Urban Regeneration Projects Boosting Local Economies

Complex urban regeneration projects are revitalizing abandoned areas inside cities and transforming them into lively communities while generating new jobs and strengthening the overall economy. Both Bucharest and regional cities have attracted a steady stream of investments in mixed-use schemes that comprise office, residential, and retail components. The potential for development remains significant for such projects, which are usually delivered in several phases and require investments of hundreds of millions of euros.

By Ovidiu Posirca

Romanian developer IULIUS has invested more than EUR 1 billion in urban regeneration projects in Iasi and Timisoara and it is planning to start another similar project in Cluj, where it will invest more than half a billion euros.

“Our mission and vision are to produce solutions that improve life in the city through urban regeneration projects. We bring game-changing ideas to tackle old problems and generate growth,” says Raluca Munteanu, IULIUS’ business development manager.

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Smart Infrastructure Investments

In Iasi, IULIUS created a regional business hub right in the city centre, employing more than 14,000 people within the Palas and Palas Campus projects and generating taxes for the local and national budgets.

“Our projects are modern insertions in the urban infrastructure and the challenge has been to seamlessly integrate them into the life of the city. We did this by investing in infrastructure development solutions, such as building new streets and connections, extending nearby streets (in Iasi and Timisoara), building underground tunnels (in Timisoara), and designing alternative mobility solutions (bicycle lanes and dedicated parking spots), as well as creating extensive parking facilities,” Munteanu adds.

Urban regeneration projects are also responding to the different needs of the younger generations in terms of living, working, and entertainment.

“Many young families aspire to live in a newly developed building. But they want to live according to the current living standards, not according to the standards of the ‘60s or ‘70s. The lack of new dwellings is very problematic, especially in Bucharest. In this case, many young families see themselves in the position of buying a second-hand residential unit or a home in the suburbs. But they still drive around the city, work in the city, take their children to school in the city, go out in the city.

This is where urban regeneration projects come in, offering a fresh start, for either the city centre—where Hagag has already delivered both residential and office products such as H Victoriei 139, H Victoriei 109, and H Tudor Arghezi 21—or for semi-central areas where many old industrial platforms are being redeveloped into mixed-use projects,” says Yitzhak Hagag, co-founder & controlling shareholder of Hagag Development Europe.

Bucharest has seen a steady stream of developments on land plots that had previously hosted large scale industrial plants that had been inactive for decades. Residential developers were among the biggest buyers of these plots, but now there’s an increasing number of real estate companies specialising in mixed-use projects that are making strategic purchases.

Romanian developer One United Properties is looking to bring innovation from a social and environmental perspective through its investments in urban regeneration projects that are also building communities.

“To give some examples, One Herastrau Towers or One Herastrau Park were built on the site of abandoned structures. New communities were created through the new developments, with obvious benefits for the entire area. Our landmark development One Floreasca City is another example of urban regeneration, as it was built on the premises of a former industrial site that was literally abandoned. Now the compound has completely changed the area and has become a landmark in the Floreasca district,” says Mihai Paduroiu, CEO of the Office Division at One United Properties.

The development will also include the restoration of the former Ford factory, which is currently being restored and changed into a modern commercial and office space called One Gallery. The developer has also allocated EUR 1 million for the upgrade of the road infrastructure in the project’s vicinity.

“This brings advantages to all residents in the neighbourhood. Large-scale developments such as One Cotroceni Park and the upcoming One Cotroceni Towers also rebuild abandoned industrial platforms and transform them into new communities, offering people quick access to various services, under the concept of the ‘15-minute city’ that contributes to limiting the time people spend in traffic and even lowering pollution,” Paduroiu explains.

The large-scale mixed-use projects are already developed according to the 15-minute city concept, in which all key facilities, ranging from homes to offices and commercial areas, can be reached in less than 15 minutes by walking or riding a bike.

“We are proactively addressing issues related to urban density and congestion. By focusing on smart growth principles, these projects are based on the Transit-Oriented Development concept, emphasising walkability, public transportation accessibility, and the integration of green spaces. This not only enhances the overall liveability of the area but also promotes a healthier and more sustainable lifestyle for residents. By adopting a holistic approach, these projects are reshaping the urban landscape, fostering community well-being, and creating vibrant, resilient cities for the future,” explains Jan Demeyere, co-founder and partner of Speedwell.

In its projects, the developer is repurposing old industrial buildings, renovating historical landmarks, and creating mixed-use developments that combine residential, commercial, and recreational spaces. The company has already completed its mixed-use development RECORD PARK in Cluj-Napoca and is currently working on PALTIM in Timisoara and CityZen in Bucharest.