Financial results of commercial real estate companies (commercial spaces, business centers and offices, logistics premises) will be impacted this year mainly by cyber risks, climate-related regulatory actions and rising interest rates, according to Deloitte 2024 Commercial Real Estate Outlook global study. Companies in Europe are mainly concerned about the same risks, but place political instability second (instead of climate-related requirements). Regarding the evolution of real estate fundamentals, players in the field expect cost of financing (50% of companies globally and 57% in Europe) and capital availability (49% and 58%, respectively) to worsen through 2024.
On the other hand, 44% of participants (both globally and in Europe) expect an increase in mergers and acquisitions activity in the real estate market this year, mainly to diversify their asset portfolio and to add new technology capabilities. This aspect is important as 61% of global companies and 59% in Europe are still partially dependent on legacy technology infrastructure, but half of those are in transition to modern systems. 72% of global survey participants (67% in Europe) are piloting, in the early stage of implementing, or developing AI enabled solutions.
Regarding ESG (environmental, social, governance) regulations readiness, 59% of global companies (54% in Europe) lack the data, process, and internal controls necessary to meet compliance standards. However, they consider a series of sustainability related strategy initiatives in 2024, such as investing in IoT (Internet of Things) devices (45%), in risk management measurement capabilities (44%), but also in incorporating climate resilience elements into real estate developments or redevelopments (43%).
"The global economy transformations involve considerable financial efforts from real estate companies in at least two major directions. One of them is related to regulations aimed at meeting sustainability standards, which are evolving rapidly, both globally and in Europe, so the investment in compliance is becoming a priority. The European legislation also applies in Romania, and, for this reason, we expect players operating on the local market to face additional requirements from national authorities related to ESG compliance, including in the processes of issuing permits or building authorizations. The other direction to follow is the one aimed at adopting innovative technologies in order to develop smart buildings, but also to implement solutions to help real estate companies become more effective, such as property management digital solutions and legal requirements compliance tools for real estate portfolios (including permits and authorizations procedures)," said Irina Dimitriu, Partner at Reff & Associates | Deloitte Legal, and Real Estate Industry Leader at Deloitte Romania.
In terms of investment opportunities, assets associated with the digital economy are considered the most attractive this year, dethroning central office spaces (which come tenth globally), followed by building-to-rent and senior care centers.
The Deloitte 2024 Commercial Real Estate Outlook study was conducted among 750 commercial real estate companies with assets of over $50 million each, across three regions: Europe, North America and Asia-Pacific.
The information provided by KomuniK
Two Romanians were arrested during Sunday night, May 11, after robbing empty houses in the evacuated mountain village of Brienz located in the Swiss canton of Graubünden. The village had been evacuated since November due to rock falls. The locality was, however, monitored by the authorities to prevent break-ins. The would-be thieves apparently tried to […]
The European Bank for Reconstruction and Development, or EBRD, has revised its estimates regarding the evolution of the Romanian economy in 2025 downward to 1.6%. The bank expects Romania’s GDP to grow 0.2% less than the 1.8% estimate made in February, and to increase by 2.4% in 2026. Romania's GDP growth slowed to 0.8% in […]
During a meeting on Monday, May 12, the Cluj-Napoca Local Council approved a draft resolution that imposes smoking restrictions in several public spaces in the city, including public transport stations, parks, and sports facilities. The resolution was adopted with 22 votes in favor and 3 abstentions, and will come into effect 90 days from the […]
An internal survey by Romanian Business Leaders, which does not have national representativeness but was answered by 417 entrepreneurs, shows that 62% of entrepreneurs expect to have to make layoffs, while a third expect the number of employees to remain the same. The expected layoffs are directly connected to the possibility of Romania choosing a […]
Romanian Istvan Kovacs will be the main referee for the UEFA Champions League final between Paris St-Germain and Inter Milan, which will be played on May 31 in Munich. The match will be Kovacs’ third European final in the last 4 years. The 40-year-old referee has previously officiated the UEFA Europa Conference League final in […]
Over 70 museums across Romania will open their doors after hours for the 21st edition of Night of Museums, one of the country's most anticipated cultural events. Held on the night of May 17, the event offers visitors a unique opportunity to explore exhibitions, installations, and creative activities in an unconventional, late-night setting. From major […]
