2025 Trends with Laurențiu Afrasine, Akcent Development

2025 Trends with Laurențiu Afrasine, Akcent Development

2025 Trends with Laurențiu Afrasine, Akcent Development 600 600 BUCHAREST REAL ESTATE CLUB

29.01.2025

Larentțiu Afrasine, Akcent Development

What are the main challenges & opportunities for the real estate market in 2025?

The real estate market in 2025 is likely to face a dual set of challenges and opportunities. On the challenge side, rising inflation, high interest rates, and unpredictable fiscal policies, such as potential adjustments to VAT rates or construction-related tax benefits, may put pressure on both developers and buyers. Additionally, the cautious behavior of financial institutions toward real estate financing is expected to persist. I believe that, even in 2025, the administrative blockade at the level of the capital City Hall will continue. On the opportunity side, demand for high-quality, energy-efficient, and sustainable residential units is growing, driven by more informed and discerning clients. This shift provides a chance for developers like us to stand out by focusing on projects aligned with NZEB standards and offering enhanced living experiences, such as parking solutions for electric vehicles. The ongoing supply-demand imbalance in Bucharest, with new housing supply down by 23% in 2024, also creates a favorable environment for stable or rising property prices in 2025.

What were the main business results for 2024 and what are your company’s business targets and plans for 2025?

In 2024, our company achieved significant milestones despite a challenging environment. The Akcent City project, encompassing 723 apartments and extensive infrastructure, saw 325 pre-sale agreements signed, representing 40% of the units sold in the first year of construction. Furthermore, we secured €43 million in financing from Raiffeisen Bank, highlighting the project’s solid foundation and financial credibility. By the end of 2024, we successfully completed the structure of the 5 blocks, setting a new milestone for our company by achieving this in just one year. 

The company successfully absorbed the VAT increase from 5% to 9% without passing the burden onto clients, maintaining trust and reinforcing its commitment to customer satisfaction. These results underscore our ability to adapt and thrive even in a volatile market.

In 2025, we aim to solidify our position as a leader in the Romanian residential real estate market. Our plans include increasing sales in the Akcent City project, with a focus on maintaining transparent communication and delivering value through sustainable and modern housing. We will also ensure that the project’s development aligns with the highest standards, emphasizing energy efficiency and incorporating customer-centric features like charging stations for electric vehicles. Strategically, we aim to navigate anticipated market fluctuations with moderate price adjustments (below 10%) while offering competitive investment opportunities for both residential and investor clients

How will anticipated economic conditions, government policies or EU funding programs influence the residential real estate market in Romania?

Economic conditions, such as high inflation and stable or rising interest rates, will shape the pace and scale of real estate transactions in 2025. Government policies, particularly those concerning fiscal measures like VAT adjustments or the reintroduction of construction tax incentives, will play a crucial role in determining market dynamics.

EU funding programs may offer indirect benefits by improving infrastructure and boosting economic development, thereby increasing housing demand in urban areas. For developers, a stable and predictable legislative environment is key to fostering confidence and ensuring the continued growth of residential projects in Romania. Clear communication between private sector stakeholders and policymakers will be vital in aligning market needs with regulatory measures.