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
Deloitte Romania assisted AQUILA, leader in the integrated distribution and logistics services for the fast-moving consumer goods market in Romania and the Republic of Moldova, in the acquisition of Romtec Europa, the company that produces car care fluids and aerosols. The transaction, valued at 3.2 million euros, was signed in December 2023 and completed recently, following approval from […]
CBRE Romania, the leader in providing commercial real estate services, launches an analysis regarding the business potential and alternative investment and development opportunities in Timiș County. According to the analysis, Timiș stands out as a vital centre of Romanian agriculture, ranking first in agricultural area with 693.034 hectares and second in organically cultivated land area. […]
By the end of 2024 the stock of modern retail spaces will overpass 4.5 mln. sq. m setting a new record for Romania. Circa 186,000 sq. m could be added to country’s modern retail stock if taking into consideration under-construction projects. The popularity of the specialized format is noticed in the forecasted developments, claiming 95% […]
The average office fit-out costs have increased by around 15-20% during the past 12 months, but they still remain among the lowest in the Central and Eastern Europe (CEE), according to data from the Cushman & Wakefield Echinox real estate consultancy company. With an average level of €943 per sq. m of office space, the […]
Romania is present at the 10th edition of the EU-Startups Summit in Malta, the biggest event for tech startups in Europe, through RoTechMission, a delegation organized by DiFine PR, Techcelerator and ROTSA (Romanian Tech Startups Association). More than 2,000 people, including 1,000 entrepreneurs and 300 investors, will attend the event, which takes place from May […]
AeroVacanțe, part of the Aerotravel group, is betting in 2024 on new destinations, more accessible for Romanians, as a result of the growing demand for holidays in new destinations untouched by mass tourism. Thus, the agency introduces for this summer 14 charter flights to Lesbos, the third largest island in Greece, where the costs of […]
