24.02.2025
What were the main business results for 2024?
Hercesa România had a strong performance in 2024, achieving significant milestones in its key projects, Stellaris Residencias and Vivenda Residencias. In the Stellaris project, the company obtained the occupancy permit for the 129 apartments in the first building of the first phase and began delivering units to clients. Construction of the second building started in April 2024. In Vivenda Residencias, the company received the occupancy permit for Block L, comprising 80 apartments with three and four rooms, and commenced construction on Block D, which will include 400 apartments and will be completed in 2026. Despite rising construction costs and financial challenges, Hercesa successfully managed to balance costs and product quality while integrating energy efficient solutions, consolidating its position in the Romanian real estate market.
What are the company’s business targets and plans for 2025?
In 2025, Hercesa România aims to expand its footprint in the Romanian real estate market while maintaining its focus on quality, durability and energy efficiency. The company will continue construction on the second building of Stellaris and Block D in Vivenda, adding over 500 apartments to the market. A key priority is the expansion of energy-efficient housing solutions, including smart home systems, sustainable materials, and advanced heating and cooling systems. These will no longer be optional but will become part of the standard offering in selected new developments. Additionally, the company is exploring new real estate segments, particularly in the suburban areas of Bucharest, where demand for modern, energy-efficient homes is rising. Hercesa is also actively seeking new land acquisitions in Sector 6 and near the Vivenda area. Moreover, the company is evaluating potential investments in logistics and infrastructure projects, responding to the growing demand for modern logistics spaces.
What are the main challenges & opportunities for the real estate market in 2025?
The Romanian real estate market in 2025 will face several challenges, including rising housing costs driven by inflation, the implementation of new smart technologies and increasing building material prices. However, this also presents an opportunity, as buyers are shifting their focus from price alone to factors such as quality, location, and long-term durability. Developers who integrate modern, energy-efficient solutions and smart home technologies will gain a competitive edge. Additionally, the demand for housing in Bucharest remains high, driven by urban migration, population growth, and the need to upgrade the aging housing stock. The necessity to modernize buildings, improve seismic resistance, and enhance energy efficiency will be key factors shaping the market in 2025.
What economic pressures (e.g., inflation, material costs) or regulatory changes do you anticipate impacting the market in 2025, and how is your company preparing for them?
In 2025, the real estate market is expected to face ongoing economic pressures, including inflation, rising building material costs, and regulatory changes that could impact project execution. Higher construction costs and stricter taxation and compliance requirements will make project management more complex, potentially leading to market consolidation as weaker players exit the sector. However, this shift could contribute to a more stable and quality-driven industry.
To navigate these challenges, Hercesa România is implementing a cost-control strategy while maintaining a strong focus on product quality and sustainability. The company is committed to avoiding opportunistic price increases, ensuring that any cost adjustments are justified by improvements in quality standards and energy efficiency. Looking at the long term, Hercesa sees stability and structured growth as key factors in an evolving market. By integrating sustainable building practices and maintaining financial discipline, the company aims to deliver high-quality, modern homes while adapting to the economic and regulatory complexities of 2025.
