In the first year of the pandemic, the construction market of the SEE region as a whole remained in the positive, and further expansion is expected until 2023. The only exception is Bulgaria where a harsh transition is foreseen for 2023 when the 2014-2020 EU programming period ends financially. The massive growth experienced in the years before 2020 is not anticipated to return. around 3% growth is projected for 2021 and 2022, and a 3% drop for 2023. The countries with the largest cumulated growth on the forecast horizon are Croatia and Serbia, according to the Eastern European Construction Forecasting Association’s 2021 Summer Construction Forecast Report.

The sentiment of Hungarian real estate investors is becoming more and more optimistic, which is reflected in their continuously increasing willingness to invest, according to CBRE's survey. Offices are expected to remain the most traded asset type, but demand for alternative investment opportunities has increased significantly. The biggest challenges of the coming year may be pricing asymmetry between sellers and buyers, as well as a lack of stock for sale.

COVID-19 has completely redefined what office means and companies have a lot of thinking to do when it comes to finding the right location for their workforce to work from. Companies are increasingly turning towards flex offices and according to Business Wire, the global flex office space market is expected to grow from $7.97 billion in 2020 to $8.14 billion in 2021 at an annual growth rate of 2.1% before reaching $13.03 billion by 2025.

Over 300 buildings and real estate properties were certified as ‘green buildings’ between 2010-2020 in Romania, a period that marked the first decade of sustainable development. Romania ranks 3rd among CEE countries, after Poland (1232 certificates) and Czech Republic (422). The next positions are occupied by Hungary (232) and Slovakia (124). The accelerated growth is deemed to continue, as green buildings become a strategic tool in reaching EU Green Deal targets, according to the BuildGreen 2020-2020 Sustainable Development Report.

The retail, industrial and logistics sectors have been affected by the recent price increase of crucial construction commodities mostly steel, plastic and wood, according to a report by 108 Agency.

Experts participating at Portfolio's recent FM & Hybrid Office conference in Budapest discussed the present and future of the office market. The past 18 months have started a multitude of changes as WFH, the sub-leasing of office space, the change in internal configurations, the return to offices, sustainable management and changing tenant requirements have led to a substantial transformation in the lives of office market players. Experts agree that hybrid office use is currently the most likely outcome, as only a few businesses have adopted WFH full-time.

“An Investment in commercial property is attractive to investors who want to invest their money and generate higher yields. Commercial real estate investments are also becoming more popular with private investors to complement the portfolio”, explains Markus Arnold, CEO of Arnold Investments. This trend led to a strong half-year performance in the commercial sector for the investment brokers. With a transaction volume of about €100 million and 90,000 sqm of space brokered, the company declared a healthy six-month balance. “Two thirds of the transactions were concluded in Austria and one third in our other European branches where further deals are imminent. In most of the deals both buyers and sellers are advised by Arnold Investments”, reports Markus Arnold in greater detail.

Real estate market players in Romania could face new challenges if the current inflation pressures spill into the next years, said executives during an expert panel discussion that marked the launch of Property Forum’s first annual “The 50 Most Influential People on Romania’s Real Estate Market” publication.

Even under the challenging circumstances of the pandemic, Romania’s real estate market continued its dynamic growth. In celebration of this growth, Property Forum has decided to open a new chapter in its local operations and launch a unique annual publication listing the 50 most influential people on the local market which is now available for download.

A recent webinar organised by digital workspace solutions provider workcloud24 hosted three leading experts that shared their point of view on how people will work in the post-COVID-19 period backed up by surveys they recently conducted.