Local market dominated by sustainability and mixed-use development trends

For residential, the Nearly Zero Energy Building (nZEB) is a transformative design where developers build projects that are more energy efficient, reducing gas emissions with increased insulation and solar panels. Such projects are using renewable energy and lowering the cost and use of energy resources.

“Buyers and investors alike are increasingly prioritising buildings that incorporate green technologies, energy-efficient systems, and sustainable materials,” says Beatrice Dumitrascu, CEO of the Residential Division at One United Properties. The developer is focusing on energy efficiency across its entire commercial and residential portfolio. This includes the geo-exchange technology, which is one of the most efficient and environmentally-friendly systems that can be implemented at this time.

Developers point out that green buildings are more energy-efficient and have lower operational costs over the long term due to reduced energy consumption and maintenance expenses.

Antoniu Panait, the Managing Director of Vastint Romania, says that sustainable buildings contribute to a healthier and more productive work environment. Features such as natural lighting, good indoor air quality, and access to green spaces can enhance employee well-being, reduce absenteeism, and improve productivity.

Ashton Topolinski, Partner, Head of Marketing and Branding, Sustainability Lead at InteRo Property Development, adds that the company will continue to pursue ESG standards to create a healthier and more profitable life for its homebuyers.

“Romanian homebuyers and investors are becoming more aware of the positive financial impact of buying a green property, considering sustainability only started to become a buzz word in Bucharest as of a few years ago,” explains Topolinski.

Mixed-use functions to drive market long term

Locally, there is a growing trend towards creating mixed-use developments that combine retail with entertainment, dining, and leisure activities, transforming malls into vibrant community hubs.

These modern shopping centres will offer a variety of services and experiences to attract a wider audience. Additionally, many malls are enhancing their digital presence and omnichannel strategies to better connect with consumers both online and offline, according to Carmen Ravon, CEE Head of Retail Occupiers at CBRE.

Dumitrascu of One United Properties says there is increasing demand for mixed-use projects that are blending residential, commercial, and recreational spaces.

“People are looking for communities with convenient access to amenities like shopping centres, restaurants, sports areas, offices, green spaces, all on the premises or within walking distance,” she notes.

Urban regeneration and quality of life are also important aspects shaping the real estate sector. For instance, One United Properties is actively involved in such initiatives, transforming underutilised spaces into vibrant communities that mix modern design with the historical heritage of buildings.

“This not only enhances the aesthetic appeal of the city but also contributes to its cultural and economic growth. The focus on wellness and lifestyle has certainly reshaped both residential and office segments, with an increased demand on people-oriented amenities,” Dumitrascu adds.

Properties that offer fitness centres, spa facilities, green spaces, and recreational areas are highly sought after. Finally, flexibility, technology and sustainability continue to impact the office sector, while location continues to be a prime asset.

For Globalworth, the challenges and adaptations brought forth by the COVID-19 pandemic are shaping a transformation in the group’s office portfolio.

“Multinational and national tenants are embracing hybrid work models, aligning with their organisational values. Despite uncertainties, there is a palpable rebound in demand for physical office spaces, especially in prime locations,” explains Ema Iftimie, the Managing Director of Globalworth Romania.

The company is noticing a nuanced blend of remote work and in-office presence, emphasising flexibility and collaboration.

Building on this trend, companies are optimising their operations and office space. This means either interior redesigns for hybrid working or more collaborative spaces or reducing their floor space.

“We are also seeing companies that wish to lease space in our office buildings or to expand as they are recruiting new employees. Awin Global is a relevant example in this case; the company, which provides a global marketing technology platform, is expanding its office in the Palas Iasi mixed-use complex and is recruiting for several positions in various fields, such as IT, marketing, finance, and HR. After a pilot period started in 2023, Awin decided to lease an office space spanning 800+ sqm for the long term,” says Laurentiu Manea, Office Buildings Manager at Iulius Town Timisoara.

Iulius is also seeing emerging interest from healthcare service operators looking to get closer to employees, either in office buildings or in mixed-use developments with central locations that facilitate access to a large pool of working people. For instance, the ground floor services area of Palas Campus Iasi features a medical testing laboratory, a medical centre, a medical rehabilitation and physical therapy clinic, a beauty clinic, and a gym.

In Iulius Town Timisoara, mainly in the UBC 0 office buildings, the company has developed a genuine medical hub, with services including: a dental practice with an integrated radiology centre and laboratory, as well as a multidisciplinary medical centre with its own fully-equipped operating theatre.