AREI President Dennis SELINAS was the guest of Iancu GUDA at the “Banii în mișcare” show on Digi 24 HD. The discussion focused on the challenges faced by the real estate and construction sector in light of the new fiscal measures as well as the real estate market trends in Romania.
In his opening remarks, Dennis SELINAS expressed his concern over a current problem in the real estate industry: “Financing costs are much higher, regardless of the real estate segment, with the uncertainty that results from very high inflation and with the measures that central banks are taking to fight inflation. This requires attention.”
“Many projects have become more difficult to implement and change as a result of ‘quantitative easing’ (n.r. asset purchases) and extremely low, occasionally even negative, interest rates,” he continued. “Authorizing a contextual framework has become more difficult, especially in Bucharest where things are becoming more hazy, unstable, and unpredictable.”
The debate further highlighted the impact of Covid-19 on office spaces. Working from home or working in adjusted schedules are just two consequences brought by the pandemic on how working life is structured.
AREI’s president noted, “It’s a structural change in the office building market from a demand perspective, but it’s also a function of the demand segment we’re talking about. The better the level of productivity, the less the need for space for employees. But at the same time, you give up teamwork, collaboration with a co-worker. In some segments, this is more pronounced, and there you see a higher rate of return to the office. In other segments, like BPO or IT, where people can work more independently and where they are evaluated on productivity, the COVID effect and working from home is more pronounced.”
The president of AREI also made reference to developments in the Romanian logistics park market, saying that the country was “well positioned for growth in the logistics market, because the fundamentals of this segment are quite strong,” but that infrastructure needs to be improved to allow for access to more areas of the nation, such as the northeast.”
Click to watch the TV show here: https://www.digi24.ro/emisiuni/banii-in-miscare/banii-in-miscare-15-septembrie-constructii-si-tranzactii-imobiliare-2506591