Establishing BREC aimed to showcase Romania’s real estate market globally. What makes Romania an appealing real estate investment destination?

Romania boasts the highest yields among CEE countries, despite the perceived higher risks, which actually stem from lower selling prices compared to other regional markets. Project quality matches those in Warsaw or Prague. Our goal is to elevate this information internationally, strengthening ties between local and global markets, from the US to Asia and the Arab Gulf.

Can you explain the perceived risks associated with investing in Romania?

Instability in the political landscape contributes to this perception, especially concerning frequent fiscal changes. However, these fluctuations present numerous opportunities typical of emerging markets.

How does Romania’s tech sector contribute to its real estate market allure?

Over the past decade, Romania’s tech sector, notably the top 50 technology companies, quadrupled revenue and teams. This growth fuels larger office space demands, higher salaries, and increased consumer activity, influencing real estate needs positively.

Despite remote work possibilities, why do you anticipate continued demand for office spaces?

Collaborative performance remains tied to teamwork, as emphasized by CEOs like UiPath’s. While the pandemic has prompted remote work, a hybrid system may emerge, modifying office layouts, yet office spaces will remain essential, evident in increased office space acquisitions by visionary companies like Netflix, Amazon, and Facebook.

Could you elaborate on the emerging urban hubs in Bucharest?

Urban regeneration projects are shaping the trend towards a “work near home” concept. Notably, One Cotroceni Park, an industrial site transformed by One United Properties, exemplifies this, integrating office, retail, and residential components, serving the community while redefining urban landscapes.

How does the real estate sector fare amidst the global pandemic in Romania?

The market appears resilient, mirroring a V-shaped recovery. Projections indicate a 3.5% increase in the Romanian economy for 2021 and a 4.1% boost for 2022, aligning with a surprising recovery in the residential sector despite the initial pandemic-induced halt.

What significant challenges does Romania’s real estate market encounter?

Workforce scarcity, especially in the construction sector, remains a significant challenge. Despite expectations of returning workers during the lockdown, this did not materialize, making it difficult, though not impossible, to commence construction projects.

Could you elaborate on the BREC Real Estate Academy and its role in addressing workforce issues?

BREC Real Estate Academy fills a gap by inviting industry professionals to teach practical insights rather than relying solely on theoretical knowledge. Graduates primarily assume middle management roles, with participants from higher management benefiting from diverse market segment exposure.

What are the aspirations for the future of the academy?

The inaugural year saw 20 participants amid pandemic restrictions, aiming for eventual annual enrollment of 80-100 graduates. The positive market response encourages plans to diversify the academy’s scope in the future editions.