medical real estate

In 2024, MEDCITY continued its strategic expansion across Romania, reaching 12 medical hubs and reinforcing its position as the leading developer in the sector. We successfully completed the extension of MEDCITY Craiova and launched the reconversion of MEDCITY Timisoara, marking our expansion into Western Romania. This milestone enables us to better serve the growing demand for modern, high-quality healthcare spaces nationwide.

With our existing portfolio nearing full occupancy, we are now laying the groundwork for MEDCITY 2.0—an ambitious initiative to further expand real estate concepts that deliver a meaningful social impact to local communities and redefine the future of healthcare infrastructure.

In 2025, MEDCITY aims to accelerate its expansion by developing new projects in strategic locations across Romania, bringing state-of-the-art medical hubs closer to more communities and integrating top healthcare providers with innovative medical services.

The upcoming completion of MEDCITY Timisoara, extensions of two existing buildings, the launch of a new project in Otopeni, and the preparation of future developments are key steps in our strategy to strengthen our presence in major urban centers. Our goal is to double our total portfolio GLA within the next 2–3 years, addressing the increasing demand for modern, purpose-built healthcare facilities.

A major milestone in our roadmap will be the launch of our flagship project in northern Bucharest. This development will set a new benchmark in the medical real estate sector, redefining industry standards and establishing a premier healthcare ecosystem through a carefully curated mix of leading healthcare operators.

MEDCITY, as a real estate developer exclusively focused on the healthcare industry for the past two decades, has witnessed a significant shift in the mindset of medical operators. More than ever, they are transitioning from non-compliant, outdated facilities to purpose-built, high-standard medical spaces.

Given these evolving dynamics, we anticipate strong growth in Romania’s medical real estate sector in 2025. This expansion is driven by the rapid rise of the private medical services sector, increasingly stringent regulations governing medical properties, a growing demand for high-quality healthcare, and a rising interest in modern medical facilities that enhance operational efficiency, improve patient care, and comply with strict standards.

In response to these market trends, MEDCITY is well-positioned to meet the rising demand with our state-of-the-art healthcare hubs, designed to integrate advanced medical facilities while ensuring full compliance with the highest regulatory standards.

Healthcare operators prioritize medical spaces that offer flexibility, accessibility, regulatory compliance, and adaptability to evolving healthcare needs. They seek real estate solutions that are strategically located in high-traffic areas with strong demographic demand, ensuring ease of access for patients. Additionally, modern medical facilities must enhance operational efficiency, elevate patient comfort, and integrate advanced healthcare technologies.

Beyond these fundamental requirements, MEDCITY developments stand out as synergy-driven platforms, where top medical providers offer complementary services in high-standard facilities under one roof. This model enhances the patient’s experience, streamlines operations, and transforms each hub into a true one-stop-shop medical destination.

Through our integrated approach, we manage the entire process—from development and fit-out to 24/7 operational support—tailoring every aspect to meet our tenants’ needs. This allows healthcare providers to focus entirely on their core mission: delivering high-quality medical care, while we take care of the complexities of real estate management.

Unlike commercial, office, or logistics real estate, healthcare real estate development comes with inherently lower yields. However, as part of a Group dedicated to healthcare innovation for over 30 years (SOFMEDICA GROUP), we recognize the critical need for purpose-built medical facilities. We have committed to investing in this sector—even with lower returns—because we strongly believe that someone must fill this gap in the real estate market.

This commitment is not only appreciated by the ecosystem but also generates collateral benefits for other companies within our Group. By bridging this market gap, we contribute to the long-term development of Romania’s healthcare infrastructure, ensuring that both medical operators and the communities they serve have access to the high-quality facilities they deserve.

Romanian and EU regulations governing medical real estate have become increasingly stringent, reinforcing the need for healthcare facilities to operate in purpose-built, fully compliant spaces. Stricter guidelines on patient safety, accessibility, infection control, and energy efficiency underscore the necessity of hosting medical activities in buildings specifically designed for this purpose.

Unlike classic real estate developments—such as residential, commercial, or retail spaces — these regulatory requirements cannot be adequately met through simple adaptations. In most cases, attempts to retrofit such spaces for medical use prove impractical and ultimately result in compromised functionality.

At MEDCITY, our developments are designed from the ground up exclusively for healthcare activities, ensuring full compliance with the latest regulatory standards. This approach provides an optimal environment for medical operators to deliver high-quality services while meeting the strictest safety and operational requirements.

Aligned with ESG principles and local regulations, our projects integrate nZEB (Nearly Zero Energy Building) design principles and eco-friendly solutions such as photovoltaic systems and green roofs to enhance sustainability.

By prioritizing compliance with these evolving regulations, we create sustainable, future-ready healthcare environments that support operational efficiency, enhance safety for both patients and healthcare professionals, and uphold environmental responsibility.