Big Companies Choose Vitalis Team For Their Fit-out Projects to Improve Post-pandemic Workplaces
During the pandemic times, many companies have implemented work-from-home or hybrid policies, giving to employees the flexibility to choose their own work settings. However, as most of the employees have returned to the offices in the last few months, the businesses found themselves in the need of providing the post-pandemic workplaces that staff needs.
Among the most common requests of employees for the post-pandemic workplaces are leisure spaces, health and wellness amenities, and outdoor spaces that could give them a feeling of connectedness with coworkers, along with office environments that are as comfortable as home.
One of the companies that have started an extensive fit-out project to fulfill employees’ needs is Marsh, the world’s leading insurance broker, and risk advisor. In September 2021, Vitalis team was appointed by Marsh to provide Fit-out Management services for the renovation and extension of the company’s Romanian headquarters located in Afi Park Floreasca. The project is a result of Marsh’s desire to provide the best workplace environment for its employees and to comply with the newest tendencies in terms of safety, wellbeing, and sustainability.
We have also started a Fit-out Management collaboration with Prisum Healthcare. The project consists of the renovation of the company’s headquarters located in the Globalworth Square office building. The aim is to meet employees’ post-pandemic workplace needs, by assuring an even healthier and safer workplace along with excellent facilities.
Moreover, Vitalis team is handling the Fit-out process of Unilever headquarters located in the Afi Lakeview office building. In this project, the Unilever offices of approx. 1000 sq. m are renovated and improved to offer the employees the best working environment in terms of facilities, space, health, and safety measures.
Our extensive experience in providing Fit-out Management services for various buildings and projects helps us Building Trust in partnerships with such important local and international brands. We are grateful for this and for our wonderful team that makes all of this possible!
The Regional Office Hubs in Romania and The Opportunities They Can Offer To tenants, Developers and Investors
As the conclusion of the COVID-19 pandemic seems to be in sight, or at least the most difficult part of it, office investments continue to be attractive, as approximately 80% of investment deals expected to be concluded in 2022 are with offices buildings. Regional markets can provide attractive alternatives, and also room for expansion and further growth in Romania.
In 2021 total property investment volume totaled €900 million, a value comparable to 2020. Prime office yields contracted over 2021, from 7% at the beginning of the year to 6.9% in Q3 and 6.75% in Q4.
The office letting market in Romania has greatly improved in 2021 when compared to the previous year, with gross take-up increasing by over 37%.
Timisoara had the largest share in office leasing transactions in regional cities during 2021, with approximately 53,500 m². The second-largest market in terms of office leasing was Iasi, with 43,300 m². Another 39,400 m² were leased in Cluj-Napoca, and 17,000 m² in Brasov.
Demand for office space in regional cities in 2021 was dominated by far by IT companies, especially in Cluj Napoca, Timisoara, and Iasi.
Average net wages in regional cities are considerably lower when compared to Bucharest with Brasov being the most price competitive, while the average unemployment rates are significantly lower in the western part of Romania.
More Than 72,000 Dwellings Were Delivered In 2021 In Romania, A record Level Since 1989
72,522 units were delivered across Romania in 2021, a record level in the residential market since 1989, marking a 7% increase compared with 2020, according to an analysis performed by a real estate consultancy company based on county statistical data released by the National Institute of Statistics.
An annual average of approximately 60,100 new dwellings were delivered between 2016 and 2020 at national level (with a peak of 67,816 in 2020, the previous record year after 1989), during a period characterized by strong economic growth and an increasing purchasing power. Therefore, there has been a significant upward trend in most counties in this regard in 2021, with only 10 of them recording fewer deliveries compared with 2020.
22,010 residential units have been completed in Bucharest (13,344) and Ilfov (8,666), corresponding to an annual increase of 6%, thus having a market share of 30% at national level. Moreover, other counties such as Timis (7,460 completed dwellings, +24%), Iasi (3,389; +66%), Arad (1,042; +74%) or Bistrita-Nasaud (1,029; +51%) also registered a positive evolution from this perspective.
On the other hand, a lower number of new deliveries compared with 2020 has been observed in Cluj (4,675; -15%), Brasov (2,986; -27%) or Bacău (768; -43%), counties which, although registering a decline in 2021, were ranked highly in terms of the evolution of this indicator in previous years.
2021 was a record year for the residential market both in terms of new deliveries and also considering that their absorption level has been exceptionally high. 2022 will arguably present many more challenges, as a result of the continuous increase of the construction materials’ prices and of the inflation, which reached a y-o-y level of 8.5% in February.
Furthermore, the current and future monetary policy rate increases are also expected to have a direct impact on mortgage lending, a matter which is likely to slow down both the pace of the residential deliveries and also of the subsequent transactions.
On the other hand, the annual inflation rate is expected to be kept under control starting from early 2023, reducing the pressure on mortgage lending and therefore on the existing uncertainty in the residential market, a segment which requires new quality projects, considering that less than 15% of the residential stock at national level has been completed after 1989.