HILS Development launches HILS Titanium, an investment of 70 million EURhttps://brec.ro/wp-content/uploads/2024/03/TTN_EXT_C01_small-scaled.jpg938600BUCHAREST REAL ESTATE CLUBBUCHAREST REAL ESTATE CLUBhttps://brec.ro/wp-content/uploads/2024/03/TTN_EXT_C01_small-scaled.jpg
28.02.2024
HILS Titanium
HILS Development launches HILS Titanium, the sixth large residential project in the Eastern part of the Capital. The new project will consist of 7 buildings with 1,194 apartments and 1,217 parking spaces located both on the ground and underground. The types of apartments available in the project range from studios, and apartments with 2 and 3 rooms to duplexes.
HILS Titanium is located about 500m from the Nicolae Teclu metro station, with close schools, educational centers, and the Pallady shopping area that includes IKEA stores, Leroy Merlin, Kaufland, Lidl, Metro, Metro, Auchan, Jumbo and XXXL Lutz.
“I am glad to announce the launch of the newest project – HILS Titanium, the sixth residential project developed by HILS Development. So far, the six projects launched have created a community of over 25,000 residents. According to our development strategy, we continue to complete over 1000 apartments annually, with the same mission to provide access to quality living for as many inhabitants as possible.” said Ionut Negoita, founder and CEO of HILS Development.
In June 2023, the developer marked an important milestone, surpassing the milestone of 10,000 homes built and sold, with the completed projects HILS Pallady – 1,908 apartments, HILS Brauner – 1,336 apartments and HILS Splai – 111 apartments, to which are added the projects under construction HILS Republic with 370 apartments in Phase 2 of a total of 5,000 housing of the entire project, HILS Sunrise with 704 apartments and, most recently launched, HILS Titanium with 1,194 apartments. In 2024, HILS Development is in the process of designing and authorizing about 5,000 other homes.
2024 Trends with Laurentiu Afrasine, Akcent Developmenthttps://brec.ro/wp-content/uploads/2024/02/Laurentiu-Afrasine-CEO-Akcent-Development-scaled.jpg968600BUCHAREST REAL ESTATE CLUBBUCHAREST REAL ESTATE CLUBhttps://brec.ro/wp-content/uploads/2024/02/Laurentiu-Afrasine-CEO-Akcent-Development-scaled.jpg
3.02.2024
Laurentiu Afrasine, CEO, Akcent Development
Which are the main challenges & opportunities for the residential market in 2024?
We consider that 2024 started with good premises and we are expecting the residential market to be more effervescent this year, as compared with 2023. We noticed at the beginning of the year a boosted interest in residential developments, through the increased number of leads accessing real estate portals.
One of the big challenges for this year remains the buyers’ capacity to access banking loans. An important aspect is that banks have understood the changes in the market and are now offering loas with fixed interest rates on five years, making the financing solutions much more attractive for residential buyers.
Another important challenge for the market is the 4% increase in VAT, adding pressure both on developers and future buyers. The difference will be absorbed either by the buyer, or the developer. We have decided to absorb this difference. However, this problem could lead to the decision of some developers to postpone building works for some projects, the delay of construction following to have a negative impact on labor market and consequently to the state’s budget.
We must not forget the administrative blockage from Bucharest: there are three years since our industry is no longer sustained and the urban development of Romania’s Capital City is frozen. 2024 is also an electoral year which will also influence the business environment.
Another important factor to notice this year is the effect of the fiscal construction facilities’ removal will have on the construction costs. Each developer will have to find solutions so that we will not witness major prices’ increase.
that the measure of the elimination of construction facilities will have and to see how much it will lead to an increase in the price per square meter built. It is obvious that the real estate market will be affected and that each individual developer will have to find solutions so that we do not witness dramatic price increases for the houses, and so few, that will be completed this year.
A positive aspect is that we can notice the decrease of inflation and we hope that there will be a significant decrease of costs. If we also observe the economic forecasts made by the European Commission, Romania is in an area of stability and a slight economic growth is expected, which we hope will also translate into the purchasing power of the Romanians.
The fact that Bucharest still has the lowest cost per square meter in Europe is something that should make us think. Despite the predictions of some analysts that the real estate market will collapse, and prices will fall, this will not happen. On the contrary, they will increase, considering that a few years ago the price per square meter was far below the European average.
This period, characterized as one of stagnation, can be seen as an opportunity for investors who want to avoid keeping savings in cash. I strongly believe that the purchase of new houses is the best option for real estate investors.
What are the company’s business targets for 2024?
Currently, we are developing Akcent City project, a large residential compound in Bucurestii Noi area, in sector 1, just two minutes from the metro. This is a developing area, in which we believe very much.
We are talking about a project consisting of five blocks, which includes, among many other facilities, over 700 apartments, over 900 parking spaces and 4,000 sqm of green spaces. It is, at the same time, the largest large-scale project approved after the entry into force of the nZEB (Nearly Zero Energy Buildings) regulations. It will be built in a single phase, the completion being set for fourth quarter of 2025.
During this period, most of our attention is focused on the progress of the project and on maintaining the level of quality that our clients have become accustomed to. As in our previous projects, the completion of the construction will be done within the time frame promised to the clients, knowing that speed, efficiency, and quality are attributes that Akcent Development has accustomed its public to, regardless of whether we are talking about office or residential buildings.
We are set to remain focused on our objectives, to try to authorize as many plots of land as possible, to look for new opportunities and most importantly to convey to our old and new clients that Akcent is a reliable partner.
Investments intend for Bucharest drops by more than 50%, to 500 million EURhttps://brec.ro/wp-content/uploads/2024/02/1-brec-novotel-15.02-51-scaled.jpg901600BUCHAREST REAL ESTATE CLUBBUCHAREST REAL ESTATE CLUBhttps://brec.ro/wp-content/uploads/2024/02/1-brec-novotel-15.02-51-scaled.jpg
15.02.2024
THE TRENDS FORUM 2024
Bucharest Real Estate Club surveyed the most dynamic investors for the forces that shape the city skyline in 2024. Urban freeze, along with the unpredictability show their effects: investments intend for Bucharest drops by more than 50% from 2023, BREC members indicating a volume between 400 – 500 million EUR for 2024.
On a scale of 1-5, the community expresses a moderate take on the economic perspectives of the Bucharest real estate landscape in the new year, with a 3.06 average, down from 3.6 in our 2023 survey, and a median of 3. The most interesting change by comparison to 2023 is that the development strategy and refurbishment of existing assets overtake new acquisitions.
Through the survey, the recurring theme is still the urban planning freeze. Most of our respondents circle back to the topic when estimating their investment pipeline. The urban planning uncertainty has also an impact quality-wise, as the responsible developers, who are building large-scale projects and have high-quality standards, are slowly but surely driven away from the market. Due to limited supply, there is an estimation of 10% in asking prices and rents.
The fiscal changes, including the increase of VAT for residential purchases and the termination of industry incentives for construction labour tax, along with high-interest rates, impact negatively the accessibility of credit and housing. However, the biggest contributor to investor sentiment towards the Bucharest real estate market is the urbanistic uncertainty.
The attractiveness of asset classes changed by comparison to 2023. Industrial & logistics still tops the charts, closely followed by residential, a segment lower ranked 12 months ago. Offices lost further ground. However, hotels are the least preferred in 2024. In 2023 this asset type was slightly higher in the top, which is surprising considering the increase in the number of visitors.
Despina Ponomarenco, President of BREC: “If Romania continues infrastructure investments and in the context of Schengen accession, we are facing an accelerated development outlook. The national GDP is estimated at 310 billion $ for 2024 and 323 billion $ for 2025. The country has a gross debt of 52.7% of the GDP, well below the EU average of 83%.The GDP of Bucharest only exceeds the GDP of countries such as Croatia or Bulgaria. In this respect, we hope that 2024 will bring improvement perspectives for the relation between real estate investors and the representatives of local authorities for the responsible development of Romania’s Capital City“.
2024 Trends with Daniel Popa, Reynaers Romaniahttps://brec.ro/wp-content/uploads/2024/02/Reynaers-0691-scaled.jpg766600BUCHAREST REAL ESTATE CLUBBUCHAREST REAL ESTATE CLUBhttps://brec.ro/wp-content/uploads/2024/02/Reynaers-0691-scaled.jpg
2.02.2024
Daniel Popa, Country Manager,Reynaers Romania
Top 3 trends you foresee in 2024 for the segment of joinery & facades?
“A trend expected to dominate in 2024 is a greater focus on sustainability and on managing specific risks that climate change brings to the built environment. Other trends will be functionality and a focus on advanced materials, providing better insulation, and contributing to energy efficiency.
The integration of digital technologies is also revolutionizing how projects are conceived and executed. Reynaers offers a wide range of products, in multiple design variants, with outstanding technical performance, such as thermal insulation, sound insulation, water-air-wind sealing, adapted to the latest market trends.”
Main challenges and opportunities in 2024?
“It is important to always remain optimistic and do our best to successfully overcome any obstacles that may arise either at the industry, supply chain or partner level. From our experience, good collaboration and communication with partners is essential.
As opportunities, we can mention the fact that the demand for sustainable products is constantly increasing, which for us is not something new, but rather an advantage. All our products follow the principles of circular economy, designed to provide the best quality for as long as possible, from manufacturing to end of life. Also, at the moment, we are the only supplier on the local market that offers 10-year product warranty certificates. Another advantage is the increase in digitalization, where we already offer products for smart homes, adapted to the latest technologies in the field.”
What are your company’s business targets in 2024?
“We aim to be engaged as before in as many top projects as possible and to continue our regional expansion. We will also continue to develop the product range, promoting the solutions we offer for smart homes, developing new partnerships and projects, and delivering top services and solutions, adapted to the newest technologies in the field.”
2024 Trends with Cosmin-Savu Cristescu, Redport Capitalhttps://brec.ro/wp-content/uploads/2024/02/Cosmin-Savu-Cristescu-Managing-Director-al-Redport-Capital-1-scaled.jpg804600BUCHAREST REAL ESTATE CLUBBUCHAREST REAL ESTATE CLUBhttps://brec.ro/wp-content/uploads/2024/02/Cosmin-Savu-Cristescu-Managing-Director-al-Redport-Capital-1-scaled.jpg
What are the main challenges & opportunities for the residential market in 2024?
“The residential market has continuous challenges which will result in showcasing the top players and will weed out those with less attractive projects. These challenges encompass various factors, ranging from the commitment to quality up to adherence at international standards.
One of the major challenges that the real estate market has faced in recent years is the issue of sustainability, improving energy efficiency, and reducing carbon footprint all together. Concerns about climate change and its impact on our lives have led to international regulations and requirements imposed on everyone wishing to operate in this domain. Within our company, we place great importance on these aspects, and such requirements are reflected in the projects we develop; for example, in Phase III of The Level Apartments, we will introduce photovoltaic and solar panels as a novelty element.
Another challenge arises from technological development and artificial intelligence, which have an increasingly significant influence on the final product. It’s extremely important to be in line with this evolution to ensure that our product is well-understood and attractive to the public.
All these challenges can easily be transformed into opportunities for those who know how to incorporate them correctly and systematically into the development process. Moreover, Romania has increasingly become an attraction for foreign investors due to competitive operational costs, easy access to markets in Central and Eastern Europe, infrastructure in continuous development, and a highly active entrepreneurial community. All these factors represent opportunities for the local residential market in 2024, ensuring steady and sustainable growth.”
What are the company’s business targets for 2024?
“One primary objective we have set for 2024 is the digital transformation of our company. To this end, we have already initiated an extensive digitalization process across all our operations, marking a crucial step towards enhancing efficiency and aligning with the demands of the modern market.
As for the interest shown by clients in Redport Capital projects, we are optimistic about the future, as demonstrated by the pre-sale of over 70% of the units in Phase III of The Level Apartments, two years ahead of the construction completion. Nevertheless, a continuous objective of the company is to consistently improve our product, and we allocate all necessary resources to continue offering fair pricing in relation to quality.”
What were the main business results for 2023 – in terms of apartments sold?
“In the dynamic landscape of real estate development, 2023 proved to be a year of significant accomplishments for Redport Capital, starting with the successful completion and full delivery of Phase II of The Level Apartments project.
Furthermore, our strategic collaboration with the esteemed architectural firm Design International led to the unveiling of the visionary concept design for Infinity Nord. Positioned as one of Bucharest’s most ambitious urban regeneration projects, we are committed to redefine the city landscape and elevate standards of modern living.
In terms of market performance, 2023 witnessed a remarkable achievement with over 200 sale and pre-sale contracts secured for both Phase II and Phase III of The Level Apartments, alongside with the Phase I of Infinity Nord project. This achievement not only reflects our company’s robust market presence but also sets a new benchmark for future projects.”
2024 Trends with Cătălin Năstăsoiu, Genesis Propertyhttps://brec.ro/wp-content/uploads/2024/02/Catalin-Nastasoiu-scaled.jpeg900600BUCHAREST REAL ESTATE CLUBBUCHAREST REAL ESTATE CLUBhttps://brec.ro/wp-content/uploads/2024/02/Catalin-Nastasoiu-scaled.jpeg
30.01.2024
Cătălin Năstăsoiu, VP Marketing, Genesis Property
What are the main challenges & opportunities for the office market in 2024?
“In 2024, the office market has its share of challenges and opportunities. It’s still recovering from the pandemic, working to regain pre-pandemic stability. Despite more office space in Bucharest compared to the past five years, consistent demand remains an issue for property owners and landlords.
On a positive note, there’s a noticeable surge in demand for modern, well-located class A offices. This has led to increased competition, offering opportunities for businesses and investors. Additionally, offices designed for future working and living trends, like the YUNITY Park business campus, are gaining popularity. These spaces come well-equipped and offer various amenities, making them attractive options for companies aiming to stay competitive in the changing office market.”
What are the company’s business targets for 2024?
“In 2024, Genesis Property’s main focus is on creating workspaces that cater to companies looking to attract and retain top talent and Gen Z professionals seeking rapid personal and professional growth. Our primary goal for the year is to successfully complete the third phase of YUNITY Park, an innovative business campus that has received a substantial 30-million-euro investment.
The recently finished second phase brought significant additions to the campus, including a 1,000-square-meter urban forest absorbing over 5 tons of CO₂ annually, an open-air amphitheater for 1,500 people, 2,000 meters of pedestrian pathways, cascading water mirrors, creative meeting spaces, and a biophilic design that connects people with nature.”
What were the main business results for 2023 – in terms of office leased?
“In 2023, we successfully extended contracts for 25,000 square meters of leased office space. Renowned companies like Garanti BBVA and Siemens renewed their commitments, reinforcing our strong and longstanding partnerships in our fully occupied business parks, YUNITY Park and West Gate Business District. Our commitment to delivering top-quality spaces and facilities remains unwavering, as we continuously develop and modernize our workspaces to meet the latest energy efficiency standards, all while elevating our team’s capabilities.”
2024 Trends with Costin Nistor, Fortim Trusted Advisorshttps://brec.ro/wp-content/uploads/2024/02/Costin_Nistor_Managing_Director_Fortim1.jpg684418BUCHAREST REAL ESTATE CLUBBUCHAREST REAL ESTATE CLUBhttps://brec.ro/wp-content/uploads/2024/02/Costin_Nistor_Managing_Director_Fortim1.jpg
Top 3 trends you foresee in 2024 for the real estate market?
· “The focus of landlords will be on property financing.
· In second place, ESG will play a major role in choosing office space for tenants and will indirectly affect the financing cost.
· Investors will be cautious; we will no longer have spectacular market entries.”
Main challenges and opportunities in 2024?
“Main opportunities – we will focus on land for development, especially for data centers, premium residential complexes, hospitals, and PV projects.
The main challenges come from the geopolitical and local political context. This year, the perception of Romania’s economy and the evolution of the real estate market could be threatened by the war in Ukraine and the elections in Romania.”
What are your company’s business targets in 2024?
“Our main business target is to achieve our goals since the entry on the market of the rebranded Fortim Trusted Advisors, in 2021, an annual growth rate of 20% y-o-y until 2025.”
2024 Trends with Mihnea Serbanescu, Cushman & Wakefield Echinoxhttps://brec.ro/wp-content/uploads/2024/02/Mihnea-Serbanescu-General-Manager-Cushman-Wakefield-Echinox1-scaled.jpg705600BUCHAREST REAL ESTATE CLUBBUCHAREST REAL ESTATE CLUBhttps://brec.ro/wp-content/uploads/2024/02/Mihnea-Serbanescu-General-Manager-Cushman-Wakefield-Echinox1-scaled.jpg
27.01.2024
Mihnea Serbanescu, General Manager, Cushman & Wakefield Echinox
Top 3 trends you foresee in 2024 for the real estate market?
“The limited pipeline in the office segment will translate into rental growth, while demand is expected to remain consistent even if the renegotiations/renewals of existing contracts will be the main driver of this relatively high demand. A further rental growth is estimated also for industrial and logistics projects, where the pipeline consisting mainly of build-to-suit projects will lead to a further vacancy rate drop.
Reducing in the interest rate will sustain the recovery of the property investment activity.
New logistics and manufacturing hubs are due to be developed in Romania, an investment that will be encouraged both by the strong infrastructure plans and by the Schengen entry.”
Main challenges and opportunities in 2024?
“Main challenges in 2024 – Cost of money and difficulties in securing capital for further real estate developments, the urbanistic issues in Bucharest, a complex geopolitical context, the upcoming elections in Romania and also around Europe and the US.
Opportunities 2024 – The main opportunity for the current year lays in the fact that certain strategic properties still can be transacted at prices below the 2020 level and definitely below the 2025 level, if no new black swan shows up.”
What are your company’s business targets in 2024?
“Our main business target is to consolidate our market position as a leading real estate consultancy company, both by expanding and strengthening the existing business lines and also by adding new services which would allow us to address our ever–increasing client requests.”
2024 Trends with Francesco Curcio, Pinumhttps://brec.ro/wp-content/uploads/2024/02/Francesco-Pinum1-1-scaled.jpg844600BUCHAREST REAL ESTATE CLUBBUCHAREST REAL ESTATE CLUBhttps://brec.ro/wp-content/uploads/2024/02/Francesco-Pinum1-1-scaled.jpg
03.02.2024
Francesco Curcio, General Manager, Pinum
Top 3 trends you foresee in 2024 for the segment of joinery & facades?
“The first noticeable trend is the rising demand for aluminum joinery across the European Union, a region we aim to expand our exports. Simultaneously, in Romania, we’re witnessing a consistent upward trajectory, marked by consumers’ heightened interest in energy efficiency and a growing recognition of the value of high-quality joinery.
The second emerging trend highlights a market that is becoming more conscious of sustainability and energy efficiency. Given the undeniable signs of climate change, the urgency to adopt measures that enhance the energy efficiency of homes and minimize the carbon footprint is apparent. It is crucial to initiate efforts that encourage the adoption of energy solutions that are both more efficient and kinder to the environment. We’ve observed a growing number of customers inquiring specifically about these aspects, indicating a shift towards more environmentally responsible choices.
The final emerging trend in joinery for 2024 emphasizes bespoke solutions that seamlessly blend with the overall design ethos of spaces. This direction is marked by the integration of diverse stylistic elements: Modern design is celebrated for its clean, straightforward appeal, enhanced by wide expanses of glass; the Industrial look offers a stripped-back, minimalist allure; Scandinavian style is noted for its fusion of simplicity with functionality, often highlighted by soft, natural tones; the Classical approach enriches spaces with a timeless sophistication through refined finishes; and Minimalism distills design down to its core, employing geometric lines and a monochromatic color scheme to foster serenity and focus.”
Main challenges and opportunities in 2024?
“The change in legislation — specifically, the elimination of the 10% health insurance contribution exemption — has led to increased production costs and posed a challenge in delivering already contracted projects without significant losses for many companies.
The year 2023 was marked by the postponement of many private investments in the real estate sector. Additionally, there was a decrease in the number of building permits issued in Bucharest. The cost of borrowing significantly increased in the previous years, leading to a reduction in the number of homes purchased.
With that being said, we’re observing a notable uptick in demand for aluminum joinery and facades, with expectations of continued growth in the home renovation sector, a niche where Pinum can excellently cover.
An increasing number of consumers are in search of high-quality home improvement solutions that promise enduring value and structural integrity. Ultimately, Pinum offers products designed to serve our customers well beyond a decade, embodying lasting excellence and reliability in every piece.
We have also observed a growing demand for a comprehensive service solution from our market, alleviating customers from the intricate process of replacing their flooring, windows, and doors. Pinum is committed to delivering an all-encompassing customer service experience. From the very first step into our showrooms, customers can anticipate receiving complimentary, above-standard consultations, precise measurements by our expert team to ensure their exact requirements are met, Pinum – approved installation professionals, and a long-term post-purchase customer relationship that extends for many years after the product installation.”
What are your company’s business targets in 2024?
“We are preparing for the launch of a state-of-the-art Pinum factory. Our strategic vision entails extensive process automation to boost operational efficiency, enhance product quality, and minimize turnaround times. Within this facility, we will inaugurate a cutting-edge Pinum joinery factory, fully equipped with the latest machinery.
Furthermore, we are actively investing in digital transformation, making substantial progress in the implementation of integrated CRM and ERP systems. This initiative aims to streamline operations, reduce friction, expedite processes, and ultimately enhance the overall customer experience.
Our overarching objective remains centered on fortifying the brand’s reputation and orchestrating the expansion of our franchise network.”
2024 Trends with Mauricio Gomez, Cordia Romania & Spainhttps://brec.ro/wp-content/uploads/2024/02/Mauricio-Mesa-Gomez-Cordia-Romania-scaled.jpg900600BUCHAREST REAL ESTATE CLUBBUCHAREST REAL ESTATE CLUBhttps://brec.ro/wp-content/uploads/2024/02/Mauricio-Mesa-Gomez-Cordia-Romania-scaled.jpg
26.01.2024
Mauricio Gomez, General Director,Cordia Romania & Spain
What are the main challenges & opportunities for the residential market in 2024?
“The main challenge for the Bucharest residential market in 2024 is the urbanistic blockade. Its effects are already showing, with building permits being issued in 2023 for 0,8 mil. usable square meters versus 1,7 mil. usable square meters in 2022. In this context, the new supply of apartments will be one of the lowest in the history of Bucharest’s residential market, and, as the demand is still strong, this will put pressure on the prices, which have already grown by 10%, YoY, in December 2023.
The last quarter of 2023 showed us that the demand is there, as residential sales picked up the pace. It is true that this growth was driven by the elimination, starting with January 1st, 2024, of the minimum 5% VAT quota, but this only shows that the right product, adapted to the demand’s fundamentals and purchasing power, is set for success.
The demand is currently somewhat affected, for the time being, by the fact that the National Bank of Romania keeps the key interest rate at 7%, and this means the accessibility of mortgages and loans for potential customers is still difficult, but things will improve in H2 2024 from this point of view.
At the same time, as real estate developers are not able to start new projects because of the suspension of the PUZs, there will be a ripple effect on multiple horizontal and vertical levels, from the drop in property taxes for the municipality and in labor-related taxes for the central authorities to decreasing demand for building materials and services of construction companies.”
What are the company’s business targets for 2024?
“In theory, our objective is to develop 500 new apartments each year on the residential market in Bucharest. We are not able to start a new development in the coming months because our projects are heavily affected by the urbanistic blockade and by the lack of dialogue with the authorities.
We support responsible real estate development and have six major urban regeneration projects in Europe in our portfolio, totaling 7,000 homes, 300,000 square meters of office space, 150,000 square meters of commercial space and 110,000 square meters of green space. Despite this significant experience, which involves partnerships with local authorities in cities such as Budapest, Warsaw, Poznan, and Birmingham, we have not managed to establish such collaborations in Bucharest, although we have always shown our willingness and have even taken steps in this direction.”
What were the main business results for 2023 – in terms of apartments sold?
“We obtained the occupancy permit for the second phase of Parcului20, our project in Expoziției area in northern Bucharest in February 2023 and we reached, in December 2023, a 95% level of sales of the total of the 485 apartments comprised in both phases of the project.”
