This interview was first published in Property Forum’s annual CEE TOP 100 publication.

What are the plans for Kinstellar in 2025 and what were some of the key deals you worked on in 2024?

2024 was a busy year on all fronts with transactions across all asset classes. We had the privilege of advising on some landmark transactions. Notably, we supported Globalworth in its strategic exit from the Romanian logistics market, through the sale of two major logistics portfolios—one to CTP (signed in May 2024) and the other to WDP (signed in July 2024)—making these the largest logistics transactions in Romania this year, with a total value nearing €300 million.

In addition, we successfully closed the acquisition of the Hotel Ambasador in Bucharest by the Julius Meinl group. This was one of the most difficult transactions I have worked on in my career, but one of the most satisfying for the impact it will have on the market.

Besides our clients, a key deal for Kinstellar in 2024 was our takeover of the Bucharest, Prague, and Bratislava offices of German law firm Noerr, who all formally joined the Kinstellar family. The Bucharest office was by far the biggest: we are excited with this considerably larger team including real estate. We very much look forward to mobilizing all of these resources in 2025.

Victor Constantinescu

Managing Partner, Romania & Co-Head of Real Estate
Kinstellar

Victor Constantinescu is the Managing Partner of Kinstellar’s Bucharest office and the Co-Head of the firm-wide Real Estate practice. Kinstellar is a leading law firm in Central and Eastern Europe and Central Asia, with offices in 11 countries and over 350 lawyers. With almost 20 years of experience in real estate focusing on Romania and the wider SEE region, Victor represents an array of international real estate funds and other real estate players across all sectors. Victor has built a reputation for efficiency and a "no-nonsense" commercial approach in organizing and closing transactions in the billions of euros over his career and for building long-term relationships – skills that have earned him recognition as a top real estate practitioner for years in a row by major legal guides. A Canada-born, native English speaker, he began his career in the United States. He completed his undergraduate studies at the University of Pennsylvania, a graduate degree in Russian and East European Studies at the University of Toronto, and law degrees from McGill University in Canada. He is admitted to the New York and Bucharest Bars. Before joining Kinstellar, Victor had worked for law firms in Romania and the US. While he has been tasked with various managerial roles in the firm, Victor is a transaction lawyer at heart and enjoys what he does. More »

Which market segments are going to drive demand for your real estate practice in the next year?

I have said this on multiple occasions and still believe in it: geopolitics rather than market economics are increasingly influencing investments. Defence spending, uncertain supply chains, energy independence, the war in Ukraine, “less-than-friendly” governments vis-à-vis the European Union: Romania can only benefit.

And one sector is logistics and industrial. The country’s location and West-leaning mindset make it a natural focus for manufacturing and industrial production. “Nearshoring” is a thing as companies are looking to build robust supply chains.

Retail continues to be strong, as Romania’s purchasing power is beginning to rival or exceed that of many countries in the region. The office market will also remain relevant, particularly in Bucharest, where vacancy rates are low, signalling sustained demand for quality office space.

Additionally, investors are starting to explore new asset classes that are not yet fully developed in Romania, such as data centres and student housing. These emerging sectors present exciting opportunities for first-movers. Renewable energy and agriculture likewise for geopolitical reasons will continue to be strong.

Industrial was a deal driver in Romania’s property market during 2024. Can this shape future industrial investments in the next few years?

Without a doubt. For the reasons described above, which are primarily geopolitical in nature, industrial will continue to drive many sectors of the economy. It is clear that industrial production must be returned to some extent to Romania: the Covid-19 pandemic, fraying relationships and the war in Ukraine have made it clear countries still must produce things.

It will also have knock-on effects on various sectors, such as infrastructure (the highways must be built) and the like.

What are some of the trends recorded in the CEE-based real estate investment market? Is Romania also seeing some of these developments?

The geopolitical side of things I won’t repeat here, where Romania is clearly becoming a leader. But in terms of other trends in CEE, local capital is important: you’re increasingly seeing local investors taking advantage of opportunities and while Romania does not have the large funds like in Czechia, Slovakia or Hungary, that will change as high-net-worth individuals are increasingly turning to real estate.

Another area is the need to add more depth to real estate offerings: offering new asset classes. Data centres, student housing, mixed-use developments—these are all areas that are very much in their nascent stage in Romania, but they’re gaining traction.

It’s a fascinating time to be involved in the market because we’re seeing both steady growth in traditional sectors and the early stages of something new.

What is the sentiment of regional property investors going into 2025 considering falling interest rates coupled with continued geopolitical tension?

As we approach 2025, the sentiment among property investors in the CEE region, including Romania, remains cautiously optimistic. Romania benefits from its geopolitical location and security guarantees. Romania however needs to offer more depth: more product, more asset classes and aligning buyer-seller expectations. But opportunities are available, with tenacity and creativity. Coupled with an increasingly favourable climate of interest rates and what we hope will be a new US administration favourable to Romania, Romania will continue to attract new investors.