Is a new real estate cycle underway?

The beginning of the year has seen the delivery of two major office projects – Green Gate, developed by S Group in Bucharest, and The Office, the largest such scheme in Cluj-Napoca, from real estate investment fund New Europe Property Investments (NEPI) and Romanian businessman Ovidiu Sandor. Others, like Skanska’s Green Court project in Bucharest to name just one, are due to be completed by the end of the year and more should follow.

While only two modern retail schemes are expected to be completed in 2014, both developed by NEPI, in Bucharest and Targu Jiu, several other large retail ventures such as Sonae Sierra’s ParkLake Plaza mall in Bucharest and the first phase of Coresi Brasov, developed by Immochan, will be delivered from next year.

On the residential sector, demand for newly built homes is on the rise, and despite the banks’ reluctance to finance housing projects, some developers have announced their intention to start construction.

The beginning of the year has also seen several land transactions, and judging from the statements of several developers, especially in the office sector, others are likely to follow by the end of the year.

So, is a new real estate cycle underway? Representatives of real estate firms certainly think so. Demand for land is on the rise, they say, always the first sign of the developers’ return. Other market representatives are more circumspect. Any fundamental change can only come from the banks as they lend to both buyers and developers, and so far there haven’t been any significant changes in this direction, say commentators.

To shed more light on this divergence of opinion, next week BR is organizing a new edition of its now traditional Realty event, dedicated to the real estate market. The event will bring together industry professionals, from developers and real estate service firms to bankers and representatives of the authorities. It will offer insight on the latest market trends and provide networking and learning support for industry professionals.

To find out more, click here.