Study Links Personality Traits to Wage Differences, With Stronger Effects for Men

A new study by the German Institute for Economic Research (DIW Berlin), based on long-term data from the Socio-Economic Panel (SOEP), finds that certain personality traits are statistically associated with differences in gross hourly wages — and that these associations vary between men and women.

According to the research, higher levels of emotional stability are positively correlated with wages, while higher levels of agreeableness are associated with lower wages on average. The study reports that these correlations are comparable in magnitude to the relationship between cognitive abilities and earnings, a finding consistent with broader international research in labour economics on non-cognitive skills and income.

The analysis, covering the years 1991 to 2023, indicates that the relationship between personality and pay is stronger for men. “On average, women benefit less from emotional stability, while agreeableness is associated with lower wage discounts for them,” says study author Maximilian Schaller.

The study examines the five commonly used “Big Five” personality dimensions: emotional stability, agreeableness, conscientiousness, openness and extraversion. No statistically significant wage correlations were identified for conscientiousness, openness or extraversion in this dataset.

Emotional stability refers to traits such as self-confidence, resilience under stress and composure. Agreeableness includes characteristics such as empathy, helpfulness and cooperation. The researchers note that, on average, men score somewhat higher on emotional stability in the data, while women tend to score higher on agreeableness. These average differences, combined with the differing wage correlations, may contribute to observed earnings disparities alongside well-documented structural factors such as occupation, working hours and employment history.

Official statistics from Germany show that the unadjusted gender pay gap remains around 16 percent. The authors emphasise that their analysis identifies statistical associations rather than causal relationships.

The study also discusses the role of social norms and workplace expectations. “Traits such as helpfulness and harmony orientation are more often associated with female role models – for men, the same behaviour may be less rewarding. Conversely, self-confidence is more strongly associated with male stereotypes, from which women benefit less,” explains Katharina Wrohlich, head of the Gender Economics research group at DIW Berlin.

Negotiation behaviour may also contribute to these outcomes. “Women initiate these less often and are sometimes evaluated more negatively than men when they act assertively. Personality traits can interact with such expectations,” says Wrohlich.

The researchers suggest that reducing gender stereotypes in leadership and occupational roles could, over time, help narrow gender-specific wage differences. Increasing the representation of women in management positions and encouraging more balanced gender participation across professions are cited as potential long-term structural measures.

The findings align with a growing body of international research showing that non-cognitive skills influence labour market outcomes, but that their economic returns can differ depending on gender and social context.

Czech Investment Market Enters 2026 with Solid Momentum

The Czech investment market is moving into 2026 from a position of strength following a high-volume year in 2025. Market activity is expected to remain elevated, supported by domestic capital, stable pricing and an active transaction pipeline, although the availability of prime assets is likely to become a key constraint.

Total investment volume in the Czech Republic is estimated to have reached €4.3 billion in 2025, marking the strongest annual performance on record. The market was driven largely by Czech investors and local real estate funds, which remained the dominant source of capital across most sectors.

A particularly active fourth quarter helped lift full-year results. Investment activity in Q4 2025 reached €1.84 billion, making it one of the strongest quarters historically. Mixed-use assets accounted for the largest share of quarterly volume at 43%, followed by offices at 29%, with hotels, industrial, retail and residential assets making up the remainder.

Josef Stanko, Director of Market Research, noted that domestic investors are increasingly executing large and complex transactions that were previously led by international capital.

Among the most significant deals was the sale of the Palladium shopping centre in central Prague to Reico. Other notable transactions included the disposal of Harfa Business Centre B to the Ministry of Finance and the acquisition by Penta Real Estate, in joint venture with the DBK shopping centre owner, of Česká spořitelna’s current headquarters in Prague 4. Additional completed transactions cited include Campus Science Park in Brno, Forum Karlín in Prague 8, Aventin Shopping Znojmo and the Ibis and Diplomat hotels.

Pricing across prime segments remained broadly stable at the end of 2025, with selective yield compression in the most liquid sectors. Prime office yields stood at approximately 5.25%, prime industrial at around 5.00%, prime shopping centres at roughly 6.00% and prime high-street retail at about 4.50%. Investor interest has been returning primarily to sectors with transparent rental performance, particularly logistics and centrally located offices.

Looking ahead, investment activity in 2026 is expected to be supported by continued fundraising by Czech real estate funds. Estimates suggest that approximately €1.5 billion of equity capital is currently available for deployment, with an identified pipeline of roughly €3 billion in potential transactions.

However, market growth may be tempered by limited supply, especially in segments where new development remains constrained. Offices are expected to account for a significant share of upcoming transactions, supported by tenant demand and a relatively tight pipeline of high-quality space.

While the outlook remains positive, transaction volumes in 2026 will continue to depend on financing conditions, asset availability and the pace of international capital returning to the Czech market.

Source: Colliers

Vážky project to expand residential offer in Trenčín’s Nozdrkovce district

A new residential neighbourhood is planned in the Nozdrkovce district in the south-western part of Trenčín, where the Vážky project is expected to bring several hundred new homes in a setting shaped by water features and greenery. The development is being prepared on the site of the former VOD-EKO complex and is designed as a comprehensive residential zone combining different housing formats with public amenities.

The masterplan covers an area of more than 12 hectares and foresees a mix of apartment buildings, smaller villa-style residential blocks and family houses. In total, the scheme is expected to deliver roughly 629 housing units, offering a range of options from one- to three-room flats to private houses with their own plots. The concept emphasises relatively low building heights and a varied urban structure intended to create a more intimate residential environment.

Urban and architectural design for the project has been prepared by Atelier Aurex, with the layout focused on integrating housing with landscaped public areas and the surrounding natural context. The location, situated near lakes and close to the Váh River, is being positioned as a quieter residential alternative while maintaining access to the city centre and key services.

A significant portion of the site is dedicated to public and green spaces. Plans include a central square, shared streets, recreational areas and a lakeside promenade, alongside sports facilities and a multifunctional building intended to provide basic amenities for residents. The project also proposes direct links to the Váh cycling route, reinforcing the emphasis on outdoor living and connectivity.

The timing of the development coincides with a period of heightened visibility for the city, as Trenčín holds the title of European Capital of Culture 2026. Local authorities view the designation as an opportunity to stimulate long-term improvements across the city and region, including the renewal of underused locations, expansion of cultural and educational activities and stronger integration with European networks. This broader wave of investment and urban improvement is expected to support the attractiveness of new residential areas in the coming years.

According to the current schedule, construction of the first phase of Vážky is planned to begin in the third quarter of 2026, with the first homes expected to be delivered in the third quarter of 2028.

If completed as envisioned, the project will represent one of the more substantial additions to Trenčín’s recent housing pipeline. Its success will likely depend on sustained regional demand and the market’s response to lower-density, nature-oriented living formats. At the same time, the city’s European Capital of Culture year is expected to further strengthen Trenčín’s profile and support the longer-term appeal of emerging residential districts such as Nozdrkovce.

Regulatory Predictability and Investor Confidence in Romania’s Real Estate Market

fletcher@cijeurope.com
25 February 2026
CIJ Interview, Environmental, Finance, Legal

Interview with Florian Nițu, Managing Partner, Popovici Nițu Stoica & Asociații

Romania’s real estate sector continues to evolve under the combined pressure of legislative change, financing constraints and rising ESG expectations. In a market where investor confidence is closely tied to regulatory stability, recent tax adjustments and consumer-protection measures have triggered important shifts in development models, capital structures and risk-management strategies. In this CIJ EUROPE Q&A, Florian Nițu, Managing Partner at Popovici Nițu Stoica & Asociații, shares his perspective on how abrupt legislative changes are reshaping the residential market, why equity raising is becoming more critical, and what practical steps developers must take to navigate permitting bottlenecks and ESG-driven requirements.

CIJ EUROPE: Romania has seen frequent legislative adjustments in recent years. From your perspective, how do changes in tax and property legislation influence foreign investors’ confidence in transaction timing, and what level of predictability do investors now expect before committing capital?

Florian Nițu: That is always a recurring question in Romania. We tend to be quite dynamic in our legislative process, with new enactments appearing almost every year. Most recently, in the real estate sector, we saw two important changes adopted toward the end of the year, both with significant impact, particularly on residential development.

The first concerns property taxation on residential households, which naturally influences pricing of residential units. The second is the well-known “Nordis Law,” introduced very abruptly. The market generally expected a 90-day transition period, but this was not granted, and compliance became immediate.

This regulation effectively introduces the staged-payment concept familiar in the UK construction market, linking execution stages to payment stages in order to protect end buyers. The impact on development models is substantial, particularly regarding developers’ equity requirements. Smaller residential developers have historically relied heavily on advance payments, sometimes up to 90 percent, to finance projects.

The immediate negative market reaction was driven less by the substance of the change and more by the abrupt implementation. With a proper transition period, the market would have adapted more smoothly. Ultimately, however, the measure is one of professionalisation. Larger, well-structured developers are likely to be protected by this framework because they already operate with stronger compliance and more diversified financing.

CIJ EUROPE: Do you believe the regulation is now at the right stage, or is further refinement needed?

Florian Nițu: Conceptually, the regulation is sound. It should help the market mature and limit potential abuses while offering meaningful protection to end users. My main reservations relate to the lack of a transition period and to certain technical constraints, particularly at the level of cadastral authorities and land book offices, that currently complicate practical implementation.

These issues can be resolved through secondary legislation and administrative dialogue. A six-month transition window would have allowed developers and authorities to coordinate more effectively. Nevertheless, the Romanian market has reached a maturity level where such a framework is appropriate.

CIJ EUROPE: With financing conditions tighter than in previous cycles, are you seeing changes in how investors structure acquisitions, joint ventures or development partnerships to manage risk?

Florian Nițu: Very much so, and the legislative changes are accelerating this shift. In residential development, if advance payments are restricted, the natural alternative is to raise additional equity. Bank financing remains expensive, and lenders are still reluctant to assume development risk without strong pre-sale or pre-let levels.

As a result, we expect to see more developers turning to capital markets. The Bucharest Stock Exchange saw strong IPO activity in 2025, and several real estate groups are clearly preparing similar moves. Raising private capital often leads naturally toward public listings from a compliance standpoint. In short, developers should prepare for more equity-driven models and, increasingly, for listings.

CIJ EUROPE: Permitting timelines and zoning clarity often determine whether projects proceed or stall. What bottlenecks are currently most impactful, and where would reforms have the greatest effect?

Florian Nițu: This has always been less a legislative issue and more a bureaucratic one. Romania does not lack regulation, if anything, we are overregulated. The real challenge lies in administrative capacity, staffing quality and local management.

Some municipalities have succeeded in creating efficient permitting environments, while others remain slow. It largely depends on how local administrations are run. Developers also need to be more proactive. A significant portion of the permitting process involves legitimate negotiation within legal parameters, and developers should engage more assertively.

Where authorities fail to respect statutory deadlines, such as the 30-day response period, developers should not hesitate to use court remedies. If the private sector collectively applies pressure through legal and institutional channels, administrative performance will improve. Waiting passively for reform has not worked over the past three decades.

CIJ EUROPE: Environmental and ESG requirements are becoming embedded in financing and asset evaluation. How are these standards reshaping contractual obligations and liabilities in Romania?

Florian Nițu: ESG is definitely reshaping the market, although the emphasis today is clearly strongest on the environmental component. At EU level, net-zero targets remain firmly in place. For new office and retail developments, securing institutional investment without a credible carbon-neutral pathway is becoming increasingly difficult.

This is already reflected in green lease clauses, which are now standard in many transactions. In residential, the picture is more nuanced. Some developers prefer to invest in energy-efficient technologies rather than pursue full certification, especially in mass-market segments. Consumer demand below the EUR 100,000 price range, still the bulk of the market, remains primarily focused on affordability and basic compliance.

However, in premium residential and certainly in commercial assets, carbon neutrality is quickly becoming the benchmark and is likely to remain so.

CIJ EUROPE: Are market participants becoming more proactive in preventing disputes through contractual design and due diligence, or does litigation remain a significant feature of the Romanian property sector?

Florian Nițu: Businesses have never wanted to litigate. Their objective is to complete projects and generate returns. What we are seeing now is more sophisticated contractual architecture designed to prevent disputes or resolve them privately.

Beyond traditional arbitration, there is growing use of dispute boards and other expert-driven mechanisms, particularly in joint ventures and forward purchase structures. These arrangements recognise that most real estate disputes are commercial and technical rather than purely legal.

At the same time, risk-transfer tools such as warranty insurance, title insurance and indemnity coverage are becoming more common in complex transactions. Where project stakes are high, investors increasingly combine private dispute-resolution frameworks with layered insurance protection.

CIJ EUROPE: Looking ahead, what is the key question you are asking yourself about the Romanian market?

Florian Nițu: The key question is when we will see a new wave of investors entering the market. I remain structurally optimistic. Much of the recent hesitation has been geopolitical rather than macroeconomic.

If a peace settlement is reached in Ukraine, Romania and Poland will likely be reconfirmed as the EU’s most stable eastern markets. That could trigger a significant wave of greenfield investment, particularly in construction materials and industrial production linked to Ukraine’s reconstruction.

Romania has the geographic position, the Port of Constanța, improving east-west infrastructure and an existing manufacturing tradition in the eastern regions. With EU and national funding exceeding EUR 20 billion over the coming years, the country is well positioned to benefit. In my view, this could support a multi-decade growth cycle.

CIJ EUROPE: As Romania’s real estate market moves further into a higher-discipline phase, the message from Florian Nițu is clear: the fundamentals remain strong, but execution risk has become more nuanced. Legislative changes are pushing developers toward more equity-heavy structures, ESG requirements are steadily hardening investment criteria, and administrative efficiency, not new regulation, remains the key battleground for project delivery.

For international investors, predictability and professionalism are becoming the decisive filters. Yet, if geopolitical conditions stabilise and capital markets deepen as expected, Romania may be entering the early stages of a new investment cycle, one defined less by rapid expansion and more by institutional maturity and strategic positioning within the wider region.

NEPI Rockcastle posts record 2025 results as NOI rises to €618M

NEPI Rockcastle reported record financial results for 2025, supported by recent acquisitions, improved occupancy and rental growth across its Central and Eastern European retail portfolio.

The company generated net operating income (NOI) of €618 million, up 11.2 percent year-on-year, while distributable earnings reached €441 million, representing a 6.7 percent increase (3.1 percent per share). Performance was at the upper end of the revised guidance issued in August 2025.

The group’s property portfolio increased in value to €8.2 billion, driven by valuation gains and ongoing development activity. Vacancy across the portfolio declined to a low of 1.2 percent, reflecting continued leasing demand.

The results were supported by the contribution of large Polish shopping centre acquisitions completed at the end of 2024, alongside indexation, rental uplifts and higher short-term income streams, including kiosks and parking.

Rüdiger Dany, CEO of NEPI Rockcastle, said the company had maintained discipline in executing its strategy. He noted that the business had focused on capital recycling, asset optimisation, large-scale developments and the expansion of renewable energy initiatives, while preserving balance sheet strength.

Consumer activity across the portfolio remained resilient in 2025. Tenant turnover increased by 3.6 percent on a like-for-like basis and average spend per visit continued to rise. Portfolio occupancy reached 98.8 percent.

During the year, approximately 500 new leases were signed, covering 113,000 sqm, equivalent to 4.7 percent of the group’s total gross lettable area. International brands accounted for 63 percent of the new agreements. In addition, 951 leases were renewed.

Among notable brand entries were Notino at Arena Centar in Croatia, Rituals at Mammut Shopping Centre in Hungary, TOUS at Paradise Center in Bulgaria, and BIPA and Tatuum at Mega Mall in Romania. The company also reported multiple openings and expansions by brands including Popeyes, dm drogerie markt, Adidas, Rituals and Skechers.

NEPI Rockcastle continues to advance its development pipeline, which exceeds €840 million and includes extensions, refurbishments and mixed-use projects. Key schemes under construction include the extension of Promenada Bucharest, the redevelopment of Bonarka City Center in Poland and the refurbishment of Arena Mall Budapest. The extension of Pogoria Shopping Centre in Poland opened in February 2026.

Projects currently in permitting include a new shopping centre in Plovdiv, a retail park in Galati and an extension to Karolinka Shopping Centre in Opole.

The company is also expanding its renewable energy programme. Photovoltaic installations currently supply about 6 percent of its electricity consumption. Additional on-site solar projects are under way across the portfolio, while two greenfield photovoltaic plants in Romania — at Chisineu-Cris (54 MW) and Aricestii Rahtivani (60 MW) — are scheduled to begin commercial operations in 2026.

The balance sheet remained conservative, with total liquidity exceeding €1 billion and a loan-to-value ratio of 32.8 percent, below the company’s long-term threshold of 35 percent. During the year, NEPI Rockcastle issued a €500 million green bond and increased its revolving credit facilities to €740 million.

Looking ahead, the company expects distributable earnings per share in 2026 to be approximately 3 percent higher than the 62.03 euro cents reported for 2025, while maintaining its current 90 percent dividend payout ratio.

Dany, who will step down as CEO on 1 April 2026 when Marek Noetzel assumes the role, said the results reflect the continued strength of prime shopping centres in the CEE region and the company’s established operating model.

Romania Remains Among Europe’s Lower-Cost Markets for Mortgage Home Purchases

Homebuyers in Romania continue to face comparatively modest upfront expenses when purchasing a residential property with mortgage financing, according to a recent market analysis by online broker Ipotecare.ro. The findings place Bucharest among the more affordable European capitals in terms of transaction-related costs, although the exact level varies depending on property value, financing structure and individual service fees.

The study estimates that the minimum additional costs associated with buying a typical one-bedroom apartment in Bucharest amount to roughly 1.6% of the purchase price, equivalent to about €2,500 based on an assumed property value of €107,500. These expenses generally include notary and land registration fees, bank charges related to mortgage origination, property valuation and, where applicable, brokerage services.

By comparison, buyers in many Western and Southern European capitals typically face materially higher entry costs. The analysis indicates that transaction expenses can exceed 5% of the purchase price in cities such as Budapest and Rome, approach 8% in Madrid and surpass 11% in Vienna. In higher-priced markets, this often translates into additional outlays running into tens of thousands of euros.

The relatively moderate cost burden in Romania reflects the structure of the local transaction framework, where large transfer taxes common in several Western European jurisdictions are generally absent for standard residential purchases. Instead, the largest component of buyer expenses in Bucharest is usually the notarial process and related registration fees, while mortgage origination fees and valuation costs tend to remain limited. In many cases, credit brokerage services are offered without direct charges to the borrower.

Laurentiu Bogdan, Managing Partner of Ipotecare.ro, noted that buyers often focus primarily on interest rates and monthly instalments, even though upfront acquisition costs can materially influence affordability at the point of purchase. He added that in markets where transaction taxes are higher, these initial expenses can become a decisive factor in completing a deal.

Independent international benchmarks broadly support the view that Romania sits toward the lower end of the European cost spectrum for residential transactions, typically falling within a low single-digit percentage range of property value. However, specialists caution that cross-country comparisons should be treated carefully, as total costs vary significantly depending on whether the home is new or existing, whether the buyer qualifies for preferential tax treatment and how individual bank fees are structured.

While the precise ranking between cities may shift depending on methodology, the overall picture remains consistent: Romania continues to offer a relatively accessible entry point for homebuyers when measured by transaction costs, reinforcing the country’s position as one of the more affordable residential markets in Europe from an acquisition-cost perspective.

aedifion reports strong growth in 2025

Cologne-based PropTech firm aedifion reported continued expansion in the 2025 financial year, with revenue rising by 86 percent year-on-year. The company added 18 new customers, bringing its client base to 113 companies as of January 1, 2026, and expanded the number of buildings under management by 150 to a total of 582 commercial properties.

The portfolio now covers approximately 9.6 million sqm of space across Germany and ten additional countries. According to the company, its client base includes fund and asset managers such as BNP Paribas REIM, AEW Invest and Art-Invest Real Estate, as well as Strabag Property and Facility Services, Phoenix Contact, MOMENI and Henkel.

Dr.-Ing. Johannes Fütterer, CEO of aedifion GmbH, said building operations are undergoing structural change driven by digitalisation and artificial intelligence. “Our strong growth in 2025 once again demonstrates the significant market demand for integrated, data-driven solutions,” he commented.

Focus on operational efficiency and emissions

aedifion estimates that the use of its platform enabled savings of around 5,600 tonnes of CO₂ in 2025. The company attributes this primarily to data-based optimisation of technical building operations, reduced energy consumption and more efficient maintenance processes.

Headcount increased to 102 employees at the end of 2025, up from 90 a year earlier. The company plans to grow its workforce to around 140 by the end of 2026 and to approximately 186 by the end of 2027.

Product development and AI expansion

During 2025, aedifion introduced several product updates, including aedifion.dynamics, a solution designed to optimise electricity costs using AI-based demand-side management. The system aims to reduce peak loads, support the use of dynamic electricity tariffs and increase the utilisation of on-site energy generation such as photovoltaic systems. The solution has already been deployed in projects including KATHARINENKAI in Hamburg and Quartermile 3 in Edinburgh.

The company also launched a generative AI-based assistant that allows users to query building data in natural language. The tool combines operational data, technical documentation and project information to support facility managers and asset managers in analysis and decision-making. A broader rollout to clients is planned for 2026.

In 2025, aedifion received several industry recognitions, including being named a FOCUS Business Growth Champion 2026 and winning the immobilienmanager Award in the Digitalisation category together with BNP Paribas REIM.

Series B funding supports European growth

A key development during the year was the closing of a Series B financing round of approximately €17 million, led by Eurazeo. Existing investor Drees & Sommer increased its participation, while World Fund, the Hopp family office, BitStone Capital, Phoenix Contact Innovation Ventures, MOMENI Ventures, Bauwens Capital and LARTIS also took part.

The company said the new capital will support further development of its AI-based cloud platform and accelerate European expansion. International activity doubled in 2025, supported by market entries in France and the United Kingdom.

In addition to Germany, aedifion is now active in France, the UK, Austria, the Netherlands, Luxembourg, Finland, Poland, Hungary, Switzerland and the United Arab Emirates.

Fütterer concluded that digital and AI-driven optimisation of existing building portfolios is already delivering measurable economic benefits and that the company aims to scale its platform further across Europe.

Photo: The founders of aedifion (f.l.t.r.): Dr. Jan Henrik Ziegeldorf (CTO), Erik Brümmendorf (Head of Partnerships), Felix Dorner (CFO), Dr.-Ing. Johannes Fütterer (CEO).

H Știrbei Palace restoration positions Calea Victoriei for luxury retail revival

fletcher@cijeurope.com
24 February 2026
CIJ - Spotlight, CIJ Interview, Company News, Retail

H Știrbei Palace at 107 Calea Victoriei, a Class A historical monument with nearly 200 years of history, is being repositioned as a luxury department store following a €20 million restoration led by Hagag Development Europe. Built in 1835 for Barbu Știrbei, later Prince of Wallachia, the Neo-Classical building has served over time as a princely residence, a venue for high-society events, and, after nationalisation in 1948, a series of museum uses. After years of degradation following its sale in 2005, the property entered a new phase in late 2023 as Hagag began works aimed at restoring heritage value while delivering a contemporary retail experience in one of Bucharest’s most prominent high-street locations.

In a CIJ EUROPE interview conducted on site, Andreea Dumitru, Chief Marketing Officer at Hagag Development Europe, said the scheme was never conceived as a mall, but as a “luxury department store” concept that informed the acquisition decision from the outset. “You will not find luxury retail in a mall,” she said, adding that the building’s entrance sequence, geometry and floor layouts were seen as inherently compatible with a high-end, curated retail format.

Rather than forcing modern shopping-centre logic into a protected structure, the development approach focused on minimal but decisive interventions. Andreea Dumitru said Hagag introduced a new vertical circulation core, an elevator and a second staircase, alongside newly built back-of-house elements such as toilets, while the rest of the interiors were restored using existing elements or recreated components based on the historical study prepared for the project. The aim, she noted, was to preserve the building’s spatial character while enabling an efficient luxury customer journey across floors.

The tenant concept, described as “room in room,” was designed to maintain each brand’s dedicated identity rather than group categories by floor. As a result, men’s and women’s offers are mixed depending on the brand rather than separated into distinct levels. Andreea Dumitru said the fit-out was led by the tenant in coordination with luxury houses and aligned with heritage constraints through approvals involving Ministry of Culture experts, reflecting the need to balance strict brand standards, particularly for furniture and lighting, with a listed-building context.

Asked what remains original, Andreea Dumitru pointed to the main staircase as a preserved element, while other features were reconstructed based on documentary evidence. Marble finishes at ground level were remade after being identified in the historical study, and chandeliers were recreated to resemble historic designs. Where original joinery could not be restored, components such as doors, windows and profiles were custom-made to match the original appearance. In one area identified historically as the throne room, Hagag kept a visible reference point to where the throne would have stood, underscoring the intent to interpret heritage rather than erase it.

Andreea Dumitru said early footfall has reflected both the luxury customer base and broader public curiosity. “The ones that actually buy luxury items, also tourists, also locals that are curious what happened to the property,” she said, adding that, as a new destination, the visitor mix is still settling. Within the retail offer, she referenced luxury labels including Dior and Valentino among the brands present within the department-store format.

On operations and servicing, the project relies on a back-of-house logistics strategy that avoids disrupting the customer experience. The building benefits from rear access, with storage and technical areas located primarily in the basement and within a reconstructed annex occupying the footprint of former stables. Andreea Dumitru said merchandise circulation is handled from the back through basement-level systems, ensuring that “you will not see here boxes and things like that,” with supply chain execution supported by the tenant’s operational know-how. During the final phase of works, Hagag temporarily closed the area in front of the main façade and entrance under permits from the city hall to complete the frontage safely.

In the basement, Andreea Dumitru pointed to preserved historical fabric including original brickwork in former wine cellars, which was sealed to prevent dust while keeping the material visible. Beyond conservation, the restoration included replacement of building services to modern standards. Andreea Dumitru said the property is fully electric, supported by updated mechanical, electrical and plumbing systems, including new fire detection and ventilation. Water consumption is reduced through low-flow fittings, reflecting a pragmatic sustainability approach suited to a heritage asset with limited scope for major structural change.

On delivery risks, Andreea Dumitru said permitting was the largest challenge, noting that authorities treated the listed building in procedural terms “the same as a new one,” which created delays. Cost control, she said, was supported by detailed preparation, historical studies and structural expertise, allowing the team to budget accurately before execution. When asked what she is most proud of, Andreea Dumitru pointed to the outcome and to the extent of material preservation achieved, including retaining and strengthening original timber floor structures dating back around 200 years. She added that heritage stakeholders responded positively to the end result, describing consistently positive reactions from visitors to the completed spaces.

A key constraint, Andreea Dumitru said, was sourcing specialist restoration workmanship in Romania. “The biggest problem is to find proper teams that know how to restore old stuff,” she said, citing limited availability of craftsmen able to handle hand-painted ceilings with gold detailing, wood and metal restoration, and the approvals required by the Ministry of Culture. The scarcity of specialist teams, she added, reflects a market with relatively few heritage projects under active construction at any one time.

Looking ahead, the next phase for the wider complex is expected to include a restaurant component in the rebuilt former stables annex, planned as a high-end concept aligned with the luxury positioning of the department store. Andreea Dumitru said the operator is not yet disclosed, but discussions are advanced and the target is to open “by summer or the end of the summer,” subject to final agreement and delivery. She also highlighted experiential elements already embedded in the tenant’s concept, including an in-store champagne and coffee bar designed to keep visitors on-site longer and complement the luxury shopping environment.

Andreea Dumitru said Hagag is also focused on long-term asset care, with an in-house maintenance plan developed specifically for the building’s restored materials and features, rather than outsourcing responsibility to a third party. The plan covers elements such as parquet, columns and historic stoves, with Hagag overseeing implementation to ensure the restored interiors retain their condition over time.

With H Știrbei Palace reopening as a high-end retail destination, Hagag’s strategy signals a broader bet on Calea Victoriei’s evolution into a more mature luxury corridor, one shaped by heritage-led redevelopment, curated tenant mixes and hospitality-adjacent experiences. The project also illustrates the practical challenge facing developers working with protected assets in Bucharest: success depends not only on capital and design, but on specialist craftsmanship, patient permitting navigation, and operational solutions that respect both the building’s history and the expectations of global luxury brands.

Slovakia’s Accommodation Sector Posts Strong Growth in 2025, Turnover Exceeds €700 Million

Hotels, guesthouses and other accommodation providers in Slovakia recorded a strong performance in 2025, with total revenues surpassing €700 million, according to newly released data from the Statistical Office of the Slovak Republic. The majority of income was generated by domestic travellers, while tourism capacity continued to expand across the country.

In the final quarter of 2025, accommodation establishments generated more than €166 million in revenue excluding VAT, marking a year-on-year increase of over 16 percent. Domestic visitors accounted for roughly 60 percent of total turnover, with foreign guests contributing the remaining 40 percent. This structure was reflected in most regions, with the exception of the Bratislava region, where international visitors represented the larger share of revenue.

For the full year, total turnover reached €709 million, an increase of nearly 16 percent compared with 2024. Domestic travellers generated €442 million, while foreign guests contributed €287 million. The data confirm continued recovery and growth in the tourism sector following the pandemic-affected years.

All eight regions of Slovakia reported annual revenue growth in 2025. The most dynamic increase was recorded in the Žilina region, where turnover rose by almost 30 percent year-on-year. Trenčín also saw growth exceeding 20 percent, while the Nitra region posted a more moderate increase of just over 8 percent. The highest overall revenues were generated in the Bratislava, Žilina and Prešov regions, which together accounted for nearly two-thirds of national accommodation turnover.

The Bratislava region stood out for its reliance on international visitors, who represented close to 70 percent of accommodation revenues there. In contrast, domestic guests formed the majority in other regions, with particularly high domestic shares in central Slovakia. The Žilina region also recorded a notable milestone, with revenues from domestic visitors surpassing €100 million for the first time.

Alongside higher revenues, the number of accommodation facilities and available capacity also expanded. In the fourth quarter of 2025, more than 5,300 establishments were in operation, an increase of 16 percent compared with the previous year. Visitors had access to approximately 76,000 rooms and over 200,000 bed places, including campsites. Average occupancy in the final quarter reached 23.5 percent for beds and 28.2 percent for rooms.

For the year as a whole, accommodation services were provided by 6,140 establishments, nearly 900 more than in 2024. Around 85,000 rooms and 260,000 bed places were available to guests. Annual occupancy rates reached 27.1 percent for beds and 31.2 percent for rooms, reflecting continued improvement in demand.

Capacity growth was recorded in all regions. The Žilina region experienced the largest expansion, adding hundreds of new establishments and significantly increasing bed capacity. In contrast, the Bratislava region saw a reduction in the total number of bed places despite a rise in the number of establishments.

The latest figures indicate that Slovakia’s tourism sector not only recovered from earlier disruptions but continued to strengthen in 2025, supported primarily by domestic demand and steady expansion of accommodation infrastructure across most regions.

Source: SOSK

Ambitious Housing Targets Face Labour Shortages in Czech Construction Sector

Government plans to significantly boost residential construction in the Czech Republic are likely to encounter a major obstacle: a lack of workers in the construction industry. According to a survey conducted among recruitment agencies, the sector is already operating near its limits, and meeting higher building targets would require a substantial increase in foreign labour.

Under the economic programme of the current governing coalition, annual housing output should rise to 50,000 new flats, roughly 20,000 more than current levels. However, staffing experts warn that such expansion would not be constrained primarily by financing or project preparation, but by the availability of skilled workers.

Recruitment specialists note that the domestic construction sector has long relied heavily on foreign employees. Craftsmen and manual workers from abroad make up a significant portion of the workforce, and without continued or expanded labour migration, the industry would struggle to meet additional demand. Agencies report that even at current construction volumes, companies are facing difficulties filling vacancies, leading in some cases to postponed or suspended projects.

Industry representatives describe the situation as structurally tight. Beyond manual trades, there is also a shortage of technical professionals, including site managers, engineers, quantity surveyors and specialists responsible for supervision and structural design. Recruitment processes for technical positions can extend over several months, contributing to project delays.

Another factor complicating the outlook is demographic change. Many experienced craftsmen are approaching retirement, while younger generations are entering the field in insufficient numbers. Physically demanding outdoor work, often performed in difficult weather conditions, makes certain trades less attractive to potential applicants. Persistent gaps are reported in occupations such as bricklayers, carpenters, roofers, plumbers and electricians.

Staffing firms argue that a controlled expansion of foreign recruitment will be essential if housing targets are to be achieved. Recent adjustments to quotas for workers from selected countries are viewed as positive steps, but recruitment experts suggest that broader access to labour markets and faster administrative procedures for work and residence permits will be necessary.

Without such measures, analysts warn that any rapid increase in housing construction could exacerbate existing labour shortages, placing additional pressure on an industry already stretched by limited workforce capacity.

Source: CTK

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