The Romanian real estate market has changed completely in the last 18 years and it has matured up to the point where, today, it is a “plateau” market, with largely stagnating prices. But the development of new buildings and new projects is still high, driven by demand of the new companies and new jobs, said Mihai Zaharia, Director of Investments and Capital Markets at Globalworth, during the 18th edition of Business Review’s REALTY Forum.
“I entered the real estate market recently, but I started in a commercial bank in 2005, in a real estate office. Many Romanian banks opened real estate offices in the period before 2007 and I was part of one in 2006, in the glory years of the real estate market.
In 2007 we saw a big jump in prices, only because of Romania joined the European Union. Hungary for example didn’t experience that kind of increase. In 2008, we all began to learn the lessons of the crisis. The crisis kept going until 2012, but during that time we also created partnerships with other companies that lasted years after that.
2013 was the year when Globalworth listed on the stock exchange. There was a large demand from large corporations that were coming to Romania, and this was one of the main drivers for Globalworth, with many companies asking for good quality offices.
From financial reporting to IT, all sectors developed quickly. In 2016 it started to change for the better and today we have a market that is very different from what it was 10 or 20 years ago – it’s much better.”