BREC Talks

BREC Talks

Andrei Breahna, GAEP: Why Art is a “Marketing Gold” in Post – Pandemic Real Estate
Andrei Breahna, GAEP: Why Art is a “Marketing Gold” in Post – Pandemic Real Estate 740 526 BUCHAREST REAL ESTATE CLUB

 

The post-pandemic world is preparing to return to office life with the advancement of the vaccination campaign and art can be one of the most powerful tool, “a marketing gold” for real estate owners and developers, says Andrei Breahna, co-founder of GAEP contemporary art gallery in Bucharest that totally sparkled the modern cultural landscape of Bucharest in the recent years.

And this is because real estate owners know that art can make a statement about the quality and the uniqueness of their projects, Andrei says in the most recent dialogue with BUCHAREST REAL ESTATE CLUB:

Relation between Art and Employees` Mental Wellbeing  

The positive impact of art on employees’ wellbeing is pretty well documented. For instance, an extensive survey by the British Council for Offices and International Art Consultants shows that 61% of employees believe art and artists inspire them to think and work more creatively and 93% of them agree that art makes spaces more welcoming for both staff and visitors.

Furthermore, there is growing evidence that an appealing workplace can increase productivity. The key, however, is to make employees part of the process, not just hang some artworks on the walls. In a study by Identity Realization, a research group based at the University of Exeter, the researchers created three types of working environments: a “lean” office, with minimal decoration; an “enriched” office, with plants and art; and an “empowered” office, in which the staff could decide what they displayed and how. The results were persuasive. People in the enriched office worked about 15% faster than those in the lean office. Productivity and wellbeing increased even further – by around 30% – in the empowered office.

Why Art & Real Estate 

Traditionally, art has been used as a high-end amenity to attract clients. ”Art can be marketing gold” is something of a leitmotif, especially for luxury real-estate developers in the US and Asia. That’s because they know art can make a statement about the quality and the uniqueness of their project. And with the right artworks, either acquired and commissioned, it is a powerful statement.

What excites me when travelling abroad is to see that art is more than an island in these premium buildings. It is an integral part of the fabric of the city. In New York, any major new civic space or public infrastructure project has some public art. Hospitals help patients heal with the power of art. The numerous museums, galleries and artist-run spaces are creative hubs full of energy.

Circling back to the idea of art being part of people’s lives, I think real-estate projects at all price ranges can employ art to make people feel proud of the places they live or work in. And developers do have a lot of options: buying artworks, commissioning site-specific works, presenting rotating exhibitions, sponsoring on-site art programming, offering different art-related experiences to prospective clients, etc. Where should they start? The first step is simple: start a conversation with a gallery who represents artists and has access to a significant number of artworks. 

Added Value of Art in Office Buildings 

It can definitely be used as an identity and branding tool, especially here, in Bucharest, as the number of office buildings that have incorporated art is quite low. Looking at best practices in other countries, one notices that companies select or commission artworks that embody their values or their organizational spirit.

For organizations with CSR or outreach programmes, art can foster better community relations – for instance, by supporting local artists.

And in the post-pandemic reality, when the office will compete with more relaxed working spaces (home, first of all), it is essential that the office is a place where people like to be in. A destination of choice. Art can contribute to this, as well.

Art and Real Estate Investments  

I see them as complementary investments. If you’ve put your money into real estate, why not enhance the space with art? It will create a more aesthetic environment and it will increase property values.

As for the reasons to invest in art, I noticed a subtle mix of financial and non-financial drivers. Art buyers want to beautify their spaces, to express their tastes and to share their interest in art with friends or social contacts. But they also buy art to diversify their wealth portfolio or as a hedge against inflation. An interesting recent development is that financial motivations tend to decline with age: according to the global survey Art Market Report 2020, three quarters of millennial art collectors regard financial factors as important versus a third or less of people over 55.

About Andrei Breahna & GAEP

Cultural manager, gallerist and collector, Andrei Breahna is the co-founder of GAEP, a contemporary art gallery with a vibrant exhibitions programme featuring the work of established and emerging artists. Since 2014, the gallery has presented more than 30 exhibitions in its elegant space on 50 Plantelor Street, Bucharest and has participated in over 20 international art fairs, including the award-winning participations at ARCOmadrid 2019 and Artissima 2017.

BREC Members: AlProf Aluminium Boosts Business in January 2021
BREC Members: AlProf Aluminium Boosts Business in January 2021 740 525 BUCHAREST REAL ESTATE CLUB

AlProf, one of the most important aluminium extrusion producers in Romania, states that January has been an atypical month in the profile industry, with production capacity having tripled due to the large number of contracts signed this month.

With the European Union having imposed duties of up to 48% on imports of aluminium extrusions from China, the local production boosted, with local producers having to cover the gap generated by the absence of the Chinese supply in Europe.  

“Traditionally, January has always been a rather quiet month in terms of contracts negotiations, but this year we had to increase our capacity in order to deliver to our customers` needs. Our clients in the automotive, constructions or hard industry are not slowing down their production capacities and their supply necessary needs to be covered from other sources, now that the EU has imposed the high taxes to China”, says Enis Ibraim, AlProf Executive Director.

At the end of 2020, The European Union announced it will impose duties of up to 48% on imports of aluminium extrusions from China midway through an investigation into whether Chinese producers are selling at unfairly low prices. The European Commission, which coordinates trade policy in the 27-nation European Union, opened an investigation in February 2020 into the product widely used in transport, construction and electronics after a complaint from industry body European Aluminium.

AlProf holds a production capacity in Constanta county and activates in the field of extrusion and production of aluminium components for a range of industries such as construction, automotive, ventilation or the heavy industry.

1.02.2021

Psychotherapist`s View: Why #BackToOffice is Better for Employees` Mental Health
Psychotherapist`s View: Why #BackToOffice is Better for Employees` Mental Health 740 528 BUCHAREST REAL ESTATE CLUB

As a new post-pandemic life is contouring on the horizon with the vaccination campaign having started worldwide, there is also debate over the new work format after the “work from home” era. While some companies still plan to extend the remote work, a new “hybrid” scenario is profiling, with at least 2 or 3 days per week in the physical office space.

As it is still early to completely foresee the large employers` decisions in the next 12-24 months, BUCHAREST REAL ESTATE CLUB took the opportunity to talk to reputed Romanian psychotherapist Anca Maftei, as to investigate more on the impact that “work from home” format has on people and what would be the effects of not returning, for at least part of the time, in the physical office.

“Full time remote work has had a strong impact on the employees` emotional health, as it also came with loneliness and social isolation. We witnessed a major increase of the depression and anxiety cases and the number of people who accessed psychotherapy services increased dramatically. Among my clients, 4 out of 5 of them reported that remote work affected their mental health and they felt a lot of fear, irritability and concern”, says systemic psychotherapist Anca Maftei, who is also the Creator of the Integrative Self Process therapy method.

For most people, sudden transit to remote work was a major stress, she adds. Those who had to work from home experienced a lot of anxiety and stress. One of the reasons, Anca Maftei explains, is that they felt insecure and that they lacked the necessary support – and this was mostly felt by the young and lonely people.

“This lack of physical connections with others can impact us deeply, for all of us have the need to belong deeply rooted in our DNAs. At an ancestral level, individual`s survival was deeply connected to the need to belong to a group. Many studies point that this social separation may result into sleep disorders, alteration of the immune system, increase of the inflammation status and increase of the body stress hormones level”,  psychotherapist says.

“Moreover, when we work from home we are tempted to forget about time and work sometimes many extra hours. For those people who don`t have an office or a separated physical space for work, there is no clear delimitation between the professional and personal life. It is very important to make the difference between the various areas where we activate as persons. For people who worked remotely it was very difficult to distinguish between the professional sphere, health, their social environment and the pleasant or relaxation activities – and maintaining an equilibrium between these aspects is essential for keeping our mental integrity. When work, personal life activities and the other activities happen all in the same physical space this equilibrium is difficult to find”, psychotherapist Anca Maftei completes.

Anca Maftei is a systemic psychotherapist, creator of the Integrative Self Process therapy method, hypnotherapist and transformational workshops facilitator.   

(26.01.2021)

New York based AI property platform Facilio: Romania is a key market in our strategic expansion
New York based AI property platform Facilio: Romania is a key market in our strategic expansion 1600 985 BUCHAREST REAL ESTATE CLUB

New York based AI property platform Facilio: Romania is a key market in our strategic expansion

Founded in 2017, Facilio is founded by ex Zoho Corporation veterans and is a leading AI-based property operations platform that helps real estate portfolios aggregate building data, optimize performance in real-time and control operations – all from one place.

Headquartered in New York City with offices in Padova, Dubai, Chennai & Singapore, Facilio is a global company backed by leading investors including Accel Partners venture capital firm and Tiger Global Management investment. 

“Facilio has a fast-growing presence in Southern Europe and Romania is a key market in our strategic expansion,” says Prabhu Ramachandran, CEO & Founder of Facilio for BUCHAREST REAL ESTATE CLUB.

There is a stringent need for the existing building stock in the region to be brought in line with energy efficiency standards, in addition to the renewed focus on safety, comfort, and building health compliance. Facilio’s AI-based property operations software platform helps real estate owners and operators with real-time operational intelligence to manage, maintain, and operate large portfolios with agility. It helps operatives aggregate building data, optimize portfolio performance and control operations – all from one place, Facilio representatives explain.  

Facilio CEO: Digitalization brings multiple opportunities for Romanian buildings 

Energy efficiency of buildings is a priority of EU policies on energy and climate goals. The review of the Energy Performance of Buildings Directive has brought new requirements for the introduction of smart building technologies to boost sustainability, improve building performance, and enhance the overall quality of comfort and experience of occupants, through digital retrofitting and renovation approaches. 

“The digital transformation in buildings and energy performance poses multiple new opportunities for Romanian buildings to harness existing system data and innovate in portfolio operations, meet climate goals and deliver a seamless occupant experience with an IoT-led solution like Facilio”, explains the CEO & Founder of Facilio.

5.5 mil. Sqm of Property managed with Facilio

With its hardware-agnostic IoT Edge agent, Facilio aggregates hard-to-access building data onto a single platform-within days (and not weeks). Facilio provides a suite of apps for O&M management including maintenance management, connected buildings solutions, and tenant experience management. 

Facilio customers total 60 million square feet (5.5 mil. sqm) property in the commercial office, healthcare & retail categories, using the platform to reduce operations costs, increase net asset value & de-risk operational liability. The ICD Brookfield Place in Dubai (photo), a modern mixed – use development with dining, community and retail spaces, with over 90.000 sqm of office space, is one of Facilio`s clients in UAE. 

(19.01.2021)

Ben Adams, Founding Director, Ben Adams Architects
Ben Adams, Founding Director, Ben Adams Architects 3540 5034 BUCHAREST REAL ESTATE CLUB

BREC Talks to Ben Adams

Founding Director, Ben Adams Architects

``Office buildings need to be interesting, creative, non-standard and exciting to be in. Bucharest is still building largely boring buildings and needs to wake up to the demand for better buildings that let at higher rents..``

Established in 2010, Ben Adams Architects has quickly developed a reputation for elegant, contextual architecture balancing function with an appropriate degree of innovation and flair.  With offices in London and Los Angeles, the architectural studio has in its portfolio clients such as Nobu Hotel, Derwent London, The Science Museum, Great Portland Estates etc. The company’s founder, Ben Adams, has recently visited Bucharest for un upcoming project and shared with BREC his opinions on the development of the city.

Bucharest is now experiencing a “natural gentrification” phenomenon. How do you see the potential of historic, industrial buildings in Bucharest? What successful examples did you develop/ see?

Bucharest is a beautiful city, with a long history and a unique position in Europe between the ‘old’ countries of Western Europe and the new frontier to the East. Bucharest should position itself as a vibrant mix of old and new, with so many opportunities for those looking to make a difference. Be brave.

The historic buildings and industrial heritage of Bucharest are one of its most powerful assets.

We have seen Brooklyn explode with developments in old Industrial neighborhoods, and Shoreditch in east central London is now one of the most desirable parts of the city in which to live and work. Making something new by reinventing your heritage has driven development in London, New York, Chicago, Berlin and many other successful cities in the last twenty years. Bucharest needs to embrace this process and recognize how powerful it is as an engine of change. We are working on a huge re-use project in Grivita that is a great example of this phenomenon.

You have recently visited Bucharest – what type of projects do you think Bucharest can accommodate now? What idea would you give a developer to build together with you in Bucharest?

I think the market in Bucharest is maturing as new office buildings, shopping malls and residential projects appear in different parts of the city. What I haven’t seen is the kind of characterful mixed-use buildings that are common in cities like London and Los Angeles. They can be large or small, and the mix of uses is what makes local neighborhoods desirable, interesting and also valuable.

What should Bucharest do to attract international investors (let`s say, your clients from London)?

I think Bucharest needs to shout about its growth and the returns that are on offer from what is a low commercial basis. It means you can acquire land at low cost and build projects in phases according to demand. I know that a lot of office space in Bucharest is pre-let before the buildings are begun, or complete, and this suggests that there is a big opportunity for investors in speculative buildings that stand out from the crowd.

What`s your proposal for economically efficient office buildings? How would you help a developer maximize his investment through architecture?

Office buildings need to be interesting, creative, non-standard and exciting to be in. For many years the office market was boring and repetitive and then everything changed about ten years ago in London, New York and Los Angeles. Bucharest is still building largely boring buildings and needs to wake up to the demand for better buildings that let at higher rents. There is some evidence of this happening near the Government in Piata Victoriei but it is an exception for the moment.

Ben Adams, Founding Director, Ben Adams Architects
Ben Adams, Founding Director, Ben Adams Architects 3540 5034 BUCHAREST REAL ESTATE CLUB

BREC Talks to Ben Adams

Founding Director, Ben Adams Architects

``Office buildings need to be interesting, creative, non-standard and exciting to be in. Bucharest is still building largely boring buildings and needs to wake up to the demand for better buildings that let at higher rents..``

Established in 2010, Ben Adams Architects has quickly developed a reputation for elegant, contextual architecture balancing function with an appropriate degree of innovation and flair.  With offices in London and Los Angeles, the architectural studio has in its portfolio clients such as Nobu Hotel, Derwent London, The Science Museum, Great Portland Estates etc. The company’s founder, Ben Adams, has recently visited Bucharest for un upcoming project and shared with BREC his opinions on the development of the city.

Bucharest is now experiencing a “natural gentrification” phenomenon. How do you see the potential of historic, industrial buildings in Bucharest? What successful examples did you develop/ see?

Bucharest is a beautiful city, with a long history and a unique position in Europe between the ‘old’ countries of Western Europe and the new frontier to the East. Bucharest should position itself as a vibrant mix of old and new, with so many opportunities for those looking to make a difference. Be brave.

The historic buildings and industrial heritage of Bucharest are one of its most powerful assets.

We have seen Brooklyn explode with developments in old Industrial neighborhoods, and Shoreditch in east central London is now one of the most desirable parts of the city in which to live and work. Making something new by reinventing your heritage has driven development in London, New York, Chicago, Berlin and many other successful cities in the last twenty years. Bucharest needs to embrace this process and recognize how powerful it is as an engine of change. We are working on a huge re-use project in Grivita that is a great example of this phenomenon.

You have recently visited Bucharest – what type of projects do you think Bucharest can accommodate now? What idea would you give a developer to build together with you in Bucharest?

I think the market in Bucharest is maturing as new office buildings, shopping malls and residential projects appear in different parts of the city. What I haven’t seen is the kind of characterful mixed-use buildings that are common in cities like London and Los Angeles. They can be large or small, and the mix of uses is what makes local neighborhoods desirable, interesting and also valuable.

What should Bucharest do to attract international investors (let`s say, your clients from London)?

I think Bucharest needs to shout about its growth and the returns that are on offer from what is a low commercial basis. It means you can acquire land at low cost and build projects in phases according to demand. I know that a lot of office space in Bucharest is pre-let before the buildings are begun, or complete, and this suggests that there is a big opportunity for investors in speculative buildings that stand out from the crowd.

What`s your proposal for economically efficient office buildings? How would you help a developer maximize his investment through architecture?

Office buildings need to be interesting, creative, non-standard and exciting to be in. For many years the office market was boring and repetitive and then everything changed about ten years ago in London, New York and Los Angeles. Bucharest is still building largely boring buildings and needs to wake up to the demand for better buildings that let at higher rents. There is some evidence of this happening near the Government in Piata Victoriei but it is an exception for the moment.

(31.07.2018)

Adrian Untaru – Co-founder, ADNBA
Adrian Untaru – Co-founder, ADNBA 1103 666 BUCHAREST REAL ESTATE CLUB

BREC Talks to Adrian Untaru

Co-Founder, ADNBA

``We have many small developers that don’t allow the risk to get out of a pattern and, in this way, we have an excess of similar products. The demand for new homes is high, whatever there is on the market is being sold and we produce what has been sold.``

With an experience of 15 years, ADNBA has established a reputation as a creative designer for residential compounds, being responsible for projects such as Urban Spaces, Occidentului 40, Forte Partners’ Aviatiei Park or Avalon Estate of Prime Kapital. As residential sector is rapidly developing we took the opportunity to question the co-founder of the architectural company, Adrian Untaru about the challenges of this new evolution.

How do you evaluate the evolution of the residential market in the last couple of years, as regards the requests of developers towards the designers?

We think there are too few examples of projects developed on long term, projects with mixed functions, much more suitable to a coherent development of the city. We don’t have a strategy for the city’s development. We have many small developers that don’t allow the risk to get out of a pattern and, in this way, we have an excess of similar products, wit no possibility of being differentiated. The demand for new homes is high, whatever there is on the market is being sold and we produce what has been sold.

Do the developers pay more attention to the design stage?

Yes. There is indeed a bigger involvement of developers in the design stage. Their experiences have probably shown that a project not thoroughly designed has small chances to go well. Also, the increasing competition on the market is probably the single benefit of this intense residential demand.

Do you receive requests for developing communities and not necessarily residential condos, as they have been perceived up to now?

We do receive those type of requests, but there are more likely exceptions. We have recently been involved in the development of such a project. A design process which took 18 months for an 8-hectare plot. There we had the opportunity to create a community as we envision, with a housing mix specific to a community, where we have individual and in line houses and apartments in low rise buildings, all of those along a service area, a club, a kindergarten, and a park accessible to all residents. We would like to see more approaches of this type and we refer here to a long-term development strategy.

How do you think the new quality residential developments in Bucharest will look like in five years from now? What architectural trends we will see? And what types of facilities there will be offered?

We believe, or better said we hope for a quality increase of the new residential developments. And we do not refer here to a more expensive finishing, which doesn’t necessarily lead to a different way of living. We hope for an education of consumption towards the quality of the living space, towards a building in which we enjoy staying as well as we enjoy looking at it. Homes are, for most of us, the most important investment during lifetime. The way these homes pass the time test directly influences the investment. This can go up or down, according to the overall quality of the entire project. And in the last couple of years we have noticed many examples in both cases, enough to help this economic education we need so badly.
On the other hand, is possible that the new generations to be more mobile and to prefer to rent, instead of buying. In this situation it would be much easier to change a home in a less qualitative project. This process could lead to new opportunities on the market: specialized entities which own and professionally administrate residential assets; a qualified client able to evaluate the sustainability of a new development.

In conclusion: integrated developments, probably of big dimensions, with common facilities which will bring a plus in quality living, responsible developed.

(3.07.2018)

Laurențiu Lazăr – Managing Partner & Director Investment Services, Colliers International Romania
Laurențiu Lazăr – Managing Partner & Director Investment Services, Colliers International Romania 1720 1704 BUCHAREST REAL ESTATE CLUB

BREC Talks to Laurențiu Lazăr

Managing Partner & Director Investment Services, Colliers Romania

``Romania has been historically a market searched by speculative investors, but we can notice this trend changing. We can see a stronger interest from institutional investors, which look for large buildings and excellent tenants.``

The local branch of worldwide real estate services company Colliers has a history of more than 20 years on the Romanian market, offering a complete range of real estate advisory services. We took the opportunity to conversate with company’s leader about the investment market and new players on this segment.

How do you evaluate the quality of the real estate products developed in the last years? What advices would you give to developers in search for investors?

The quality of the traded real estate products has significantly improved in the last couple of years. The products that are already sold are at the same quality with those in CEE and Western regions. Also, the quality of tenants has constantly improved. We see new, large companies entering Romania, while local ones are developing at fast pace.

All of these factors translate into a strong demand for offices, retail and industrial spaces. The quality of the building and of the tenants are obvious criteria for attracting new investors. Nevertheless, developers don’t have reasons for unrealistic price expectations, as investments yields for office buildings in Bucharest are at the level of regional cities in Poland. And this gap will be reduced gradually, and not suddenly.

What are the main factors influencing the local investment market in 2018?

Investors’ appetite for real estate assets is obviously increasing as compared to last year, with the office sector taking the lead. In the first semester there have been two major deals and we believe other large transactions will follow.
The appeal of the Romanian real estate sector is given by the local vs regional yields differentiator as well as the effervescence of the local business environment, a fact acknowledged by the impressive economic increase (6.9% in 2017, the biggest in European Union).

What is the profile of the foreign investor that will enter the Romanian market and SEE region? Local/regional platforms or more likely from areas such as USA/Asia?

Romania has been historically a market searched by speculative investors, but we can notice this trend changing. We can see a stronger interest from institutional investors, which look for large buildings and excellent tenants. Of course, an effect of the market’s development is attracting top investors from regions which have not been yet extremely active on the local market (including North America and Asia).

Do we have products on the market at the standards of large, institutional investors? What must be done to attract new investment platforms in Romania?

In 2017 we had a reduced number of products at the standards of institutional investors, but beginning with 2018 we have a much larger offer. The most common opinions from them are referring to the predictability of Romania’s economic policies. I believe we need more stability in this regard to attract more institutional investors. In other words, the eternal story of structural reforms still remains on the agenda. The most important ones would be the improvement of the educational system and the development of the terrestrial infrastructure (especially roads and railways), which would significantly progress the perspective of the local economy on a longer term and, implicit, would also create new opportunities for the real estate segment.

(28.06.2018)

Roxana Dudau, Associated Partner, Noerr
Roxana Dudau, Associated Partner, Noerr 800 642 BUCHAREST REAL ESTATE CLUB

BREC Talks to Roxana Dudau

Associated Partner, Noerr

“There is an increased interest in high quality mixed use projects -mostly involving urban regeneration or reconversion of former industrial platforms- as well as for smart city technologies not only in Bucharest but also in regional cities.“

Roxana Dudau, Associated Partner heads Noerr’s Real Estate & Construction Department in Romania. She is a well-known & reputable real estate expert on the Romanian market. BREC talked with Roxana about the main factors influencing the local real estate investment market, the quality of the products and the pottential of each sector.

Which are the main factors influencing the local real estate investment market?

Apart from the global factors, i.e. global economic fragility, political uncertainty and the global financial environment, the refugees’ crisis, looming trade wars etc. which are com-mon for the entire region, the main local factors influencing the investment market in Romania remain the fiscal and legal unpredictability (amendments in these fields being constantly passed by the authorities), cumulated with a labor-force shortage that pre-vents companies from further growth. Fiscal uncertainty, namely incessant fiscal amendments triggered by the Government’s in-tention to fill the holes in the budget, has a direct negative impact on investors (also in the real estate field) and remains one of the main factor influencing local investment this year as well.

Other fiscal provisions affecting the investment market are the increase of mini-mum wage and the transfer of the social contributions from the employer to the employ-ees.
The relevant legislation for the real estate market seems to be targeted by the authorities, as well, as some law drafts aiming at structural amendment of the construction law and its methodological norms, as well as the preliminary theses of a unified construction and town planning code were recently in public debate.

How do you find the quality of the real estate products developed in the last couple of years? What piece of advice would you give to developers looking to attract investors?

It is clear that the quality of the real estate products developed during the last years in-creased tremendously. All new projects envisage to obtain a green certification, and this is pursued starting with the inception phase. This applies not only for office buildings, but late-ly also for retail and residential products. There is an increased interest in high quality mixed use projects (mostly involving urban regeneration or reconversion of former industrial platforms) as well as for smart city technologies not only in Bucharest but also in regional cities.
The most important piece of advice for investors (especially for larger investments involving urban regeneration) is to conduct a local survey with the aim to involve the local community in the process of creating the concept of the new investment or adapting it to local needs and also to establish a direct communication with the local decision makers/authorities to identify the best means to include the new investment within the larger urban plan of the lo-cality. Big projects often require a strategic approach of extending the existing infrastructure or creating a new one to sustain the new needs resulting from such investments.

What type of products are most sought after by investors in 2018?

I think the office sector shall further expand in 2018. The retail segment will expand as well, but mostly in the regional cities and in smaller schemes, as in Bucharest no new large pro-jects have been announced (except for some extensions). The star of the year 2018 seems to be the residential sector, which will likely record the fastest growth.

Marc Jongerius, Managing Director & Co-founder Zoku
Marc Jongerius, Managing Director & Co-founder Zoku 2490 3598 BUCHAREST REAL ESTATE CLUB

BREC Talks to Marc Jongerius

Managing Director & Co-founder Zoku

“Zoku is an entirely new product category: a home-office hybrid, suitable for long stays, with the services of a hotel and the social buzz of a thriving neighborhood.“

As new generations enter workforce market and start spending money, new, innovative real estate products are developed targeting them. Zoku Amsterdam was opened in 2016 and is a “combination between Airbnb and WeWork”, as Business Insider pointed out. The company is now developing in Europe, so BREC talked in an exclusive interview with Marc Jongerius, Managing Director & Co-founder Zoku about targeted cities and the expansion model.

What is the secret behind the success of Zoku?

The secret to our success lies in our ability to really understand the needs, wants and frustrations of our target audience. In developing Zoku, we did extensive research and found out that current offerings were often perceived as too traditional and not flexible enough for global nomads.
Where traditional hoteliers start with a floor plan, we see this as our end station. Instead, we started with a blank canvas to define how we can create more value for our guests compared to industry alternatives. We defined and tested all functional experiences that people would like to have to make their stay convenient, efficient and comfortable. After this we defined how we can increase the experience even further by offering tailor-made services, creating a social concept where people feel relaxed and well immediately, and designing a seamless integration of the on- and offline guest experience to really enrich people’s lives while living and working abroad.

Previously, none of this had been developed for the long stay segment.
Before going to the drawing board, we coined factors and ideas that would result in an attractive price point as well (leaving the frills out and creating space in less square feet). Most importantly, Zoku was a real crowd-sourcing project, where the entire concept was developed in close co-operation with our target audience, who extensively challenged us and tested all four prototypes and concept designs.
Designed in collaboration with Concrete, the award-winning interior design and architecture agency, Zoku is an entirely new product category: a home-office hybrid, suitable for long stays, with the services of a hotel and the social buzz of a thriving neighborhood. It’s a relaxed place to live, work and socialize with like-minded people while getting wired into the city.

What are your targeted cities for expansion? How do you see the potential for SEE Europe in general and Bucharest/Romania in particular?

Zoku aims to create an international community network of Zokus through an international rollout in cities that are innovative, tolerant and have a large international network.
In the next years, it is our ambition to open at least five new locations with around 750 units, focusing on European cities such as London, Berlin, Paris, Hamburg, Barcelona, Vienna Zurich or Copenhagen.
Zoku is always looking for interesting opportunities in areas that will be rapidly developing in the upcoming years. When we find an opportunity in a city that matches our pre-defined criteria, we will definitely always look into it.

What is the expansion model? Do you take financing for expanding the network or do you consider to franchise?

Zoku will keep the operation of its hotels within the company and can be realized in existing buildings as well as on new-built locations.

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