Real estate development is a long-term venture where the end results (including profitability) are often unpredictable, especially in the current challenging global environment. Property Forum talked to Norbert Schőmer MRICS, Country Director at Atenor Hungary and the recently appointed Chairman of RICS in Hungary, covering the topics of ESG, changes in the office market, affordable housing and education, among others. He also provided an update on Atenor’s ongoing projects in Hungary and shared his priorities as RICS Chairman.

Ultimately, more than 10 MW of green energy from photovoltaic farms will power Warsaw UNIT, an office building developed and owned by Ghelamco. It is the first skyscraper in Poland entirely powered by green energy. Funding for the innovative remote farm project was provided by ESCOlight, and the contractor is Revolt Energy, part of the Blachotrapez Group.

CTP has signed a lease agreement with Heimstaden, the provider of rental housing in the Czech Republic, for almost 3,500 sqm of office space at IQ Ostrava. 

Lion’s Head Investments, the commercial real estate investor owned by Old Mutual Property and AG Capital, has secured €150 million in fresh funding from the International Finance Corporation (IFC), part of the World Bank Group.

Swedish property developer Skanska has developed an offer to tenants consisting of services to support them in creating sustainable workplaces and non-financial reporting.

Jarosław Fiutowski, Member of the Board responsible for ESG strategy and innovation at Ghelamco Poland, talked to Property Forum about the renewable energy in office buildings,  the awareness of ESG issues among tenants and the related stance of Western investment funds.

In 2023, on Poland’s largest eight regional office markets, developers delivered 280,000 sqm (-31% y/y). It’s bringing the sector’s total stock to 6.68 million sqm (+4% y/y). The new supply slightly increased the vacancy rate, stabilizing around 17.5% (+2.2 pp. y/y) at the end of December 2023. The largest concentration of tenant activity was observed in the largest regional office markets, i.e., Kraków, Wrocław, and the Tricity (about 70% of gross demand), where, in total, companies leased about 520,000 sqm out of 750,000 sqm of all signed contracts in 2023, says Axi Immo.

Demand for lounge-style offices is on the rise across the office world. Fit-out costs have also increased which forces developers and construction companies to prepare projects more thoroughly than before. Property Forum asked Dávid Havas, Development Director at Fitout Zrt. about the latest trends in creating a lovely atmosphere to retain the best employees and use design and build concepts to keep costs low.

Although office leasing opportunities are already very limited in Prague, the good news is that Colliers' survey has reported rather stable rental prices throughout the last year.

CPI Property Group has sold the Concept Tower office building in Warsaw to Wood & Company Real Estate Fund. The price has not been discolsed.