The latest edition of the ZF Offices and Residential Conference brought together real estate experts who, alongside ZF journalists, discussed the real estate market's performance and outlook for this year on each specific segment: office, residential, and retail.
Beatrice Dumitraşcu, CEO Residential Division One United Properties: High housing demand
Invited as a speaker on the residential real estate panel, Beatrice Dumitraşcu stated that despite fiscal changes, there is a high demand for housing and a strong appetite for acquisitions across all market segments. Those in need of housing today are not willing to wait for two or three years.
"Construction has decreased, the supply is therefore lower, prices are rising, and taxes are increasing. The impact of fiscal measures is still on the consumer",
she pointed out.
Beatrice discussed One United Properties' residential portfolio, highlighting the developer's offerings in both the premium and medium-to-medium-superior segments.
"We have a pipeline for the next 2 years with projects like One Herăstrău Vista and One Floreasca Towers. We entered 2023 with 5,600 residential units, and in the first half of the year we reported 152 million euros in sales, 466 units, 800 parking spaces, and additional amenities. We offer apartments for various budget ranges, not just premium. We are launching the first phase of One Lake District on the shores of Lake Plumbuita, catering to a community's needs for schools, kindergartens, and stores. It's an area with an aging housing stock, a large population, and a demand for this product."
Furthermore, the CEO of the residential division mentioned that there is also an investor segment looking at ONE properties:
"We also have investors buying packages of apartments, especially as we have a rental market where prices have risen. Foreign investors see that in terms of taxation, we are in a better position than other countries, and prices are still relatively low. Some investors buy speculatively and plan to resell, while others want to secure their money and seek passive income. There are buyers in all categories."
Mihai Păduroiu, CEO Office Division One United Properties: We are competing with Poland, Portugal, and even Spain in the office market
The panel dedicated to the office real estate segment brought together key players in the industry who emphasized the significant potential this sector holds in our country. Bucharest competes with Warsaw, Sofia, and even Madrid, Milan, or Lisbon in the office market. However, the lack of predictability in the Romanian capital, as well as the undersized infrastructure, especially in public transportation, significantly affect investments. Mihai Păduroiu, CEO Office Division One United Properties, pointed out that Bucharest is an attractive destination, but unfortunately, for every investment won, the capital loses another 10 transactions as companies choose to go elsewhere due to the lack of local infrastructure and predictability.
"We will announce several transactions that will bring a high degree of optimism, demonstrating that the office market is mature, and that Bucharest is an extremely attractive location. Last year, we signed with Siemens Energy at One Cotroceni Park, and we continue to negotiate with other companies. I hope that by the end of the year, we will announce at least one similar transaction. These companies generate value in the economy through employment, know-how, and by attracting an ecosystem of suppliers, partners, and clients",
said Mihai Păduroiu.
He also mentioned an unprecedented transaction reported by the company on the Bucharest Stock Exchange, one of the largest in history in terms of value, and spoke about One Gallery project, which involves the restoration of the former Ford factory in Floreasca neighbourhood:
"One Gallery is in the restoration phase, which is a more complex process. There are many new resources and innovations implemented for the first time. The delivery date is 2026, but it depends a lot on how the progress of work on the new structure unfolds, as the old one has already been consolidated. The main retail component will serve the food area, and on the first floor, we will have offices that preserve the characteristics of the historic building but with modern equipment. These are flexible, modern spaces that are needed in the market."
