Property News

Timisoara: one of the highest retail densities in the country 
Timisoara: one of the highest retail densities in the country  1600 899 ROMANIA PROPERTY CLUB

28.10.2023

The modern retail stock in Timisoara is well developed, registering one of the highest retail densities in the country (1,055 sqm per 1,000 inhabitants), reflecting investors’ and retailer’s trust in the long-term economic strength and resilience.

Iulius Mall, Timisoara

The investors’ focus on this city determines a dynamic land market. Data from local consultancy company Hitch & Mosher show that prices for permitted plots vary between 35-60 Euro/sqm for logistics developments, 113-350 Euro/sqm for retail developments and 155 up to 1,490 Euro/sqm for residential and mixed-use schemes.

The 265,000 sqm total stock consists of approximately two-thirds modern shopping centers and a third is reserved for commercial galleries and retail parks. The two dominant schemes are Iulius Town and Shopping City Timisoara, built by two of the most experienced retail developers (Iulius Group and Nepi Rockcastle, respectively).

The first modern mall was delivered by Iulius Group in 2005, as part of the integrated mixed-use development of Iulius Town, a 220 mil EUR investment. In addition to the office component, United Business Center, the scheme features a large exhibition & events center offering up to 2,250 seats for corporate set-ups and a fitness & wellness center managed by the country’s most experienced operator – World Class.

Iulius Mall, the first modern shopping center in the city benefited from an extension in 2019, reaching 102,000 sqm, making it the largest shopping area outside of Bucharest. It hosts the most representative retailers, such as Peek & Cloppenburg, iStyle (Apple partner), Calvin Klein Jeans, Inditex Group (Zara, Stradivarius, Pull & Bear), Guess, H&M, C&A. Cinema City operates a modern 12-room movie theatre.

Nepi Rockcastle inaugurated a 90 mil EUR new development at the end of 2015. More than 70,000 sq m GLA are occupied by Peek & Cloppenburg, Sephora, Levi’s, US Polo Assn, Inditex Group (Zara, Stradivarius, Pull & Bear), Reserved, Intersport, C&A, H&M, and other service, fashion, and food & beverages operators, as well as a Cinema City. In addition, the scheme is completed by a 10,000 sq m Carrefour supermarket and a 16,000 sqm Dedeman DYI that provide a complete shopping destination.

IKEA is one of the most prominent retailers that expressed trust in Timisoara by opening earlier this year its third store in Romania, the first outside the capital city. The 60 mil EUR investment covering more than 26,000 sqm is a BREEAM-certified big-box. The store serves both Timisoara and the wider West region – the most dynamic outside Bucharest-Ilfov. 

Smaller commercial galleries address a wide pallet of the city’s shopping needs. From legacy (Bega Shopping Center department store) to newly built (Sud Plaza) cost-efficiency retailers serve the needs of a wide spectrum of budgets and price-quality ratios. Scallier, through its FunShop brand, serves the city through two 11,000 sqm units, out of which one took over from Prima Shops. Both units are anchored by discounters (Kaufland, Penny, and Lidl).

While the relatively high retail density doesn’t make new developments likely for the foreseeable future, it is important to note that the existing retail schemes not only serve Timisoara Timis and neighbouring counties. Hungarians and Serbs often cross the border to find items and retailers which are not present in their area. Therefore, the real catchment area is larger than the official 320,000; thus, the real retail density is more sustainable and in line with other regional poles.

Skilled workforce attracts and retain big employers in Timisoara, the city becoming Romania’s third office market
Skilled workforce attracts and retain big employers in Timisoara, the city becoming Romania’s third office market 1684 1080 ROMANIA PROPERTY CLUB

27.10.2023

Relative to population and student migration patterns, Timisoara enjoys a right-sized stock of modern offices amounting to 300,000 sqm, with an expected pipeline of at least 24,000 sqm. The vacancy rate rose close to 15%, similar to Bucharest.

Iulius Town, Timisoara

Headline rents for class A offices range from 14.0 to 15.5 EUR/sqm/month. During 2022, Timisoara registered the strongest office demand outside Bucharest (more than 50,000 sqm). However, during the first half of 2023, the demand was modest, in line with Q1 2023 in the capital city. The slowdown does not discourage existing or new schemes to develop during the next 18 months.

IULIUS TOWN Timisoara is the city’s main urban regeneration mixed-use scheme that Iulius Group rolled over Romania’s most important regional poles. The project is a large integrated retail–office development. United Business Center, the office component, offers more than 80,000 sqm of modern LEED Certified class A infrastructure to numerous tenants in the IT&C and automotive sectors. The impressive roster of blue-chip tenants features Amazon, IBM, Microsoft, Endava, Bitdefender, Intel, Atos, Ness Digital, Cognizant, Autoliv, NTT Data, Visma Software, and many other reputable companies. The benefits offered by the city’s dominant retail scheme, along with medical educational and leisure facilities within walking distance made the case for employers looking to attract talent.

The first landmark modern office development in Timisoara is the City Business Center, presently named AFI Park Timisoara. Totaling 48,000 sqm over 5 buildings with modular floor plates, the property is home to reputable technology and support centers of multinational companies such as Wipro, Accenture, SAP, Hella, etc.  Facilities such as retail areas, a sky bar with a panoramic view, and a 5’ walking distance of the old city contributed to the resilience of the scheme that delivered its first building in 2006 and the last in 2015. The most notable fact about the property is that it is the only large commercial building sold twice in the city. NEPI Rockcastle purchased the project from local developer Mulberry Development and later sold it to AFI Europe.

Mulberry Development invested the proceeds into a mixed-use multi-phased project, called ISHO. The scheme includes a residential and a hotel (future Radisson Blu) component, a 700-spot multi-story parking, and a three-phased integrated office development spanning over 50,000 sqm of class A offices. Large occupiers such as Bosch Service Solutions, Visteon, Canon, SSI, Regina Maria, Deloitte, and KPMG chose ISHO as their operating base in the region.

In terms of future deliveries, it is important to flag that one of the established developers in Bucharest extended its presence in Cluj and Timisoara. Speedwell is developing a mixed residential–office scheme located on the former Paltim factory. Ultra-centrally located, overlooking Bega River, the 16,000 sqm of brand-new offices and old villa reconversion are expected on the market by the end of 2024. The developer announced earlier this year it has acquired 24,000 sqm of land, the former 1 iunie textile factory, where it intends to build a multi-purpose scheme – residential, offices and retail.

One of the items that commercial developers should account for in Timisoara is the generous centrally located landbank, as 25% of the city’s area is still unbuilt, according to the City Hall. While this might seem attractive as it allows for competitive land acquisition, it is important to pace development and carefully plan an exit. The low unemployment rate, the variable number of students, and their desire to live in the city postgraduation are to be accounted for when planning an investment, due to the possibility of competitive schemes that can benefit from a good location.

Strong fundamentals for a new development stage of Timisoara
Strong fundamentals for a new development stage of Timisoara 1620 1080 ROMANIA PROPERTY CLUB

26.10.2023

With a strategic location offering access to pan-European road infrastructure and a skilled educated workforce, doubled by efforts of local authorities both in terms of infrastructure projects and cultural programs, Timisoara catches the eye of both institutional and local real estate investors.

Cathedral, Timisoara

The investors’ focus on this city determines a dynamic land market. Data from local consultancy company Hitch & Mosher show that prices for permitted plots vary between 35-60 Euro/sqm for logistics developments, 113-350 Euro/sqm for retail developments and 155 up to 1,490 Euro/sqm for residential and mixed-use schemes.

Timisoara represents Romania’s third office market, following Bucharest and Cluj-Napoca. Some big occupiers such as Amazon, IBM, Microsoft, Wipro, Hella or Accenture established offices locally. The modern office stock amounts for 300,000 sqm with another 24,000 sqm in the pipeline.

Residential sector was affected by the same turbulences which impacted the national housing market in 2023. While demand for residential for sale is lowering, residential for rent is seeing a noticeable increase. Data from imobiliare.ro shows an increase in demand of 44% in the last two years for rented apartments.

The city enjoys one the highest retail densities from Romania with a ratio of 1,055 sqm per 1,000 inhabitants. The total modern stock amounts to approx. 265,000 sqm with some significant projects. Iulius owns here a 102,000 sqm development, the largest shopping area outside of Bucharest.

Timisoara is the second most developed industrial & logistics market outside of Bucharest, with a moder stock of 733,000 sqm and more than 40,000 sqm under development. All major players are present locally: VGP, Globalworth, CTP and WDP.

Hotel sector is one of the most under-developed, with only 331 rooms built during the last ten years. “Timisoara European Capital of Culture 2023” is expected to bring future opportunities. In this respect, four new 4* & 5* branded hotels, totalling 416 rooms, are under development with delivery dates between 2025 – 2026.

Under those circumstances, Timisoara remains one of the strongest real estate hubs outside Bucharest, set to enter a new development phase.

Iulius has signed a partnership with IFC, a World Bank member, to create a decarbonation strategy for the entire property portfolio
Iulius has signed a partnership with IFC, a World Bank member, to create a decarbonation strategy for the entire property portfolio 2048 1152 ROMANIA PROPERTY CLUB

17.03.2023

IULIUS has recently signed a partnership with IFC, a member of the World Bank Group, for the purpose of developing a strategy to decarbonize the entire portfolio of the company and achieve net-zero emissions. IFC will use the Green Pathways for Real Estate Institutional Portfolios (GRIP) platform to provide solutions for defining, implementing and financing the plans of IULIUS to reduce greenhouse gas emissions and to reach CO2 neutrality as soon as possible. This would be the first such engagement in Romania.

IULIUS Palas, Iasi

IULIUS is consolidating its sustainability goals for the following years and has thus entered into a partnership with the International Finance Corporation (IFC), a member of the World Bank Group. IFC will use the GRIP platform to support the company in the process of putting together a plan of actions to help reduce the carbon footprint across the entire portfolio. “Buildings are responsible for a third of greenhouse gas emissions globally. Through this partnership, Iulius and IFC are helping to accelerate climate action in real-estate development”, said Ary Naim, Regional Manager for IFC in Central and Southeast Europe.

In fact, IULIUS has always built in an environmentally conscious manner and owns the only LEED (Leadership in Energy and Environmental Design) certified nationwide shopping mall network in Romania. This adds to the Palas Iaşi and Iulius Town Timişoara mixed-use projects and the 15 office buildings in the United Business Center network in Iași, Timișoara and Cluj-Napoca, which are all green building certified. “We are particularly excited about this new partnership, which will help us take our sustainability strategy to the next level. The company has already undergone a comprehensive process of implementing high standards of energy efficiency, sustainable management of green spaces, outdoor surfaces and waste, and other sustainable solutions, as confirmed by the LEED certifications. However, we want to contribute even more to maintaining a healthy environment by reducing the carbon footprint in all eight of our projects,” said Dan Adrian Chelaru, Group Sustainability Officer IULIUS. 

Examples of certifications 

  • Palas Iași – the only LEED® Neighborhood Development certified project in Central and Eastern Europe
  • All 15 buildings in the United Business Center network are LEED® certified, of which UBC 0 (the most recent certification) and UBC 3 Timișoara are LEED® Platinum certified.

In addition to meeting the highest modern technical requirements, their implemented solutions, comfort and safety, the projects developed by IULIUS also benefit from hundreds of bike parking spaces, electric vehicle charging stations, excellent access to public transit, all of which helps reduce the use of personal vehicles and cuts pollution. They are also the only real estate projects in Romania to include urban gardens, which are initial investment upwards of € 17 million.

In 2021 IULIUS also obtained the first green loan granted by IFC to a Romanian company, in the amount of € 72 million for Palas Campus in Iaşi. The ample office project, set to open this spring, is also undergoing a dual green certification process: EDGE (Excellence in Design for Greater Efficiencies) by IFC and LEED by the US Green Building Council.

Impact announces delivery for the first phase of residential project in Constanta
Impact announces delivery for the first phase of residential project in Constanta 2000 1333 ROMANIA PROPERTY CLUB

07.03.2023

IMPACT Developer & Contractor has completed the first 209 apartments representing the first phase of the Boreal Plus residential compound in Constanta.

Boreal Plus, Constanta

The 209 apartments are located in three blocks and will be handed over to the new owners starting this month. At the same time, the developer also completed a 6-level parking building (S+P+4E) that includes 290 parking spaces. The building is equipped with electric car charging stations, two high-capacity elevators, and individual underground storage boxes . Boreal Plus thus becomes the first residential compound in Constanta with a multi-storey parking building, available for purchase by the residents.

The second development phase of the Boreal Plus compound in the north of Constanta will include 132 apartments, the entire project totaling 673 units with an estimated market value of over 84 million euro. The entire project also includes the construction of a private kindergarten, a park with playgrounds dedicated exclusively to residents, but also several commercial spaces.

IMPACT develops sustainable large-scale residential projects, getting involved in numerous social responsibility projects, for the benefit of the community. Thus, in December 2022, IMPACT completed the construction of a roundabout in Constanța city, located at the intersection between Tomis Boulevard and Amsterdam Street. The new roundabout improves road traffic both for the residents of the new Boreal Plus residential compound, as well as for those who live in the other neighborhoods located in the north of Constanta and for all those who transit the city towards Ovidiu and A2 highway, streamlining traffic and increasing safety on this section. The total investment in this public infrastructure project amounted to over 450,000 euro, the beneficiary being the National Road Infrastructure Administration Company (CNAIR) through the Constanta Regional Roads and Bridges Directorate.

WDP has budgeted investments of 80 million euros on the local market
WDP has budgeted investments of 80 million euros on the local market 1900 575 ROMANIA PROPERTY CLUB

06.02.2023

  • Craiova

The Belgian logistics space developer WDP, one of the largest logistics space developers present in Romania, will build a logistics center on an area of ​​6,200 square meters in the commune of Almaj in Dolj county, with an investment of 4.5 million euros. The building will function as a distribution center for the company Erkut, a supplier of the Ford car manufacturer, with a factory in Craiova.

WDP Warehouse

“The property is expected to be available in the second quarter of 2023. From that time, Erkut will enter into a seven-year lease,” WDP’s latest report said.

Another investment of WDP on the local market is the construction of a new warehouse in Timisoara, with an area of ​​33,000 square meters, which will be used both for storage and for production by a technology company. The investment for this project rises to 32 million euros.

In Slatina, WDP wants to expand an already existing project by over 48,000 square meters, with an investment of 36 million euros, by the third quarter of the year, and in Sibiu, it wants to expand the space occupied by Siemens by over 8,700 square meters based on a ten-year contract.

This development would be ready in the first quarter of 2024 and involves an investment of 6 million euros. In total, the investments planned by the Belgian group for Romania at the beginning of 2023 rise to 78.5 million euros.

Iulius opens second Family Market in Iasi, following a total investment of € 24 million
Iulius opens second Family Market in Iasi, following a total investment of € 24 million 1548 871 ROMANIA PROPERTY CLUB

09.12.2022

IULIUS inaugurated the second Family Market project, in the Bucium neighborhood of Iași. The proximity retail project brings services and products needed on a daily basis to the residential area that has seen constant development in recent years. McDonald’s Drive Thru, Auchan supermarket, Sinsay and 23 other local and national entrepreneurs provide the customized mix of products and services resulting from community consultation.

IULIUS Family Market – Bucium, Iasi

This year, IULIUS inaugurated two Family Market projects in Iași: the first in Miroslava commune, last summer, and now the one in the Bucium neighborhood. “It is an investment of 12 million euros and we have a retail area of 5,500 square meters, in which we have brought together 26 brands, which have created over 180 new jobs”, says Radu Pârlea, Shopping Center Manager Family Market. “Most are local and national, with fresh and healthy products, from florists, groceries, pastry shops, restaurants, to auto parts, barbershops and services that you need on a daily basis. The concept is designed to respond to the public’s interest in local consumption”.

The new project integrates a McDonald’s restaurant, the second location of the brand with Drive-Thru service and the fourth in the city of Iasi. The restaurant integrates the latest technologies, being equipped with digital screens for displaying menus, kiosks for ordering products. The anchor of the project is Auchan supermarket, a large format concept of more than 2,000 sqm, where customers can find more than 11,000 items on the shelves. The shopping offer is completed by: Sinsay, La Bottega, La Ciambella, Kosarom, Spartan, Fusion To Go (sushi), Dolciano, Dulcinella and Teo`s Café.

Tarom wants to “open” Brasov-Ghimbav International Airport
Tarom wants to “open” Brasov-Ghimbav International Airport 800 600 ROMANIA PROPERTY CLUB

15.11.2022

The first commercial aircraft that will land on the runway of the new airport in Brașov will be a Romanian one, belonging to TAROM”, said Mihăiță Ursu, general director CEO of TAROM, during the discussions held on Monday with Adrian Veștea, the president of the Brașov County Council, and with Alexandru Anghel, the general director of Brașov-Ghimbav International Airport.

The consolidated schedule of activities regarding the opening of the Braşov-Ghimbav International Airport, agreed by the Braşov County Council, together with ROMATSA and the Romanian Civil Aviation Authority, provides that the airport will be operational in mid-June next year.

At Monday’s meeting at the Tarom headquarters, it was agreed to identify sustainable options for TAROM to be able to operate flights between Bucharest and Brasov, which could be possible at the end of next year at the earliest.

“TAROM carefully follows the market and once again proves to be a reliable partner of Romanians and beyond. We can discuss the operation of flights between Bucharest and Brașov and return, this only if the infrastructure of the future airport will allow it, emphasizing the conditionality that between the airport and the center of Brașov there should be, on a regular basis, integrated passenger transport services, but also the availability of services of the rent-a-car type for future passengers”, added the CEO of TAROM.

With an investment of 40 million euros, Continental opens a megafactory in Timisoara
With an investment of 40 million euros, Continental opens a megafactory in Timisoara 770 512 ROMANIA PROPERTY CLUB

11.11.2022

Continental has completed the construction of the third expansion of the electronic components factory in Timișoara, with an investment of approximately 40 million euros.

With the new investment, the production area will increase by more than 7,000 square meters, which means an increase of more than 60% of the space (about 18,000 square meters will be reached for production). Parking spaces, a technical area, offices and a green area were also added.

“What used to mean horsepower under the hood is now user experience. To meet the growing demand of our customers, we must pursue the most developed digitization, standardization and automation possible – and that is exactly what we are doing with our new mega factories strategy”, said Lucian Mărgineanu, the director of the automotive production unit in Timișoara. “Continuing the implementation of Industry 4.0 technologies represents another leap into the future. The digitization of production processes, as well as the use of state-of-the-art equipment, means another step in guaranteeing the quality of our products and services. Therefore, in the electronic components factory in Timișoara, we are focusing on a sustainable future”, he added.

Continental makes more than 17 million products a year in Timișoara

The electronic components factory in Timișoara produces over 17 million products annually. Airbag control units, electronic parking systems, control units for various technologies such as air suspension, power steering, suspension adjustment and dynamic load stabilization, Head-Up and Head-Up Combiner display units and on-board instruments are manufactured here. Over time, the factory developed in the direction of Industry 4.0, integrating equipment and technologies such as the innovative storage system, the trigeneration system and others.

Over 17,500 employees in Romania

The technology company founded in 1871 provides safe, efficient, intelligent and affordable solutions for cars, machinery, traffic and transportation. Continental achieved a turnover of 33.8 billion euros in 2021 and currently has more than 190,000 employees in 58 countries and markets. On October 8, 2021, the company celebrated its 150th anniversary.

Between 1999 and 2021, Continental invested over 2 billion euros in its activities in Romania. All three fields of activity of the company are represented in Romania. Continental owns six production units and four engineering centers in Timișoara, Sibiu, Carei, Nădab and Iasi. The company has a tire distribution center in Bucharest. At the end of 2021, Continental had more than 17,500 employees, of which more than a third were engineers and computer scientists, and will continue to hire based on future projects.

CERTION completes VOGH Olimp project, less than two years after the works started
CERTION completes VOGH Olimp project, less than two years after the works started 1536 864 ROMANIA PROPERTY CLUB

08.11.2022

The real estate developer CERTION announces the completion of VOGH project, the first brand residences operated as a hotel in Olimp, less than two years after the start of the works. Thus, the company is preparing to start the reception process and then the delivery of the apartments to customers, with the project to be opened to guests in the first part of next year.

Located and developed in Olimp resort, which is in full transformation through investments of over 700 million euros until 2025, the 12-storey complex totals 173 apartments, out of which 85% have already been sold, with a total value of 57.6 million

“The successful completion of VOGH Olimp complex, despite the less favorable context of the last two years, confirms our ability to fulfill our promises to our investors and customers. For the entire team, delivery to the promised standard and on time was the main objective during this period,” said Cătălin Scripcaru, CEO of CERTION.

Among the main facilities available to guests and residents of VOGH Olimp is the spectacular infinity pool on the 11th floor overlooking the sea, unique on the Romanian coast. Added to that is the unique CIGAR BAR on the same floor plus a chic SPA area. The property benefits from hotel services specific to authentic brand residences.

The hotel custodian of VOGH Olimp is Loyal Paladin company, which will operate the largest alliance of branded residences in Romania, with a portfolio that will include approximately 2,000 accommodations until 2026.

The chain of brand residences operated by Loyal Paladin and developed by CERTION in the South of the Romanian coast, includes 5 projects, of which VOGH Olimp is the first completed. GALILEO Olimp Resort & Residences is also in an advanced stage of execution, whose construction was started at the end of 2021 and whose delivery is estimated in the second half of next year. The other three CERTION projects in the South of the Romanian coast, LAGO, SOLANTIS in Neptun and PHAROS in Olimp are in the authorization stage.

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