AFI Europe’s portfolio în Romania is becoming more diverse, as the developer goes ahead with its plans to develop a residential project în the North of Bucharest, where it has acquired a land plot that already has planning permission.
Here, AFI will develop a project în the apartment rental segment. “We strongly believe in the residential segment,” Doron Klein, CEO Romania & Czech Republic at AFI Europe said during CEDER. “We are aiming to develop a portfolio of 5,000 units within the next three years, and increase the number to 10,000 within the next five to ten years. All the locations we are choosing for the apartments for rent are located close to office projects. This is what we are planning to do in all the projects: creating an ecosystem where you can live, work, shop and spend leisure time”.
The company spent the last two years investing in some of its properties by bringing them up to date and improving the quality of the environment.
“We believe ESG certification will become an even stronger topic in this decade. We were one of the first developers which obtained a green certification for AFI Park 1, and, ever since, our entire portfolio is fully certified. We are investing in this regard to the benefit of our tenants that we see them as close partners,” Doron Klein added.
He believes there is pressure on rents and there will be a shortage in supply in the coming years. “Permitting has stopped in the past couple of years, construction and land prices rose, so has the financing cost, all of which will put pressure on rents, which in the near future will see an increase.”
