ROMANIA PROPERTY CLUB

Leading Sustainable and Innovative Real Estate Development in Romania

RPC Talks with Daniel Popa, Country Manager, Reynaers Aluminium

RPC Talks with Daniel Popa, Country Manager, Reynaers Aluminium 2560 1834 ROMANIA PROPERTY CLUB

RPC Talks to Daniel Popa

Country Manager, Reynaers Aluminium

Reynaers Daniel Popa

Reynaers on the Romanian market

“Present on the local market since 2006, in Romania we are in the top 3 suppliers of aluminum solutions. We have grown continuously, we have developed our local infrastructure, and we will continue to do so in the following years. Reference works include One Mircea Eliade, One Charles de Gaulle, One Herastrau Plaza, Aviatiei Park, Campus 6, Tiriac Tower, Record Park, Sema Park, Oregon Park, Brasov Business Park, Promenada Mall, Afi Business Park, Amber Forest, One Rahmaninov, Maurer Panoramic, The Light.”

What solutions does Reynaers propose for the local community of developers from Brasov?

We deliver high-tech products backed by complex research and development processes, testing and know-how that meet the highest standards and quality requirements, and we are committed to delivering unique and sustainable solutions that satisfy the most stringent requirements, both aesthetic and efficiency.

Brasov is an important business market for us, a city with high potential for new developments, and we plan to open a new Reynaers Experience Center here, which will give partners the opportunity to interact directly with our universe.

The new center will have a team of professionals ready to advise customers, to offer them the best design, functionality, and performance solutions. Our locations combine both the technical and design aspects of the Reynaers brand and have been designed to serve architectural firms, developers, investors, general contractors, manufacturers, and, last but not least, end users.

The portfolio of products and solutions that will be found here includes recently launched innovations, from the latest extensions of Reynaers systems for windows and doors, sliding doors and curtain walls, as well as the newest range of accessories, all in a diverse palette of colors in harmony with new architectural trends.

Main challenges and opportunities for the year ahead?

The demand for sustainable products is constantly increasing, which for us is not something new, but rather an advantage. All our products follow the principles of circular economy, designed to provide the best quality for as long as possible, from manufacturing to end of life.

Also, we are the only suppliers on the local market that offer 10-year product warranty certificates. Another advantage is the increase in digitalization, where we already offer products for smart homes, adapted to the latest technologies in the field.

Brasov residential market enters new development phase

Brasov residential market enters new development phase

Brasov residential market enters new development phase 4835 3237 ROMANIA PROPERTY CLUB

12.04.2024

An analysis with the support of imobiliare.ro

Brasov residential market enters new development phase

Brasov residential market has become the largest regional residential market, and the second one at national level, following Bucharest & Ilfov. This is no surprise given the strategic location in the center of the country, attracting residents from surrounding areas, and the touristic potential of the area.

The most developed areas are Bartolomeu, Tractorul and Noua-Darste. The inauguration of the international airport last year has opened the potential of the area and Bartolomeu district is expanding to the border with Ghimbav. With the support of our partner imobiliare.ro we have drafted an analysis for the new residential market in Brasov based on the data from January and February 2024.

Comparing 2024 with 2023, the biggest increase is for two rooms (16%), followed by three rooms (9%). The demand for four-room apartments has dropped by 4%, while the demand for studios has seen the biggest decrease, by 11%.

Demand

In the first two months of 2024, the biggest increase of new units’ offer is for four rooms apartments (33%) followed by two rooms (14%). The three rooms offer has raised by 6%, while the offer for studios had dropped by 4%, compared to the previous year.

Offer

The prices have maintained a steady increase, with 12% in 2024 vs 2023. Medium price for new units is 2,053 Euro/net sqm + VAT.

Prices
Brasov land market overview

Brasov land market overview

Brasov land market overview 7240 7240 ROMANIA PROPERTY CLUB

12.04.2024

An analysis by Florin Ciche, Remax Central

The city of Brasov continues to develop real estate in all segments and the future perspective looks very good.

Brasov land market overview

From the point of view of residential developments, new areas of interest have opened up today. If until now the strongest development was in the Tractorul district, today there is new interest in other areas.

One of them is the western part of the city. The opening of the Brasov Ghimbav International Airport has opened the potential of the area and the Bartolomeu district is expanding outwards to the border with Ghimbav.

A second area is the southern part of the city, the entrance from Bucharest, namely the Noua district and the Calea Bucuresti commercial area up to the border with the Astra district. The reconversion of the former Roman platform, as well as the vacant land in the immediate vicinity have come to the attention of developers and in the near future will appear new mixed projects, residential and partially retail and office.

Industrially, the main direction of development of Brasov is towards the West, obviously due to the development of infrastructure, the future motorway to Sibiu, and the airport, next to which the North area, the exit to Targu Mures is becoming more and more sought after for industrial/logistic developments.

Retail land follows the other developments, so the West, North and South areas of the city still offer land where retail parks can still be developed.

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Prices differ according to existing regulations.  

RPC Talks with Liviu Zarnovean, Managing Partner, DART Architects

RPC Talks with Liviu Zarnovean, Managing Partner, DART Architects 816 811 ROMANIA PROPERTY CLUB

RPC Talks to Liviu Zarnovean

Managing Partner, DART Architects

Liviu Zarnovean Dart Architects

Profile of the Company

“Dart Architects, rooted in the Brasov region, champions a pragmatic approach to architecture, emphasizing the harmonious integration of structures within their context and the innovative use of technology in project and process management. Our expertise lies in navigating the intricate web of interests between investors, regulatory frameworks, and the community, striving for solutions that mediate these often unspoken conflicts. As advocates for constructive collaboration, we aim to transcend client expectations by blending thoughtful design with effective management, moving towards incorporating sustainability into our broader strategic vision.”

Most Representative Projects in Our Portfolio

Over the past 27 years, Dart Architects has cultivated a rich portfolio that spans a wide spectrum of architectural endeavors, from intimate residential spaces to large-scale commercial and urban developments. Our specialization lies in not just designing but meticulously managing projects of significant scope and complexity, ensuring each embodies our commitment to architectural excellence and pragmatic innovation.

Among the hundreds of projects we have completed to date, the following stand out:

– 9Nine Office Building: 9Nine stands as a beacon in Brasov, blending cost-efficiency with architectural grace, crowned by a uniquely curved top-level restaurant offering unmatched city views.

– T39 Hall Conversion at Flavus – Coresi: Transforming an industrial relic into a bustling business hub, T39 hall marries historical integrity with modern functionality, creating an inviting office space surrounded by green, leisure, and social zones.

– Bergs Residential Complex: Combining energy efficiency with visual harmony, the Bergs Residential Complex features a six-slope roof design that integrates seamlessly into the local landscape, offering panoramic mountain views amidst a sustainable living environment.

– Sky Towers: Envisioned as a residential gateway to Brasov, Sky Towers sculpturally draws from the landscape, proposing living spaces that seem to emerge from the earth itself, set atop a communal base that breathes life into the city’s western entrance.

Opportunities for Brasov Real Estate Market

The real estate market in Brasov presents fertile ground for projects that embody Dart Architects’ ethos of pragmatic architecture and meaningful community integration. With our unique ability to mediate between diverse interests, we see potential for developments that not only enhance the urban fabric but also respect and rejuvenate their environmental context. Our focus on creating spaces that resonate with people and place positions us to lead Brasov towards a future where architecture fosters community, connectivity, and sustainable living.

Poiana Brasov

A record number of 1,300 hotel rooms are under development in Brasov

A record number of 1,300 hotel rooms are under development in Brasov 2560 1707 ROMANIA PROPERTY CLUB

11.04.2024

The impact of last year’s international airport inauguration in Brasov is visible: a record number of 1,300 hotel rooms, internationally affiliated, are under development with delivery dates between 2024 and 2028.

Poiana Brasov

Currently, the hotel market in Brasov County has 128 units, out of which 56 are in Brasov and Poiana Brasov. Only 5.2% of total number of rooms are 5-stars, while 44.5% of total number of rooms are 4-stars and 44.01% of total number of rooms are 3-stars.

Hotel 1

Source: Ministry of Tourism, Total number of hotels in Brasov County

Sosiri Hoteluri

Source: INS, Est Hospitality

The information for Brasov, gathered by RPC from Est Hospitality, a tourism consultancy company, shows that:

  • In 2023, tourist arrivals and overnights are still below the levels of 2019.
  • As compared to 2022, the market increased with 10% at arrivals and overnights.
  • The trend is very positive, and it is expected to continue in the coming years due to increased traffic at Ghimbav Brasov International airport, the pipeline of new branded hotels, the number of festivals, increased number of MICE events (Meetings, Incentives, Conferences and Exhibitions).
Pipeline Hoteluri

Mircea Draghici, Managing Partner, Est Hospitality: “The number of hotel rooms internationally affiliated will increase with 22.1% in the next three years. The number of hotel rooms on 5-star category will increase with 128% over the next three years.”

Brasov

Strategic location and tourism potential allure real estate investors

Strategic location and tourism potential allure real estate investors 1618 1080 ROMANIA PROPERTY CLUB

11.04.2024

With a population that slightly exceeds 550,000 inhabitants, Brasov offers one of the most livable urban centers in Romania. In addition to its natural beauty, well-preserved historic district, and numerous resorts within a short driving distance, Brasov enjoys a supportive public administration that actively works toward its citizens’ welfare.

Brasov

The City Hall focuses its attention on a series of initiatives meant to boost the city’s livability and development, working with its pre-existing advantages. In terms of leisure and green areas, investments in two new parks, running and bicycle tracks, a multisport facility, a new UEFA standards stadium, and 43 sports courts spread across the city are considered an investment in the health system. While already the second most popular destination after Bucharest for foreign tourists and the go-to destination for winter sports, initiatives such as building a long bobsleigh are meant to increase the attractiveness all year round. Cultural initiatives are also an important factor in the city’s appeal; thus 1.2 million EUR are being granted in 2024 to projects.


PUBLIC ADMINISTRATION FOCUSED ON SUSTAINABILITY

Surrounded by lush green mountains, the air quality and sustainable development represent a priority to its citizens. Thus, more than 90% of the car-sharing fleets are EURO 6, hybrid, or electric vehicles, with further investments in sustainable public transportation and intermodal nodes. Most recently, a 20-year strategy for a green city has been brought to public debate. Further proof of the focus on sustainability is the EU-funded photovoltaic park under construction in Stupini, meant to ensure 90% of the schools, public institutions facilities, and public lighting needs.

The public administration emphasizes long-term development and work-life balance by building no fewer than 13 preschool facilities spread across the city, particularly focusing on the new residential areas. Moreover, to build relevant working skills, the City Hall invested in a 20 million EUR dual-educational campus in partnership with the most significant employers in the region. Thus, the public authorities ensure that essential training in automotive, mechatronics, airspace, IT, and hotel, leisure, and restaurants is being provided to the local workforce, at a level relevant to the industries. This capacity is meant to complement a 20,000 / year student population.

The focus on economic development is obvious considering the series of invites sent to embassies and consulates (US, France, China) to visit the county and learn about its advantages. Moreover, Brasov is one of the few Romanian cities to have a stand at EXPO REAL for two consecutive years. The public administration clearly understands the role real estate investors play in the economic development of the city, by providing modern work infrastructure.


INFRASTRUCTURE UPDATES

At a county level, the most important investments are road transportation related. One of the biggest priorities is working on the National Road 1 bottleneck, by creating an alternative route. 80 million EUR were allocated towards studies and eminent domain acquisition. 200 million EUR funds are sustained by the European Bank of Investment for portions of the A3 highway, connecting Brasov to Targu Mures, Cluj, and Oradea.

However, the most impactful development has been the opening of Brasov International Airport. While still under fine-tuning to streamline operations, critical infrastructure to support tourism and cargo shipment is finally live, after decades of efforts.

This recent development, along with the public authorities’ pro-business and pro-citizens agenda creates the basis for sustainable development. Numerous residential and short-term letting compounds are under permitting and/or development, alongside high-end resorts. Most recently, Kempinski announced a partnership for a 5-star resort in Poiana Brasov.

The authorities partnered with the Untold festival organizers to create Massif, a music festival located in Poiana Brasov, catering to a younger audience to diversify its cultural offerings and generate interest from new visitors.

The city attracted important international real estate investors such as Nhood or AFI Europe, while Speedwell bought the former Tino shoes factory in Bartolomeu neighborhood, planning a mixed-use scheme.

Nhood delivered in Brasov one of the largest mixed-use schemes from Romania, on the former Tractorul industrial platform: the shopping center Coresi spreads over 24 hectares, being inaugurated in 2015, the residential component comprises 4,700 apartments, while 60,000 sqm of offices were finalized, with potential up to 100,000 sqm. Up to now, 350 million EUR have been invested at Coresi, while the owner revealed plans to allocate another 350 million EUR for development up to 2030.

The City Hall announced last year that it signed a contract with the Order of Romanian Architects regarding the conversion of the former industrial platform Rulmentul, with an area of 36 hectares.

The well-balanced economic development in Brasov is illustrated by the low unemployment rate (2.6% vs national average of 5.4%) and the 14% increase in the average wage to 1,370 EUR gross (inflation at 9.8% at the national level, thus in real terms increase of 4%+).

Brasov is an excellent alternative to Bucharest-Ilfov, Cluj, Timisoara, and Iasi. Together with Constanta, Brasov may lead the wave of new poles of accelerated development in Romania.

Top regional cities for renting modern offices

Top regional cities for renting modern offices 1600 1068 ROMANIA PROPERTY CLUB

Nicolae Ciobanu, Partner at Fortim Trusted Advisors

Outside Bucharest, companies leased less than a fifth of the total traded area in Bucharest, according to a study conducted by Fortim Trusted Advisors, a member of the BNP Paribas Real Estate Alliance. In total, the companies leased new modern spaces, at regional level, with a total area of 37,441 sqm, which represents 18% of the volume registered in Bucharest, at the level of 2023. This volume is down from the previous year, 2022, with some of the large deals under negotiation being postponed to this year. The largest volume of new office space was traded in Cluj-Napoca, 33% of all new rentals across all regional centers. On the next places are the cities of Timișoara and Iasi. “In the first quarter of 2024, several lease transactions for office space in Cluj-Napoca are in the final negotiation phase. Recently, there has been an increased demand for spaces with an advanced level of arrangement, capable of ensuring a quick move. Supply remains limited, despite a substantial number of projects under development. The opportunity to accelerate the completion of these projects could be generated by the interest of an anchor company to pre-lease a significant area in an office building scheduled for completion between 2025 and 2026”, said Nicolae Ciobanu, Managing Partner – Head of Advisory at Fortim Trusted Advisors, member on the BNP Paribas Real Estate Alliance. Cluj-Napoca managed to attract the newest tenants, with the largest area, of 12,202 sqm, of spaces rented by companies looking for new offices. Among the new tenants are Sensience, Principal33, Viking Romania, Datanet Systems. Timisoara ranks second in terms of renting new spaces, among the companies that rented new spaces being Access Group Ericsson, SomProduct, HUF.  On the other hand, the city of Timisoara registered the highest volume of rentals, together with regional renegotiations of spaces where current tenants remained: over 15,000 sqm. In third place was the city of Iasi, with a total of 9,043 sqm. Among the companies that have moved into new spaces in this city are IBM, Cognizant, BRD, Infineon and RINF. Brasov, although in 2023 it gathered a total area of only 5% of the total, has premises to take revenge in 2024-2025, due to the fact that several new office buildings will be put into use here, in the Coresi Campus project, Phase 4 – U1, with a total of 9,350 sqm. Regarding the fields of activity of office tenants in regional cities, most of them are in the IT&C sector, 61%. The vacancy rate of office space is lower in regional cities than in Bucharest. The lowest vacancy rate is found in Iasi, where in 2023 the largest office project delivered at regional level, formerly Palas Campus, in Iasi, with an area of 60,000 sqm, was put into use, but which had many pre-lease contracts signed a year or two before, from 2021-2022. In 2024 we will no longer have such large deliveries in a regional hub.

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M Core Introduces Joint Venture Management Platform for Romanian Portfolio

M Core Introduces Joint Venture Management Platform for Romanian Portfolio 2048 1535 ROMANIA PROPERTY CLUB

26.03.2024

M Park

M Core announces the launch of ‘Square 7 part of M Core’, a strategic joint venture between M Core and Square 7 Properties, to establish a new management platform for the M Core portfolio of 25 retail parks across Romania. Co-CEOs of M Core Romania, Sebastian Macdonald-Hall and James Fife led the initiative with Clemens Petschnikar of Square 7 Properties to form ‘Square 7 part of M Core’.

Led by Romanian real estate industry veteran, Clemens Petschnikar, ‘Square 7 part of M Core’ brings over two decades of experience in development management in Romanian retail real estate.

As Romania’s largest owner of retail parks, M Core boasts a strategically located portfolio of 25 properties, all fully leased and BREEAM certified, underscoring our commitment to quality and sustainability.

The next move will be the rebranding of all 25 properties under the M Park brand. The M Park brand is dedicated to retail parks and medium-sized retail properties, with leasing spaces of up to 20,000 square meters. Strategically positioned in smaller and medium-sized cities, each M Park is meant for a catchment area of at least 300,000 individuals within a 30-minute drive. The tenant mix of M Parks consists of national anchor tenants alongside local service providers and food operators.

Clemens Petschnikar will ensure a seamless transition to the M Park brand, which will be available to over 150,000 daily visitors from Arad, Bacau, Bistrita, Baia Mare, Bucharest & Ilfov, Buzau, Braila, Caransebes, Campina, Drobeta Turnu-Severin, Iasi, Medias, Medgidia, Odorheiu Secuiesc, Pascani, Resita, Giurgiu, Mioveni, Ploiesti, Sighetu Marmatiei, Slatina, Slobozia, Targu-Mures and Tulcea.

Globalworth Timisoara Park I B

Hexing invests in 8,000 sqm facility in Timisoara

Hexing invests in 8,000 sqm facility in Timisoara 2560 1706 ROMANIA PROPERTY CLUB

18.03.2024

Hexing invests in 8,000 sqm facility generating over 100 high value jobs in Timisoara, at Globalworth Timisoara Industrial Park I, assisted by CBRE.

The new facility of Hexing Technologies Europe SRL, a subsidiary of the Hexing Group and a leading green energy solution provider, set within the thriving Timisoara Airport Park, will serve as a hub of innovation, extending Hexing’s digital energy service footprint across Europe. As part of Hexing’s long-term vision to build a greener world, the state-of-the-art facility will serve as a center of excellence to produce advanced smart metering solutions, including intelligent electricity and water metering systems, distribution automation solutions, solar inverters, batteries, and electric vehicle chargers.

Timisoara I Industrial Park is strategically located near the international airport, and offers high-tech buildings for manufacturing, warehousing, and logistics operations. The park is part of the recent transaction between Globalworth and CTP, in which CTP bought the logistic portfolio of Globalworth from Timisoara, Arad, Oradea and Pitesti.

“Timis is probably the most sought-after market by energy players, who have reached a level of maturity which requires already production facilities, not just energy land” explained Mădălin Aresmerițoaie, Senior Consultant Industrial & Logistics Services, responsible for the West/North-West market at CBRE Romania. “The Manufacturing sector is growing, returning to the pre-pandemic trend which is a sign of Romania’s health – in 2023 we recorded 18% of total leasing activity. We are pleased that we have designed the best scenario for Hexing, helping them to identify the optimal location both in terms of current scale and expected growth in the coming years.”

The establishment of this facility aligns with the Romanian regulator ANRE’s 2019-2028 smart meter development directive, further emphasizing Hexing’s contribution to the advancement of Smart Grid 2.0. This strategic initiative underscores Hexing Europe’s commitment to becoming a leading local manufacturer within the European Union while fostering technological innovation in the region. The facility’s advanced manufacturing capabilities will ensure shorter delivery times, catering to the demands of both the local market and beyond.

Through the establishment of this facility, Hexing Europe will forge a close partnership with local partners. This collaboration will enable Hexing Technologies Europe SRL to provide enhanced pre-sales and after-sales support, contributing to the seamless integration solutions in Romania and other European Union countries. Furthermore, the facility’s advanced manufacturing capabilities will ensure shorter delivery times, catering to the demands of both the local market and beyond.

Largest regional logistics hub gathering 1.7 mln. modern sq m, the Western / North-Western sub-market accommodates through important cities such as Timisoara and Cluj-Napoca both developers and tenants internationally renowned, enjoying country’s western border proximity. Skilled labour force and the gate to Western Europe, makes the West / North-West area the most sought after regional sub-market by developers and investors.

Timis county claims the largest share of modern industrial stock region wise and hosts numerous production, logistics and storage facilities where developers capitalize on the synergy created by the strategic location, infrastructure, and skilled workforce and 87% of the modern stock is class A. Also, the West / North West part of the country is set to be the largest recipient of the future new supply, respectively 45%, followed by Bucharest with 32% and East / North East region with 14% from the total.

 

 

 

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Cluj-Napoca, Timisoara and Iasi lead the top of the most attractive investment destinations for 2024

Cluj-Napoca, Timisoara and Iasi lead the top of the most attractive investment destinations for 2024 2560 1707 ROMANIA PROPERTY CLUB

15.02.2024

 

Romania Property Club surveyed the most dynamic investors for the forces that shape the city skyline in 2024.

 


THE TRENDS FORUM 2024

The local administrations in regional areas are making an attempt in supporting real estate investment, as they’re aware of the impact on job creation and are interested in catching up in terms of development.

Our survey respondents ranked the highest achievers in terms of economic concentration and attractiveness for real estate development. Cluj-Napoca topped the list once again, which is only natural considering its world-class talent pool and entrepreneurship mindset. It is followed by Timisoara, Iasi, Brasov, and Constanta. Other newcomers on the radar are Targu-Mures and Galati-Braila, both poles benefiting from tailwind due to recent infrastructure investments. Outside of the nominated cities, we find that Craiova, Bacau, Sibiu, and Oradea have the premises to boost their contribution to the national economy in the medium to long term.

As for asset classes, the performance expectation is slightly different than for Bucharest. Industrial & logistics makes its way to the first spot; however, retail is believed to fare better than residential in regional hubs, followed by residential, mixed-use, office and hotels.

In terms of short-to-medium terms growth factors, our respondents indicated infrastructure development as one of the main drivers. The main infrastructure projects with an impact on real estate development, highlighted by our respondents:

  • Contracting and start of the execution of the A7 highway – Ploiesti – Pascani sections.
  • Section build on A1, up to Ramnicu Valcea.
  • Craiova express road to A1 is closing its final loop in the next 24 months.
  • Caransebes – Timisoara – Arad rail update to increase goods transportation speed to 120 km/hour.
  • Timisoara ring road under construction, connecting the city to the highway.
  • Rail and road around the Constanta County ports.
  • The third largest suspended bridge in Europe, crossing the Danube in Braila and the express road to Galati.
  • The express road from Oradea to the Hungarian border.