BUCHAREST REAL ESTATE CLUB

Shaping a New Era of Development in Southeast Europe

2024 Trends with Alexandru Duma, Coral Companies
2024 Trends with Alexandru Duma, Coral Companies 900 600 BUCHAREST REAL ESTATE CLUB

25.01.2024

Alexandru Duma, Coral Companies, Managing Partner

Top 3 trends you foresee in 2024 for the facility management market?

  • “predictive maintenance and data analytics:

Predictive maintenance was always our main focus when speaking about technical facility management. When you take care of things, they last, and this comes with a lot of benefits for our clients and tenants. A well-maintained facility needs less capital repairs and offers stability and comfort to the final user. Since we have implemented our in-house developed CAFM software, we gather and analyze a lot of technical data that has become essential in the decision-making process.

  • sustainability and energy efficiency:

During the last few years, we have been actively involved in projects that are meant to make the buildings that we maintain more efficient and sustainable. Oftentimes, this process involves many technical and operational challenges, and our job is to find solutions and facilitate the way toward the sustainability goals that our clients are willing to achieve. An energy-efficient facility will contribute to a less polluted environment and will consume fewer resources which can be translated into smaller costs for landlords and tenants.

  • smart technologies for building automation and monitoring:

Technological advancement is a trend that will continue to be present in all industries. In every new building, we find new technological features when it comes to energy efficiency, equipment automation, or monitoring. We must be able to adapt and operate more complex systems, that help us in our day-to-day job and offer a comprehensive view of the entire facility.”

Main challenges and opportunities in 2024?

“As I see it, one of the main challenges will continue to be represented by the lack of workforce, specialized and unspecialized. The service industry relies on a stable workforce environment and the current situation hurts our capacity to develop and implement a long-term strategy. According to the latest reports and surveys, the real estate sector is facing a stagnation period that we are experiencing through high pressure on costs and the need to find solutions for this paradigm. We see all these challenges as opportunities for us to become better, more efficient, and more flexible. Tough times come with a lot of valuable lessons that we are looking forward to.”

What are your company’s business targets in 2024?

“The market is currently facing a complicated economic environment and an uncertain political one. Our job, as managers, is to assess all the important external elements that can impact our business, as well as the internal factors that can drive performance and sustainable development. Our existing clients remain our priority as we will continue to do our best and deliver what we assume, with responsibility and fairness. In the last years, Coral Companies has experienced steady growth, and we are confident that we will be able to keep up the good pace in 2024, by targeting new potential clients and expanding our service portfolio.”

2024 Trends with Razvan Nica, BuildGreen
2024 Trends with Razvan Nica, BuildGreen 739 600 BUCHAREST REAL ESTATE CLUB

23.01.2024

Razvan Nica, BuildGreen, Founder and Managing Director

Top 3 trends you foresee in 2024 for the ESG sector?

“Stronger ESG considerations in sustainable building:

  1. The role of ESG expands from basic reporting to a key pillar in business performance and development strategy.
  2. The publication of non-financial reports almost became a must, as well as the use of third-party verification to provide assurance on sustainability performance.
  3. Green building certifications incorporate more ESG metrics and changed their role from the main target in sustainable development, to a tool that helps developers in reaching more complex sustainability goals. “

Main challenges and opportunities in 2024?

“The definition of sustainable development continues to evolve from basic green building to complex goals beyond construction. The top sustainable building trends in 2024 are:

  • Decarbonization – the main driver worldwide.

The focus on decarbonization strategy and solutions continues to be the top priority worldwide, faced with global pressure on CO2 emissions. Every industry is transitioning to a low-carbon economy and the real estate market is among the top drivers. GHG reductions or elimination, nZEB pillars, net-zero energy solutions, renewable energy or smart building technology, recycled and reclaimed materials, increased use of sustainable materials and more green building solutions through nature are expanding.

  • AI enters the real estate market as a tool for sustainable building  

As Decarbonization covered virtually all ESG aspects and AI rapidly explored many fields of activity, 2024 marks the entrance of AI as a sustainability tool in the real estate market. AI solutions can help developers reach a faster and more exact path towards carbon neutrality – from simple ESG management, to accurate architectural plans or construction process in line with a specific project, location or development challenges.

  • Regulations boost corporate climate transparency

Top real estate developers want to become a benchmark in terms of sustainable development – by adhering to the guidelines of international organizations that set, monitor, audit or legalize the sustainability-related requirements at higher standards and more stringent actions. They add to strict legal packages such as SFDR, EU Taxonomy and the European Green Deal targets, intended to reorient financing and business to a more sustainable economy and drive toward net zero.

Last year, ISSB issued amendments to the Sustainability Accounting Standards Board (SASB) standards to enhance their international applicability. The amendments will be effective for annual reporting periods as of 1 January 2025, but concrete adjustments in sustainable development strategies will start this year.          

Overall, sustainability will continue its massive ascent on the development segment in 2024, as stakeholders demand more action on environmental and social issues, and businesses and governments respond to stricter demands imposed by politics and climate pressure.”

What are your company’s business targets in 2024?

“Our business targets for 2024 reflect our commitment to growth, with the ambitious goal of surpassing our previous year’s turnover of €8 million. In line with this, we are expanding our service palette, striving to offer comprehensive turnkey services across various segments, including banking, office, HoReCa, and residential. This expansion not only involves enhancing our project scope but also planning to grow our team by incorporating experts from various specializations. This strategic move is designed to enhance our capacity to handle a broader range of projects, thereby diversifying our expertise and reinforcing our market presence.

Our role as general contractors in boutique residential projects, where we construct villas for end beneficiaries, marks our venture into new territories and demonstrates our versatility and expertise. Alongside this, we are thrilled about our initiative in creating a boutique coffee shop and co-working space. This innovative project is much more than a physical space; it’s envisioned as a dynamic hub for business enthusiasts, fostering a community that’s deeply focused on design, learning, and growth.”

2024 Trends with Bradon Lee, BLA & Molteni Flagship
2024 Trends with Bradon Lee, BLA & Molteni Flagship 599 600 BUCHAREST REAL ESTATE CLUB

22.01.2024

Brandon Lee, Managing Director, BLA & Molteni Flagship

Top 3 trends you foresee in 2024 for the segment of interior design?

“In 2024, I anticipate a dynamic shift in interior design trends, merging artistic flair with functionality. I see a strong movement towards artistic fusion and bold statements, where vibrant, statement-making designs blend classic and contemporary elements. This is complemented by tech-infused luxury, where cutting-edge technology is seamlessly integrated into elegant designs, including smart home systems and automated environments. Another significant trend is biophilic design, emphasizing organic forms, natural lighting, and the incorporation of living greenery, focusing on creating a harmonious blend of the natural and built environment.”

Main challenges and opportunities in 2024?

“This year brings its set of challenges alongside these exciting opportunities. One of the main challenges we face is balancing cost-effectiveness with high-quality design, especially in a market that’s increasingly cost-conscious. Additionally, the skilled labor shortage, particularly in construction and specialized installations, is a growing concern. Moreover, navigating the uncertainties of the macroeconomic environment, including financial instability and international conflicts is posing challenges to our strategic planning.

Despite these challenges, BL Associates is poised to seize numerous opportunities. Our focus on market diversification allows us to explore new sectors such as hotels, restaurants, special office and corporate projects, and residential ventures. This not only showcases our full range of capabilities but also aligns us with the latest demands in interior design through the integration of advanced technologies”

What are your company’s business targets in 2024?

“Our business targets for 2024 reflect our commitment to growth, with the ambitious goal of surpassing our previous year’s turnover of €8 million. In line with this, we are expanding our service palette, striving to offer comprehensive turnkey services across various segments, including banking, office, HoReCa, and residential. This expansion not only involves enhancing our project scope but also planning to grow our team by incorporating experts from various specializations. This strategic move is designed to enhance our capacity to handle a broader range of projects, thereby diversifying our expertise and reinforcing our market presence.

Our role as general contractors in boutique residential projects, where we construct villas for end beneficiaries, marks our venture into new territories and demonstrates our versatility and expertise. Alongside this, we are thrilled about our initiative in creating a boutique coffee shop and co-working space. This innovative project is much more than a physical space; it’s envisioned as a dynamic hub for business enthusiasts, fostering a community that’s deeply focused on design, learning, and growth.”

2024 Trends with Cora Cristescu, Atalian Romania
2024 Trends with Cora Cristescu, Atalian Romania 900 600 BUCHAREST REAL ESTATE CLUB

21.01.2024

Cora Cristescu, CEO, Atalian Romania

Top 3 trends you foresee in 2024 for the property & facility management market?

“We strongly believe that the years to come will once again bring Integrated Facility Management into the spotlight. The services, as they have been conducted in the last 10 years, will need to change if we truly want to make a difference and align with international standards. Dividing the services, as is currently happening, will not be a solution, neither for landlords nor for tenants, and not even for providers. Some sectors have already taken steps in these directions.

The industrial sector took the lead in embracing Integrated Facility Management in 2023 and will continue to do so in 2024, as efficiency is a proven outcome with such a strategy. We hope other sectors will become increasingly interested in 2024, either to adapt or possibly to return to the IFM concept, as an integrator will always be more focused and determined to view services through an entrepreneurial lens rather than as a simple provider.

Another significant trend for the facility market will be embracing technology. There’s a difference between embracing it and merely talking about it. Companies must provide hands-on examples and show results in this regard. It’s not just about having software; it’s about using it. Artificial Intelligence is just around the corner, and it would be a pity not to benefit from its ability to analyze and generate solutions. This will also depend on the market’s willingness to see it as an advantage rather than just a potential cost reduction.

A third perspective from our side is the ESG strategy in IFM. Some companies, including us, took important steps in 2023, and we have ambitious plans for this year. 2024 is the year for planning and implementing solutions, at least for ATALIAN. We have established a robust department at the group level, and with the assistance of specialized external companies, we are committed to putting forth our best efforts.

Above all trends, when considering IFM services in our market, compliance should be a priority.”

Main challenges and opportunities in 2024?

“Challenges – as always, the labor force remains one, perhaps the most crucial. We are continually striving to provide opportunities for Romanian workers, emphasizing the importance of caring for and developing our employees.

Legislation presents the second challenge, as it is increasingly difficult to anticipate or predict organizational changes due to it.

Certainly, there are opportunities, and one noteworthy aspect we’d like to highlight is related to the development of our IFM strategy in the region. We aim to offer a unique service with an entrepreneurial touch, fostering enduring partnerships.”

What are your company’s business targets in 2024?

“Targets remain consistent, but we are committed to adhering to our strategy to emerge as one of the most robust and compliant IFM players in the market.”

Redport Capital announces over 100 million lei turnover in 2023
Redport Capital announces over 100 million lei turnover in 2023 1020 600 BUCHAREST REAL ESTATE CLUB

1.02.2024

Infinity Nord

Redport Group, founded in 2016 by Cosmin Savu-Cristescu, announces a turnover of over 100 million lei for the year 2023. Over the past few years, the company has secured a land portfolio of over six hectares in the Petrom City – Străulești – Dămăroaia area.

Within the projects The Level Apartments and Infinity Nord, Redport Capital will develop over 2,000 apartments and 15,000 sqm of commercial spaces. The total gross development volume exceeds 350 million Euros.

During 2023, Redport Capital fully delivered and sold Phase II of The Level Apartments project and traded over 200 units across all the group’s projects, thereby contributing to a consolidated turnover of over 100 million Lei.

The reported results can be credited to a balanced and efficient mix between a quality product at a fair price and the strategic choice of the Străulești area, which is already emerging as the New North of Bucharest and one of the main hubs for sustainable development in the capital, providing an innovative and modern environment for future homeowners.

“We are pleased to announce the achievement of our financial objectives for 2023, showcasing  our commitment to quality and excellence in all aspects of our business. The Level Apartments project has been a remarkable success, marking a significant milestone in the evolution of Redport Capital, and the launch of Infinity Nord will be both a natural extension of our portfolio and a testimony to our long-term vision for sustainable urban development”,  Cosmin Savu-Cristescu, Managing Director of Redport Capital said.

2024 Trends with Ioana Roman, Filip & Company
2024 Trends with Ioana Roman, Filip & Company 900 600 BUCHAREST REAL ESTATE CLUB

20.01.2024

Ioana Roman, Partner, Filip & Company

In the realm of real estate projections for this year, we anticipate distinct trends that are poised to shape the industry landscape.

Foreseeable growth is anticipated in the realm of infrastructure development. Romania and Central and Eastern Europe stand as attractive choices due to ongoing infrastructure changes and heightened demand for modern facilities.

The retail sector is primed for continued evolution, marked by a transition from smaller retail parks to expansive, integrated projects. Notable developments in 2023, such as the inauguration of a significant shopping mall in Craiova, underscore a growing interest in substantial retail endeavors, whether standalone or integrated within significant mixed-use developments.

In the industrial sector, despite rising rents impacting the appeal of Romanian warehouses for global businesses, Romania, along with Central and Eastern Europe, remains attractive when considering overall costs. Expected short-term fluctuations in 2024 leasing demand maintain the anticipation of sustained tenant interest, especially compared to pre-pandemic levels. The sub 7 million sqm of modern warehouses at the start of 2024 may not align perfectly with the country’s development but signals a promising path for the local industrial and logistics market, corroborated also with infrastructure development.

Projections for the office space sector indicate a period of stagnation, with minimal anticipated growth in 2024. This trend reflects evolving work patterns and preferences, influenced by the aftermath of the global pandemic.

The residential real estate market is expected to witness a status quo this year. While the longer-term demand for well-priced residential units in many areas of the country remains supported, factors such as central bank policy adjustments and robust wage growth are likely to influence buying interest. 

2024 Trends with Andrei Diaconescu, One United Properties
2024 Trends with Andrei Diaconescu, One United Properties 800 587 BUCHAREST REAL ESTATE CLUB

20.01.2024

Andrei Diaconescu, Co-Founder, One United Properties

”Romania holds a strong position within the Central and Eastern European economy, standing out as an attractive market for foreign investors and currently showcasing the highest yields and profitability in the region and the European Union. Whether we are talking about the residential or office segment, investors are seeking to place their money in secure, premium projects whose value increases regardless of the context. The average price for residential acquisitions in Bucharest remains significantly lower compared to other major cities in the region, providing opportunities for both foreign investors and local buyers seeking more modern housing. Furthermore, the CEE is set to become the centre of gravity for European growth, according to the National Institute of Economic and Social Research, and in this context, Romania becomes a more prominent regional distribution hub, especially for South-Eastern Europe.

The real estate market in Romania has significant growth potential and remains highly attractive for both clients and investors. This is primarily due to the substantial structural deficit of high-quality housing, despite challenges such as inflation, rising interest rates, and urban planning issues in Bucharest. With an increase in both demand and affordability in the residential market and with few new office deliveries, well-located and ESG-compliant properties are in much higher demand and 2024 will strengthen the flight to quality trend seen in the past few years.”

Fortim announces key tenants extend leases at America House
Fortim announces key tenants extend leases at America House 900 600 BUCHAREST REAL ESTATE CLUB

23.01.2024

Fortim Trusted Advisors announces the extension of lease contracts with three tenants at America House: Mastercard, PAID, and an IT&C company, a total of 2,000 sqm.

Mastercard has chosen to continue its operations at America House, serving as the company’s headquarters in Romania for over 15 years. The decision to renew the lease is attributed to the central location, easy access to transportation, ample facilities including parking, and workspaces that align with their functional and design requirements, according to Cosmin Vladimirescu, General Manager of Mastercard Romania and Croatia. PAID, an active tenant for the past 5 years, expresses enthusiasm in extending its lease, citing America House as a vital hub for its success.

America House, a landmark Class A office building in the heart of Bucharest’s CBD, boasts 28,806 sqm of prime office and retail spaces. Recent refurbishments totaling 10 million euros have further enhanced the building’s appeal. Notable tenants include the Embassy of Japan, Mastercard, Cisco, Intesa Sanpaolo Bank, and others.

The building prioritizes employee well-being, offering a newly refurbished World Class gym, bike rooms, and electric car charging stations. America House holds two international certificates, BREEAM in Use Outstanding and Gold ActiveScore, with a perfect rating in Health and Wellbeing.

New opportunities for the real estate market in Romania
New opportunities for the real estate market in Romania 900 600 BUCHAREST REAL ESTATE CLUB

5.12.2023

Bucharest Real Estate Club in partnership with the Bucharest Stock Exchange and the Budget & Finance Committee from the Chamber of Deputies organized today at the Palace of the Parliament, the round table on the regulation of REITs (Real Estate Investment Trusts).

REITs are investment vehicles which facilitate the access of individuals and legal entities to a diversified portfolio of real estate properties. Through these entities, investors can access and invest in real estate in a simplified and efficient manner. An important aspect of REITs is that they are listed companies on a regulated exchange, which ensures transparency, liquidity, and proper oversight for investors.

“The Romanian real estate market has faced many challenges in recent years: the restrictions due to the COVID pandemic, inflation, the war near the border, the lack of predictability and, particularly for Bucharest, the urban blockage. Under these conditions, the regulation of this instrument would attract new investors, which are not present on the market”, Despina Ponomarenco, BREC President said.

The debate was attended by Alfred Simonis, Interim President of the Chamber of Deputies; Florin Spătaru, State Counsellor within the Prime Minister’s Chancellery; members of the Budget & Finance Committee from the Chamber of Deputies; Adrian Zuckerman, former ambassador of USA in Romania; Adrian Tanase, CFA, CEO of the Bucharest Stock Exchange; Dan Manolescu, President of the Chamber of Fiscal Consultants; representatives of the Financial Supervisory Authority; representatives of pension funds, as well as representatives of BREC member companies: Tinu Sebesanu – IMPACT Developer & Contractor; Marius Persenea – IULIUS; Bogdan Gubandru – Redport Capital; Alexandru Bonea and Antoanela Virginia Comsa – Meta Estate Trust; Laura Dumea-Bencze – CBRE Romania; Costin Nistor – FORTIM Trusted Advisors; Alliance Member of BNP Paribas Real Estate; Tudor Iuga – Simon, Iuga & Partners; Real Estate Advisors; Roxana Roman (Dudau) – Wolf Theiss; Mihaela Ispas and Ioana Grigoriu – Filip & Company.

The regulation of REIT- type instruments was included in the OECD recommendations regarding the capital market in Romania, in the report issued by the organization in 2022. Currently, all G-7 nations and almost two thirds of the OECD countries have institutionalized these entities.

For the event gallery, click here: https://brec.ro/events/reit-reglementation-debate-at-the-romanian-parliament-december-2023/

Who are the big winners of REmarkable AWARDS?
Who are the big winners of REmarkable AWARDS? 900 600 BUCHAREST REAL ESTATE CLUB

15.11.2023

Fantastic evening yesterday at CEC Palace where we revealed the winners of the first edition of REmarkable Awards!

A select number of leaders from real estate investment funds, developers, architects, and designers gathered last night in the exquisite ambiance of CEC Palace, an emblematic building of Bucharest with a history of more than 100 years. The event, shaped with the contribution of Elite Partners One United Properties SA, CEC Bank; Premium Partner Akcent Development and Associate Partner THETA Furniture & More, was presented by Marius George Pancu.

The winners were selected following the results of the International Judging Board of Architects and Public Vote.

Bucharest winners:
? Small offices, 350-500 sqm: Genesis Property – Bookster office from Yunity Park
? Medium offices, 500-1,500 sqm: AMA Design – CMS office from One Tower
?Large offices, over 1,500 sqm: Lemon Interior Design – Superbet office from One Cotroceni Park
?Co-working & community spaces: BL ASSOCIATES – Banca Transilvania STUP
?General retail: TEILOR – AFI Cotroceni
?HORECA retail: Twins Studio – Biutiful terrace – Timpuri Noi Square
?Medium & upper medium residential: Delta Studio – Parcului 20 by Cordia Group
?Premium & High End residential: Lemon Interior Design – One Mircea Eliade
?Jury Award: FORTIM Trusted Advisors, Alliance Member of BNP Paribas Real Estate & Add Value Management – America House.
?Organizers Award: RPHI – Raiffeisen Property Holding International Holding International – Sky Hub events center, SkyTower Bucharest.

For the picture gallery of the event, click here.

For 2024 submissions entry, click here.

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