Cosmin Savu – Cristescu, Redport Capital: The future of real estate is clearly oriented towards digitization

Business Review Magazine’s “Industries to watch in 2024” feature spotlights Cosmin Savu-Cristescu of Redport Capital, who offers insight into the forthcoming challenges and opportunities within the real estate sector. Savu-Cristescu outlines the impact of new VAT rates and fiscal measures, emphasizing the importance of adaptability. He highlights how climate change and technological advancements, once considered hurdles, are now avenues for innovation in sustainable development and digital integration. Focusing on the residential sector, he details Redport Capital’s strategic investments in the Străulești area, discussing ambitious projects like The Level Apartments and Infinity Nord, which prioritize green spaces and community facilities, showcasing a commitment to digitalization and green economy principles in real estate development.

What are the main opportunities and challenges in the real estate sector in 2024?

2024 promises to be a year with many challenges, especially considering that it started with the new 9% VAT rate. Challenges will certainly appear during the year in terms of fiscal measures in the real estate niche. However, on this issue, we believe that the main element is predictability and the dynamic adjustment of our own calculations to stay in line with current trends.

On the other hand, climate change and technological development, which may seem like challenges at first glance, when integrated correctly into the entire process, become opportunities for developers to stand out in the market. Here, I am referring to sustainable development, energy efficiency, carbon footprint reduction, as well as digitization as part of the company’s workflow. These aspects, initially required by international standards, they transform into competitive advantages for projects.

From which sector (office, residential, logistics) will the most projects come in 2024?

Currently at Redport Capital, we are directing all our efforts towards the residential sector. We do not rule out expanding our expertise in the future. For now, our goal is to capitalize as much as possible the vision we have had for residential development in the Străulești area, through our two ongoing projects, The Level Apartments and Infinity Nord.

Therefore, in 2024, we will start construction for Phase 3 of The Level Apartments project, which will offer a total of 105 apartments, 136 parking spaces and 30% of the whole complex dedicated to green spaces, following an investment of 13 million euro.

This year, we have also planned the construction of the first phase for the Infinity Nord project one of the largest urban regeneration projects in Bucharest. The complex comprises a total of 1,250 apartments, 1,500 parking spaces, and various facilities, including commercial spaces, medical and educational services, all to be realized with a total investment of approximately 150 million euros, with completion expected by 2030.

How much does digitization and the transition to a green economy influence the real estate sector?

The future of real estate is clearly oriented towards digitalization. Technology in real estate is already producing results and we can see what it means for agents to adopt virtual tour services or drone footage.

We, at Redport Capital, have also felt the need to use software solutions for managing on-site activities as well as property administration (BMS, contracts, financials, accounting). We are currently in the testing phase for several such technologies.

We hope to enjoy soon the benefits of this digitalization process. As for the transition to a green economy, our projects already have significant investments allocated for pollution reduction, carbon emissions reduction, and improvement in energy efficiency.