Elina and Angeliki Grigoriou visited Bucharest, Romania last week to attend the RICS South-Eastern Europe Property Forum, where Elina delivered a talk on ‘Designing for wellbeing – the next office market trend’.
Their key insights from 27 hours in Bucharest are:
RICS SEE Property Forum
A very well organised and smoothly executed event, diverse and informative speakers, mixed attendance by big corps, government and some specialist SMEs. Next one taking place this April in Prague and coming to London in November – worth looking out for.
- o Office developments are booming with further growth anticipated; wellbeing is starting to be considered and elements implemented in larger office developments. Mixed developments are seen by some as the next trend as more people wish to live next to their work and enjoy leisure time without having to loose time commuting. Additionally, some companies are wishing to offer their employees accommodation close by.
- o Residential market movement is lagging mainly due to flat economy and low average salaries but also the market is not ready for the product on offer
- o Retail market weary of online shopping performance but still seeing growth in in-town shopping centres with 25% of GLA taken up by food & beverage. Bigger retail developers considering wellbeing and focusing their offering on the customer experience.
- o Office and Retail investment growth not only seen in Bucharest but regional cities too.
A selection of slides from a presentation by Dan Bucsa PhD, Lead CEE Economist, Unicredit Bank AG
Investment in real estate
19% of Romania’s inward investment comes from the South African region; the time is good for foreign investment to enter the market and the economic condition is indicative of a high and fairly safe return – “unless they mess it up themselves” speaker quote!
In Bucharest, streets are framed by beautiful, heritage, art deco and neoclassical buildings that add so much character to the city and enrich its potential – however, most are empty and in need of repair.
These historical buildings truly enrich the city culturally and if Bucharest wins the European Cultural City for 2021 nomination, would be an investment opportunity worth looking at. Beautiful buildings attract people and business.
Overall a very positive and worth-while trip and we look forward to returning soon!