What will drive the Romanian real estate market in the future: sustainable living or direct foreign investments?

The slowdown of the economy on a global level is the talk of the new decade with a lot of analysis to back it up. Slower economic growth is expected in Romania this year, that will also influence the evolution of the real estate market, according to Colliers International. With all this in mind, what are the biggest opportunities in real estate right now? How essential are the emerging trends in today’s infrastructure? And what will the evolution of the commercial real estate bring to the table?

This is the right time for real estate changes to happen and the perfect moment for people to become more flexible and continue to develop new skills that will be needed in tomorrow’s economy. Sometimes we just need a glimpse of what’s on the horizon for things to start changing.

Sustainable living: the need for the new decade

The road to a more sustainable world is paved by people with creative minds that have the necessary instruments to make a difference. Sustainability is considered a hot topic nowadays due to the rapid degradation of our planet. In the real estate market, building an eco-friendly property is much more expensive than building a traditional one.

In Romania, the concept of building a sustainable home or office it’s starting to take form. The biggest kinetic floor in an office building worldwide it’s located in the Globalworth Tower, a place that generates energy through motion. We believe that this is only the beginning of what can be created in our country.

Analyzing the data registered on the real estate market, we can say that this industry has evolved in 2019 and it is becoming more and more complex, as it begins to assume the important role it plays in the society. From an advisory perspective, some aspects of real estate, like asset valuation, visual due diligence and data rooms should be automated, requiring a more consistent approach to data.”, mentioned Ella Chilea, Partner, Audit & Assurance Services, Mazars Romania.

Emerging trends in infrastructure and commercial real estate

Everyone is talking about infrastructure these days and it can generate a lot of exposure, but also many opportunities for different businesses, investors and infrastructure opponents. This will be a decade where people will want to make their voices heard and where safety will become the number one priority.

Considering Romania, investments in the infrastructure have a huge potential.

Romanian stock has increased significantly in the last decade and there is more liquidity generated by different and new investors. The low interest rate is generating opportunities and new project funding for crowd type of investment structures. New areas are created to reduce the distance between work, home and retail.”, mentioned Edwin Warmerdam, Partner, Tax Advisory, Mazars Romania.

Commercial real estate today it’s not what it was 20 years ago. Diversity, professionalism, and future-driven are the words that this industry goes by nowadays. In Romania, the demand for office leasing transactions was higher with an estimate of 15% in the last year in comparison with the third quarter of 2018. 

Although the regional top is dominated by companies with foreign shareholding, there are many companies with Romanian capital that had exceptional results last year, the most intense activity is registered at the national urban level. According to CBRE Research data, in the first nine months of 2019, about 290,000 sqm of offices were leased in Bucharest, with almost half of the demand coming from IT&C companies. The digitalization of the real estate sector pushes recent constructions to incorporate equipment and connectivity, thus optimizing their use and maintenance.” mentioned Ella Chilea, Partner, Audit & Assurance Services, Mazars Romania.

Amidst all this talk about the real estate market, Mazars has released in 2019 a study of listed European construction companies. An interesting takeaway from the report is the fact that there has been a growth of more than 6% of leading construction companies in Europe, which was driven by several factors like healthy order, the prolongation of big projects and successful international development.

Media Contact

Emilia Popa, Head of Marketing and Communication, Mazars Romania
Emilia.Popa@mazars.ro | +40741.111.042

About Mazars

Mazars is an internationally integrated partnership, specialising in audit, accountancy, advisory, tax and legal services[1] . Operating in 91 countries and territories around the world, we draw on the expertise of 40,400 professionals – 24,400 in the Mazars integrated partnership and 16,000 via the Mazars North America Alliance – to assist clients of all sizes at every stage in their development.

In Romania, Mazars has 25 years of experience in audit and financial consulting, tax services, accounting, payroll and personnel administration. The local team is formed of 220 professionals. 

www.mazars.ro | https://www.linkedin.com/MazarsRomania/

[1] Where permitted under applicable country laws

This is the right time for real estate changes to happen and the perfect moment for people to become more flexible and continue to develop new skills that will be needed in tomorrow’s economy. Sometimes we just need a glimpse of what’s on the horizon for things to start changing.

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