CEDER 2016, which took place at the Hotel Intercontinental in Bucharest on May 26, confirmed the growing strength of the Romanian property sector. With almost 300 of the country’s top professionals in attendance, the conference’s enormous success also cemented CEDER as the leading property event in Romania.
Over the course of the five panel discussions, a clear picture emerged about how Romania’s growing economy is fueling the development of nearly all types of real estate, including office space, logistics and retail. New office and warehouse space will continue to be built as developers in both sectors continue to believe that the strength of demand will support a considerable level of new supply. In fact, in logistics the situation is bordering on critical, with tenants complaining that they are unable to procure the new space for their operations that they require in certain Bucharest locations.
A more critical view of the residential sector was presented, however, as new laws concerning the conditions for mortgages threaten to disrupt a market that has enormous potential thanks to growing demand. These concerns led to calls for greater unity among developers in order to facilitate a dialogue with lawmakers in order to avoid the passage of potentially damaging legislation.
The day’s final panel focusing on the investment market featured a mix of consultants, investors and developers. Bucharest’s position in the region was at the center of the discussion, which focused on the impact of last year’s breakthrough in terms of the arrival of international buyers. While all welcomed the deals from 2015 as a positive sign, the reality is that for the most part, the investors chasing the best assets in Bucharest and Romania are a good deal different than the ones who are driving up prices in Warsaw. The importance of “alternative” newcomers to the region, from South Africa for example, is that they have a far greater risk tolerance than their European counterparts. As a result, they are willing to pay what is seen by more conservative investors as a substantial premium.
CEDER 2016 is organized by Roberts Publishing Media Group, publisher of the region’s leading property magazine CIJ and organizer of conferences and award events across CEE and SEE. Yesterday’s edition was the ninth time the annual event has been organized.
