In the spotlight

1.5 Million tourists speed up Brașov’s touristic infrastructure development
1.5 Million tourists speed up Brașov’s touristic infrastructure development 1621 1080 ROMANIA PROPERTY CLUB

1.5 mln tourists were registered in Brasov county in 2024, 3rd destination nationwide, following Bucharest – 1.9 million and Constanta – 1.7 million (hotels & short-term rentals), according to National Statistics Institute. Overnight stays in both hotels and apartments recorded 2.8 million people, third value nationwide, following Constanța -5.5 million and Bucharest -3.9 million.

As Brasov is gaining a lot of attention as a touristic destination, making it on the recommendation list of publications such as National Geographic or Vogue, international hotel brands are targeting this city. Over 700 branded hotel rooms are expected to be inaugurated in 2025. In total, the county has 128 hotels with 5,871 rooms.

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

  • Tourist arrivals and overnights in hotels are still below levels of 2019.
  • 19% notable increase of overnights in apartments – competition is getting serious for hotels.
  • Growing trend is expected to continue in the coming years due to the pipeline of new branded hotels, the number of festivals and the increased number of MICE events.

Mircea Draghici, Managing Partner, Est Hospitality: “2025 is a key year for Brasov with five new branded hotels following to open and bring an offer of 727 rooms on the market. Those inaugurations are expected to also boost the number of foreign tourists looking for standardized hotel services.”

BRAȘOV, expected to become more strategically on Romania’s map
BRAȘOV, expected to become more strategically on Romania’s map 1618 1080 ROMANIA PROPERTY CLUB

Traditionally a manufacturing and tourist destination, its location is gaining even more significance due to the strengthening of the defence sector and transportation routes.

The Cincu military base was extended and is now ready to receive 4,000 troops engaged in tactic exercises. The newly inaugurated Brasov Airport received infrastructure upgrades to extend its capacity to receive military cargo and to improve response time. Rheinmetall is building Europe’s largest gunpowder factories in Victoria, supported by European Defence Fund financing. The delivery is forecasted for Q1 2027 and shall strategically contribute to Romania’s defence independence.

900 Million EUR Public Investments

The City Hall has budgeted 154 million EUR for investments in 2025 to be allocated for education (new kindergartens and nursery schools, as well as consolidation of old schools), public development (new Pneumology Hospital, Polyvalent Hall, Youth Stadium, new parks and rehabilitation of public buildings), infrastructure and tourism (expansion and streamlining of the ski area in Poiana Braşov – stage II)

The County Council has a budget of 172 million EUR for infrastructure updates: 100km for county roads and 53.1 km for Brasov Metropolitan Belt.

One of the most talked about projects is the Rheinmetall gunpowder factory in Victoria, a project totalling over 500 million EUR, backed by funds from European Commission as well as Romanian public funds.

Another 20 million EUR are allocated for an integrated dual education campus to be build In Stupini area, comprising classrooms, technological workshops, a library, student housing, a cafeteria and a gym.

Looking ahead, road infrastructure investments such as the Comarnic motorway, Sibiu–Fagaras highway, and the future Bacau – Brasov highway (feasibility study stage) truly put Brasov at the heart of the country.

Tourism in the Spotlight

In terms of the local economy, the slowdown of the auto sector led to temporary unemployment and a priorities realignment for multinational companies present in the areas. However, the versatility of the local economy proved powerful, as the new hotel openings and commitments buffered any concerning news.

As Brasov is gaining a lot of attention as a touristic destination, making it on the recommendation list of publications such as National Geographic or Vogue, international hotel brands are targeting this city. Last year Swissotel inaugurated in Poiana Brasov, while another 1,100 rooms are under development from brands such as Hyatt, Kempinski, Mercure, AC by Marriott, Hilton Garden Inn, Ibis Styles, or Double Tree by Hilton. The inauguration are estimated between 2025 – 2028.

Finding a suitable operator with the right flight frequency for the summer and winter seasons took a while, but Wizzair proposed the right balance to take advantage of the great cultural heritage and natural treasures Brasov has to offer to the world.

New Hotspots & Real Estate Investments

The next step of the city’s development is the urban regeneration of the former Rulmentul industrial platform. Several studies performed by both the World Bank and an association of architects led to a design solution. We’re still waiting for a PUZ, a decision, and financing to redefine what the modern Brasov will look like. At the end of the process, the former Tractorul and Rulmentul platforms shall unite to provide a good case practice on how to perfectly blend heritage with functionality and modernity in a city.

The largest international investors present on Brasov market, French-based Ceetrus & Israeli-owned AFI Europe announced new expansion plans.

Ruxandra Dragomir, Head of Development at Nhood Services Romania, the exclusive Development , Property & Asset Management, Leasing, ESG service provider for Coresi mixed-use development by Ceetrus: “Coresi is Romania’s largest urban mixed-use regeneration project with 55,884 sqm of retail, 59,400 sqm of offices, a 4* hotel with 133 rooms, and a residential component with 2,400 finalized apartments as well as 90,000 sqm green spaces and 7,000 parking spots. Future development plans include a 10,800 sqm office building, the rehabilitation of Hangar historical building (3,000 sqm) with a gastro entertainment concept, a 20,000 sqm sports arena and a 4,000 sqm educational campus in partnership with a private school.”

IULIUS and Atterbury Europe secure the largest loan granted to a real-estate development in Romania – 400 million Euro for the RIVUS Cluj-Napoca mixed-use urban reconversion project
IULIUS and Atterbury Europe secure the largest loan granted to a real-estate development in Romania – 400 million Euro for the RIVUS Cluj-Napoca mixed-use urban reconversion project 1000 500 ROMANIA PROPERTY CLUB

RIVUS Cluj-Napoca, the mixed-use urban reconversion project developed by companies IULIUS and Atterbury Europe, was granted the largest loan for a new real-estate development in Romania. The loan adds up to approximately 400 million Euro and it is in the form of syndicated financing granted four loan institutions: Erste Bank, BCR, BERD, and BRD. RIVUS restores 14 hectares of a former industrial platform back to the city, in the form of a mixed-use project with likely the widest functional diversity in Romania – retail, office, culture, entertainment, park. The project investment is estimated upwards of half-billion Euro, and it is currently in the building permitting phase.

 

RIVUS Cluj-Napoca is a project tackling the urban reconversion of a brownfield area spanning more than 14 hectares into a regional attraction, customized to the expectations and needs of the community and the city. This is a sustainable project and the concept for it was designed by the prestigious international architecture firm UNStudio, with a focus on leveraging Someș River and making it accessible to the public, and integrating the entirety of the former industrial area with the city as a pole of urban development. The largest loan granted to an industrial real estate development in Romania, adding up to 400 million Euro, was secured for this project developed by companies IULIUS and Atterbury Europe. This is a green syndicated loan, secured by meeting the LEED Platinum and EDGE Advanced sustainability standards, which cover the entire development-operation-top-up cycle. The syndicate of banks providing the financing is comprised of Erste Bank (Lead Arranger), Banca Comercială Română (BCR), European Bank for Reconstruction and Development (EBRD), and BRD Groupe Société Générale. The financing primarily focuses on the retail component of the project, including the cultural areas and green spaces, which means a total leasable area of 132,500 sqm.

“For IULIUS, this loan continues the series of premieres in terms of financing: from the first green loan granted to a Romanian company back in 2021, to the largest real-estate refinancing loan in Romania in 2022, and now the largest development loan in the industry. To us, all these milestones certify the attractiveness and quality of IULIUS projects. We are excited that every single time we are able to attract new partners in the financing process, with EBRD now joining the group of banks with which we are collaborating. The mix of local, regional, and global banks provide the financial stability we need in order to focus on what we do best: large scale green mixed-use project, with significant investment values (usually upwards of half-billion Euro), in central locations, and contributing to the economic development of their respective local and regional communities. The trust placed in us by our clients, tenants, and banks motivate us to bring ever more daring, more complex projects on the market, with even greater positive impacts on their respective communities,” said Marius Perșenea, Chief Operating Officer IULIUS.

RIVUS – The largest lifestyle center in Romania

The functional diversity of RIVUS includes:

  • The largest retail area in Romania, spanning 142,000 sqm (integrating the shopping mall, as well as the complementary retail facilities) in a mixed-use concept that enhances the shopping experience with public and leisure services and facilities
  • More than 400 stores, including regional and national premieres
  • 30+ new concept-restaurants and coffee shops overlooking Someș River
  • A new park and landscaped green spaces spanning more than 52,000 sqm
  • Japanese rooftop garden
  • Two industrial buildings reconverted to accommodate cultural venues, office spaces, and services
  • Live arts center– feature integrated for the first time in a real estate project based in Romania
  • First-to-region entertainment concepts for all ages
  • The latest cinema technologies for the first time in Transylvania, as well as open air cinema

Premium green office spaces – 15,000 sqm GLA

A traditional manufacturing destination, Brașov consolidates its hub status
A traditional manufacturing destination, Brașov consolidates its hub status 1621 1080 ROMANIA PROPERTY CLUB

The county is the third largest industrial & logistics hub in Romania, after Timisoara and Ploiesti. Brasov enjoyed a growing modern warehousing & production market, with nearly 16% of the total 470,000 sqm stock being built in the past twelve months.

Moving forward, an additional 13,000 sqm shall be built, as Brasov is one of the few regional hubs with active construction pipelines in 2025. VGP is one of the top three dominant players that is pursuing new developments in the county.

The vacancy rate is one of the lowest in the country – just under 2%, but that is due to the non-speculative character of the region. For comparison, the vacancy rate in Bucharest-Ilfov (the region that hosts half of Romania’s modern stock) is at 5%; in Timisoara, the second-largest industrial & logistics hub, the vacancy rate stands at nearly 11%.

The take-up stood at 16,200 sqm, a significant drop compared to the previous period when jumbo deals such as the 47,000 sqm Intercars pre-lease made headlines. However, the region gave signs of steady, sustainable demand.

The asking headline rents slightly dropped from 4.5 EUR/sqm to 4.4 EUR/sqm due to the market dynamics. The county is dominated by auto and electronics producers, which are under market pressure due to economic developments. This triggered a schedule of mass layoffs and production properties put up for sale. It is to be determined whether this will have long-term consequences or if it is simply a natural transformative period.

Dana Bordei, Country Commercial Manager, VGP Romania:

“Brasov, a city with a fast economic growth, is an increasingly strong pole of attraction for national and international companies. VGP Park Brasov enjoys the fastest growth of VGP’s portfolio in Romania, reflecting the robust demand for class A spaces in the proximity of the production units located in the western part of the city.

This region is becoming increasingly attractive for new suppliers and business partners, due to the availability of a qualified workforce and the presence of rapidly developing production and distribution companies.

With the five buildings already delivered, totalling approximately 123,000 sqm, which are designed and built according to the strictest sustainability and energy efficiency standards, VGP Park Brașov is positioning itself as a reference example in sustainable real estate development.

Infrastructure developments such as the Sibiu-Brasov-Bacau A13 highway shall bring new development opportunities. The Sibiu–Fagaras 70 km lot is under active construction, with works expected to be done by 2027. While the Brasov – Bacau lots are at the feasibility stage, the opening of the Sibiu-Fagaras lot will bring new development opportunities as connectivity to Western Europe is significantly improved.

International fashion brands Lefties and Stradivarius to open in north-east Romania: the latest store concepts in Iulius Mall Suceava!
International fashion brands Lefties and Stradivarius to open in north-east Romania: the latest store concepts in Iulius Mall Suceava! 1600 723 ROMANIA PROPERTY CLUB

IULIUS Company and fashion retailer Inditex are bringing the most modern store concepts by the Lefties and Stradivarius brands for the first time in north-east Romania in Iulius Mall Suceava. Lefties is a fashion brand catering to the entire family, combining modern design with affordable prices and digital retail technologies. Stradivarius is the women’s fashion brand in the Inditex portfolio, acclaimed for its youthful and sophisticated style. The expansion of Iulius Mall Suceava, set to be completed by the middle of this year, will also include other international brands, drive thru type restaurants, coffee shops, a gym, green spaces, and additional parking spaces.

IULIUS Company is consolidating its partnership with Inditex Group, one of the world leading fashion retailers. Starting the first half of this year and for the first time in the region, Iulius Mall Suceava customers will be able to explore the most modern store concepts available around the world and the latest collections by brands Lefties and Stradivarius.

Lefties will open the latest Digital Store concept, set to integrate advanced technologies that allow for a straightforward and efficient shopping experience. The store will include smart fitting rooms, easy pay cash registers, in-store return stations, and a clothing and accessories customization area. Lefties will have a generous floor area spanning 3,000 sqm, offering timeless, sustainable and high quality essentials for the entire family. The collections for women, men, teenagers, girls, boys and babies are created considering the customers’ everyday needs, with an emphasis on versatile and easy to wear clothing at competitive prices. This will be the first Lefties store in the east of the country and the fourth in Romania.

Stradivarius is one of the Spanish concern’s most beloved brands, operating 850 stores in 64 countries. The brand exclusively addresses women and is recognized for its youthful modern style and versatile design, as well as its affordable pricing. Through every season, the brand offers collections inspired by the latest trends on international catwalks, from everyday clothing pieces to formal wear and accessories.

The two Inditex stores will open in the first half of this year, upon completion of the Iulius Mall Suceava expansion, which is set to deliver a total leasable area of 60,000 sqm. The new shopping area will integrate modern shopping and dining concepts, including department stores and fashion brands, some for the first time in the region, as well as restaurants, coffee shops, drive-thru venues, ice cream parlors, a gym, and additional parking spaces. Furthermore, new access routes will be created, connecting the mall and the additional parking spaces, and the area will benefit from landscaping features, green spaces and ambient features to improve the visitor experience.

Romanian premiere: Foster + Partners, a world leader in contemporary architecture, is designing IULIUS’ developments in Constanța and Iași
Romanian premiere: Foster + Partners, a world leader in contemporary architecture, is designing IULIUS’ developments in Constanța and Iași 750 536 ROMANIA PROPERTY CLUB

IULIUS Company, one of the largest real estate developers in the country, marks a new strategic development stage and will collaborate with Foster + Partners, one of the most innovative and world-renowned architecture firms, to implement the company’s new urban development vision. The two projects that IULIUS is developing in Iași and Constanța will harness Foster+Partners’50-plus years of global expertise.

The architects’ holistic approach will be reflected in these two major projects:

  • Palas Iași reconfiguration: the company’s landmark project and its best-performing one in the retail segment outside the Capital will be reconfigured to meet the current demands of the market and the community. The transformation will highlight the uniqueness of the location by integrating the Palace of Culture and positioning it in the city’s civic and cultural center and thus enhancing the visitor experience.
  • Large-scale urban reconversion project in Constanța: an investment upwards of 800 million Euro targeting the Oil Terminal platform, which will be completely decontaminated and reconnected to the rest of the city, in a modern, vibrant, and sustainable urban environment. The concept proposed by Foster + Partners offers a vision for the redevelopment of this area, now completely isolated from the rest of the city, transforming it into an attractive hub, with integrated functions that will support the economy, tourism, and social life. The project will revitalize Constanța and strengthen the city’s status as a strategic economic, social, and cultural hub, while contributing to regional and national competitiveness.

“Our entire activity over the past 25 years has revolved around projects that transform cities into better spaces for communities. The projects initiated with Foster + Partners are two of the most complex initiatives we have undertaken so far. In Iași, we are upgrading an existing complex in an iconic historical location, where reverence for the surrounding monuments, such as the Palace of Culture, is paramount. In Constanța, we are likely dealing with one of the largest decontamination projects in Europe and the opportunity to give an identity to an area currently isolated and contaminated. We propose to fully reintegrate this urban space, now an enclave, into the city and transform it into a vibrant center with functions that the city currently lacks. With the expertise of Foster + Partners architects and by working closely with the authorities and the respective communities, we are confident that we can implement a vision that redefines urban development standards in Romania,” said Iulian Dascălu, President of IULIUS Company.

“We are honored to work with IULIUS in addressing the challenges of urban regeneration in two cities of great significance in Romania. Both the Palas Iași project, with its historical and cultural complexity, and the reconversion of the platform in Constanța, a large-scale industrial area, offer opportunities for creating lasting positive impact. It is rare to find a developer with the courage and vision to take on such ambitious challenges. We are proud to lend our expertise and we are confident that, through this collaboration, we will transform these locations into sustainable and attractive destinations, serving as models for the future,” said Maximilian and Daniel Zielinski, Senior Partners Foster + Partners.

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.

 

 

 

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