BREC Talks

Cold judgement and flexibility are the main assets wanted by head hunters this year. Alina Conu, Managing Partner of Kapital HR talks more about this year`s challenges and opportunities in a BREC interview.

1.Which is your perspective about the Real estate market for 2022?
In all sectors companies need medium and high level managers for the challenging times they face. Flexible thinking and a cold head are the main requests in this period. In constructions there is a constant need for workers, due to various social fluctuations: here we have to face the challenge of on optimal selection, in search for employees that are capable and willing to stay and develop in the company.

2. Does the Real Estate market need Executive Search services?
Both architectural offices and construction companies and included in our expertise. We  had many openings in this area, so the answer is yes, this industry is interested in recruitment services. I’d like to add the fact that we have received fewer requirement assignments from real estate agencies or brokers. It is normal somehow – management, technical roles, engineers are more difficult to find. 

I think that also developers and investment funds will need more and more the right people to get their businesses going in this dynamic market, so that the need for executive search services will be on a growth trend.

3. Which qualities do you believe make up an effective real estate top management professional?
Vision, good strong educated intuition, good financial skills and cool head.

4. Which are the key trends for 2022 in terms of work formats?  
The office work is more effective for teams: enhancing direct communications, it promotes creativity in finding new solutions and new fields of development, promotes flexible management decisions, together with team spirit.  I dare to say it is important also for the emotional and psychological health of each member of the team.

Office is well suitable for team work (in real estate business as well as in other sectors), but for the wellbeing of each individual the management team must also think to hybrid solutions to suit everybody. The real estate offices market was affected by this COVID crisis, so it is important to encourage people to go back to the office, but it is also important to encourage the management levels to find more flexible and creative solutions for those employees who nevertheless will prefer to work from home at least one day each week or at least a few hours each day. These flexible solutions for hybrid work are the key to keep valuable staff in place, to avoid displacements and personnel shortages. Work from home solutions must not be ignored in sectors that require individual work.Kapital HR focuses on Human Resources; its track record includes a portfolio of 300 companies, 1.500 trained and developed employees and 2.300 hired candidates.

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The main goal of Realpad in 2022 is to double its customer base and to penetrate 4 more markets. How will the company manage to do that, find out below from Jakub Licak, Business Development Manager.

How would you describe 2021 for the business of your company? What were the main achievements of your company last year?

2021 was a strategic year for us in various aspects. On the company level, we have almost doubled our customer base and we are currently serving more than 100 residential developers across 12 EU countries. In Romania, we have managed to contract 20 clients which I consider to be a success, taking into consideration that at the beginning of the year we had no local team and just a few clients. At the moment, the Realpad team in Romania includes 4 people and we are looking to hire more talented people in 2022.

Which are your main objectives for 2022?

Our main goal is to double our customer base again, on the company level and also in Romania. In 2021, we have secured an investment that gives us resources to significantly invest in the product as well as to continue our international expansion. We have already started with the expansion process in Bulgaria and Serbia and we are going to open another 4 more markets in the course of 2022. As it comes to the product, apart from our main CRM software tool which is designed for sales and aftersales management of residential projects, we already started pivoting 2 new segments – residential rental and commercial leasing & property management.

How do you see the main trends shaping for 2022?

When it comes to technology, I see residential developers adopting software solutions at an even faster pace than in 2021. In Romania, where developers sell hundreds and even thousands of apartments, software solutions that automate the sales process will become a necessity. I also expect developers to be paying more and more attention to after-sales care and the customer experience in general. Our After-sales module, encompassing digital handovers and warranty claims management, together with Buyer’s portal, where buyers can find all important documents and information about their purchase, will be at hand to digitize the whole customer journey.

Realpad is a technology partner of European real estate developers, founded in 2012 in Prague. The company provides software solutions tailor-made for residential developers. The company portfolio includes more than 100 clients all over Europe, 1.500 users and 250 projects. Realpad entered the Romanian market in 2020, seeing big potential in the residential segment. Notable Romanian clients are AFI Romania, Hagag Europe Development, Bog’Art, Liebrecht & wood or SVN.

THETA Furniture & More will open new offices in Belgium and France and will start operations on a new plant in Romania this year. Florin Gheorghe, the company’s Managing Director, outlines the main business plans and the strategy to reach a turnover of EUR 14 million turnover by the end of 2022.

How would you describe 2021 from the perspective of your company? What were the main objectives you achieved last year?

For most of us, 2021 was a balancing act between hope and adjustment, with rational reactions to still challenging circumstances in the overall pandemic context. Despite all the challenges that have arisen, 2021 has been the best year in the history of THETA Furniture & More so far, we have ended the year with a turnover of just over EUR 10 million and we have achieved our goals set at the beginning of the year.

Moreover, during the year we identified new prospects and opportunities for growth and development. Our accomplishments include:

• The construction of the new custom-made furniture production factory with a surface of 5,000 sqm, located in Păulești, Prahova County – at the end of the year the construction had a completion rate of 90%. 
• Strengthening THETA team – one of the ingredients of the year-end results was effective teamwork.
• Consolidation of the position of professionals with unique customized solutions in the interior design & fit-out industry, being anchored in the current context, present and relevant to the industry (local & international).
• First steps for opening international working points in Brussels (Belgium) and Paris (France).
• Carrying out turnkey and complex projects, for clients from all market segments (office, medical, commercial, HoReCa).

Which are your main goals in 2022? (business, culture, company, market, etc.)

Most business people who manage their own business or others prefer to feel in control, which makes them feel secure. Calibrating expectations and accepting that variety is the norm helps us embrace lack of control to the extent that we can find ways to enforce a certain level of clarity both for ourselves and in relation with partners, clients, colleagues. The importance of upbringing an openness to new possibilities, as well as other lessons learned in 2021, are valuable to us and we have taken them into account in setting our business goals for 2022. This year’s goals include:

• Completion of the construction of the new custom-made furniture manufacturing plant by the end of February 2022. The new factory will replace the current one, located nearby, and we are preparing to start operations from March-April 2022; currently we have started the process of transferring the machinery, materials and all the necessary from the current factory to the new one.
• Achieving a turnover of EUR 14 million.
• Opening foreign offices in Brussels and Paris. The first one will be in Brussels and will have the same activity as the main office in Bucharest: interior design & fit-out services for various spaces, with focus on custom-made furniture solutions, as we have already identified niches with needs that we can successfully cover. The Belgian market is not new for us as we have fitted out in the past years locations such as: senior homes, student hostels, a 3,000 sqm hospital, also moving ahead with the signing of an important contract, at the end of last year, for a complex project – the Grand Hôpital De Charleroi hospital (20,000 sqm), for which we will deliver entirely custom-made furniture in the next two years.
• We are also developing new special divisions, focused on: flooring solutions and projects in the medical segment, sustained by dedicated teams of professionals. 
• Maintaining and continuously improving our status as professionals with unique custom solutions in the interior design & fit-out industry. 

Our company culture is the personality of this company and certainly influences how we make decisions and how we interact with other businesses and the general public. Therefore, a company’s mission, values, ethics and environment all play important roles in its culture. Our mission – our ambition remains the same as last year, aligned with the business directions outlined: to leave our mark on the customer experience, as a renowned general interior contractor, through unique & innovative solutions and perseverance.

What trends will shape the market in 2022 from your perspective?

One of the greatest adaptation skills we had to develop over the past year was “playing” with our imaginations – how our minds can lead us beyond the limitations we currently live in.

For millennia, interior design trends have been used as aesthetic aids in our attempts to find some kind of inner peace, they have also always been in tune with social changes and trends, nowadays the human need is predominantly to feel safe wherever we are. 

The design trends from the point remain the same as last year: trying to bring nature closer and closer to contemporary man, through natural colours and eco-friendly materials. The social aspect of office life will be made possible by designing open spaces with minimal optical separation and integrating as many attractive common areas as possible with multiple functions. 

Digitalization of most businesses will soon become a ‘must’, in fact, any business that promotes digitalization in a particular industry has gained momentum in this period. Design experts predict that more companies will adopt what is known as “hotelisation”. This means that employees no longer have assigned seats, but instead locate where there is space available for the type of tasks they are working on. 

In the office segment, which has been hit the hardest, when returning to the office, employees expect much more than just an office – but a destination, an exceptional experience that offers more than their home office could provide. Developers and landlords have been working on special concepts since last year to identify the best ways to provide tenants with conditions that provide employees with safety and tools to use technology to enhance, not replace, human interactions. 

As 2021 showed us, we foresee the prolonging of the raw materials and finished products’ crisis, that will negatively reflect on business plan predictability and can further generate reduced stocks and delayed orders from suppliers. Of course, at the same time, we will all identify new solutions so that there is still a balance and potential for growth and betterment.

Atalian Romania, the supplier of facility management services, grew its turnover by 12% to over EUR 15 million in 2021 and expects further expansion this year based on increasing demand from the commercial real estate market. Cora Cristescu, CEO, Atalian Romania, outlined in an interview the company’s approach to innovation and her outlook for the market this year.

How would you describe 2021 from the perspective of your business? What were the main objectives you achieved last year?

2021 was a surprise from two perspectives: business-wise, but also how the organization and people changed and developed in Atalian Romania. Looking back for the last 10 years, in 2021 the team really overachieved by ingenuity, adaptability to the pandemic situation, but also maturity in taking decisions and acting. All of this confirm our strong belief that our main investment as a company it is, and it will continue to be in our people.

All of 2021 objectives were reached, besides the business ones we are very proud to have all our clients remain with us, which is something that we work on constantly. In 2021 we have gained new partners’ trust from different sectors office, industrial and corporate. Our team grew by 20% percent, while the personnel turnover decreased to 4%. If we look on Atalian Romania’s team we are happy to have colleagues that have been with us for a long time: 20% more than 3 years, 20% more than 5 years, 10% for over 8 years and another 10% for over 10 years. We see this as one of our biggest performances.

When it comes to financial turnover, we registered an increase by 12% to more than EUR 15 million. Behind this result, there is a teamwork, an exceptional team which consists in our clients and Atalian Romania employees.

Which are your main goals in 2022? (business, culture, company, market, etc.)

For 2022 we keep our goal to invest and develop the people, clients’ retention but also to grow our portfolio further. We have a strong interest for the industrial, retail, and corporate areas, but of course we will keep our “first love” – the office market close to our attention. We are convinced that the FM services will grow in the next years if companies invest in people and new technologies. The COBOTIC concept it is an innovation of great interest for Atalian, and we hope that this year we will manage some implementations of the concept also in Romania. In short, this concept comprises a robot that has been designed and built to collaborate with humans.

What trends will shape the market in 2022 from your perspective?
In the FM industry we see the regionalization of services as the new milestone to be reached. There are already a lot of companies that choose to get a quality service and financial efficiency by working with only one provider at regional level, but not only.

Of course, the operational costs of a property are another trend that needs to be carefully tackled and not only from a maintenance point of view. Here for sure the FM companies have a word to say, and we want to believe that they will focus on finding practical solutions and sustainable ones rather than reducing staff numbers.

Finally, we expect a turn around to a quality service, rather than to a budget one. A quality service for sure will bring a better income but at the same time a cost efficiency on the long term. This is an idea which is supported by financial reports for the last years. The needs and expectations of employees and visitors of office building, a warehouse, an industrial site or a commercial centre change on a rapid pace and there should be a focus on these needs to ensure a pleasant, safe, and flexible experience.

In conclusion, we would say that the trends are set by the market demands and all of us should pay close attention on what markets is asking for.

Decor Floor will launch this year the B2B architecture materials digital marketplace in Romania, according to CEO Octavian Moroianu. He estimates the company will reach a turnover of EUR 18 million this year, with automation being key for securing future growth. 

How would you describe 2021 from the perspective of your company? What were the main objectives you achieved last year?

2021 was a year of recalibration for Decor Floor. After 2020, that taught us the valuable lessons of being adaptive and reactive at the speed of light, in the last year we redesigned our structure, strategy and market position. In the last eight months of 2021 our company went through a complete rebranding process and today we are ready to start a new chapter that will mark our biggest evolution. 

Being already a mature company on the market, we found the necessary resources to start the rebranding process while accomplishing numerous other important milestones.

An important turning point for Decor Floor in 2021 was the delivery of several contracts for interior glass partitions, which sum up more than EUR 500,000. This achievement, together with the refurbishment works executed for an important office building on Barbu Vacarescu Boulevard, complete the bigger picture that Decor Floor is projecting for the next years.

At the same time the company delivered one of the most complex projects in Romania so far – @EXPO by ATENOR, that included 7100 sqm of ventilated façade system for buildings B1 and B2, more than 18,000 sqm of raised access floor and 2,400 sqm of floor and wall ceramics. In 2022 the project is scheduled to be completed with another 7,800 sqm of ventilated facades system and 24,000 sqm of raised access floor, for the completion of building A. Moreover, Decor Floor was contracted for 4,500 sqm of complete fit-out works, for a major tenant at @EXPO. This project will be implemented in 2022.

The complexity of these projects impacted our organization at different levels, including Logistics & Warehousing. To be able to follow the complexity and dynamics of our projects we decided to upgrade our warehouse location in ELI Park 1, from 1,300 sqm to 2,500 sqm.

From an operational point of view, in 2021, we experienced some project delays due to workforce shortages. The rising cost of materials and supply chain disruptions also had a negative impact on the total margin of the company. These are factors that seem to continue affect the market in 2022, but now we are closely working with all our partners to identify effective methods to cushion the impact on projects. 

Decor Floor’s financial evolution is marked by a growth turnover trend. In 2020 the company surpassed the pre-pandemic volume of business with 10%. In 2021 the turnover was 40% higher compared to 2020, and up by 50% versus 2019. 

Which are your main goals in 2022? (business, culture, company, market, etc.)

2022 is likely to be an exciting year for us. We forecast a turnover of EUR 18 million based on a strategic mix of diversity and complexity of the targeted projects. 
This is an organic growth of the company that will be marked by the launch of a new corporate identity. 

The new brand, “wemat,” focuses on the power of community raised in the first 17 years of presence on the Romanian market. Wemat is a composed name of two words – we and matter – that communicates one of the main values of the company – togetherness – as well as the strength and expertise of our team, which impacts the undertaken projects.

For us outstanding matters, which is why our mission is to create the highest level of quality experience for our customers, which exceeds their expectations.

One of the major objectives for Wemat in 2022 is launching a new business line – the very first B2B architecture materials digital marketplace, in Romania. The 1.0 version will be live during Q2/2022 and it will firstly be available for our current customers to facilitate faster response times regarding inquiries and orders. The second phase, beginning Q3/2022, will push the platform towards clients with whom we are not currently developing B2B relationships. The investment in 2021 was EUR 120,000, and in 2022 it represents more than 10% of the company’s budget.

While the new strategic brand aims to strengthen our leader position in the market, it is also designed to empower its employees by creating new career opportunities. In 2022 the total direct employees’ number in Romania will increase from 50 to 64 people. 

With the new workforce added, we will focus on contracting more projects from the Medical, Education, Hospitality and Sports segments. 
All the departments within the company work in a CRM system, completely developed by us since 2016. In 2022, more than ever, this will play an important role by optimizing the dynamics between departments. We successfully create cross-functional working and efficient planning for the company’s objectives.

The newly defined vision of the company is to build an esteemed ecosystem where to provide turn-key solutions for fit-out projects, in the construction industry. We are committed to do so while ensuring a positive and prosperous impact on society. For us, this is just as important as delivering premium products and services! One of the most rewarding feelings is working with enthusiastic associations that are invested in helping and improving people’s lives. In 2022 we will continue to partnership with NGOs like Asociația Ajungem Mari, Sothis, Autism Voice, Inocenti, Artsafari and Asociația Studenților de la Mincu.

What trends will shape the market in 2022 from your perspective?
Last year’s retrospective outlines the personality and complexity of the business environment in 2022, which continues to focus on better new technologies, rethinking the standard office spaces and deepening the concepts of sustainability and safety. 

We are aware that the market will be struggling for the better part of the year, as the pandemic context is not over yet, and its aftermath is felt all through every supply chain. It is a sure thing that the way of doing business has to change including the way of designing buildings, or construction processes.

At the same time, there is a growing interest for projects in the medical and educational field, with an emphasis on the technical quality of products and services. We strive to offer and deliver the perfect package for each project, especially of this kind, because we believe that these segments are one of the most important investments during a lifetime, improving and saving the lives of thousands of people.

Automation will be one of the main pillars in 2022. Human creativity backed by digitization technology manages to facilitate business innovation and constant adaptation to market needs. These technologies provide a high level of predictability and efficiency – technologies that improve customer service, but also the internal organization of a successful company.

Whatever the 2022 trends might be, #WE are always ready to build and adapt to a better tomorrow, while focusing to be our best version today.

After securing a new investment of EUR 1.5 million in 2021, Bright Spaces is looking to expand in new markets and continue to hire staff. Bogdan Nicoara, CEO & Cofounder Bright Spaces, outlines the plans of the startup for 2022 and the accelerated usage of technology in property industry.

How would you describe 2021 from the perspective of your business? What were the main objectives you achieved last year?

Last year was very encouraging for us. Bright Spaces is growing fast, showing the absolute need for such a solution. Soon enough, technology will be integrated into all business processes, and real estate makes no exception. Leasing and showcasing are about to be transformed forever, through a more innovative approach that includes virtual staging, web-based platforms for any building, interactive online tours, intuitive administrative dashboards, and many more.

2021 was filled with successes we are so proud of and grateful for. We managed to:

• secure our second investment round of EUR 1.5 million, led by Axeleo Capital and with the participation of Pi Labs, Sparking Capital, Growceanu Angel Investments, and a group of business angels.
• grow our team from five people (in May 2020) to almost 30 (December 2021).
• launch new platforms for our clients and sign new partners.
• focus on our company culture and our ESG policies and on how we will integrate these in our work. 
• become more visible through earned media and content marketing.

What are your main objectives in 2022? (business, culture, company, market, etc.)

This year is critical for our evolution. We want to expand to new markets, and with a continuously improved version of our product that will serve our clients’ dynamic needs in a post-pandemic, tech-first world. This means, of course, attracting new talent to the team, while maintaining the same TEAL culture, built on self-management, drive, and accountability. Sustainability will be one of the main topics on the table for us in 2022, as we are looking for ways to have a good social and environmental impact. 

What do you think are the main trends that will define 2022?

More than a trend, Environmental, Social, and Governance (ESG) goals must become principles and drivers for action in 2022 and beyond. All industries, tech and real estate included must find new and better ways to work. We are at a turning point where every step we take is critical for our future as humankind. 

I think that 2022 will also be defined by high-tech in real estate. We now have advanced VR and AR technologies, emerging metaverses, and a whole range of services that can digitally transform real estate. We do not have time for small progress anymore – clients expect state-of-the art technologies from their providers and when it comes to CRE, we want to be the one providing these services through our leasing and highlighting platform.

Among the main trends shaping for 2022, Sebastian Gutiu – Managing Partner of Schoenherr  –  mentions a considerable number of transactions. „And probably a record number of real estate project developments in all sectors, from retail to residential”, he states.

How would you describe 2021 for the business of your company? What were the main achievements of your company last year?
2021 was an Anniversary Year for our company. It has been 25 years since Schoenherr entered the Romanian market. It was a year of introspection, in which we looked closely at what we had accomplished, at the lessons we have learned in this quarter of a century and at our next steps.

We have reached the end of the year stronger and more united than we have ever been. We had learned a lot from the current situation: it’s not ideal but it’s not the end of the world either. We can navigate through unpredictable times because we know the direction we are heading to. Last year’s achievements were limited to the growth we have seen in areas such as litigation and arbitration, insolvency and competition law. We maintained our strong position in the areas established in the company, mergers and acquisitions, financial banking, capital market, real estate (including in transactions and real estate developments, as well as in construction).

Which are your main objectives for 2022?

As a team, we will continue to be well prepared in our mission to satisfy our clients’ needs. More knowledgeable, more experienced, just as anchored in the realities of the market. We will continue to focus on developing our services and moving in new directions.

How do you see the main trends shaping for 2022?

If I refer strictly to the real estate sector, it is expected that the year 2022 will bring a considerable number of transactions. And probably a record number of real estate project developments in all sectors, from retail to residential.

Legislation is unlikely to become stable too soon and we expect further changes in this area, including in real estate and construction. Then, the main dilemma in the real estate sector will be regulation: which projects will receive a building permit and under what conditions, how difficult will it be to get a PUZ?

Schoenherr is a regional law firm operating in Central and Eastern Europe and South East Europe, with 15 offices. Opened in 1996, Schoenherr’s Bucharest office was one of the first international firms on the Romanian market. Schoenherr si Asociatii SCA assists local and multinational companies on business law issues. Its real estate and construction lawyers provide legal services on transactions and developments in all sectors of the real estate market.