10.02.2026
What are your company’s business targets and plans for 2026?
This year, our attention focuses both on accelerating growth across our core real estate segments, and on advancing strategic diversification initiatives in the energy field.
When it comes to commercial real estate, we are targeting a strong double-digit increase in rental income portfolio-wide. We are very optimistic about this forecast which is supported by last year’s results, improved occupancy, active asset management, maturation of stabilized properties and our recent deliveries in Q4 2025.
On the residential segment, our objective is to reach a pre-sale volume of at least 75–78% by December 31st, 2026, reflecting continued confidence in demand for our projects and a disciplined approach to sales pacing and pricing.
Looking ahead, we are progressing as planned with our hotel developments, which remain a key pillar of our medium-term growth strategy. At the same time, we are actively working to unlock at least one of the planned investments in Bucharest, while continuing to evaluate new acquisition opportunities that would support our further expansion at a national level.
We see 2026 to be an important year for our company’s evolution beyond real estate development, considering our strategic cross-industry diversification move and the newly established energy division – Hagag Energy – where we are currently focused on scaling operations and building a solid presence on the local energy market, in line with our broader strategy of long-term value creation.
What were the main business results for 2025?
Last year, our company registered strong performance across its key business lines. Rental income from office and retail spaces increased by approximately 32% compared to 2024, reflecting improved occupancy and commercial performance.
On the residential side, our two projects currently under construction, H Pipera Lake and H East Residence, recorded solid sales momentum. Throughout 2025, we signed a total of 398 pre-sale agreements and 79 reservation contracts for the 728 apartments now in execution. As a result, sales reached about 65.5% of the total available stock, confirming sustained demand and strong market absorption.
These results confirm that our investment and development strategy is sound, well-positioned, and sustainable over the long term.
What economic pressures (e.g., inflation, interest rates, work force issues) or regulatory and fiscal changes do you anticipate impacting the market in 2026, and how is your company preparing for them?
Considering the latest events, we anticipate several economic and regulatory factors that may impact the real estate market in 2026 and beyond.
Inflationary pressures and elevated interest rates are expected to continue influencing construction costs, financing conditions, and overall affordability. While inflation is likely to moderate, the cost of materials and labour may remain volatile. In parallel, workforce shortages in construction and specialized services could put additional pressure on delivery timelines and costs.
From a regulatory and fiscal perspective, we are closely monitoring the potential for changes in taxation, urban planning regulations, and permitting procedures, as well as possible adjustments to incentives affecting residential buyers or hospitality operators. Any increase in fiscal burden or administrative complexity could impact investment timelines and pricing strategies.
To prepare for these challenges, our company is focusing on maintaining a balanced and resilient portfolio across residential, commercial, and hotel assets, optimizing project phasing, and securing flexible financing structures. We are also prioritizing cost control, long-term partnerships with contractors and suppliers, and conservative underwriting assumptions. At the same time, we continue to align our developments with strong sustainability, efficiency, and mixed-use principles, which we believe will remain key drivers of demand and long-term value in the local real estate market.
What do you see as the main risks for the Romanian real estate market in 2026?
There are several key risks that could affect the industry. Macroeconomic uncertainty remains in focus, particularly if related to the pace of economic growth, inflation control, and the trajectory of interest rates. Prolonged high financing costs could continue to weigh on residential affordability and slow investment decisions, especially for leveraged developers and end buyers.
A second significant risk is cost volatility and capacity constraints in the construction sector. Fluctuations in material prices, combined with persistent labour shortages, may lead to budget overruns and delays, putting pressure on project margins and delivery schedules.
From a structural perspective, regulatory unpredictability represents an ongoing concern. Sudden changes in fiscal policy, taxation, zoning rules, or permitting processes could negatively impact project feasibility and investor confidence.
Additionally, demand-side risks should not be overlooked. A slowdown in consumer confidence or purchasing power could affect residential sales velocity, while shifts in how companies use office space and how tourists travel may influence absorption in the commercial and hospitality sectors.
Overall, while fundamentals in Romania – particularly in Bucharest and other main cities in the country – remain solid, navigating 2026 will require disciplined risk management, financial flexibility, and a strong focus on product quality and market relevance.
Where do you see the most attractive opportunities for growth in 2026?
We are currently paying increased attention to residential and hotel developments, both in Bucharest and regional cities with strong economic and demographic fundamentals.
In the residential segment, demand is expected to remain resilient for mid- to upper-mid market projects that offer good locations, efficient layouts, and strong energy performance. In Bucharest, areas that offer a good infrastructure and access to employment hubs continue to raise opportunities, particularly for phased developments that allow flexibility in delivery.
Similar, the hotel segment offers compelling opportunities driven by the continued recovery of business and leisure travel. In the capital-city, we see growth potential in well-branded or lifestyle hotels that address the needs of business travelers, extended stays, and city-break tourism. When talking regional cities, opportunities are emerging in undersupplied markets with growing corporate activity, medical tourism, or strong cultural and leisure appeal, particularly where quality international-standard accommodation remains limited.
Across both these segments, we believe that projects integrating sustainability features, refined aesthetics, prime facilities, and mixed-use elements will outperform, as end users and operators increasingly prioritize operating costs, comfort, and long-term value. Overall, disciplined site selection, product differentiation, and alignment with real demand drivers will be key to capturing growth in 2026.
