Home Values in Slovakia Continue to Rise Across Most Regions

The cost of residential property in Slovakia moved higher again in the latest reported period, extending an upward pattern that has been visible since the middle of last year. Newly released national data indicate that both newly built and older homes became more expensive compared with the same time a year earlier, with increases recorded in nearly every part of the country.

The overall picture shows steady momentum rather than a sudden surge, with prices climbing from one quarter to the next as well as on an annual basis. Larger cities and their surrounding districts continued to set the tone for national averages, while smaller regions followed with more moderate but still positive changes.

Differences between locations remain pronounced. The capital area continues to command the highest price levels, reflecting strong demand and limited availability of suitable properties. Eastern and central regions also registered noticeable gains, narrowing the gap slightly but still remaining well below the values seen around Bratislava. Only isolated districts reported minimal movement or brief slowdowns before resuming growth.

Market observers link the sustained rise to stable employment conditions and gradually improving access to home loans compared with the previous year. At the same time, they note that affordability concerns are becoming more visible, which could temper the pace of future increases if borrowing costs or economic conditions shift.

Despite these potential constraints, the most recent figures point to a housing market that remains active and broadly upward-trending, with prices higher than a year ago and regional disparities continuing to shape the overall landscape.

Home Prices in Slovakia Climb Sharply Over the Past Year

The cost of buying a home in Slovakia increased markedly over the past year, with nationwide figures showing double-digit growth and a noticeable jump in the average price per square metre. The rise was most visible in the country’s two largest urban areas, which had the strongest influence on overall market levels.

Property listings and banking sector analyses indicate that values strengthened throughout the year after a quieter period earlier in the cycle. Flats accounted for much of the upward movement, while standalone houses also became more expensive, though their increases were generally less pronounced.

Price development varied by location. The capital region remained the most expensive part of the country and continued to pull the national average upward. Košice and its surrounding districts also registered significant gains, reversing softer trends seen previously. Other regions recorded more moderate changes, and in a few cases prices moved little or briefly edged down before recovering.

Economists link the renewed growth to steady employment conditions and improved access to home financing compared with the previous year. However, they also note that the strong pace seen recently may ease if household budgets come under pressure or borrowing conditions change.

Overall, the latest figures suggest that Slovakia’s residential market finished the year with higher asking prices and revived buyer interest, although future increases are expected to proceed at a more measured speed.

Retail Spending in the Czech Republic Edges Higher as Price Growth Slows at Start of Year

Household spending in the Czech Republic increased over the past year, while new data for the opening month of this year show that the rise in living costs has eased to its lowest pace in many years, offering a mixed but generally stable picture of consumer conditions.

Official statistics indicate that the value of goods sold in stores, not including vehicle purchases, was moderately higher than in the previous year. Sales through online channels and purchases of everyday items contributed to the overall improvement, although the final months of the year showed a gentler rhythm compared with earlier periods. Economists say the yearly gain reflects gradually improving purchasing power and continued willingness among households to spend, even if caution remains visible in some segments.

Separate figures released at the same time show that the cost of goods and services in January rose only slightly compared with a year earlier, marking the slowest annual increase seen in nearly a decade. Lower energy-related expenses played an important role in the calmer price environment, while certain services and selected food categories still recorded noticeable increases.

The combination of firmer retail turnover and milder price development suggests that consumers entered the new year under more favourable financial conditions than in recent periods. Analysts note, however, that the moderation in prices does not eliminate all pressures on household budgets, as some areas of spending continue to trend upward. Even so, the latest data point to a more balanced economic backdrop, with spending activity holding steady while overall price growth remains contained.

Czech Central Bank Lifts Economic Growth Outlook as Currency Firms After Inflation Data

The Czech economy is expected to grow faster this year than previously anticipated, according to updated projections released by the country’s central bank, while the national currency strengthened following the publication of January price figures and a decision to leave borrowing costs unchanged.

In its latest assessment of the domestic economy, the central bank indicated that economic activity should expand at close to three percent this year, representing a more optimistic view than it presented late last year. The revised estimate reflects improving household consumption and a gradual recovery in external demand, while price growth is now seen as more subdued than earlier forecasts suggested. The bank also signalled that economic expansion could remain at a similar pace next year, although inflation is expected to move slightly higher compared with this year’s level.

The updated outlook places the central bank among the more confident forecasters regarding near-term economic performance. Government institutions recently adjusted their own expectations upward as well, though their projections remain marginally more cautious.

Financial markets reacted quickly to the combination of new inflation figures and the monetary authority’s decision to keep its main interest rate steady. The Czech koruna strengthened against both the euro and the US dollar during trading, reflecting investor confidence that price pressures remain under control and that policy settings are unlikely to shift abruptly in the near future.

Data released earlier in the day showed that consumer price growth at the start of the year remained relatively low compared with recent historical standards, even though certain service sectors continue to experience higher costs. Central bank officials reiterated that maintaining a prudent policy stance is still necessary to ensure inflation remains close to the target over the medium term.

Equity trading in Prague moved in the opposite direction, with the main stock index easing from recent highs as several large-capitalisation shares declined. Analysts noted that the currency’s appreciation and stable interest rate environment suggest markets currently view the country’s economic trajectory as balanced, combining moderate growth with contained inflation, although future developments will depend on both domestic spending trends and the broader European economic climate.

Panattoni starts next phase of Panattoni Park Warsaw South IV, DZIK signs as first tenant

Panattoni has begun construction of another stage of Panattoni Park Warsaw South IV in Nadarzyn near Warsaw. The new warehouse building will offer approximately 26,300 square metres of space. The first tenant of the facility will be Polish sports brand DZIK, for which this will be the company’s first standalone warehouse.

“We are launching the next phase of Panattoni Park Warsaw South IV in response to the continuing high demand for modern industrial space in the immediate vicinity of Warsaw,” says Michał Samborski, Regional Managing Director & Head of Development at Panattoni. “We are delighted that DZIK – a Polish brand with a strong identity and impressive growth dynamics – has placed its trust in us by choosing the location for its first warehouse.”

DZIK has expanded its sales channels in recent years and decided to centralise logistics and office functions in one location. The company will occupy more than 11,000 square metres of warehouse space and over 700 square metres of offices.

“Everyone who creates DZIK knows that our history is not just a brand – it is a way of thinking, acting and living,” says Maciej Kozik, Logistics Director at DZIK. “This project is more than just a new location – it is a place that is designed to foster people, ideas and everyday work.”

The office part of the scheme is planned with social and relaxation areas and views towards surrounding greenery. Querco Property advised DZIK during the selection and negotiation process.

“It was a collaboration with a brand that knows exactly where it is going,” says Karolina Hałuszko, Property Negotiator at Querco Property. “The choice of Panattoni Park Warsaw South IV was a natural step towards further development.”

The new building is being developed together with investor Griffin Capital Partners. According to Griffin, the decision to proceed with the next phase follows previous deliveries at the site and ongoing tenant interest in the location.

“As part of our strategy, we are consistently developing a portfolio of high-quality, future-proof locations,” explains Łukasz Toczek, Director at Griffin Capital Partners. “We are seeing strong tenant demand for space in this area, which is why we have decided to proceed with the third stage, secured by an agreement with DZIK.”

Panattoni Park Warsaw South IV is located in Nadarzyn near the S8 expressway and the Paszków junction, around 20 kilometres from central Warsaw and 18 kilometres from Chopin Airport. Earlier phases of the park are fully leased, with tenants including Neopak and Prajo. Once completed, the complex is expected to comprise more than 85,000 square metres across three buildings, with delivery of the current stage planned for the second quarter of 2026. The project is intended to obtain BREEAM Excellent certification.

Real Estate Finance Leaders Back ECB’s Decision to Hold Interest Rates Steady

Senior figures from across the German and European real estate finance sector have broadly welcomed the European Central Bank’s decision to leave key interest rates unchanged at the start of 2026, describing the move as a stabilising factor for both property and capital markets. Executives and academics note that while borrowing conditions remain demanding, the predictability of monetary policy is currently seen as more valuable than premature rate cuts, particularly as service-sector inflation and geopolitical uncertainties continue to influence the economic outlook.

Statement by Francesco Fedele, CEO of BF.direkt AG: “The ECB’s decision to keep key interest rates at their current level is correct and consistent. While inflation in the Eurozone has fallen to 1.7 percent compared to January 2025, the lowest level since September 2024, this slight weakening is not yet a reason for the central bank to lower key interest rates, especially since inflation in the services sector remains high at 3.2 percent.

For the real estate industry, the current interest rate level is challenging, but predictable. This predictability is currently more important than rapid interest rate cuts, which would raise false expectations given the renewed rise in inflation. Price pressure remains high, particularly in the service sector and with regard to wage-driven costs.

The real estate market is functioning, albeit selectively. While residential and logistics properties remain relatively stable, other asset classes continue to face pressure to adjust. Financing is still being secured, but only on the basis of viable business models and realistic valuations. Against this backdrop, monetary policy stability is currently the most important contribution of the ECB.” ECB to calm the markets.

Statement by Prof. Dr. Steffen Sebastian, Chair of Real Estate Finance, IREBS Institute for Real Estate Economics, University of Regensburg: “While other central banks have already implemented interest rate cuts, the ECB remains committed to its stability-oriented course. This strengthens its credibility and prevents higher inflation expectations from taking hold in the capital market – a risk that would be particularly problematic for long-term financing. For the real estate and credit markets, the pause in interest rate cuts does not mean relief, but it does mean stability. In the current phase, restraint is the lesser of two evils. Only when the decline in inflation proves to be sustainable will there be room for monetary easing. Until then, discipline is paramount.”

Statement by Michael Morgenroth, Founder and CEO of CAERUS Debt Investments AG: “The ECB’s decision to keep interest rates stable since mid-2025 is not surprising to us. It continues its course of cautious, data-driven normalization and avoids creating new uncertainties for businesses and households. In December 2025, inflation in the eurozone fell below the ECB’s target of 2 percent for the first time in months, at 1.9 percent. Inflation in Germany was also moderate at 1.8 percent. At the same time, the eurozone economy is expanding at a moderate pace of just over one percent per year, which argues against tightening monetary policy. A stable interest rate supports this fragile recovery, stabilizes financing conditions, and simultaneously allows the ECB to react flexibly to a renewed acceleration in inflation or an unexpected slowdown in growth. As long as no new inflation risks emerge, we believe the ECB will continue to prioritize continuity and a longer period of stable interest rates.”

Statement by Prof. Dr. Felix Schindler, Head of Research & Strategy, HIH Invest: “The ECB is continuing its current course at its first meeting in 2026, keeping key interest rates at their current level. This interest rate decision by the ECB was expected by market participants in the capital markets as well as in the real estate markets. Inflation rates in the Eurozone and Germany remain within the ECB’s target corridor at the start of the year. Base effects in energy prices and exchange rate effects are expected to subside over the course of the year. The core inflation rate – driven by the services sector – remains above the target and will continue to be monitored. High geopolitical uncertainties and high volatility in the capital markets are also expected to persist throughout the year. The ECB is therefore currently in a comfortable position to react accordingly if necessary.”

Photo (left to right): Francesco Fedele, CEO of BF.direkt AG, Prof. Dr. Steffen Sebastian, Chair of Real Estate Finance, IREBS Institute for Real Estate Economics, University of Regensburg, Michael Morgenroth, Founder and CEO of CAERUS Debt Investments AG and Prof. Dr. Felix Schindler, Head of Research & Strategy, HIH Invest

Warsaw Office Market Continues to Face Limited New Supply Despite Strong Leasing Activity

Office leasing activity in Warsaw remained robust throughout 2025, even as the amount of newly completed space fell to one of the lowest levels in recent years. Market analysts say the Polish capital is still experiencing a shortage of modern office availability, particularly in central districts, as development activity slows and older buildings are gradually withdrawn from use.

Total tenant demand during the year reached approximately 790,000 square metres, with the final quarter standing out as the most active period, when signed agreements exceeded 300,000 square metres. The high level of leasing was recorded against a backdrop of constrained supply, with less than 100,000 square metres of new offices delivered during the year and under-construction volumes continuing to decline.

A large share of activity consisted of companies extending or renegotiating their existing agreements, while the remainder came from firms entering new locations or modestly expanding their footprint. Central Warsaw and the Służewiec district accounted for the highest concentration of transactions, although their tenant profiles differed. New occupiers were more visible in the city centre, whereas Służewiec saw a greater share of contract renewals. Among the year’s largest deals were major telecom and pharmaceutical tenants choosing to remain in their current buildings while adjusting lease terms and, in some cases, taking additional space.

Sustained demand has placed upward pressure on headline rents in prime central projects, where monthly rates now reach the upper end of the local market, with premium floors in landmark towers achieving even higher figures. By contrast, business zones outside the core continue to offer more affordable options, drawing interest from cost-conscious occupiers seeking modern facilities with good transport links.

Consultants note that the rising cost of relocation and office fit-outs is encouraging many firms to stay in established premises rather than move, a trend that is also contributing to longer lease commitments. Buildings that combine strong technical standards with efficient operating costs are increasingly favoured as companies become more selective in their space requirements.

On the development side, most new projects completed in 2025 were concentrated in central locations, while construction starts slowed further compared with previous years. At the same time, several outdated office properties were removed from the market or earmarked for conversion, gradually improving the overall quality of available stock. This restructuring has been particularly visible in older office districts, where redevelopment and change-of-use schemes are beginning to reshape the local landscape.

By the end of the year, Warsaw’s modern office inventory exceeded six million square metres. However, the pipeline of future projects shrank noticeably, signalling that new additions are likely to remain limited over the next two years. Analysts expect that the combination of steady tenant demand, cautious development and the ongoing withdrawal of inefficient buildings will continue to tighten availability, especially for large, contiguous spaces in prime areas.

Vacancy levels declined further during the year, with the sharpest reductions recorded in the central business zone, where demand for high-quality space remains strongest. Looking ahead, market observers anticipate that selective rent increases and a growing emphasis on refurbishing or repurposing older properties will shape Warsaw’s office sector as companies balance cost considerations with the need for modern, well-located workplaces.

Source: AXI IMMO

Slovakia’s Housing Market Enters 2026 in a Phase of Adjustment and Slower Growth

Slovakia’s housing market is moving into a new phase in 2026, shaped by the after-effects of several years of higher interest rates, rising construction costs and limited new supply. While the pace of change has slowed compared with the sharp swings seen earlier in the decade, both buyers and tenants continue to feel pressure on household budgets, particularly in larger cities.

Market observers describe the current period less as a recovery and more as an adjustment to new conditions. Mortgage rates have eased from their recent peaks but remain above the levels many households were used to before 2020. This has reduced purchasing power and kept part of the potential buyer base on the sidelines. At the same time, developers face higher financing and construction expenses, which limits the number of new projects and keeps the supply of newly built apartments relatively tight.

As a result, ownership remains difficult for many first-time buyers, especially younger households. Renting, which was once often seen as a temporary solution, is increasingly becoming a longer-term choice. Demand for rental housing has been supported by labour mobility, lifestyle changes and the growing number of smaller households.

During 2025, rental prices rose more slowly than in previous years, and in some periods increases were only marginal. After adjusting for inflation, real rental income for landlords in major cities showed limited growth or even slight declines. This has influenced investor expectations, particularly for properties purchased with mortgage financing, where borrowing costs continue to play a significant role in profitability.

In Bratislava, rental activity has remained concentrated in several districts, with central neighbourhoods continuing to command the highest prices. However, part of the demand has gradually shifted toward outer districts where rents are lower. Newly completed apartments generally achieve higher rental levels than older housing stock, reflecting differences in energy efficiency, layout and amenities.

Investment interest in residential property has not disappeared, but it has become more selective. Smaller apartments tend to attract the most attention due to their easier lettability and more predictable income streams. Older properties are also of interest to investors seeking lower entry prices, although expected returns depend heavily on purchase costs, rental levels and financing terms. Inflation continues to influence decision-making, as it can both reduce the real burden of debt and erode the long-term value of returns.

Looking ahead, moderate price growth is expected rather than rapid increases. Well-located and higher-quality projects are likely to maintain stronger pricing, while older or less attractive properties may see little change. Differences between market segments are therefore expected to widen. Rental prices are also projected to rise gradually, particularly for smaller units, although the pace will vary by city and neighbourhood.

Overall, the Slovak housing market in 2026 is characterised less by dramatic shifts and more by gradual adaptation. Housing remains expensive relative to incomes, supply growth is limited, and both buyers and tenants are adjusting expectations. For many households, flexibility in location, size and property type is becoming increasingly important as the market settles into a new equilibrium rather than returning to earlier, lower-cost conditions.

CTP completes first phase of CTPark Warsaw Janki, second building under construction

CTP has completed the first phase of its industrial and logistics park in Puchały near Warsaw and obtained the occupancy permit for a warehouse building with an area of approximately 9,100 square metres. The facility was developed in the CTFlex format, which is designed for smaller units primarily aimed at small and medium-sized enterprises. At the same time, construction is continuing on a second building of around 22,000 square metres.

CTPark Warsaw Janki is one of several CTP warehouse projects in the Warsaw metropolitan area. The site is located close to the S8 expressway, providing direct access to Warsaw and key national transport routes. The newly completed hall was planned to allow division into modules of roughly 1,500 square metres, enabling flexible arrangements for different tenants.

According to CTP Polska, the second building is already at an advanced stage of construction and is expected to be delivered later this year. The full project is planned to include five buildings, increasing the volume of immediately available warehouse space in the southern Warsaw region, near Chopin Airport.

The general contractor for the first building was Depenbrock. The complex is being developed on a plot of just over 13 hectares. In addition to standard technical parameters, the design includes features intended to improve working conditions, such as increased natural lighting throughout the warehouse and translucent façade panels in selected areas.

Romania’s modern retail stock exceeds 5 million sqm as new deliveries continue

Romania’s modern retail market passed the 5 million square metre mark in 2025 after the completion of around 190,000 square metres of new space, according to Colliers’ annual market report. The volume delivered last year was roughly one-fifth higher than the average recorded over the previous five years. While economic conditions have become more moderate, the consultancy expects development activity to remain solid in 2026, with new completions estimated at about 240,000 square metres, potentially making it the most active year for retail deliveries since 2011. Despite recent growth, Romania still has less modern retail area per inhabitant than several neighbouring countries, suggesting room for further expansion, particularly in regional cities.

The largest addition to the market in 2025 was in Iași, where the Mall Moldova scheme was extended following the refurbishment of the former Era Shopping Center, adding close to 60,000 square metres of leasable space. In Arad, the Agora Mall project re-entered the market after renovation works, contributing around 35,000 square metres. A reassessment of national stock, which included older centres upgraded and reopened, also contributed to the overall total surpassing the 5 million square metre threshold.

Although numerous smaller retail parks continue to appear across the country, these are generally excluded from official statistics, which typically track only projects above approximately 4,000–5,000 square metres. Nevertheless, their presence indicates ongoing investor interest in secondary cities and towns where consumer demand remains active.

On the demand side, 2025 was less dynamic than the previous decade. Purchasing power weakened toward the end of the year and consumer spending slowed. Real wages declined compared with the previous year, and non-food retail sales showed a modest contraction in late autumn. Analysts note, however, that this represents a short-term adjustment following several years of strong growth, with Romania still ranking among the larger retail markets in the European Union by overall sales volume.

Labour market trends also pointed to relative stability. Employment growth slowed but overall workforce levels remained broadly unchanged, limiting the impact on household consumption. Several international retailers entered or expanded their presence in the country during 2025, while additional brands are expected to open their first stores in 2026. Traditional brick-and-mortar retail slightly outperformed online channels, reflecting cautious consumer behaviour and increased sensitivity to price amid inflationary pressures.

Occupancy rates in established shopping centres remained high, and newly completed schemes were generally absorbed without significant delays, including in smaller urban areas. Dominant malls in major cities reported limited availability, allowing owners to adjust tenant mixes and maintain rental levels. Discounters and essential goods retailers are expected to remain among the most active occupiers in the coming year.

For 2026, Colliers anticipates a more measured pace of decision-making from both developers and retailers, even as construction volumes remain elevated. Planned projects vary widely in size and are being advanced by both domestic and international investors. While building costs continue to weigh on budgets, the medium-term outlook for Romania’s retail property sector is viewed as stable, supported by ongoing urban development and consumer demand outside the capital.

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