Czech Unemployment Rises to 5.2% in February, Highest Level Since 2017

The unemployment rate in the Czech Republic increased to 5.2 percent in February, up from 5.1 percent in January, according to data released by the Labour Office of the Czech Republic. The figure represents the highest level recorded since early 2017 and marks an increase of 0.8 percentage points compared with February of last year.

At the end of February, a total of 381,705 people were registered as unemployed, approximately 3,160 more than in January. Compared with the same period a year earlier, the number of job seekers increased by around 55,000. At the same time, the Labour Office reported 89,705 job vacancies, roughly 3,270 more than at the end of January.

Officials attribute the month-on-month increase largely to seasonal factors. February is typically the final winter month before seasonal hiring begins, particularly in construction and related sectors. Roman Chlopčík, Director of the Labour Office of the Czech Republic, noted that employment opportunities usually expand in the spring as construction and outdoor work resume. He added that the number of vacancies increased by around four percent during the month.

Analysts also point to seasonal trends as the primary driver behind the rise in unemployment, although some suggest that changes in labour market regulations may also be influencing the statistics. A recent amendment to the Labour Code, sometimes referred to as the “flexinovela,” introduced higher unemployment benefits from the beginning of the year. According to Miroslav Novák, chief analyst at Citfin, this change may temporarily increase fluctuations in monthly unemployment figures, as higher benefits could lead some individuals to remain registered with labour offices for longer periods while searching for new employment.

Tereza Krček, an analyst at Raiffeisenbank, said the legislative changes could increase labour market mobility by reducing the perceived risk of leaving a job to seek better opportunities. However, she noted that it may also extend the time job seekers remain in official unemployment records.

Despite the increase, some economists do not view the current unemployment level as a significant concern for the economy. Vít Hradil, chief economist at Investika, said the Czech labour market had been exceptionally tight in the years prior to 2020 and that the recent increase in unemployment may represent a return to more typical conditions. He added that the country’s unemployment rate remains relatively low by international standards.

Regional disparities in unemployment persisted in February. The Ústí nad Labem region recorded the highest unemployment rate at 7.6 percent, while Prague reported the lowest at 3.6 percent. Prague also had the largest number of vacancies, with 23,057 positions available, followed by the Central Bohemian region with 13,555 openings.

Economists note that job vacancies tend to be concentrated in regions where labour shortages are already present and where housing costs are generally higher, which can limit workforce mobility.

At the end of February, 111,872 people were receiving unemployment benefits, representing about 29.3 percent of all registered job seekers. Under the updated rules introduced this year, the maximum unemployment benefit can reach 38,537 Czech crowns per month, with more than 5,600 individuals receiving the maximum amount during the first two months of the year.

Source: CZK

Poland’s Office Market Enters a Period of Limited Supply and Changing Tenant Expectations

Poland’s office sector is moving into a new stage as the volume of new developments declines and companies reassess how their workplaces function in an era shaped by hybrid working. The combination of reduced construction activity and continued demand for well-located, high-quality offices is gradually shifting market dynamics, particularly in Warsaw.

In recent years the development pipeline across Poland has slowed considerably. Higher construction costs, more expensive financing and cautious investment decisions have resulted in fewer new projects breaking ground. As a result, the amount of office space delivered to the market has fallen to levels not seen for many years.

The impact of this slowdown is most visible in Warsaw, the country’s largest office market. Modern buildings in the city centre and key business districts are becoming harder to secure, especially for companies seeking larger areas. Vacancy levels in the most sought-after parts of the capital have tightened significantly, creating a more competitive environment for tenants looking to relocate.

Under these conditions, companies are beginning to plan relocation strategies much earlier than in the past. Businesses searching for new headquarters increasingly start their search several years before the planned move. Early planning allows them to secure space in upcoming projects or negotiate favourable terms in buildings that match their operational requirements.

The situation outside the capital varies from city to city. Regional markets such as Kraków, Wrocław, Katowice and Łódź still have a higher availability of office space overall. However, the range of options narrows when companies require large floor areas or modern buildings that meet the latest technical standards. As a result, many firms opt to renew leases in their current locations rather than relocate.

At the national level, the development pipeline remains limited. Only a relatively small amount of new office space is expected to be completed in the coming years, with projects spread between Warsaw and several major regional cities. This constrained supply is already influencing rental levels, particularly in the most desirable areas of the capital where the newest buildings command the highest rates.

While supply is tightening, demand for office space has remained relatively stable. Warsaw continues to account for a significant share of leasing activity, while regional cities also attract strong interest from companies operating in sectors such as technology, business services and professional consulting.

However, the nature of demand has evolved. Businesses are placing greater emphasis on the overall quality of the workplace environment rather than focusing solely on cost. Factors such as building design, accessibility by public transport and the availability of nearby services have become increasingly important in the decision-making process.

The ongoing shift toward hybrid work has played a central role in this change. In Poland, most companies have adopted work models that combine remote work with several days per week in the office. This arrangement reflects employees’ preference for flexibility while still preserving the benefits of in-person collaboration.

In response, companies are seeking office spaces that support a broader range of activities. Modern workplaces are expected to accommodate collaborative meetings, focused individual work and informal interaction among teams. As a result, flexibility in layout and design has become an important feature of new office developments.

Employee comfort has also emerged as a priority. Access to natural light, good air quality and acoustic comfort are increasingly seen as essential components of a productive working environment. At the same time, proximity to restaurants, services and leisure amenities can significantly influence how attractive a location is to employees who commute to the office several days per week.

For employers, the office continues to serve as more than just a physical workspace. Many organisations see it as a central element in building company culture, supporting teamwork and attracting talent in a competitive labour market. The ability to offer a well-designed and accessible workplace is therefore becoming part of a broader strategy for employee engagement.

Looking ahead, hybrid working arrangements are expected to remain a permanent feature of the Polish labour market. In this environment, the most successful office buildings are likely to be those that combine strong locations with flexible layouts and high-quality working environments.

For tenants, the current market conditions mean that relocation strategies must be carefully planned. With fewer new developments entering the market and competition intensifying for the best locations, companies increasingly need to secure space well in advance and align their office decisions with long-term business plans.

Source: Magdalena Zagrodnik, Partner, Board Member at Walter Herz & CIJ EUROPE Research Team

India’s Warehousing Market Adjusts After Record Growth

India’s logistics property sector is entering a period of recalibration after several years of rapid expansion. Strong demand from e-commerce companies, manufacturing firms and distribution providers pushed warehouse leasing to record levels during 2024 and 2025. As the market moves into 2026, activity remains healthy, although the pace of new leasing has begun to moderate as businesses reassess inventory levels and refine supply chain strategies.

Industry research indicates that leasing activity across the country’s primary logistics markets approached nearly 37 million square feet during 2025, marking a clear increase compared with the previous year. The growth was supported by continued development of online retail platforms, the expansion of domestic manufacturing and the increasing complexity of distribution networks serving India’s large consumer base.

Despite the strong performance of the past two years, the opening months of each year often bring a temporary adjustment for warehouse demand. Following the intense retail cycle associated with the festive season, companies frequently review their stock levels and operational requirements. This process can briefly slow the pace of new leasing as businesses evaluate how much space they need for the coming months.

Early indications from 2026 suggest that the sector is experiencing such a pause. After expanding warehouse networks aggressively in recent years, some occupiers are now focusing on improving efficiency within existing facilities. Sectors such as consumer goods, electronics and pharmaceuticals have been adjusting stock levels after a period of rapid inventory buildup, leading to a short-term cooling of new leasing activity.

Even with this adjustment, several regions continue to dominate logistics demand. Areas surrounding Delhi-NCR, Chennai and Pune remain among the most active distribution corridors due to their strategic connections to manufacturing centres, transport infrastructure and major consumer markets. These locations are supported by expanding highway networks, industrial parks and freight corridors that are gradually improving the efficiency of goods movement across the country.

Another notable feature of the sector is the rising importance of modern logistics facilities. Developers are increasingly delivering warehouses built to higher technical standards, offering larger floor plates, improved loading capabilities and better operational efficiency. Such facilities are becoming the preferred option for large occupiers seeking to streamline distribution operations and incorporate advanced logistics technologies.

Third-party logistics providers continue to play a major role in shaping the market. These companies manage storage and distribution functions on behalf of manufacturers and retailers, enabling businesses to outsource complex supply chain operations. Over the past several years, these operators have become one of the largest sources of demand for warehouse space, reflecting the growing trend toward specialised logistics management.

Alongside established metropolitan hubs, smaller cities are also gaining attention from investors and occupiers. Improvements in transport connectivity and the emergence of regional manufacturing clusters are encouraging companies to locate distribution centres closer to emerging consumption markets. As a result, warehousing capacity in secondary cities has expanded rapidly in recent years.

Rental levels across major logistics markets recorded moderate increases during 2025 as demand for high-quality facilities strengthened. Although the early months of 2026 may bring a slight increase in available space in some markets due to new project completions, industry observers expect well-located modern facilities to continue attracting tenants.

Developers are also responding to changing occupier requirements by offering more tailored leasing arrangements. In some cases, tenants are committing to space before construction is completed, allowing facilities to be designed around specific operational needs. This approach provides developers with greater certainty regarding occupancy while enabling companies to secure strategically located distribution centres.

Looking ahead, the longer-term outlook for India’s warehouse sector remains closely tied to broader economic trends. Government initiatives aimed at strengthening domestic manufacturing, together with global supply chain diversification strategies, are expected to support continued investment in logistics infrastructure. At the same time, rising consumption and the expansion of organised retail networks will likely sustain demand for efficient distribution systems.

While the beginning of 2026 may reflect a temporary adjustment following the exceptional growth of recent years, the underlying drivers of warehouse demand remain firmly in place. As companies continue to modernise supply chains and expand their distribution networks, India’s logistics property market is expected to remain an important component of the country’s evolving economic landscape.

Source: CIJ.World India Research & Analysis Team

P3 Reports Revenue Growth and Portfolio Expansion in 2025

P3 Group reported increased revenues and continued expansion of its logistics portfolio in 2025, supported by leasing activity, development completions and acquisitions across Europe.

The Luxembourg-based logistics property owner said the value of its portfolio reached €10.8 billion at the end of 2025, compared with €10.0 billion a year earlier. The increase was driven by new investments and development activity, alongside modest valuation growth linked to higher rental income and stable yields.

P3’s portfolio comprises approximately 10.2 million square metres of logistics space located across ten European countries and leased to more than 490 tenants.

Net operating income rose to €544 million in 2025, up from €489 million in the previous year. The company attributed the growth to portfolio expansion as well as rental adjustments linked to indexation and lease renewals. Leasing activity during the year covered around 1.5 million square metres, while rental levels on newly signed agreements increased compared with previous contracts.

Occupancy across the portfolio remained high at 96.3 percent at the end of the year. The company also reported that it collected 99.4 percent of rent due from tenants during the period.

P3 continued its development programme during the year, completing seven projects that were largely pre-leased by the time of delivery. At the end of 2025 the company had 13 logistics projects under construction in seven countries, representing around 496,000 square metres of additional space.

The company also reported progress in sustainability measures, stating that the majority of its portfolio now meets internal environmental criteria and that its ESG risk rating has improved according to external assessments. A revised framework for green financing was introduced in early 2026 alongside updated sustainability reporting.

Financial indicators remained broadly stable. The group reported a loan-to-value ratio of 46.7 percent and liquidity of around €1.6 billion. The interest coverage ratio improved during the year, supported by operating income growth and a lower average cost of borrowing.

P3 also accessed capital markets through two green bond issues. In October 2025 the company issued €500 million in bonds with a maturity of 7.5 years, followed by a further €350 million issuance in January 2026 with a maturity of just over five years.

Chief Executive Officer Frank Pörschke said the company’s performance reflected strong demand for logistics properties across Europe despite continued economic uncertainty. He noted that factors such as changes in supply chains, growth in e-commerce and the need for modern warehouse facilities continue to support the sector.

Chief Financial Officer Thilo Kusch said the company’s financial results were supported by disciplined investment decisions, rent adjustments and the contribution of newly acquired and developed properties.

According to Chief Investment Officer Chris Zeuner, P3 continued to expand its platform during 2025, adding more than 800,000 square metres of logistics space through acquisitions and completed developments, particularly in Western European markets. He added that the company remains active in both development and acquisition opportunities across the region.

Capital Returns to India’s Logistics Property Market as Investors Launch New Mandates

India’s industrial and logistics property sector is increasingly attracting institutional capital, with the early months of the year often marking an important period for new investment decisions. As global and domestic investors reset strategies following year-end portfolio reviews, January frequently becomes a time when new mandates are formalised and capital begins flowing into logistics platforms and development projects across the country.

Market research from advisory firms such as Cushman & Wakefield, JLL and Colliers suggests that investor interest in India’s logistics real estate has strengthened considerably in recent years. The expansion of e-commerce, growing domestic consumption and the rapid development of supply chain infrastructure have positioned warehouses and distribution parks among the most sought-after commercial property assets. Institutional investors—including pension funds, insurance companies and sovereign wealth funds—have steadily increased allocations to this segment as the sector matures and operational standards improve.

Government policy has also played a role in shaping investor sentiment. Initiatives such as the National Logistics Policy and the development of large transport corridors aim to improve connectivity between manufacturing clusters, ports and major consumption centres. Analysts note that these projects are designed to reduce logistics costs and improve efficiency, factors that can make warehouse investments more attractive for long-term institutional capital.

The beginning of the calendar year coincides with a period when many investors finalise capital allocation decisions following portfolio assessments conducted during the closing months of the previous year. In the case of India, this timing also aligns with the country’s financial year cycle, which runs from April to March. As a result, investment managers often begin executing newly approved strategies early in the year to ensure that capital is deployed efficiently over the coming fiscal period.

Industry reports indicate that the logistics property market has experienced sustained leasing activity for several years, reflecting continued expansion by logistics providers, retailers and manufacturing firms. This consistent demand has supported rental growth across several key markets and strengthened investor confidence in the long-term fundamentals of the sector. Investors seeking exposure to these trends are increasingly committing capital to large-scale logistics developments and operating platforms rather than pursuing isolated asset acquisitions.

Platform-based investment strategies have become particularly popular among large institutions. Rather than acquiring individual warehouse assets, investors often partner with experienced local developers to build or expand integrated logistics portfolios across multiple cities. This approach allows investors to gain scale more quickly while reducing risks associated with fragmented land ownership and development complexity—two challenges that have historically affected real estate projects in India.

Another factor driving this investment approach is the emergence of new logistics corridors and industrial clusters beyond the country’s largest metropolitan regions. As infrastructure projects improve connectivity between ports, manufacturing zones and inland consumption centres, secondary cities are becoming viable locations for distribution networks. Investors view these emerging corridors as opportunities to build large logistics platforms that can serve multiple markets simultaneously.

Data from industry surveys suggests that a significant share of logistics investors intend to expand their presence in India during the coming years, with many focusing specifically on modern warehouse parks designed to meet international operational standards. Such facilities often include larger floor plates, advanced loading infrastructure and technology-enabled systems that allow occupiers to manage inventory more efficiently.

The increasing role of specialised logistics operators has also strengthened the case for institutional investment. Third-party service providers that manage distribution networks on behalf of retailers and manufacturers have become some of the largest occupiers of warehouse space in India. Their growth has created a steady pipeline of leasing demand for modern logistics facilities, further reinforcing the attractiveness of the sector for long-term investors.

As the market continues to evolve, the logistics segment is no longer viewed as a niche component of India’s commercial property sector. Instead, it has become a central focus for investors seeking exposure to the country’s expanding consumption base and rapidly modernising supply chain infrastructure. The surge of investment activity typically seen at the start of the year reflects not only the timing of capital allocation cycles but also the broader confidence investors have in the long-term growth of India’s logistics real estate market.

Source: CIJ.World India Research & Analysis Team

European Retail Property Investment Strengthens in Q4 2025

Retail real estate investment activity across Europe increased toward the end of 2025, with the fourth quarter recording the strongest level of transactions during the year in several markets, according to the Focus Estate Fund Quarterly Litmus Paper, Q4 2025.

Total commercial real estate investment volumes in the final quarter reached €23.8 billion in the United Kingdom, €8.8 billion in Germany, €5.0 billion in France and €4.9 billion in Spain. Italy recorded approximately €4.5 billion in investment activity, while Poland reached €1.87 billion, the Czech Republic €1.8 billion and Portugal €829 million.

Retail assets accounted for a notable share of investment activity in several markets. The sector represented 38 percent of total commercial real estate investment in the Czech Republic, 27 percent in both Germany and Italy, 25 percent in Portugal and 22 percent in Poland during the quarter. In the United Kingdom and France, retail accounted for around 11 percent of investment volumes, while Spain recorded approximately 15 percent.

According to the report, the increase in activity reflects a gradual improvement in market conditions during 2025. Financing visibility improved during the year and price expectations between buyers and sellers began to align more closely, supporting a higher number of transactions toward the end of the year.

Investor demand remained strongest for retail parks and dominant regional retail assets, particularly grocery-anchored schemes and convenience-led formats with stable income profiles. These assets demonstrated stronger liquidity and more consistent demand compared with traditional shopping centres, while secondary retail properties continued to change hands more selectively.

Serhii Sushko, Investment Director at Focus Estate Fund, noted that retail investment volumes across Europe recovered during 2025, with the final quarter showing the highest level of liquidity. He added that retail parks and large regional shopping centres benefited from more predictable financing conditions and market pricing, while investors continued to focus on assets with stable cash flows and established tenant bases.

Prime yields for both shopping centres and retail parks remained largely unchanged in most analysed markets during the fourth quarter, suggesting that the major repricing phase that affected retail property over the previous two years had largely concluded.

Macroeconomic conditions also supported investor sentiment. In the fourth quarter of 2025, year-on-year GDP growth reached 4.0 percent in Poland, 2.6 percent in Spain and 2.4 percent in the Czech Republic, while unemployment remained relatively low in Central European markets, including 3.2 percent in both Poland and the Czech Republic.

The report indicates that stable economic growth, moderate inflation levels and resilient labour markets contributed to maintaining investor interest in retail property, particularly in assets offering defensive income characteristics.

The Focus Estate Fund Quarterly Litmus Paper reviews retail real estate investment trends across selected European Union markets and the United Kingdom, combining transaction data with macroeconomic indicators to assess the investment environment in the sector.

Photo: Serhii Sushko, Investment Director at Focus Estate Fund

HIH Extends Lease with First Data at Nuremberg Office Property Until 2031

HIH Invest Real Estate has agreed to extend a lease with payment technology company First Data GmbH at an office property in Nuremberg, Germany. The renewed agreement will run until the end of 2031.

The leased premises comprise approximately 4,385 square metres of office space across the first to fourth floors, along with around 100 square metres of storage space in the building located on Nelson-Mandela-Platz. First Data has occupied the premises since May 2012.

The seven-storey office building was constructed in the 1990s and provides approximately 8,515 square metres of lettable space, including storage areas. Retail and restaurant units are located on the ground floor. The asset forms part of a special real estate fund managed by HIH Invest.

According to HIH, the lease extension will be accompanied by interior modernisation works agreed as part of the contract renewal.

The property is situated on Nelson-Mandela-Platz, near the edge of Nuremberg’s historic centre and adjacent to the city’s main railway station, which provides regional and long-distance rail connections. The surrounding area includes public transport links, retail services and dining options within walking distance.

The tenant was advised in the transaction by Cushman & Wakefield.

E.ON Secures Major Office Lease at Munich Property Managed by Deka

E.ON has agreed to lease a large office building in Munich from Deka Immobilien, taking approximately 21,300 square metres of workspace along with 193 parking spaces at the property on Landsberger Straße. The space will accommodate several entities within the energy group, with the first employees expected to move in from early 2027.

The agreement brings the building to full occupancy. The office complex provides about 23,000 square metres of lettable area across six floors and includes shared facilities such as a staff dining area and rooftop terraces.

Constructed in 2010, the property is located near the Donnersbergerbrücke station, a key stop on Munich’s suburban rail network that connects the western and eastern parts of the city through the central S-Bahn corridor.

The building is held within the portfolio of the WestInvest InterSelect open-ended real estate fund, which is managed by Deka Immobilien. It also carries LEED Gold certification, reflecting the environmental standards applied to the development.

Deka Immobilien manages real estate investments on behalf of institutional and private investors and is part of the German Savings Banks Finance Group.

Genesis Property Appoints Cătălin Niculiță as Leasing Manager

Genesis Property has appointed Cătălin Niculiță as Leasing Manager as the company continues to develop its office portfolio in Romania.

Niculiță brings nearly two decades of experience in the real estate sector and joins the company’s leasing team to support its long-term portfolio development and tenant relations strategy. During his career he has worked across several segments of the property market, including residential, industrial, retail and office real estate. He previously held positions at companies such as Atenor, where he worked with tenants from sectors including banking, telecommunications and information technology.

According to Genesis Property, Niculiță will focus on strengthening the market positioning of the West Gate Business District campus and supporting relationships with existing and prospective tenants.

Elena Panait, Head of Leasing at Genesis Property, said the appointment reflects the company’s intention to continue developing its portfolio and tenant partnerships.

In his role, Niculiță will be responsible for leasing activities and tenant engagement within the company’s office projects, with a particular focus on the West Gate Business District in Bucharest. He said he expects the local office leasing market to stabilise in the near term, with potential for gradual growth as business confidence improves and demand evolves toward workplaces adapted to changing working patterns.

Genesis Property owns and operates several office campuses in Bucharest, including West Gate Business District and YUNITY Park, which combine office space with amenities and shared facilities designed for office tenants and employees. The projects were developed by Liviu Tudor, founder of Genesis Property.

Adventum Acquires Eight Retail Properties in Poland from Ceetrus and Auchan

A fund managed by Adventum Group has acquired a portfolio of eight shopping centres in Poland from Ceetrus and Auchan as part of the sellers’ ongoing portfolio restructuring strategy.

The buyer is Adventum Penta Fund SCA SICAV-RAIF, a Luxembourg-based fund managed by Adventum Group, which focuses on commercial real estate investments across Central and Eastern Europe. The transaction received approval from Poland’s Office of Competition and Consumer Protection on 19 December 2025.

The properties were previously owned jointly by Ceetrus and Auchan. Nhood, acting as strategic advisor and representative of Ceetrus’ co-owner, coordinated the sales process and provided transaction advisory services.

According to the parties involved, Nhood was responsible for managing discussions with potential investors, coordinating the due diligence process and preparing the technical, financial, legal and operational documentation required for the transaction. The firm also oversaw communication between the buyer’s advisors and the property owners and coordinated cooperation between Ceetrus and Auchan during the process.

The disposal forms part of Ceetrus’ broader asset management strategy in Europe, which involves reshaping its portfolio by focusing investment on selected core assets while divesting properties considered non-strategic. The approach is intended to release capital for new development projects and to support the diversification of the company’s real estate holdings.

Raluca Crisan, Portfolio Director at Ceetrus, said the transaction supports the company’s plan to concentrate investment on its most strategic locations in Poland while enabling further development initiatives.

Adventum Group manages investment funds specialising in commercial real estate across Central and Eastern Europe. According to the company, its managed funds currently hold a portfolio exceeding 700,000 square metres of retail and office space across several regional markets, including Poland, Slovakia, the Czech Republic, Hungary and Romania.

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