Romania

2024 Trends with Cora Cristescu, Atalian Romania

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

21.01.2024

Cora Cristescu, CEO, Atalian Romania

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

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

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

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

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

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

Main challenges and opportunities in 2024?

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

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

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

What are your company’s business targets in 2024?

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

2024 Trends with Ioana Roman, Filip & Company

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

20.01.2024

Ioana Roman, Partner, Filip & Company

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

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

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

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

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

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

2024 Trends with Andrei Diaconescu, One United Properties

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

20.01.2024

Andrei Diaconescu, Co-Founder, One United Properties

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

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