Didier Balcaen, SPEEDWELL: Urbanisation contributes significantly to the expansion of the residential sector

In a new interview for our upcoming feature in Business Review Magazine, “Industries to Watch in 2024,” we had the pleasure of sitting down with Didier Balcaen, the Co-Founder and CEO of SPEEDWELL. As we navigate through the realms of real estate and innovation, Didier shares his valuable insights into the evolving landscape, strategic vision, and the future trajectory of SPEEDWELL in the dynamic market. This exclusive conversation explores the trends, challenges, and pioneering strategies that define the real estate sector in 2024, shedding light on the company’s unique approach to shaping the future of the industry.

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

In 2024, the real estate sector will face a number of opportunities and challenges, fuelled by socio-economic, technological and environmental changes. Financial market volatility and global economic uncertainty remain the main challenges for developers and investors. And factors such as inflation, continuing increases in interest rates and geopolitical changes are certain to affect the stability of the real estate sector. Also, rising costs of building materials and shortages of resources may affect the profitability of real estate projects. With frequent changes in regulations and tax implications that may influence investment and development strategies, I believe that this year anticipation and adaptation by developers becomes essential in managing real estate projects. That’s why at SPEEDWELL we focus on diversifying our portfolio by developing projects that respond to current market demands, redefining the way space is used and living standard. At Speedwell, anticipating market shifts and adapting proactively is not just a claim but a commitment. Even before the pandemic, we foresaw the demand for spacious living, incorporating larger surfaces and terraces into our designs. This foresight has now evolved into a standard practice across all our residential projects. Our dedication to sustainability is unwavering – we are firm believers in providing homes that are both energy and cost-efficient, while concurrently minimizing our environmental footprint.

Despite the pressures coming from various sources, we remain optimistic in the face of the challenges and are trying to highlight and capitalise on the opportunities that the market offers at the moment – ESG trends, digitisation and gradually improving economic conditions.

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

I am convinced that this year most projects will come from the residential sector. This anticipation is based on several factors that influence the real estate market and therefore the business environment. At its core, it’s about responding to a growing need for homes in Romania, a country that proudly leads in owner-occupied housing, and the need for adequate residential space remains a key issue. Then, many of Romania’s cities and dynamic economic areas are affected by overcrowding, which supports the long-term demand for affordable housing. Last but not least, the easing of monetary policy, expected in mid-2024, together with a significant increase in salaries, will support continued high interest in real estate purchases. Urbanisation contributes significantly to the expansion of this sector. Yet, it’s more than just housing; it’s about crafting dynamic communities that breathe life, filled with the amenities and infrastructure that transform a house into a home. Real estate developers’ role goes beyond building, but also about developing sustainable living environment.

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

The continuous advance of technology brings with it significant opportunities. Digital solutions such as virtual reality, and automation systems for property management are becoming more widespread, creating a more efficient and transparent environment.

Digitisation is playing a crucial role in the transformation of the real estate sector. Transaction and management processes are becoming faster and more efficient, and consumers benefit from improved experiences when buying or renting properties. Smart technologies are also helping to make buildings more energy efficient and sustainable. From sustainable construction and energy efficiency to the adoption of renewable energy sources to power buildings, the real estate industry is adapting to the new demands of an environmentally conscious world where green buildings, resource efficiency and environmental certifications are becoming important criteria for attracting investment and sustainability-minded customers. At the heart of our vision for the future is therefore a set of principles that guide our approach to urban development. One of these principles is technology. By embracing the latest technological advances, we strive to improve the comfort and convenience of all users. By incorporating state-of-the-art software resources and applications into our developments, we create smart communities that improve residents’ quality of life. From energy-efficient infrastructure to digital connectivity, at SPEEDWELL we use technology to enhance efficiency, sustainability and user experience. For us, a green, smart and sustainable city is an urban environment that integrates sustainable principles and practices, advanced technologies and responsible urban planning. Thus, we develop real estate projects that not only meet the needs of residents, but also contribute to creating sustainable and forward-looking communities. In the residential segment, THE IVY has received the Green Homes certification from the Romanian Green Building Council and, like most SPEEDWELL projects, the BREEAM Excellent certification. Similarly, our office buildings, such as MIRO, also hold the highest sustainability standards, with a BREEAM Excellent and a WELL certification. For the future, we are planning to continue applying the Green Homes and nZEB standards to all our developments.

In our ongoing quest for excellence at SPEEDWELL, we acknowledge the pivotal role that community management plays in shaping the real estate experience that goes beyond developing a building. Recognizing the power of technology to enhance user satisfaction beyond the sale and residents becoming part of a community, we’ve recently introduced ‘Alto by Sigtree,’ an innovative app set to redefine and elevate every aspect of community living. This strategic digitalization initiative aims not just to improve but to seamlessly intertwine technology with our commitment to exceptional service.