New office projects with a combined leasable area of nearly 64,000 sqm were completed during H1 2024, with the volume soaring almost three-and-a-half times compared to the same period of 2023, according to a BNP Paribas Real Estate report.  

The real estate market is strongly connected to the evolution of the economy at the local, regional, and global levels, so the challenges of recent years – increasing construction costs, changing preferences of consumers and availability of financing – have significantly impacted medium and long-term development strategies, write Alexandra Smedoiu and Marius Vasilescu, Partners at Deloitte Romania for Property Forum.

Lavinia Ioniță Rasmussen, Partner at NNDKP’s Real Estate practice, spoke with Property Forum about the acceleration of commercial and residential development in regional cities and the potential of the local market to offer higher returns for property investors compared to other countries in the region.

Romania’s commercial property sector recorded investment transactions of €418 million in H1 2024, up 131% year-on-year, marking the biggest volume growth across CEE, according to Cushman & Wakefield Echinox. 

As climate change progresses, cities are trying to find ways to eliminate overheating of urban areas. They are striving to preserve a pleasant environment for residents and all fauna and flora even in places with dense construction. Blue-green infrastructure building is considered to be a good option. 

Romanian developer One United Properties says its volume of sold and pre-sold residential units, parking spaces and commercial spaces amounted to around €123.8 million during H1 2024. This result is up by 2.5% compared to the same period of last year. 

The Regional Research Forum has presented H1 2024 Brno and Ostrava office market data. The vacancy rate in both cities is moving slightly below 12%.

Romanian developer One United Properties has started the construction of One Technology District, which will host the largest R&D centre of Infineon Technologies in Southeast Europe.

The first half of 2024 on the Warsaw office market marked an evolutionary change on both the demand and supply side. Development activity is slowly returning to pre-pandemic levels, with 280,000 sqm under construction at the end of June. On the demand side, we are observing a continuation of the renegotiation trend. The total take-up was 320,000 sqm, a comparable result to H1 2023, according to Axi Immo's latest report. 

Monia Dobrescu, Partner at Mușat & Asociații, spoke to Property Forum about the growing role of ESG criteria in bank financing of real estate projects and the prospects for investment in the local market in 2024.