CLUJ-NAPOCA, TIMISOARA AND IASI LEAD THE TOP OF THE MOST ATTRACTIVE INVESTMENT DESTINATIONS FOR 2024
WE INTERVIEWED OVER 50 INVESTORS, DEVELOPERS, CONSULTANTS, AND FINANCIAL INSTITUTIONS FOR THE FORCES THAT SHAPE THE CITY SKYLINE IN 2024.
.
DOWNLOAD YOUR COPY BELOW
Romania’s “economic growth is visible in the market”. The country’s continuous development fuels real estate investors’ trust in the regional leaders. Surprisingly, the confidence vote for regional cities is slightly higher than for Bucharest.
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.
”The real estate market is constantly evolving and our team at AFI Europe can be counted on to stay ahead of the curve. In 2024 our key priority is to achieve an integrated blend of Retail, Office and Residential projects that nod to the new generations of tenants.
In Retail, for example, our tenants are increasingly choosing bigger spaces to accommodate a wider range of products, their recent concepts integrating bold designs with high-tech elements, and we’re always ready to design spaces that provide the clients with an immersive shopping experience.
Meanwhile, the trend in the Office sector is not far off –more and more employees are returning to the office, following 2023 when remote work was already decreasing. The demand remains high for extensive office spaces in new buildings that are ESG compliant and close to retail facilities, and we are already prepared to cater to those needs in regional business hubs like Bucharest, Brașov and Timișoara.
Residential will also be our focus this year, as we deliver to the market a new type of project – Build to Rent, bringing to the Romanian market the experience we already have on other markets with this type of product.”
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.
“I honestly believe that 2024 will be an outstanding year for the real estate sector, despite the macroeconomic and geopolitical challenges.
After four complicated years marked by the pandemic, energy crises, inflation, and interest costs, all topped by the conflicts in the proximity, 2024 shall be a turning point for moving ahead in the new reality, dealing suitably with the challenges everyone faces.
I expect a very active year in leasing on the office segment, as we see more and more an increased demand for high quality, employee-focused office space, in the context of the coming-back to the office trend – for instance, attendance in our buildings reached 75% this year.
Retail will continue to boom, as shopping center owners together with their partner tenants, will continue to strive, focusing on the comprehensive shopping and leisure experience of the final customer. In a nutshell, I start my year optimistic, mindful at the same time that a lot of hard work, adaptability and creativity will be needed to close 2024 on a successful note again.”
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 my perspective on 2024, despite the intense anticipated activity, it appears to be a year focused on consolidation. Recent legislative changes have set the stage for a period of adjustment. The ongoing growth in industrial, logistic, and hospitality projects will still capture attention.”
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.
“A trend expected to dominate in 2024 is a greater focus on sustainability and on managing specific risks that climate change brings to the built environment. Other trends will be functionality and a focus on advanced materials, providing better insulation, and contributing to energy efficiency.
We aim to be engaged as before in as many top projects as possible and to continue our regional expansion. We will also continue to develop the product range, promoting the solutions we offer for smart homes, developing new partnerships and projects, and delivering top services and solutions, adapted to the newest technologies in the field.”
Energy leadership means strategic power within the EU, turbocharge of public finances to fuel investments, and competitiveness in the industry, making Romania a destination for energy-intensive strategic sites.
Energy leadership powers the Romanian economy way beyond road and rail investments. Due to its location, Romania is providing security services for the broader region. The country has proven to be a reliable and stable partner during the Ukrainian invasion.
Romania was a welcoming host for refugees and top military bases that helped supervise the evolution of the conflict. Considering the sensitive nature of military infrastructure investments, the real estate developers are less familiar with the opportunities that might emerge, thus most of our respondents answered that their company did not consider the waterfall effect of these events.
REAL ESTATE TRENDS 2024
PRESENTED BY:
