Bucharest attracts investments totalling over EUR 3.5 billion in large-scale projects, developed in 2020 and in course of delivery until 2023, according to the latest market analysis conducted by BUCHAREST REAL ESTATE CLUB – “THE NEW FACE OF BUCHAREST”.
The value includes investments in major urban regeneration projects, which bring back to the communities the former abandoned industrial platforms in central areas of the city, in new office buildings integrating smart technologies adapted to the new hygiene and health conditions, in modern residential, which defines new living standards in Bucharest, in new retail schemes and logistics hubs in the vicinity of Bucharest, as well as in infrastructure projects.
The capital of Romania has become a technology and innovation hub, as highlighted by the Financial Times ranking, which places Bucharest on the 7th place in the Top 25 “Tech Cities of the Future 2020/2021”. At the same time, in the pandemic context and with the acceleration of digitalization, it is expected that the main software and digital solutions companies will continue to accelerate their development.
50% OF THE TOTAL INVESTMENTS VOLUME IS REPRESENTED BY THE LARGE URBAN REGENERATION PROJECTS, THE NEW OFFICE HUBS AND THE TRANSFORMATION OF THE ULTRA-CENTRAL AREA OF BUCHAREST.
According to BUCHAREST REAL ESTATE CLUB data, local developers as well as international investment funds are investing approximately 1.6 billion euros in modern projects, which will completely change the Bucharest real estate landscape.
Urban renewal projects on former industrial platforms create new areas of interest, with mixed functions (offices, housing, retail) and multiple facilities (green spaces, areas for outdoor sports and playgrounds), while offering the possibility to work in the home proximity. Such developments analyzed by BUCHAREST REAL ESTATE CLUB are One Floreasca City, One Cotroceni Park, Timpuri Noi Square – Vastint, Fosta Fabrică – Hanner or Estoria complex. On the office market, some projects have been converted into residential spaces, but investments have not been stopped.
The most important office hubs, with new projects completed in 2020 or under development in 2021-2023 are the Central – Western area (One Cotroceni Park, Campus – Skanska, The Light), South – Center (Timpuri Noi Square – Vastint, U Center – Forte Partners), Barbu Văcărescu (Globalworth Square and Equilibrium – Skanska), Pipera (Globalworth Campus), Expozititiei (J8 Office Park – Portland Trust and @Expo – Atenor) or Băneasa with MIRO Offices by Speedwell. The Ultra – Central area is also on investors` radar, some of the most important projects here being One Tower by One United Properties or Țiriac Tower – Țiriac Imobiliare. At the same time, developers are investing in existing properties, preparing them for the increasingly sophisticated requirements of tenants and buyers: Bucharest Business Park (CA IMMO), myhive (Immofinaz) or One North Gate (One United Properties) being just a few examples.
Post-pandemic trends on the Bucharest office market
While international green building certifications BREEAM or LEED have already become a standard for the new office buildings in Bucharest, major developers have increasingly addopted the WELL certification – an international standard that certifies the quality of the interior air and construction to parameters that ensure the wellbeing of employees who will work in these buildings.
Innovation and integration of smart technologies are also becoming increasingly important for developers, with new buildings benefiting from touchless technology or innovative air disinfection systems, which ensure a higher degree of hygiene and safety for the buildings occupiers.
Geothermal systems or photovoltaic roofs are also some of the features of the new office buildings,signaling thatthe buildings` energy efficiency is also becoming a standard among institutional real estate developers.
The new hybrid work format
Given the start of the global vaccination campaign, market experts estimate that most of the companies will choose to work for at least 3 days a week from the office, leaving certain segments of employees the flexibility to continue to work from home.
”In 2020, aproximately 25.000 persons called ATLAS Help Line, a phone line for psycho-emotional support; beyond the pandemic – related difficulties (depression, anxiety), they also reported problems related to the lack of adaptation to working from home: stress, sleeping problems, difficulties in managing their relations with thei families and colleagues. Also, more than 20.000 online psycho-therapy sessions took place on atlas.app, while the self-evaluation tools available there (stress, depression, anxiety, burnout, quality of life, financial wellbeing scales) and the specialized content on the blog were constantly accessed by a large audience. A significant increase of 100% was also registered among our corporate clients, as companies in Romania contracted the ATLAS services as support for their employees in this period,” Dr. Mihai Bran, primary psychiatrist and co-founder of ATLAS, digital health and wellbeing platform that grew exponentially in the recent years, stated for BUCHAREST REAL ESTATE CLUB.