This-year calm mixed with next-year unease at Expo Real

Meanwhile…

What stood out to me at Expo Real this year's was the lack of drama at a time when tectonic changes are sweeping the world feel chaotic. In recent years, real estate professionals arrived freaking out about the latest crisis, whether it was pandemic fallout, inflation or war. This year, I noticed a distinct absence of panic.

But that could be because I'm immersed in the Czech real estate market, whose strong financial base and inefficient planning system insulate investors from huge swings in value. The mood among German investors and property professionals isn't nearly so calm. They're battling significant levels of distress, redemptions and vacancy issues.

For me, industrial and residential were Expo's two key topics. Industrial, because uncertainty sparked by the US trade war looks to be sending even more of China's production to Europe. Residential, because this is where the impact of the trade war will compound to growing societal dissatisfaction with unaffordable housing.

Speaking at one panel, Ian Worboys (EGLS) noted that in Dusseldorf, 80% of the leasing activity in that market was made up of Chinese companies setting up shop. This may be merely anecdotal evidence, but it makes sense. China has amassed a ridiculous level of industrial overcapacity. The west has amassed a ridiculous over-supply of cash.

The United States is trying to mop up some of that cash through tariffs, but that's only increasing the flow of cheap, heavily-subsidized Chinese goods to EU markets.

Chinese production in Europe is coming as well, investments that will be strategically deployed to circumvent future EU tariffs and establish deeper control over critical European supply chains. Sure, that will mean jobs for Europeans. But for West Europeans, it will put them increasingly in the position of Central Europeans 20 years ago. Frankly, with their lower cost, highly-skilled labor forces, CEE countries are arguably better positioned for what's coming.

But jobs are one thing...owning the IP is quite another. Europe as a whole will have to implement radical measures to come up with new niches of expertise and innovation. Obviously, these issues weren’t the main topics of conversation in Munich. But they’ll play a huge role in CEE’s property sector and economic future.

RE News

  • Get them while you can! Tickets, Tables and Partnerships are on sale for ThePrime Gala, which takes place on January 28, 2026 at Obecni dum. Remember, prices will go up as of Dec. 1. (corporate tables are currently CZK 88,500 + VAT).

  • CTP's Vlněna mixed-use park in Brno is adding five specialized healthcare clinics—M2Stoma, Ortho Dent, V-CLINIC, Perio Clinic and Parodontologie. The last of these is scheduled to open ten dental practices on Building I's ninth floor in early 2026. Vlněna's next construction phase will add 7,000 sqm of office space, 250-plus accommodation units, and a wellness centre with a 25-meter pool.

  • Panattoni is teaming up with RSJ to develop Panattoni Business Park Most Joseph. The project is named after the 190 hectare Joseph industrial zone, which is owned by the city of Most. The 97,000 sqm facility will be built on a build-to-suit basis. Panattoni director Pavel Sovička says the space can be handed to the future client’s specifications within 12 months of lease signing. The development targets BREEAM Excellent certification with photovoltaic installations, rainwater reuse, and EV charging stations.

  • Panattoni also put up the first column in early October for a new warehouse at Prague Airport II Business Park near Pavlov, which Kuehne+Nagel will occupy the D6 adjacent facility. Accolade is the investor in this case.

  • Nearly half (49%) of Czech consumers now make major electronics purchases once per quarter, according to a new survey by PLANEO. Traditionally, Czechs bought just twice a year. Another 16% are buying electronics every 2-3 months, while 5% buy something on a month-to-month basis. 61% spend up to CZK 5,000 per transaction, while 32% of all buys fall between CZK 5,000 and CZK 20,000.

  • Brumlovka’s 6,200 sqm of retail space is now full, following a flurry of lease deals spanning three above-ground and three underground floors. Fantasy Nails nail studio opened on the ground floor, while the dry cleaner We Hate Ironing relocated from the Filadelfie building.

  • VGP is hoping you’ve noticed its recent pan-European marketing campaign across 16 countries featuring a new corporate video and a redesigned website. The company aims to raise its visibility by making a splash at major airports, international media, and digital platforms.

  • A new survey of 117 European companies by CBRE reveals persistent gaps between employer mandates and actual attendance—54% of 117 surveyed firms require three-plus office days weekly, but only 42% achieve this target. Financial services shows the widest divide at 61% required versus 32% actual. Average weekly utilization sits at 46%, peaking at 71% on the busiest days. Companies plan to increase flexible workspace from current levels to 29% of portfolios by 2027—an 8% jump—while traditional one-person-per-desk arrangements will drop from 53% to 28% within two years.

  • Penta Real Estate has completed the purchase of land in the northern portion of the Žižkov cargo station land from Czech Railways for CZK 750 million. The transaction will enable the developer to begin the construction of 530 apartments by the end of the year. Completion is scheduled for 2029, and will include CZK 100 million in contributions for a park, sports facilities and a healthcare center.

  • Europe’s logistics sector faces a €150 billion structural supply deficit, according to new Prologis research. That’s the value of new development Europe would need in order to cover the needs of its consumer markets. Prologis tracks what it calls Modern Logistics Concentration, an indicator where the US comes in 75, compared to Europe’s level of 30. But America is a widely dispersed market with vastly different needs. With its greater urban density, Prologis believes the equilibrium level for Europe is around 50. The problem is that regulatory complexity, labor shortages and infrastructure limitations are slowing development and raising costs.

Q&A: Jonathan Appleton (ABSL)

Why is ABSL holding its annual conference in Brno this year? What's the message?

Brno is the beating heart of business services in the Czech Republic - with the highest density of graduates and international talent in the whole of Europe. 1 in 5 people in Brno work in global, high value roles in Brno business services and the City punches well above its weight with huge investment from companies like Kyndryl, ATnT, Infosys, Atlas Copco, KBC, Deutsche Telecom at the forefront of digital innovation for their global networks - driven from Brno.

Can you quantify a bit how big a role the sector has on the Czech real estate market?The business services sector has driven the development of premium office spaces, city centers and coworking hubs across the country - with over 2 million sqm in prime office spaces in prestigious developments such as Vlnena Brno, Dock Palmovka, Karlin Riverside, Brumlovka, Nova Karolina. These locations are now bursting with business services professionals that contribute to the development of bustling city life, residential real estate, education and the future success of Czech cities.

ThePrime is a media partner at ABSL’s Next Horizons conference Nov. 4-5 in Brno

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