In the Spotlight

More projects that contribute to smarter cities, integrated in a clear, long-term urban strategy, are needed in Romania. Because we all aim for a smart economy, smart mobility, a smart environment, smart people, smart living and smart governance, says Decor Floor, regional leader in commercial flooring, in a discussion with BUCHAREST REAL ESTATE CLUB. 

“This formula can transform Bucharest in a European capital, able to keep up with both new generations and latest technologies”, says Octavian Moroianu, Managing Partner at Decor Floor, regional leader in commercial floors. In his opinion, Bucharest still needs experienced investors and developers with expertise in complex architectural projects with features to improve the quality of life in the city.

    The real estate developers on the local market are showing an increasingly large interest for investments in modern office buildings. This is why, today we live in a European capital where most of the buildings are Class A certified and two of them are rated among top ten greenest LEED certified office buildings in the world: Business Garden Bucharest C and Business Garden Bucharest B. These are projects where Decor Floor supplied and delivered floor finishes from its portfolio.

    In the last 15 years, Decor Floor CEE became a major player in the commercial flooring segment and a trustworthy partner in the real estate market. With a total turnover of EUR 10 mil. in 2020, Decor Floor delivered more than 150.000 sq m of raised access floor systems for the most iconic office buildings in Bucharest, such as Globalworth Campus C, Țiriac Tower, Equilibrium Phase 1 by Skanksa and One Tower @ Floreasca City. Its target for 2021 is to contract a minimum of 120.000 sq m. of raised access floor systems.

  They say that an extremely important element for success consists in providing premium services and products for both local companies and for corporations on the local market as well. ”If we were to speak in terms of square meters, let’s say for carpet, most probably the number would be around 145.000 sq m delivered in 2020 for tenants like PWC, NTT Data Romania, Royal Canin | Mars, and RPHI” Octavian Moroianu says.

One of their major projects, implemented during 2020-2021, is Țiriac Tower. Located in the heart of the city, for this project Decor Floor delivered and installed 12.800 sq m of raised access floor, 3.500 sq m of ceramic tiles and 900 sq m of ventilated facades, mechanically fixed to the building using a metallic structure, duly designed and checked, on which the external face in porcelain tiles is installed.

”This is an important step forward that will allow us access the ventilated facades segment with more confidence. Today, we have projects signed under letters of intention for more than 25.000 sq m of ventilated facades, forecasted to be completed during 2021 – 2022”, concluded the Managing Partner of Decor Floor, Octavian Moroianu.

(11.03.2021)

Romania is a balanced market as regards the presence of women in management and top management roles of real estate companies and their annual incomes can exceed 300.000 EUR per year, according to the most recent analysis by BUCHAREST REAL ESTATE CLUB. At its 2nd edition this year, WOMEN IN REAL ESTATE initiative aknowledges the role of women in managing and developing significant real estate businesses in Romania.  

Romanian women manage large real estate investments and assets in excess of 5 billion EUR, leading the activity of companies across the entire spectrum of the real estate sector: investment funds, real estate development companies, asset management companies, advisory and brokerage, as well as successful entrepreneurial businesses such as architecture and interior design firms.

Women in top management roles (CEO, COO, CFO) may excced net annual incomes of EUR 100.000 EUR, plus 3-5% ad-ons from the annual profit of the projects they manage („shared profits” participation), according to WOMEN IN REAL ESTATE analysis by BUCHAREST REAL ESTATE CLUB.

The middle management roles (Marketing Director, Commercial Director, Legal Manager) are remunerated with incomes that may exceed 50.000 EUR per year, with performance – related bonuses. For example, commercial directors in the residential segment can ad to their salaries a plus of 1% of the total sales volume they coordonate.

In the brokerage sector, senior department managers are remunerated with 36.000 – 55.000 EUR annually, plus commissions of 8-25% of the incomes they generate for the company. 

“In an atypical year as it was the case of 2020, the women`s performance in real estate management roles in Romania are the more notable.

They adjusted their companies` actions and business plans according to the new reality, they negotiated, re-negotiated and signed large sales or rent transactions of the real estate assets and they even decided the start of new real estate investments, under full pandemic circumstances. As compared to the Western European countries, Romania is a particular market, with women managers being very present and visible in the real estate sector, being remunerated as such,” states Despina Ponomarenco, President of BUCHAREST REAL ESTATE CL)UB.

(8.03.2021)

Romanian interior design supplier Delta Studio consolidates its operations on the residential segment by entering the development market, announced Tudor Cartianu, CEO of the company at a recent BUCHAREST REAL ESTATE CLUB Media Briefing.

Starting Q1 2021, Delta Studio will develop a boutique residential project, in gated community format in Corbeanca area, near Bucharest.

The project consists of 24 houses, benefitting from modern architecture and large common spaces with a community pool, park and outdoor fitness area.   

“The real estate market had been under our attention for some time, as we are an already established supplier of materials and finishes for this market and we are very well immersed into the segment.

In the new context generated by the pandemic we saw the opportunity to develop a modern housing  project in one of the premium green areas in the outskirts of Bucharest, Corbeanca,” stated Tudor Cartianu, CEO of Delta Studio.

The project delivery is estimated for Q1 2022.

(3.03.2021)

As online sales market continues its accelerated growth, logistic developers are consolidating their logistic hubs near Bucharest. Retail focuses on smaller – sized proximity projects. 

Pandemic brings structural changes on the retail and industrial segments of the real estate market: proximity retail gains further ground, while logistic keeps on its consolidation on grounds of 2020 accelerated growth in online sales, according to BUCHAREST REAL ESTATE CLUB analysis – THE NEW FACE OF BUCHAREST.

”The total E-Tail* – tangible products – market in Romania reached a 5.6 billion EUR value at the end of 2020, up by 30% as compared to the previous year. Daily sales also reached the 15 million EUR volume,” said Raluca Radu, Co-organizer of GpeC (E-Commerce Awards Gala) at the press conference organized by BUCHAREST REAL ESTATE CLUB on the official launch of THE NEW FACE OF BUCHAREST Catalogue.

In this context, developers are actively investing in new logistic parks, the most important areas in Bucharest being the hubs in the proximity of A1 and A3, with a new interest area between the two, namely Buftea – Chitila, in the vicinity of the new Capital`s ring road, A0.

“The e-commerce operations are changing the paradigm in logistic. Large e-commerce players will continue to generate demand for XXL hubs logistic formats as well as for cross-docking platforms,” Dana Bordei, Commercial Director of WDP logistic developer stated for BUCHAREST REAL ESTATE CLUB.

„From our Group activity we see sinergies between the office and the logistic segments, with tenants from the office buildings which we aim to attract to our logistic parks,”, said Alexandra Popa, CFO of Element Group, which includes the logistic developer Element Industrial.

„The retail and e-commerce companies rented a cumulated area of more than 400.000 sqm in Romania in 2020. Bucharest remains the most attractive city, comprising 65% of the total volume transacted last year. Proximity has a major impact on consumers` habits; as a consequence, the food operators remained active, ensuring new locations in the proximity of the most dense residential hubs, while developers focused on smaller – sized parks, with a limited mix of retail and services,” Cristi Moga,Head of Reserach Cushman & Wakefield Echinox, said at the same press conference.

(19.02.2021)

In the context of Covid – 19 pandemic and with the amount of time spent at home having increased in the past year, together with the increase of Romanians` purchasing power, the Bucharest residential market is undergoing an effervescence period. Developers active in Bucharest are investing a total of 1 billion euros in middle & upper class housing projects, which improve the living standards in the Capital City, according to BUCHAREST REAL ESTATE CLUB analysis – THE NEW FACE OF BUCHAREST. 

According to BUCHAREST REAL ESTATE CLUB data, the total investments volume, on all sub-segments of the Bucharest real estate market is 3.5 billion euros (of which the residential sector – middle & upper class quality projects represent a total of 1 billion euros), in 60 projects included in the analysis, completed in 2020 or with delivery term until 2023. National Real Estate Cadastre Agency data reflect a residential sales volume higher by 19% in 2020 as compared with 2019, despite a 2 months blockage during the lockdown period at pandemic outbreak.     

According to BUCHAREST REAL ESTATE CLUB analysis, the area thhhat keeps on attracting most of the quality projects investments is the Northern part of Bucharest, with its sub-markets Barbu Vacarescu – Floreasca, Aviatiei, Pipera, Baneasa, Expozitiei, Sisesti – Straulesti.

With Eurostat data reflecting a 45,8% percentage, almost half of Romania`s population living in over-crowded dwellings, BUCHAREST REAL ESTATE CLUB estimates a continuing high potential on the market for new residential developments. 

MAIN TRENDS OF THE RESIDENTIAL SECTOR IN 2021: 

• 2-rooms apartments remain prioritary in the development mix for the middle segment, as they are most searched by buyers for and price – affordable. 
• Individual houses and villas demand increases by 30%, but most projects focus on apartments well located within the City and served by various facilities.
• Pandemic favors projects with multiple facilities for the living communities: green areas, children playgrounds or special areas designed for outdoor sports.
• New types of layouts: considering the evolution towards a new hybrid work format (several days from home and several days from the office), developers also consider the idea to include an office area in the new housing layouts, which can improve the comfort of working from home.
• New areas of interest: together with the inauguration of the new M5 subway in the Central – Western part of Bucharest, new residential projects may be announced in the following period; another area of interest which will attract new investments is the one in the near proximity of the Urban Highway, where some developers are already preparing projects.
•  The luxury segment continues its development trend, with more and more sophisticated clients, whose incomes were not affected by the pandemic and who that pay up to 4-5.000 EUR/sqm for exclusive properties. 

(17.02.2021)

Bucharest attracts investments totalling over EUR 3.5 billion in large-scale projects, developed in 2020 and in course of delivery until 2023, according to the latest market analysis conducted by BUCHAREST REAL ESTATE CLUB – “THE NEW FACE OF BUCHAREST”.

The value includes investments in major urban regeneration projects, which bring back to the communities the former abandoned industrial platforms in central areas of the city, in new office buildings integrating smart technologies adapted to the new hygiene and health conditions, in modern residential, which defines new living standards in Bucharest, in new retail schemes and logistics hubs in the vicinity of Bucharest, as well as in infrastructure projects.

The capital of Romania has become a technology and innovation hub, as highlighted by the Financial Times ranking, which places Bucharest on the 7th place in the Top 25 “Tech Cities of the Future 2020/2021”. At the same time, in the pandemic context and with the acceleration of digitalization, it is expected that the main software and digital solutions companies will continue to accelerate their development.

50% OF THE TOTAL INVESTMENTS VOLUME IS REPRESENTED BY THE LARGE URBAN REGENERATION PROJECTS, THE NEW OFFICE HUBS AND THE TRANSFORMATION OF THE ULTRA-CENTRAL AREA OF BUCHAREST.

According to BUCHAREST REAL ESTATE CLUB data, local developers as well as international investment funds are investing approximately 1.6 billion euros in modern projects, which will completely change the Bucharest real estate landscape.

Urban renewal projects on former industrial platforms create new areas of interest, with mixed functions (offices, housing, retail) and multiple facilities (green spaces, areas for outdoor sports and playgrounds), while offering the possibility to work in the home proximity. Such developments analyzed by BUCHAREST REAL ESTATE CLUB are One Floreasca City, One Cotroceni Park, Timpuri Noi Square – Vastint, Fosta Fabrică – Hanner or Estoria complex. On the office market, some projects have been converted into residential spaces, but investments have not been stopped.

The most important office hubs, with new projects completed in 2020 or under development in 2021-2023 are the Central – Western area (One Cotroceni Park, Campus – Skanska, The Light), South – Center (Timpuri Noi Square – Vastint, U Center – Forte Partners), Barbu Văcărescu (Globalworth Square and Equilibrium – Skanska), Pipera (Globalworth Campus), Expozititiei (J8 Office Park – Portland Trust and @Expo – Atenor) or Băneasa with MIRO Offices by Speedwell. The Ultra – Central area is also on investors` radar, some of the most important projects here being One Tower by One United Properties or Țiriac Tower – Țiriac Imobiliare. At the same time, developers are investing in existing properties, preparing them for the increasingly sophisticated requirements of tenants and buyers: Bucharest Business Park (CA IMMO), myhive (Immofinaz) or One North Gate (One United Properties) being just a few examples.

Post-pandemic trends on the Bucharest office market

While international green building certifications BREEAM or LEED have already become a standard for the new office buildings in Bucharest, major developers have increasingly addopted the WELL certification – an international standard that certifies the quality of the interior air and construction to parameters that ensure the wellbeing of employees who will work in these buildings.

Innovation and integration of smart technologies are also becoming increasingly important for developers, with new buildings benefiting from touchless technology or innovative air disinfection systems, which ensure a higher degree of hygiene and safety for the buildings occupiers.

Geothermal systems or photovoltaic roofs are also some of the features of the new office buildings,signaling thatthe buildings` energy efficiency is also becoming a standard among institutional real estate developers.

The new hybrid work format

Given the start of the global vaccination campaign, market experts estimate that most of the companies will choose to work for at least 3 days a week from the office, leaving certain segments of employees the flexibility to continue to work from home.

”In 2020, aproximately 25.000 persons called ATLAS Help Line, a phone line for psycho-emotional support; beyond the pandemic – related difficulties (depression, anxiety), they also reported problems related to the lack of adaptation to working from home: stress, sleeping problems, difficulties in managing their relations with thei families and colleagues. Also, more than 20.000 online psycho-therapy sessions took place on atlas.app, while the self-evaluation tools available there (stress, depression, anxiety, burnout, quality of life, financial wellbeing scales) and the specialized content on the blog were constantly accessed by a large audience. A significant increase of 100% was also registered among our corporate clients, as companies in Romania contracted the ATLAS services as support for their employees in this period,” Dr. Mihai Bran,  primary psychiatrist and co-founder of ATLAS, digital health and wellbeing platform that grew exponentially in the recent years, stated for BUCHAREST REAL ESTATE CLUB.

(16.02.2021)

On Tuesday, February 16.00, BUCHAREST REAL ESTATE CLUB organizes the Press Conference announcing the latest cumulated data on the new real estate investments on the Bucharest market. In the spotlight: THE NEW OFFICE CLUSTERS IN BUCHAREST.

Agenda highlights:

•  Major investments completely changing the Bucharest Real Estate landscape
• Urban Regeneration Projects
• The New Office Clusters in Bucharest
• Bucharest Central Business District
• Active investments
• Status of new projects
• Modern stock update 
• Post – pandemic trends on the office market 

Speakers:

• Despina Ponomarenco, Executive Director, BUCHAREST REAL ESTATE CLUB
• Cristi Moga, Head of Research, Cushman&Wakefield Echinox
• Mihai Paduroiu, CEO, One United Properties – Office Division
• Daniela Badulescu, Country Manager, S IMMO
• Razvan Enache, Managing Director, Tiriac Imobiliare 
• Mike Hapoianu, General Manager, MINDSPACE Romania & Polonia
• Bogdan Nicoara, Founder, Bright Spaces
• Dr. Mihai Bran, Co-founder, Digital health & wellbeing platform ATLAS
• Alex Boghiu, Co-founder The Mavers 

(15.02.2021)

Skanska invests EUR 45M, in the 2nd building of the Equilibrium office project located in the Northern part of Bucharest, Romania. The 12-storey building will comprise of a total leasable area of 19.900 sqm and 229 parking lots above and underground. At its completion, the entire two-building Equilibrium complex will offer 40,800 square meters of leasable area.

The project has a mix of green relaxation spaces, with modern exterior furniture that incorporates wireless chargers, power sockets and free WiFi, but also with numerous facilities to encourage urban mobility and an active lifestyle – locker rooms and showers for those who practice sports before or after working hours, parking spaces for two-wheeled vehicles, but also fast charging stations for electric cars.

Construction works are planned to be started in February 2021 and are scheduled for completion in the first quarter of 2023. The first phase of the project, Equilibrium 1, became operational on November 1, 2019.

Through a partnership with the start-up Bright Spaces, future occupants of the second Equilibrium building can already visualize the office space virtually. The interactive 3D visualization platform, operational since October, allows the developer to present its spaces in an innovative, interactive way and more adapted to the current needs of customers. The solution provides a complete user experience and creates a new standard in the virtual presentation of office space.

The new real estate technology platform is the result of a PropTech hackathon organized by Skanska in 2019, and it was implemented for the first time in the Equilibrium project.

The future building will meet some of the highest standards in the field. Following the prevention measures implemented and the safety standards that have become an industry requirement, the Equilibrium 1 project is among the first in the Skanska portfolio in Central and Eastern Europe to receive WELL Health-Safety Rating. This is the newest building rating system introduced by the International WELL Building Institute (IWBI) in the pandemic context.

Spanish developer Gran Via Real Estate announces results beyond expectations for 2020 on the Romanian market. Despite two months of lockdown measures due to the pandemic, the company traded 478 residential units, with a total value of 44.2 million euros, in projects such as Timișoara 58 (phase IV and the last in the development), Aviației Apartments (phase I), Gran Via Park (phase IV and the last in the development) and Gran Via Marina in Constanța (phase I).

In 2021, the developer finalizes phase IV of Timișoara 58 compound in Bucharest and phase I at Gran Via Marina in Constanța, working on phase IV at Gran Via Park. The company plans to launch new phases at Aviației Apartments and Gran Via Marina, as well as a new project in Bucharest.

The first project of Gran Via in Romania was Timișoara 58, built on the former Frigocom platform, in sector 6. The project totals 800 apartments.

The second development was Gran Via Park, near the Plaza Mall, on the site of the former Electrotehnica factory, which today has become the company’s largest project in Romania, with 1,000 apartments completed and another 220 under construction.

Aviaței Apartments is the third Gran Via project in Romania, also built on an industrial lot of Paste Băneasa, in the Aviaței area. In this location, 291 apartments were delivered at the end of 2019.

The fourth project is Gran Via Marina, in Constanța, near Vivo! shopping mall, where the first phase will be handed over this spring, totaling 192 apartments. Upon completion, the entire complex will have about 1,000 apartments.

ABOUT GRAN VIA:

Gran Via has a 15-year history on the Romanian market, specializing in the conversion of former industrial lots into residential projects, which have changed the face of the city for the better. The developer completed over 2,000 apartments in Bucharest, in projects such as Gran Via Park, Timișoara 58 (both in sector 6 of the Capital) and Aviației Apartments, in sector 1. In Constanța, the developer is building the Gran Via Marina complex, near the mall Vivo!, 10 minutes from Mamaia resort. More information on www.granvia.ro 

(29.01.2021)

One United Properties announces the lease agreement with Superbet, the largest omni-channel sports betting and gaming operator in Romania, for an 8.206 sqm of office space in the One Cotroceni Park building.

Superbet will thus move its offices within One Cotroceni Park,  the largest urban regeneration project in Bucharest developed by One United Properties in the Cotroceni area, near Academia Militara. The new office spaces are designed to provide a higher degree of safety and comfort for employees, on a generous area and access to many facilities, as well as a direct connection to Academia Militară metro station, a premiere for an office project in Bucharest.

One Cotroceni Park phase 1 project has currently exceeded a rental rate of 72% and will be delivered at the end of this year. At the same time, the developer started the works for the second phase of the office component of the project.

One Cotroceni Park will also include a residential component with approximately 754 apartments, which will be developed in several phases.

“The main reason behind our decision to move to a new headquarters is related to the desire to bring under the same roof the entire Superbet Group team in Bucharest, which currently operates in three different locations. Then, the advantages of the new workspace are obvious – it is a new building, which ensures air quality, generous spacing, a greater number of parking spaces, access to many facilities, proximity, and flexibility in terms of transport etc. Last but not least, the new location supports Superbet’s strong recruitment campaign for IT-high tech talents, given that we will be close to relevant academic communities – the Faculty of Electronics, Polytechnic, but also other local and international tech companies”, said Cristian Gheorghiță, Group Employee Communications Director. 

Beyond the pragmatic reasons, the decision is closely linked to the philosophy and culture of Superbet Group, focused on greater collaboration and creativity. “It will be more of a meeting space, not only for the Romanian team but also the international teams of the group. No one will have an office of their own, it will be a place for social gatherings and town halls”, he also added.

One United Properties is on the point of obtaining a WELL HEALTH AND SAFETY certification for all its office buildings, which is the most rigorous certification focused on employee and workplace benefits – such as air quality, access to sports, mental comfort, light, water quality, comfort at work, access to healthy food etc. One Cotroceni Park mixed project is designed in a holistic approach of Live / Work / Play type, offering both employees and future residents integrated facilities, from commercial spaces, retail or sports, and outdoor spaces. The project will be developed on an area of 5.8 ha: 20,000 sqm allocated to retail spaces, 74,000 sqm GLA dedicated to the business park, and a residential component with approximately 754 apartments.

In 2019, Superbet  and Blackstone Group, world’s largest private equity fund announced a €175m strategic equity investment in Superbet by funds managed or advised by Blackstone’s Tactical Opportunities business.  

(28.01.2021)