HILTON GARDEN INN CRAIOVA—A NEW HOTEL DEVELOPED UNDER VITALIS COORDINATION
The magic of the winter holidays shines in the hearts of all of us this season. The spirit of Christmas is felt in our homes, at work, on the streets, in shops – it is everywhere.
An amazing place in Romania that annually hosts one of the most beautiful Christmas markets is Craiova. It is internationally recognized for its decorations that leave you breathless. The city transforms into a real fairytale during the month of December, and the image of the city takes on a special contour. We see how something done with devotion can change the face of a city. The same happens through the projects we coordinate. An example of a project that we are developing in Craiova and that we are sure will bring added value to the city is the Hilton Garden Inn Hotel. We have a team that permanently coordinates this project by providing Project Management, Site Management, Site Inspection and Health & Safety Coordination Services. As we have been doing for over 18 years, our involvement is based on the idea of #Building Trust, which is why this is not our first project under Hilton brand. In the past, we were also involved in the development of Hilton Garden Inn Bucharest, a hotel in the center of Bucharest.
The current Hilton Garden Inn Craiova will bring a fresh breath of air to Craiova city, combining the modern architecture of the building with notes of elegance and attention to detail. . The 4* unit will be composed of 179 rooms, a fitness gym, a restaurant and everything necessary for a hotel to satisfy its customers.
Tourism in Craiova is growing, and the demand for accommodation units motivates developers to act in the hospitality area.
We are glad to be involved in a new hotel project, an area so interested in the real estate field.
We strongly believe that Romanian tourism is growing, and new accommodation units are needed to cover the need. Experience, dedication and professionalism are the 3 ingredients for a successfully delivered project.
Optimistic Outlook for the Romanian Real Estate Market in 2025
Investors are optimistic when it comes to their Romanian portfolios over the next 12 months, a clear improvement compared with the previous year. According to the 3rd edition of the Cushman & Wakefield Echinox “Real Estate Investors Sentiment Barometer” conducted among the main real estate investors and developers in Romania, 64% of respondents forecast an increase in portfolio values, 30% expect stagnation, while only 6% anticipate a decline. Cushman & Wakefield Echinox surveyed the top management of local, regional and global investors and developers, with a combined Romanian real estate portfolio valued at more than €15 billion, thus having a share of approximately 50% of the local modern real estate market. Bucharest and the secondary markets consolidated their positions as the preferred investment destinations.
Almost 80% (compared with 66% in 2023 and 63% in 2022) of respondents indicate Bucharest as their main location for new investments, while 31% (24% in 2023 and 20% in 2022) are actively targeting tertiary locations (cities with less than 200,000 inhabitants). Secondary cities are also a very attractive investment destination for more than 65% of respondents. This development underlines how the investment portfolios have been diversified across the country and the increased interest in emerging markets outside Bucharest. The attractiveness of these areas is supported by growth opportunities, lower costs and positive market dynamics. Vlad Saftoiu, Head of Research Cushman & Wakefield Echinox: ”Investors are optimistic, while also showing a certain degree of caution in regards to the Romanian real estate market evolution. They are predicting a consolidation of the industrial & logistics and retail segments, a stabilization of office demand and selective portfolio growth. The overall real estate market performance illustrates a balance between opportunities and macroeconomic challenges, in a context of increased confidence towards economic stability and consumption growth, supported by the accessibility of bank financing, the focus on sustainability and the adoption of ESG requirements.” A majority of respondents predict an upward movement of office rents. While there were a series of concerns about potential decreases in 2023, the sentiment shifted back to optimism in 2024, suggesting a belief in a long-term upward movement of office rents. However, the 2024 growth predictions were slightly tempered for industrial & logistics assets, with an increased share of respondents forecasting stability rather than continuous growth.
The results indicate a positive, but cautious outlook for retail rental rates. While many expect increases, a consistent number of investors anticipate stability, the outlook improving each year, with fewer respondents predicting declines. This trend suggests growing confidence in the retail market, possibly fueled by the recovery of demand and by the impressive retail sales growth. Inflation remains the primary factor which could influence occupancy costs in the real estate market. Construction and financing costs are also highlighted as major risks for rents across all segments. In terms of demand, investors and real estate developers forecast a stable level for offices, with the sector moving towards consolidation, as companies are adapting to current work models rather than pursuing aggressive expansion. However, investors are more optimistic concerning the demand for retail spaces compared with previous surveys, even though there is no clear anticipation for significant changes.
Respondents are optimistic about the logistics sector and, to a lesser extent, retail when it comes to the asset classes expected to see more investments in the coming 12 months. The sentiment towards office spaces remains cautious, while also showing slight improvement compared with the previous editions of the barometer. The optimal management of operating costs is the primary challenge for 39% of respondents, while 24% identify the complexity of legislative regulations as a major issue for the management of their real estate portfolios. Factors expected to significantly influence property management include tenant experience and behavior, as well as the adoption of innovative and data-driven solutions.
(Source: www.romaniajournal.ro)
Colliers: Romania leads EU in non-food retail growth, with consumption at historic highs and still significant potential for expansion
Consumption levels reached an all-time high in 2024, with the retail market showing significant potential for further growth if current trends persist, according to Colliers experts in their analysis of the sector. Eurostat data reveals a 13 percent year-on-year increase in non-food purchases this year, bringing sales to 60 percent above the 2018-2019 average. Romania is recording a 58 percent increase in the volume of non-food retail sales, the highest in the European Union, highlighting the significant growth potential of the local retail market. Modern shopping centres with a total leasable area of more than 160,000 square metres were built this year, according to preliminary data from Colliers consultants, who point out that the local market still offers significant growth potential. Pitesti was in the spotlight in 2024, attracting almost 45 percent of the new space added to the national stock, which reached around 4.7 million square metres. This remarkable performance was underpinned by two major projects: the Argeș Mall, developed by Prime Kapital/MAS REI, and M Park Pitești, developed by Mitiska. The new projects are well received by the market and there continues to be strong tenant interest in store openings. Vacancy rates remain low in the dominant projects, with waiting lists in some of the most popular malls. A preliminary estimate for 2025 is for around 200,000 square metres of new deliveries, including the 62,000 square metre expansion of the Mall of Moldova in Iasi by Prime Kapital/MAS REI. Thus, by the end of 2026, Romania could exceed the threshold of 5 million square metres of retail space, marking an important moment in the market from the point of view of developers and investors.
According to Eurostat data, retail companies in Romania achieved a gross operating margin of approximately 9 percent in 2022, outperforming countries like the Netherlands, Germany, and Poland. This favourable environment has attracted several international brands to open their first physical stores in Romania in 2024, having previously been present only through multi-brand retailers or online sales. New entrants include Rituals Cosmetics and Kiko Milano in the cosmetics sector, Budmil and Bogner in the fashion sector, as well as Happy Restaurants and Hesburger in the restaurant sector. Additionally, Poland’s largest food retailer specializing in proximity concepts, Żabka, has entered the local market this year with its Froo brand. In real terms, adjusted for inflation, data from the National Institute of Statistics indicate that the purchasing power of the average Romanian has doubled between 2014 and the present. Despite the uncertainty brought by the pandemic years, the resources accumulated prior to this period enabled Romania to maintain strong performance. According to Eurostat, Romania recorded a 58 percent increase in turnover in the non-food retail sector, the highest in the European Union. In comparison, other countries such as Poland (+40 percent), Hungary (+14 percent), and the Czech Republic (+10 percent) experienced significantly lower growth. “This trend highlights the growing appeal of the Romanian retail market, which continues to draw renowned international players. The retail sector has once again become an attractive target for acquisitions. Not only in Romania, but also globally, investors are increasingly focusing on this asset class, which has proven its resilience during the pandemic.
(Source: www.thediplomat.ro)