CELEBRATING A NEW YEAR OF EXPERIENCE AND EXCELLENCE
We start a new year looking with an optimistic perspective on the future. At the same time, we consider it necessary that at the beginning of each year we look back at the past one in order to understand what we have to do going forward. When looking into 2024 we see a year full of success – we are proud of our new projects where we are currently active , the delivered ones that accomplished our client’s expectations, new partnerships that have a huge potential, the consolidation of the old ones only by trust and good results, nominations and awards. By all our delivered projects of this year we demonstrated once again our commitment to quality and professionalism.
Among the most significant steps made over the past 12 months are the retail expansions, developments into green energy sectors, and our involvement in even more projects from hospitality area. At the same time, the industrial sector was very active for us. The impact of historical building restauration is a new trend, especially in the center of Bucharest. With a breath-taking architecture along the streets, our city center will soon face a new look, by consolidating the historical buildings and keep the classic elements and facades so unique and beautiful.
We enter this year with an incredible team formed of more than 100 collogues from which 90 are specialists in construction. Due to them, we became leaders in the construction management. Their level of professionalism and commitment makes everything possible. For 2025 we keep the same confident perspective, expecting even more projects and partnerships, as we are ready to continue Building Trust!
Stabilized inflation, reduced interest rates and overall income growth drive European and Romanian Real Estate development opportunities in 2025
2025 marks a crucial stage for the European real estate market, which is undergoing a process of recovery and transformation. Favorable economic factors, such as stabilized inflation, reduced interest rates and increasing real incomes are strengthening this sector as a key pillar of the continental economy. Romania, as an integral part of the European market, is enjoying notable opportunities, but must address specific challenges to realize its potential.
Despite the Eurozone being projected to register modest growth of 1.3% in 2025, Romania is expected to surpass this level, thus remaining one of the fastest-growing economies in the region. These developments will stimulate both consumption and investments, providing a clear boost for the real estate sector. Vlad Saftoiu, Head of Research Cushman & Wakefield Echinox: “While the outlook for 2025 is mostly optimistic, there are still a number of risks such as inflation, rising construction costs and geopolitical uncertainties. However, the transition towards sustainability, process digitization and the adjustment to new market demands offer significant opportunities for investors. The European and Romanian real estate markets are entering 2025 with a clear direction towards recovery and adjustment. The trends in question indicate a promising year for this sector, with substantial opportunities in the retail, industrial & logistics and office market segments. Success, however, depends on the ability of market players to quickly adapt to the new requirements and to capitalize on the innovation and sustainability potential.”
In Europe, the retail sector is well-positioned for sustainable growth in 2025, supported by improved consumer confidence and a better economic climate. In Romania, the development of modern shopping centers and the attraction of international brands can significantly stimulate this sector. Retailers adopting flexible, consumer-centric strategies and focused on integrating brick & mortar stores and digital channels (omnichannel) are best placed for success. However, the global macroeconomic context and local dynamics will influence the pace of this evolution, requiring adaptability from market players. As an emerging market, Romania can benefit from positive European trends, albeit with its own specificities. Shopping centers and retail parks will remain key investment attractions. Online retail will continue to influence the retailers’ strategies, but physical locations will play a crucial role in brand consolidation. In line with European trends, central locations and shopping centers in major cities will see increased demand, leading to higher rents. Stabilized inflation and the overall evolution of economic policies are critical factors influencing consumer behavior. Additionally, infrastructure and urbanization play significant roles in attracting international retailers.
Against the backdrop of e-commerce expansion and of the present nearshoring trends, the European industrial & logistics market finds itself at a turning point. In 2025, moderate growth is expected, supported by the demand for modern and sustainable spaces. Romania, with its strategic geographical location, has the potential to strengthen its role as a regional logistics hub. Developing transport infrastructure and creating spaces which comply with sustainability requirements are essential. Although rents in this sector will continue to rise, especially for premium spaces, success depends on the country’s ability to attract investments and respond quickly to the changing needs of occupiers.
(Source: www.romaniajournal.ro)
Analysis: Bucharest, Ilfov and Timis lead Romania’s mortgage market in 2024
Bucharest, Ilfov, and Timiș emerged as the regions with the highest number of registered mortgages in Romania in 2024, followed by Iași and Constanța. According to an analysis conducted by online broker Ipotecare.ro and financial consultant and mortgage lending company SVN Credit Romania, roughly 86,600 mortgages were recorded nationwide last year, marking a 26.5% increase compared to 2023.
Iași, in eastern Romania, recorded the highest annual growth in mortgages, with a remarkable 107% surge, primarily attributed to the delayed registration of pre-sale agreements from previous years. Other notable increases were observed in Bihor (65%), Argeș (33.6%), and Brașov (33%).
Compared to the total number of home sales concluded last year in Romania, tabulated mortgages hold a share of 51%, according to SVN’s calculations based on statistics published by the National Agency for Cadastre and Land Registration.
However, this figure includes refinancings, reconversions, restructurings, and personal loans secured by mortgages. Cash transactions still dominate the residential market.
“The mortgage market returned to an upward trend since the middle of last year, and we estimate that 2025 will accelerate the growth rhythm of the mortgage loans granted. A significant part of the financing institutions have already aligned their mortgage offers at a level below 5%/year in the fixed interest rates segment, a level that is attractive for those wishing to finance a home purchase,” said Alexandru Radulescu, managing partner SVN Romania | Credit & Financial Solutions.
According to him, the company expects sustained development in major regional hubs such as Timișoara, Cluj-Napoca, Brașov, and Iași, as well as in mid-sized cities.
Cluj registered an annual growth of 24.7% in mortgages, taking sixth place in the rankings. The high rate of savings in the region has led to a larger share of cash transactions compared to other parts of the country.
Other regions with significant mortgage activity include Brașov, Sibiu, and Bihor, with Argeș closing the top 10.
Mortgage loans worth EUR 8.2 billion were granted in total at a national level in the first 11 months of 2024, up 42% compared to the first 11 months of 2023. This total includes refinancings, conversions, transfers, and restructurings.
(Source: www.romania-insider.com)