After the very successful years of 2021 and 2022, known as the golden period of development of the industrial market in Poland, 2023 was a period of greater challenges due to a change in the macroeconomic situation. The main reasons were high inflation, which affected the purchasing power of consumers, persistently high-interest rates, and uncertainty over the eastern border. The market grew, but at a slower pace, especially in the first half of the year, to accelerate at the end of 2023. Development activity in January-December 2023 amounted to 3.7 million sqm (-16% y/y), and as a result, the sector's total stock rose to 31.7 million sqm (+13% y/y). Another 2.8 million sqm (-16% y/y) remains under construction, about half of which is not under signed lease. Gross take-up (which does not include short-term leases) amounted to 5.6 million sqm, and despite a lower result versus 2021-2022, it was significantly higher than in the pre-pandemic period, i.e., 2018-2019, says Axi Immo. 

Construction is one of the riskiest industries in terms of payment morale. According to data from Coface, the number of insolvencies in the Czech construction industry is growing, reaching its peak only in the second half of the year 2024.

Speedwell has kicked off the development of the second residential building of the mixed-use project Paltim based in Timișoara.

Prague is the second most active European market for flexible offices after London. Metropolises such as Warsaw, Amsterdam and Madrid follow at a distance, CBRE reports.

The residential market has a positive outlook this year, over favourable macroeconomic conditions and higher demand levels, especially expected to realise in H2 2024, according to a report by residential developer STC Partners.

A recent Colliers survey, based on an analysis of responses from more than 500 Czech employees across a range of industries, has revealed that over 40% of employees consider telecommuting to be a barrier to their career progression.

CTP has announced the appointment of two new Managing Directors for the business. Effective from 1st March 2024, Piotr Flugel has been appointed as the Managing Director for Poland and Daniela Boytcheva has been appointed as the Managing Director for Bulgaria.

Occupiers are increasingly forced to adjust to rapidly changing demands from employees. They also have to manage rising costs and meet environmental demands. Property Forum asked James Bartolo, Partner, Head of Multi-Market Tenant Representation EMEA at Knight Frank about the incentives for office workers and the ways companies coop with these tasks.

Demand for offices in Poland remains high, but there is the least amount of space under construction in over a dozen years. The office real estate market is changing more and more, says Walter Herz. 

Around 38% of industrial rental demand came from Bucharest in 2023, down from 48% the previous year, according to Colliers data.