Bucharest Real Estate Club and Romania Property Club conducted a survey among the most dynamic investors to identify the forces shaping the urban landscape of the city in 2024.
The latest BREC TRENDS FORUM event brought together industry specialists who discussed the outlook for the real estate sector in 2024. Thus, the industrial and logistics segments remain at the top of the list in Bucharest, closely followed by the residential segment. Urban freeze remains the main challenge for the real estate market in Bucharest, while infrastructure development is indicated as one of the main growth factors for regional cities in Romania.
Andrei Diaconescu, co-founder and co-CEO of One United Properties, expressed confidence in the potential of the local real estate market, indicating an increase in interest for quality products amid a challenging climate: ”The real estate market in Romania has significant growth potential and remains highly attractive for both clients and investors. This is primarily due to the substantial structural deficit of high-quality housing, despite challenges such as inflation, rising interest rates, and urban planning issues in Bucharest. With an increase in both demand and affordability in the residential market and with few new office deliveries, well-located and ESG-compliant properties are in much higher demand and 2024 will strengthen the flight to quality trend seen in the past few years.”
According to BREC, the biggest contributor to investor sentiment towards the Bucharest real estate market is the urbanistic uncertainty: ”Most of our respondents circle back to the topic when estimating their investment pipeline. The urban planning uncertainty has also an impact quality-wise, as the responsible developers, who are building large-scale projects and have high-quality standards, are slowly but surely driven away from the market. Due to limited supply, there is an estimation of 10% in asking prices and rents.”
