Benjamin Bettoun, Group Head of Asset Management at NEPI Rockcastle, talked to Property Forum at MIPIM about the company's investment strategy in CEE and the trends that are shaping the future of shopping centres. He also talked about the increasing demand for retail space in the company’s new mall in Craiova, Romania, slated for delivery at the end of 2023.

After 13 years of operation, Eurovea will become the largest shopping centre in Slovakia as its extension is set to open on May 25th. The centre reports an occupancy rate of 95% and promises to bring new brands and innovative concepts. The developer J&T Real Estate is now completing work on most of the buildings in the second phase of the Eurovea project.

The Prague office market has experienced a decline in the construction of new office buildings over the last three quarters which has also been reflected in a decline in speculative construction. Whereas a year ago almost 80% of offices under construction did not have a secure tenant, this share has now fallen to 52%. Tenants were looking for office space in established office locations in the vicinity of Karlín in Prague 8 and Pankrác in Prague 4 in the first quarter. A quarterly analysis by international consultancy JLL shows that 7.5% of modern office space in Prague is currently vacant, which corresponds to 289,100 sqm of space. However, the supply of so-called subleases, which are not included in the official vacancy register, is also growing. According to JLL's latest analysis, there could be around 80,000 sqm of sublease space.

Adventum Group, which focuses on CEE real estate investments, have completed the fifth acquisition through its Adventum Penta Fund SCA SICAV-RAIF. The fifth acquisition of the fund is the Wola Retro office complex in Warsaw, Poland which was constructed in 2019 by Develia SA.

In Q4 2022, Hungarian residential property prices fell by 3.6% compared to the previous quarter. The Central Bank of Hungary (MNB) reports the sharpest decline was seen in smaller municipalities.

Panattoni sees continuing interest from investors: in the first quarter of the year the company completed transactions in Poland worth a combined total of over €300 million. The developer's activity has spawned the need for a new position - Head of Asset Disposition - which has been filled by Michal Stanisławski.

CEE, much like the wider European market, continues to experience subdued market sentiment, while Romania remains a positive light in the region, the RICS Commercial Property Monitor for Q1 2023 reveals.

Industrial properties in the Czech Republic are still very full. The vacancy rate in Prague and its surroundings alone is almost zero for the second year. Rents are also rising, with some locations seeing an increase of almost 100% compared to their original terms, according to the latest report on the Czech industrial property market from companies associated with the Industrial Research Forum.

CTP is contributing to the carbon neutrality of the warehouses of CTPark Prague North with the use of trapezoidal sheets made of XCarb ‘green’ steel, manufactured by Arcelor Mittal. It will be added to the entire roof area of a warehouse designated D8.7B with a total area of 32,000 sqm. This resulted in a saving of 835 tonnes of CO2, the equivalent of 348 people living without a car for 1 year.

French retailer Carrefour is in the final negotiation stage to fully purchase Cora’s retail network in Romania and the transaction will be signed later this day, according to ZF.ro.