation with community infrastructure.

The project forms part of the wider Heubruch neighbourhood regeneration in Wuppertal’s Barmen district, a mixed-use residential development covering approximately 55,000 sqm. In addition to apartment buildings, the masterplan includes terraced and semi-detached housing together with landscaped communal spaces.

The buildings acquired by KINGSTONE will be constructed to the BEG 40 energy-efficiency standard and will incorporate rooftop photovoltaic systems, extensive green roofs and rainwater retention systems as part of their sustainability strategy.

Located within an established urban neighbourhood adjacent to the Wuppertal Nordbahntrasse, the development benefits from access to the city’s suspended railway, local bus services and a range of nearby retail and community amenities.

The transaction reflects continued investor interest in Germany’s affordable residential sector, where demographic trends, limited housing supply and public funding programmes continue to support demand for long-term rental housing. By increasing its exposure to subsidised housing, KINGSTONE Real Estate continues to expand a portfolio focused on delivering affordable homes while integrating social infrastructure and energy-efficient building standards.

HEUSSEN Rechtsanwaltsgesellschaft advised on legal and tax due diligence, while technical due diligence was undertaken by Case Real Estate GmbH. Environmental due diligence was provided by Arcadis Germany GmbH, and location analysis was completed by iib Consult GmbH.

Panattoni Targets Major Expansion Across France

Panattoni has unveiled plans to significantly expand its operations in France, aiming to double the size of its business through a larger development pipeline, a national speculative development programme and an expanded regional team.

The strategy reflects the company’s view that improving market conditions, softer land pricing and greater land availability are creating opportunities for speculative logistics development across key French markets.

Matthew Byrom, Managing Partner for UK & France, said France shares several characteristics with the UK logistics market, where Panattoni has successfully expanded its speculative development activities. He noted that while the planning process in France can be lengthy and complex, obtaining development permits creates significant value and allows developers to respond more quickly to occupier demand than through build-to-suit projects.

Panattoni’s current French development pipeline includes the 43,000 sqm Triborder City Dock near Basel, the 37,000 sqm Panattoni Park Paris West at Gaillon and Val d’Hazey, and the redevelopment of a 10,700 sqm City Dock scheme at Paris Nord 2. The company has also recently completed a 7,600 sqm parcel hub at Lyon-Saint Exupéry Airport.

To support its expansion, Panattoni has strengthened its French leadership team through a series of senior appointments and promotions.

Grégoire Challe has been promoted to Executive Director, France, where he will oversee the overall management and performance of the French business. James Watson has been appointed Head of National Development, France, in addition to his existing responsibilities, with responsibility for development activities nationwide.

The company has also appointed Nick Jordan, formerly with Mountpark, as Development Director in Paris, while Jago Betts and Pierre Fuchs join as Associate Developers for Central and Eastern France respectively. Both will focus on sourcing development opportunities and supporting occupier requirements. Youcef Assous has been appointed Project Manager and Zoe Dreux joins as Marketing and Communications Manager.

As part of the leadership transition, Salvi Cals has stepped down as Managing Director. Since joining Panattoni in 2021, he has overseen the company’s entry into the French market and helped establish its operational platform.

Panattoni said it remains committed to expanding its long-term presence in France through continued investment, additional development projects and a growing regional team. The company’s strategy reflects continued confidence in demand for modern logistics space in France despite broader market uncertainty, with speculative development expected to play an increasingly important role in meeting occupier requirements across the country’s major logistics markets.

CEE Real Estate Investment Rebounds as Poland Leads Market Recovery

Commercial real estate investment across Central and Eastern Europe strengthened during the first half of 2026, with transaction volumes reaching €5.8 billion, representing a 7% increase compared with the same period last year. According to Colliers’ latest CEE Investment Scene H1 2026 report, investor confidence is gradually returning, although capital is being deployed more selectively and is increasingly focused on assets offering resilient income, strong sustainability credentials and long-term growth potential.

The report suggests the region has entered a different phase of the investment cycle. Rather than a broad recovery across all property sectors, investors are prioritising assets that can benefit from structural trends including digitalisation, nearshoring, the energy transition and the continued growth of institutional residential rental housing. Financing conditions have also improved, but lenders remain increasingly selective, favouring high-quality assets supported by strong fundamentals and credible ESG strategies.

Poland was the region’s strongest-performing market, attracting more than €3.0 billion of investment during the first six months of the year and accounting for 52% of total CEE transaction volume. According to Colliers, this represents the country’s strongest first-half investment performance since 2018, supported by major transactions across the retail, logistics, office and private rented sector (PRS) markets. Among the largest deals was the €575 million sale of 18 completed Resi4Rent projects to Vantage Development, a transaction the report describes as an important milestone in the development of Poland’s institutional residential rental market. Domestic investors also played a growing role in supporting liquidity alongside international capital.

Czechia remained the region’s second-largest investment market, recording more than €1.4 billion in completed transactions. While this was below the exceptionally strong first half of 2025, Colliers says the decline primarily reflects market stabilisation following a record year rather than weaker market fundamentals. Hungary also recorded its strongest first-half performance since 2021, with investment volumes approaching €600 million, supported by easing inflation, improving macroeconomic sentiment and renewed activity from domestic and regional investors.

The sector mix also became more balanced during the first half of the year. Offices attracted the largest share of investment at 29%, followed by retail with 27%, while residential and living assets accounted for 19% and industrial and logistics represented 17% of total investment activity. The report notes that demand remains strongest for prime office buildings with strong environmental credentials and central locations, while secondary assets continue to face greater leasing and investment challenges. Retail parks, convenience-led schemes and dominant shopping centres also continued to attract investor interest, supported by resilient consumer spending across much of the region.

Colliers also concludes that financing is becoming increasingly risk-based rather than broadly restrictive. Credit remains available for well-positioned assets, but buildings with weaker energy performance, significant capital expenditure requirements or uncertain leasing prospects are expected to face more challenging financing conditions. This trend is expected to accelerate the repositioning and redevelopment of less competitive assets while supporting demand for modern, energy-efficient properties.

Looking ahead, Colliers maintains a cautiously positive outlook for the remainder of 2026. The report notes that transaction pipelines remain active, financing continues to be available for high-quality assets and domestic capital is playing an increasingly important role in supporting market liquidity. At the same time, elevated interest rates, refinancing risks and geopolitical uncertainty continue to influence investor decision-making. According to Colliers, Poland is expected to remain the region’s leading investment destination, while Czechia and Hungary are likely to continue attracting investor interest as macroeconomic conditions improve and confidence gradually returns. More broadly, the report concludes that commercial real estate investment across Central and Eastern Europe is entering a more mature phase in which resilience, operational performance and long-term relevance have become the key drivers of value creation.

REALOGIS Completes Full Letting of Zeven-Aspe Logistics Park

REALOGIS has completed the full letting of the Zeven-Aspe Logistics Park on behalf of bauwo Grundstücksgesellschaft mbH, with the final available unit leased on a long-term basis to a major textile services provider.

The latest lease covers approximately 10,544 sqm, including around 9,360 sqm of warehouse space, 95 sqm of office accommodation, 619 sqm of mezzanine storage and 470 sqm of staff facilities.

REALOGIS had previously secured tenants for the remaining two sections of the development, totalling approximately 20,800 sqm, which were leased to DMK Deutsche Milchkontor. With the completion of the latest transaction, the logistics park is now fully occupied.

Fabian von Rohr, Consultant at REALOGIS, said the tenant required modern logistics space within a short timeframe and that the development’s transport connections, flexible layout and ability to adapt mezzanine areas to operational requirements made it well suited to the occupier’s needs.

The newly completed facility is equipped with eight loading bays, including one jumbo loading dock, a ground-level sectional door, warehouse clearance of approximately 12.1 metres, a sprinkler system and a 24-hour operating licence. The building has also been awarded DGNB Gold certification, reflecting its sustainability performance.

The Zeven-Aspe Logistics Park is located in the Elbe-Weser region between Hamburg and Bremen. The site benefits from connections to the regional road network via the L131 and B71, while the A1 motorway is accessible through the Elsdorf and Bockel interchanges, providing links to northern Germany’s major logistics corridors.

The transaction further highlights continued occupier demand for modern logistics facilities in established regional distribution locations, where the availability of newly developed space remains limited. For REALOGIS, the successful completion of leasing at Zeven-Aspe adds another fully occupied logistics development to its advisory portfolio in the German market.

M4B Expands Operations with New Lease at MLP Pruszków II

Polish technology company M4B has commenced operations at MLP Pruszków II after leasing approximately 3,600 sqm of warehouse and office space at the logistics park near Warsaw.

The new facility includes nearly 3,300 sqm of warehouse space and more than 300 sqm of offices and staff facilities. M4B was advised throughout the leasing process by NXT Property.

The move forms part of M4B’s expansion strategy as the company seeks additional capacity to support its growing operations and international development. The business, which has more than 20 years of experience in digital signage, multimedia and visual communication technologies, develops and manufactures solutions including self-service kiosks, digital signage systems and AI-enabled technologies for retail, quick-service restaurants, transport operators, public institutions and the hospitality sector.

Dennis Banchetti, Chief Operating Officer of M4B, said the new location provides the flexibility and infrastructure needed to support the company’s continued growth while strengthening its operational capabilities for both domestic and international markets.

For MLP Group, the agreement further broadens the tenant mix at MLP Pruszków II, which continues to attract occupiers from a range of sectors.

Tomasz Pietrzak, Leasing Director Poland at MLP Group, said companies are attracted by the park’s location close to Warsaw, the quality of its logistics facilities, flexible leasing options and the group’s long-term commitment to sustainable development.

Krzysztof Kienorow, General Manager at NXT Property, said the transaction reflects growing demand from technology companies for facilities that combine warehouse, production and office space while offering flexibility for future expansion. He noted that MLP Pruszków II met the client’s operational and logistical requirements, with NXT Property supporting M4B throughout the site selection, negotiations and lease completion process.

Located in the municipality of Brwinów, around five kilometres from Pruszków, MLP Pruszków II is the largest logistics park in the Warsaw region, with a planned gross leasable area of 427,000 sqm. The development offers direct access to the A2 motorway via the Pruszków–Żbików interchange and benefits from nearby international rail connections, supporting both domestic and cross-border distribution.

As part of MLP Group’s sustainability strategy, selected buildings at the park have received BREEAM certification, while photovoltaic panels are being installed across the development to improve energy efficiency and support lower-carbon operations.

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