Sonae Sierra’s German centre portfolio closes 2025 with higher occupancy and leasing activity

The shopping centre portfolio managed by Sonae Sierra in Germany recorded higher occupancy, leasing activity and retail turnover in 2025, according to company data. As of 31 December 2025, the 19 centres managed on behalf of third-party owners were almost 95 percent let, with annual footfall up 1 percent and tenant turnover increasing by more than 6 percent year-on-year.

During the year, Sonae Sierra signed a total of 360 leases and renewals covering 108,400 sqm across the portfolio. This included 172 new leases for approximately 35,000 sqm and 188 renewals totalling about 73,400 sqm.

In October 2025, Sonae Sierra completed the acquisition of REM, the management division of Unibail-Rodamco-Westfield in Germany. Following the transaction, the company became the second-largest manager of third-party shopping centres in the country. The German portfolio now comprises 19 centres with a combined gross leasable area of around 1 million sqm and annual visitor numbers exceeding 130 million, according to the company.

“The encouraging figures show that we are managing a very efficient and stable portfolio in Germany. We will keep all centres on track for success in line with the owners’ business objectives, manage them in a value-adding manner and further leverage their potential,” said Christine Hager, Director of Property Management in Germany and member of the management board at Sonae Sierra. “The positive development of the locations confirms once again that the acquisition of the management division was the right step to implement our expansion strategy and take a leading market position.”

Dirk von der Ahé, Head of Leasing in Germany at Sonae Sierra, added: “Our locations are attractive to retailers and in high demand. Our innovative leasing concepts, our experience and creativity in developing individual solutions for the needs of tenants and owners have led to leasing successes. We will continue to enhance the quality of the visitor experience in the centres through strong leasing and utilisation concepts, thereby creating added value for tenants, owners and customers.”

Following the integration of REM, Sonae Sierra employs around 250 staff in Germany and provides centre and property management services including operations, leasing, marketing and project management. The expanded portfolio includes centres such as Riem Arcaden and Pasing Arcaden in Munich, Spandau Arcaden in Berlin, Köln Arcaden, Düsseldorf Arcaden and Breuningerland in Sindelfingen and Ludwigsburg.

Photo: Christine Hager, Director of Property Management in Germany and member of the management board at Sonae Sierra

Germany’s energy transition advances, but pace remains below targets

The expansion of renewable energy in Germany has picked up speed but remains insufficient to meet the country’s legally defined 2030 targets, according to the latest Energy Transition Monitor published by the German Institute for Economic Research (DIW Berlin). The report reviews developments in key technologies in the second half of 2025 and concludes that progress in electricity generation has not yet been matched by comparable advances in heating and transport.

While installed capacity for photovoltaics, onshore wind power and electricity storage increased noticeably, the uptake of renewable electricity in buildings and mobility continued to lag. “We are currently seeing progress in many areas of the energy transition, but overall we are not yet seeing the pace that would be desirable for climate protection and energy sovereignty,” said study author Wolf-Peter Schill, head of the “Transformation of the Energy Industry” research department at DIW Berlin.

Capacity growth still below 2030 requirements

In terms of installed capacity, Germany remains short of its medium-term objectives. By the end of 2025, photovoltaic installations reached 117 gigawatts out of the 215 gigawatts targeted for 2030 under the Renewable Energy Sources Act (EEG), slightly above the halfway mark. Onshore wind power achieved close to 60 percent of its 2030 goal, while offshore wind capacity remained further behind.

According to the monitor, photovoltaics is currently closest to the pace required to meet the 2030 target, operating at around 88 percent of the necessary expansion rate. Onshore wind has also improved its trajectory in recent quarters, although the overall build-out remains below the level required to close the gap within five years.

Sector coupling progressing unevenly

The report notes incremental progress in linking renewable electricity with heating and transport, often referred to as sector coupling. Heat pumps accounted for 48 percent of new heating installations in the second half of 2025, the highest share recorded to date. Registrations of electric vehicles increased for both passenger cars and trucks, but overall penetration remains limited. In the past six months, roughly one in five newly registered cars in Germany was fully electric.

“With a view to the goal of climate neutrality by 2045, we need to accelerate significantly, especially in the areas of heat pumps and electric vehicles,” Schill said.

Flexibility improves, but challenges persist

The DIW analysis also points to modest improvements in electricity system flexibility. The number of hours with negative wholesale power prices declined in the second half of 2025, suggesting a better balance between supply and demand. At the same time, capacity additions in large-scale battery storage increased. Despite these developments, the institute considers further expansion of storage and demand-side flexibility necessary to stabilise the grid as renewable generation grows.

Call for consistent policy direction

DIW Berlin argues that current conditions – including technological progress, falling costs and more efficient approval procedures – are favourable for accelerating the transition. However, the report highlights what it describes as mixed political signals from the federal government.

“If the expansion of renewables is slowed down, there is a risk of an unhealthy cycle,” Schill warned. He added that even though electricity demand is currently rising more slowly than previously expected, partly due to moderate growth in electric vehicles and heat pumps, insufficient renewable capacity today could result in supply constraints in the future.

Beyond climate policy, the study links the energy transition to industrial competitiveness and geopolitical considerations. Reducing reliance on imported oil and gas through electrification and renewable generation could lower exposure to fossil-fuel markets. “Politicians should take advantage of the favourable conditions and vigorously promote both the expansion of renewable energies and sector coupling – instead of putting the brakes on,” Schill said.

Dekpol Deweloper prepares first residential project on Lake Garda

Dekpol Deweloper has secured a plot of land in Toscolano-Maderno on Italy’s Lake Garda in the Lombardy region and is completing the final steps before signing the purchase agreement. The transaction concerns land with a valid building permit intended for the construction of a residential apartment complex.

“For some time now, we have been observing growing customer interest in holiday projects outside Poland. We treat our first project in Italy as a natural complement to our offer, which remains strongly focused on the domestic market, which is still our number one priority in the investment apartment segment. The project on Lake Garda is the next step in the development of our business and a response to the needs of some of our customers looking for properties in the most attractive locations in Europe,” says Michał Skowron, President of the Management Board of Dekpol Deweloper. “The town of Toscolano-Maderno combines unique landscape values with access to infrastructure conducive to active recreation. In the immediate vicinity of the plot, which offers views of Lake Garda, there are local restaurants, golf courses, an extensive network of cycle paths and trekking trails leading to Monte Pizzocolo.”

According to the developer, the design phase will reference the surrounding urban and natural context, with the project intended to align with local architectural character and spatial planning principles.

“Premium projects are not just about aesthetics or prestige, but about having a real impact on quality of life. At Dekpol Deweloper, we think about the architecture and function of a project as early as the land purchase stage. In Toscolano-Maderno, we want to design buildings that naturally fit into the identity of the place, its history and the landscape of Lake Garda. It will be architecture rooted in the regional context, yet contemporary in terms of standards and functionality,” says Paulina Czurak-Czapiewska, architect and member of the management board of Dekpol Deweloper.

Dekpol Deweloper said it plans to present the first visualisations of the Lake Garda project in the coming months.

Warsaw office market ends 2025 with record leasing volumes and constrained supply

The Warsaw office market closed 2025 with historically high tenant activity, limited new supply and a continued decline in vacancy, according to BNP Paribas Real Estate Poland’s Review – Warsaw Office Market, Q4 2025. Lease renegotiations dominated transactions throughout the year, while developers delivered the lowest quarterly volume of new space in the final three months.

Total modern office stock in Warsaw reached 6.23 million sqm by the end of December, representing an annual increase of just under 90,000 sqm. New deliveries in 2025 amounted to 88,700 sqm, with no new office buildings completed in Q4 as several projects shifted into early 2026. The largest schemes delivered during the year were The Bridge (47,000 sqm) and Office House (27,800 sqm), both located in central zones. Refurbished projects also contributed additional space, including approximately 10,000 sqm at the Lipowy Park complex.

Tenant activity reaches highest level on record

Leasing volume totalled 794,000–795,000 sqm in 2025, up around 7% year-on-year, marking the strongest annual result recorded for the Warsaw office market. The fourth quarter alone accounted for nearly 310,000 sqm, a 69% increase compared with Q3 and the highest quarterly figure of the year.

“The transaction structure in 2025 was dominated by lease renewals. For many companies, this was a decision made almost out of necessity, as the market currently offers very few viable relocation options. On top of that, fit-out costs often create a significant barrier to changing headquarters. Tenant activity was strongest in the City Centre zone, which accounted for 32% of the total leasing volume. The second most active area was Służewiec, with a 23% share,” notes Wiktoria Weilandt, Director, Office Agency Department, BNP Paribas Real Estate Poland.

BNP Paribas data indicates that renewals represented 50–51% of gross leasing volume over the year, while new leases accounted for roughly 40%. In Q4 alone, renewals made up 64–65% of activity, with new leases at just over 31%. Pre-lets represented 7.4% of total transactions across the last four quarters.

Among the largest transactions of the year were Santander Bank’s 24,500 sqm pre-let at The Bridge, Polkomtel’s 22,680 sqm renewal in Służewiec, and AstraZeneca’s 22,500 sqm renewal and expansion at Postępu 14. In Q4, additional significant deals included a confidential tenant securing over 16,000 sqm at Eurocentrum Office Complex Delta and multiple public-sector renewals exceeding 9,000–12,000 sqm.

Sector-wise, demand was led by banking, insurance and investment firms (15%), followed by business services (14%), manufacturing (13%) and IT products and services (12%), with public institutions accounting for around 10% of leased space.

Supply remains limited despite projects under construction

While annual deliveries were modest, the development pipeline expanded slightly. By the end of 2025, approximately 199,000–200,000 sqm of office space was under construction for delivery between 2026 and 2028. More than 60% of this pipeline is concentrated in central zones and about one-third in the Central Business District.

Key schemes under construction include AFI Tower (50,000 sqm), Upper One (35,500 sqm) and the V-Tower refurbishment (30,800 sqm), alongside projects such as Studio A and Skyliner II. Analysts note that securing large contiguous units exceeding 1,000 sqm remains challenging despite the overall availability of space.

Vacancy continues to decline

At the end of December 2025, approximately 560,000–565,000 sqm of office space was available in Warsaw, translating into a vacancy rate of 9.1%, down 1.5 percentage points year-on-year and 0.6 points quarter-on-quarter. The decline was driven by limited new supply, building withdrawals for alternative uses and stronger tenant demand in the second half of the year.

Central locations recorded a vacancy rate of around 6.1%, compared with 11.6% outside the city centre. The highest concentration of vacant space remained in Służewiec, where availability exceeded 18%, while the CBD and City Centre West maintained vacancy levels near 6%. Newer buildings performed better, with vacancy below 5% in properties under five years old, compared with more than 11% in assets older than ten years.

Rental growth supported by scarcity of prime space

Prime headline rents continued to rise in 2025, supported by constrained supply in central zones. Average prime asking rents across Warsaw reached approximately EUR 30 per sqm per month, while in the CBD headline rents climbed to around EUR 29 per sqm per month and EUR 26–27 per sqm per month in the wider City Centre.

“The highest growth dynamics were recorded in locations directly adjacent to the city centre. Limited supply of new developments combined with stable demand continues to fuel upward pressure. Market forecasts indicate that in 2026, prime headline rents may reach EUR 32 per sqm per month, and in the most prestigious locations — even EUR 34–35 per sqm per month,” emphasizes Małgorzata Fibakiewicz, Senior Director, Head of Office Agency Department, BNP Paribas Real Estate Poland.

With only a limited volume of new office space expected to be delivered in 2026, analysts anticipate continued competition for high-quality central offices and further upward pressure on rents in prime assets.

Source: BNP Paribas Real Estate Poland

Develia becomes Premium Sponsor of WTS Sparta Wrocław

Develia has signed a sponsorship agreement with the WTS Sparta Wrocław speedway club, joining the organisation as a Premium Sponsor. The company said the partnership reflects its long-term presence in Wrocław and its involvement in local initiatives.

Develia, a residential developer headquartered in Wrocław, has operated in the city and other major Polish markets for two decades. Under the agreement, the company will support the club through financial sponsorship and brand visibility at sporting events.

“Wrocław is a city with which we are connected on a daily basis – both professionally and privately. We have been supporting Sparta from the stands for years and following its successes. Today, we want to add our sponsorship support to this,” said Andrzej Oślizło, President of the Management Board of Develia, adding, “We believe that regardless of the result on the track, the most important thing is the feeling we want to give our customers and fans: It’s good to be home.”

WTS Sparta Wrocław is a speedway club competing in the Polish league system and has won the Polish Team Championship five times. The club regularly places among the top teams in the national competition.

“We are proud to announce the start of our cooperation with one of the largest companies in this industry in Poland. We are connected not only by Wrocław, but also by a shared vision of development, professionalism and ambition. I am convinced that together with the Develia brand, we will bring a lot of joy to the residents of the region, while achieving our business goals,” said Andrzej Rusko, President of WTS Sparta.

As part of the partnership, the Develia logo will appear on team uniforms, stadium banners, LED screens and selected areas of the venue. The agreement also предусматривает brand presence in the club’s communications and activities linked to sporting events.

SVN Credit brokered EUR 326.5 million in loans in 2025 as Romania’s mortgage market reached EUR 10.9 billion

SVN Credit Romania brokered loans totalling EUR 326.5 million in 2025, an increase of 40.7 percent compared with the previous year. More than two-thirds of this amount consisted of mortgage loans. The company reported approximately EUR 250 million in mortgage financing, corresponding to nearly 3,100 loans, while consumer loans accounted for around EUR 60 million. Corporate financing and leasing advisory services covered 110 transactions with a combined value of EUR 16.5 million.

The growth in activity was also linked to the company’s territorial expansion, with 12 new regional offices opened during 2025, bringing its national network to 32 offices. SVN Credit stated that its 2026 plans include further expansion into smaller cities, with new offices already opened this year in Târgu Mureș and Focșani.

Romania’s mortgage market reached a new high in 2025, with total loans granted at national level amounting to EUR 10.9 billion, according to National Bank of Romania statistics compiled by SVN Credit. This represented an 18.4 percent increase compared with 2024. Loans issued specifically for home purchases totalled EUR 5.1 billion, or 46.7 percent of the overall mortgage volume, while the remainder consisted of refinancing, restructuring, reconversion and transfer loans. The value of new home-purchase mortgages was also a record, rising 13 percent from EUR 4.5 billion recorded in 2024.

“The mortgage market is increasingly accessible for those who want to buy a home through a mortgage loan: 2026 started with decreasing interest rates and on the fixed segment we already have an average fixed interest rate that dropped below 5%. Consumers should be attentive not only to potential decreases in the key interest rate but also to the existing offers – or to use the services of a credit broker, which are free in Romania – offers that are increasingly advantageous in a context of competition between financial institutions. In addition, IRCC will record another slight decrease in the second quarter, to about 5.57%. In this context, 2026 has all the premises to bring results at least as good the previous year,” said Cătălin Marin, Managing Partner of SVN Romania | Credit & Financial Solutions.

The increase in mortgage lending occurred alongside a decline in residential transactions. According to data from the National Agency for Cadastre and Land Registration, the number of homes sold in Romania decreased by 5.3 percent in 2025 compared with the previous year. Based on SVN calculations, mortgages registered in 2025 represented approximately 57 percent of all residential units sold, up from 51 percent in 2024. These figures include refinancing and restructuring loans as well as personal loans secured by property.

SVN Credit Romania operates as a broker for mortgage and consumer loans on the local market. Its affiliated real estate consultancy, SVN Romania, reported residential sales of more than 1,700 homes in 2025 with a combined value exceeding EUR 280 million, alongside land, commercial and office transactions. SVN International Corp. operates over 200 offices worldwide with more than 2,200 consultants and administrative staff.

Czech Commercial Real Estate Investment Hits Record in 2025 Amid Limited New Supply

Investment activity in the Czech commercial real estate market reached a historic high in 2025, with total transaction volumes exceeding previous peak levels and more than doubling year-on-year, according to market analyses by international advisory firms. The surge in capital inflows was accompanied by one of the lowest levels of new office construction in recent years, reinforcing demand for existing assets across key segments.

Market data from several brokerage houses indicate that total annual investment volumes approached €4–4.5 billion, surpassing the previous record set in the mid-2010s. Domestic investors played a dominant role in transactions, accounting for the majority of deployed capital, particularly in the second half of the year.

Large mixed-use and retail-anchored complexes were among the most significant deals recorded during the period, while office properties continued to attract steady interest. According to quarterly investment overviews, offices represented roughly one quarter of overall transaction volume, reflecting sustained demand for prime and well-located assets despite higher financing costs.

At the same time, the development pipeline remained subdued. Prague’s office market recorded one of its lowest annual completion volumes in modern history, contributing to tightening vacancy conditions in central and established business districts. Analysts attribute the limited new supply to a combination of elevated construction costs, stricter financing conditions and lengthy permitting processes, factors that have slowed the launch of new commercial projects.

The imbalance between strong investment demand and constrained new deliveries has supported pricing levels for existing properties and maintained competitive conditions for high-quality assets. Advisory firms note that while investor sentiment remained cautious due to macroeconomic uncertainty and interest-rate dynamics, the Czech market continued to benefit from its relative stability, transparent legal framework and liquidity compared with several neighbouring markets.

Overall, 2025 marked a year in which record capital deployment coincided with historically low new construction volumes, shaping a market environment characterised by limited supply and continued investor focus on established income-producing properties.

Poland: Future Inflation Index Holds Steady in February, Signalling Limited Price Pressure

The Future Inflation Index (WPI), which anticipates changes in consumer goods and services prices several months ahead, remained unchanged in February 2026 compared with January, indicating no immediate signs of rising inflationary pressure.

Of the index’s eight components, four pointed toward lower inflation while the remaining four suggested potential upward pressure. Despite this balanced distribution, current readings do not indicate a growing threat to overall price stability.

Among the factors that could contribute to higher inflation is a renewed increase in price expectations among manufacturing managers. For the third consecutive month, the share of companies planning price increases has exceeded those intending to lower prices. The strongest inclination to raise prices is reported among producers of durable consumer goods, as well as in the pharmaceutical and metal industries. However, these intentions have yet to translate into actual price movements. Average annual producer price index (PPI) readings have remained negative for more than two years, effectively reflecting ongoing producer-level price deflation.

Analysts note that at the beginning of each calendar year businesses often anticipate higher prices, partly due to regulated tariff adjustments and administrative cost increases. In 2025, for example, the expiration of government energy price protections and higher minimum wage thresholds contributed to rising operating costs. This year, however, the scale of such increases has been smaller, suggesting weaker incentives for companies to pass higher costs on to consumers.

Another element with potential inflationary impact is the relatively high capacity utilisation rate in the manufacturing sector compared with previous years. Higher utilisation can raise maintenance and investment costs, potentially feeding into pricing decisions. Historically, Polish industry capacity utilisation fluctuates within a narrow band of roughly 70 percent during downturns to 80–82 percent during periods of strong growth. The current rate stands at approximately 78 percent. Economists caution, however, that prolonged underinvestment in industrial assets may have reduced effective production capacity, artificially lifting utilisation figures without necessarily signalling overheating demand. As a result, the current level is not viewed as a direct risk to price stability.

Commodity markets have recently experienced heightened volatility, largely linked to geopolitical developments. The World Bank’s commodity price index increased from about 94 points in December 2025 to 102 in January 2026, accompanied by sharp price swings across individual raw materials. Analysts expect conditions to stabilise in the near term, particularly for commodities that most directly influence consumer inflation, including oil and food.

Meanwhile, consumer inflation expectations have returned to levels observed last autumn. The brief rise in concerns recorded in December is seen as seasonal, reflecting typical pre-holiday price increases and heightened spending rather than a sustained shift in inflation sentiment.

Overall, current indicators suggest that while some cost pressures persist within industry and commodity markets, the broader outlook for consumer price growth remains stable in the near term.

HREIT Stakeholders Push for Restructuring as Courts Open and Secure Proceedings in Selected Project Companies

Apartment buyers, selected creditors and several companies within the HREIT group are seeking restructuring proceedings rather than bankruptcy, according to a company press release issued on Monday. The developer states that courts have already opened sanation (restructuring) proceedings for certain operating entities and appointed temporary court supervisors in additional project companies, while bankruptcy cases continue in parallel for parts of the group.

HREIT said that two key operating companies — Warszawska 1 sp. z o.o. in Nowy Dwór Mazowiecki and TRUST X sp. z o.o. in Łódź — are already subject to opened sanation proceedings following applications filed by apartment buyers. In other investments, including Nova Formeli 17, Parkowa Świdnica and Łozowa 48, courts have appointed temporary supervisors in proceedings related to the potential opening of restructuring.

The company indicated that restructuring applications are being submitted both by apartment purchasers and by group companies themselves, including holding and operating entities. In several cases, these applications are taking place simultaneously with ongoing bankruptcy proceedings involving the same subsidiaries.

Panattoni signs OLMED for 9,500 sqm at City Logistics Łódź VI

Panattoni has leased 9,500 sqm of warehouse space to OLMED at City Logistics Łódź VI, an urban logistics development in Łódź. OLMED operates a network of pharmacies as well as online pharmacy and drugstore platforms.

The OLMED Group provides medical services in Łódź and runs brick-and-mortar pharmacies alongside its e-commerce channels, which include pharmaceutical and drugstore products such as dermocosmetics and cosmetics. The company decided to relocate its warehouse operations to City Logistics Łódź VI to support the expansion of its online sales activities.

“The transfer of logistics processes to the new distribution centre is an important step for us in the development of our three e-commerce platforms, namely aptekaolmed.pl, drogeriaolmed.pl and aptekazawiszy.pl. With significantly more space than before, in a modern, well-located facility, we will be able to significantly increase our operational efficiency. The location, with direct access to major transport routes, allows us to optimise the supply chain and reduce shipping times to customers throughout Poland. Cooperation with Panattoni will allow us to gain further competitive advantages and strengthen the Olmed Group’s position at the forefront of e-commerce platforms in Poland in the health and beauty sector,” says Jakub Lisiński, President of Olmed (Apteka Olmed).

The leased space has been adapted to the tenant’s requirements, including the addition of a mezzanine level and the installation of logistics automation systems. OLMED is scheduled to begin operations at the facility in the first quarter of 2026.

“Olmed is successful in the promising e-commerce market – we are delighted that the company has chosen us as a partner in its further business development. I am confident that City Logistics Łódź VI – a facility designed with modern distribution in mind – will meet the tenant’s expectations and contribute to its further growth,” says Marek Dobrzycki, Partner at Panattoni. “Łódź is one of the key logistics markets in Poland. We have been present here since the company was founded over 20 years ago. During this time, we have delivered over 2.4 million sqm of modern industrial space in the region, of which over 230,000 sqm is in the City Logistics segment. We already have further projects in the pipeline.”

Jakub Wojtera, Senior Advisor at AXI IMMO, added: “The decision to lease space in the eastern part of Łódź was a natural step for our client – the region provides access to a large number of skilled workers, which is crucial for e-commerce operations. We were looking for modern warehouse space with a spacious office module to support the company’s further operational development. The transaction also highlights the developer’s great flexibility and openness to the client’s needs.”

City Logistics Łódź VI comprises approximately 25,000 sqm of space and is located on Dostawcza Street in Łódź. The project was developed on a brownfield site previously occupied by a gas bottling plant. The building has received an Excellent rating under the BREEAM environmental certification system. Its location in the eastern part of the city provides access to public transport and urban infrastructure, while the modular layout allows for a range of uses including e-commerce, warehousing, light production and logistics.

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