2024 Trends with Mihnea Serbanescu, Cushman & Wakefield Echinoxhttps://brec.ro/wp-content/uploads/2024/02/Mihnea-Serbanescu-General-Manager-Cushman-Wakefield-Echinox1-scaled.jpg705600BUCHAREST REAL ESTATE CLUBBUCHAREST REAL ESTATE CLUBhttps://brec.ro/wp-content/uploads/2024/02/Mihnea-Serbanescu-General-Manager-Cushman-Wakefield-Echinox1-scaled.jpg
27.01.2024
Mihnea Serbanescu, General Manager, Cushman & Wakefield Echinox
Top 3 trends you foresee in 2024 for the real estate market?
“The limited pipeline in the office segment will translate into rental growth, while demand is expected to remain consistent even if the renegotiations/renewals of existing contracts will be the main driver of this relatively high demand. A further rental growth is estimated also for industrial and logistics projects, where the pipeline consisting mainly of build-to-suit projects will lead to a further vacancy rate drop.
Reducing in the interest rate will sustain the recovery of the property investment activity.
New logistics and manufacturing hubs are due to be developed in Romania, an investment that will be encouraged both by the strong infrastructure plans and by the Schengen entry.”
Main challenges and opportunities in 2024?
“Main challenges in 2024 – Cost of money and difficulties in securing capital for further real estate developments, the urbanistic issues in Bucharest, a complex geopolitical context, the upcoming elections in Romania and also around Europe and the US.
Opportunities 2024 – The main opportunity for the current year lays in the fact that certain strategic properties still can be transacted at prices below the 2020 level and definitely below the 2025 level, if no new black swan shows up.”
What are your company’s business targets in 2024?
“Our main business target is to consolidate our market position as a leading real estate consultancy company, both by expanding and strengthening the existing business lines and also by adding new services which would allow us to address our ever–increasing client requests.”
2024 Trends with Francesco Curcio, Pinumhttps://brec.ro/wp-content/uploads/2024/02/Francesco-Pinum1-1-scaled.jpg844600BUCHAREST REAL ESTATE CLUBBUCHAREST REAL ESTATE CLUBhttps://brec.ro/wp-content/uploads/2024/02/Francesco-Pinum1-1-scaled.jpg
03.02.2024
Francesco Curcio, General Manager, Pinum
Top 3 trends you foresee in 2024 for the segment of joinery & facades?
“The first noticeable trend is the rising demand for aluminum joinery across the European Union, a region we aim to expand our exports. Simultaneously, in Romania, we’re witnessing a consistent upward trajectory, marked by consumers’ heightened interest in energy efficiency and a growing recognition of the value of high-quality joinery.
The second emerging trend highlights a market that is becoming more conscious of sustainability and energy efficiency. Given the undeniable signs of climate change, the urgency to adopt measures that enhance the energy efficiency of homes and minimize the carbon footprint is apparent. It is crucial to initiate efforts that encourage the adoption of energy solutions that are both more efficient and kinder to the environment. We’ve observed a growing number of customers inquiring specifically about these aspects, indicating a shift towards more environmentally responsible choices.
The final emerging trend in joinery for 2024 emphasizes bespoke solutions that seamlessly blend with the overall design ethos of spaces. This direction is marked by the integration of diverse stylistic elements: Modern design is celebrated for its clean, straightforward appeal, enhanced by wide expanses of glass; the Industrial look offers a stripped-back, minimalist allure; Scandinavian style is noted for its fusion of simplicity with functionality, often highlighted by soft, natural tones; the Classical approach enriches spaces with a timeless sophistication through refined finishes; and Minimalism distills design down to its core, employing geometric lines and a monochromatic color scheme to foster serenity and focus.”
Main challenges and opportunities in 2024?
“The change in legislation — specifically, the elimination of the 10% health insurance contribution exemption — has led to increased production costs and posed a challenge in delivering already contracted projects without significant losses for many companies.
The year 2023 was marked by the postponement of many private investments in the real estate sector. Additionally, there was a decrease in the number of building permits issued in Bucharest. The cost of borrowing significantly increased in the previous years, leading to a reduction in the number of homes purchased.
With that being said, we’re observing a notable uptick in demand for aluminum joinery and facades, with expectations of continued growth in the home renovation sector, a niche where Pinum can excellently cover.
An increasing number of consumers are in search of high-quality home improvement solutions that promise enduring value and structural integrity. Ultimately, Pinum offers products designed to serve our customers well beyond a decade, embodying lasting excellence and reliability in every piece.
We have also observed a growing demand for a comprehensive service solution from our market, alleviating customers from the intricate process of replacing their flooring, windows, and doors. Pinum is committed to delivering an all-encompassing customer service experience. From the very first step into our showrooms, customers can anticipate receiving complimentary, above-standard consultations, precise measurements by our expert team to ensure their exact requirements are met, Pinum – approved installation professionals, and a long-term post-purchase customer relationship that extends for many years after the product installation.”
What are your company’s business targets in 2024?
“We are preparing for the launch of a state-of-the-art Pinum factory. Our strategic vision entails extensive process automation to boost operational efficiency, enhance product quality, and minimize turnaround times. Within this facility, we will inaugurate a cutting-edge Pinum joinery factory, fully equipped with the latest machinery.
Furthermore, we are actively investing in digital transformation, making substantial progress in the implementation of integrated CRM and ERP systems. This initiative aims to streamline operations, reduce friction, expedite processes, and ultimately enhance the overall customer experience.
Our overarching objective remains centered on fortifying the brand’s reputation and orchestrating the expansion of our franchise network.”
2024 Trends with Mauricio Gomez, Cordia Romania & Spainhttps://brec.ro/wp-content/uploads/2024/02/Mauricio-Mesa-Gomez-Cordia-Romania-scaled.jpg900600BUCHAREST REAL ESTATE CLUBBUCHAREST REAL ESTATE CLUBhttps://brec.ro/wp-content/uploads/2024/02/Mauricio-Mesa-Gomez-Cordia-Romania-scaled.jpg
26.01.2024
Mauricio Gomez, General Director,Cordia Romania & Spain
What are the main challenges & opportunities for the residential market in 2024?
“The main challenge for the Bucharest residential market in 2024 is the urbanistic blockade. Its effects are already showing, with building permits being issued in 2023 for 0,8 mil. usable square meters versus 1,7 mil. usable square meters in 2022. In this context, the new supply of apartments will be one of the lowest in the history of Bucharest’s residential market, and, as the demand is still strong, this will put pressure on the prices, which have already grown by 10%, YoY, in December 2023.
The last quarter of 2023 showed us that the demand is there, as residential sales picked up the pace. It is true that this growth was driven by the elimination, starting with January 1st, 2024, of the minimum 5% VAT quota, but this only shows that the right product, adapted to the demand’s fundamentals and purchasing power, is set for success.
The demand is currently somewhat affected, for the time being, by the fact that the National Bank of Romania keeps the key interest rate at 7%, and this means the accessibility of mortgages and loans for potential customers is still difficult, but things will improve in H2 2024 from this point of view.
At the same time, as real estate developers are not able to start new projects because of the suspension of the PUZs, there will be a ripple effect on multiple horizontal and vertical levels, from the drop in property taxes for the municipality and in labor-related taxes for the central authorities to decreasing demand for building materials and services of construction companies.”
What are the company’s business targets for 2024?
“In theory, our objective is to develop 500 new apartments each year on the residential market in Bucharest. We are not able to start a new development in the coming months because our projects are heavily affected by the urbanistic blockade and by the lack of dialogue with the authorities.
We support responsible real estate development and have six major urban regeneration projects in Europe in our portfolio, totaling 7,000 homes, 300,000 square meters of office space, 150,000 square meters of commercial space and 110,000 square meters of green space. Despite this significant experience, which involves partnerships with local authorities in cities such as Budapest, Warsaw, Poznan, and Birmingham, we have not managed to establish such collaborations in Bucharest, although we have always shown our willingness and have even taken steps in this direction.”
What were the main business results for 2023 – in terms of apartments sold?
“We obtained the occupancy permit for the second phase of Parcului20, our project in Expoziției area in northern Bucharest in February 2023 and we reached, in December 2023, a 95% level of sales of the total of the 485 apartments comprised in both phases of the project.”
2024 Trends with Alexandru Duma, Coral Companieshttps://brec.ro/wp-content/uploads/2024/02/CC34C4F4-923D-4B1C-B6A0-425E0B1673E0-scaled.jpg900600BUCHAREST REAL ESTATE CLUBBUCHAREST REAL ESTATE CLUBhttps://brec.ro/wp-content/uploads/2024/02/CC34C4F4-923D-4B1C-B6A0-425E0B1673E0-scaled.jpg
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, BuildGreenhttps://brec.ro/wp-content/uploads/2024/02/Razvan-Nica-Managing-Director-BuildGreen1-1-scaled.jpg739600BUCHAREST REAL ESTATE CLUBBUCHAREST REAL ESTATE CLUBhttps://brec.ro/wp-content/uploads/2024/02/Razvan-Nica-Managing-Director-BuildGreen1-1-scaled.jpg
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:
The role of ESG expands from basic reporting to a key pillar in business performance and development strategy.
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.
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.
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 Flagshiphttps://brec.ro/wp-content/uploads/2024/02/IMG_0025.1.jpg599600BUCHAREST REAL ESTATE CLUBBUCHAREST REAL ESTATE CLUBhttps://brec.ro/wp-content/uploads/2024/02/IMG_0025.1.jpg
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 Romaniahttps://brec.ro/wp-content/uploads/2024/02/R6W_9068_VenusFive_ro-scaled.jpg900600BUCHAREST REAL ESTATE CLUBBUCHAREST REAL ESTATE CLUBhttps://brec.ro/wp-content/uploads/2024/02/R6W_9068_VenusFive_ro-scaled.jpg
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.”
2024 Trends with Ioana Roman, Filip & Companyhttps://brec.ro/wp-content/uploads/2024/02/WhatsApp-Image-2024-02-02-at-11.25.01-scaled.jpeg900600BUCHAREST REAL ESTATE CLUBBUCHAREST REAL ESTATE CLUBhttps://brec.ro/wp-content/uploads/2024/02/WhatsApp-Image-2024-02-02-at-11.25.01-scaled.jpeg
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 Propertieshttps://brec.ro/wp-content/uploads/2023/08/ANDREI_DIACONESCU_BREC.jpg800587BUCHAREST REAL ESTATE CLUBBUCHAREST REAL ESTATE CLUBhttps://brec.ro/wp-content/uploads/2023/08/ANDREI_DIACONESCU_BREC.jpg
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.”
Alina Conu, Kapital HR: Flexible thinking is this year`s musthttps://brec.ro/wp-content/uploads/2022/04/Screenshot-2022-04-05-174145.png558373BUCHAREST REAL ESTATE CLUBBUCHAREST REAL ESTATE CLUBhttps://brec.ro/wp-content/uploads/2022/04/Screenshot-2022-04-05-174145.png
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.
