Friday, 30 October 2026
The refurbishment of existing commercial properties is becoming an increasingly important part of Romania’s real estate investment market as owners seek to improve building performance, respond to changing occupier expectations and extend the economic life of established assets. Rather than relying exclusively on new construction, developers are investing in technical upgrades, architectural improvements and the repositioning of existing buildings. This approach is reflected in the two nominations for Refurbishment of the Year at the CIJ Awards Romania 2026: H Herăstrău Park by Hagag Development and Palas Iași by IULIUS.
Although the nominated projects differ considerably in scale and purpose, both demonstrate how existing properties can be adapted to meet contemporary commercial requirements. H Herăstrău Park concentrates on the comprehensive technical and interior modernisation of an established office and retail building in northern Bucharest, while Palas Iași involves a major transformation of one of Romania’s prominent mixed-use destinations. Together, they illustrate the different investment strategies available to property owners seeking to maintain the competitiveness of existing developments.
H Herăstrău Park by Hagag Development involves the refurbishment of a commercial property originally completed in 2005. The building provides approximately 9,655 sqm of office and retail accommodation and has undergone extensive modernisation intended to improve its technical performance, operating efficiency and overall occupier experience. The project retains the existing building structure and much of its façade while introducing substantial improvements to the internal infrastructure and common areas.
A central element of the refurbishment has been the complete replacement of the building’s mechanical, electrical and plumbing systems. New variable refrigerant volume climate-control technology and LED lighting have been introduced to improve energy management and indoor comfort. Sanitary installations and fittings have also been replaced, while upgraded access-control systems and CCTV infrastructure contribute to the building’s security and day-to-day operation. These interventions address some of the technical challenges associated with maintaining commercial buildings constructed more than two decades ago.
The refurbishment extends beyond engineering improvements to include a redesign of the main entrance and reception areas. The approximately 200 sqm lobby, with a clear height of 5.3 metres, has been transformed into a contemporary arrival space combining exposed concrete finishes, architectural lighting and selected decorative elements. A custom Asfour crystal chandelier forms the central feature, complemented by three large paintings by a Romanian artist and a sculptural chain curtain. The design combines a restrained architectural palette with distinctive interior features intended to establish a stronger identity for the property.
Hagag Development has also undertaken targeted repairs to the existing façade, including glazing, ceramic cladding and sealing elements. By retaining much of the original structure and external envelope, the project avoids the need for complete reconstruction while addressing technical and aesthetic requirements. This approach demonstrates how the continued use of existing building components can contribute to resource efficiency, although the nomination does not provide quantified information on embodied carbon savings or reductions in operational energy consumption.
The project reflects a wider challenge facing owners of established office properties in Bucharest. As newer buildings introduce increasingly sophisticated technical systems and higher environmental performance expectations, older assets must undergo investment to remain attractive to tenants. H Herăstrău Park illustrates how a combination of building-services replacement, common-area improvements and selective façade intervention can support the repositioning of an existing commercial property without fundamentally changing its original structure.
Palas Iași by IULIUS represents a substantially larger refurbishment programme, involving an investment of approximately €80 million. The redevelopment is being undertaken according to an architectural concept developed by Foster + Partners and focuses on improving the relationship between the existing mixed-use complex, its surrounding public spaces and the historic Palace of Culture. The project also involves changes to the retail environment, dining facilities, landscaped areas and visitor infrastructure.
An important component of the programme is the transformation of the central retail atrium. The proposed architectural interventions will introduce larger glazed areas, increasing natural light and strengthening visual connections with the Palace of Culture. The redevelopment is intended to create a more open relationship between the shopping environment and its surrounding urban setting, while improving circulation and the experience of visitors using the complex.
The retail component will also undergo substantial changes, with the total leasable retail area planned to reach approximately 80,000 sqm. Existing anchor tenants are expected to expand or introduce new flagship formats, while additional brands and commercial concepts will broaden the shopping and leisure offer. The proposed tenant mix includes fashion, jewellery, sports, cosmetics, entertainment and food and beverage operators, reflecting the increasing importance of combining retail activity with dining and recreational experiences.
The refurbishment extends into Palas Garden, where new pedestrian routes, landscaped relaxation areas, waterfalls and outdoor activity spaces are planned. These interventions are intended to improve the accessibility and usability of the public environment while strengthening the relationship between the development and the surrounding city. The garden has long been an important component of the Palas complex, and its redevelopment seeks to reinforce the role of outdoor spaces within the wider commercial destination.
Another significant element involves the relocation and modernisation of the Congress Hall conference facilities. The new arrangement will comprise four halls with a combined capacity of approximately 1,000 seats, supported by modern event infrastructure and views towards the Palace of Culture. This investment is intended to strengthen the complex’s ability to accommodate conferences, corporate events and other organised activities alongside its established retail and leisure functions.
The redevelopment also includes the esplanade surrounding the Luceafărul Theatre for Children and Young People. Construction activity has already begun in this area, where the proposals include additional greenery, restaurants, terraces, relaxation facilities and an outdoor amphitheatre. Underground works will create further retail accommodation connected directly to the existing shopping centre. These interventions demonstrate how the refurbishment programme extends beyond the internal commercial spaces to influence the surrounding public environment.
For IULIUS, the Palas redevelopment represents an investment in the continued competitiveness of an established mixed-use destination rather than the creation of an entirely new property. The scale of the programme reflects the importance of adapting existing retail environments to changing consumer behaviour, particularly as shopping centres increasingly compete through dining, entertainment, cultural activities and the quality of their public spaces. The integration of new architectural elements with the existing urban setting will be an important consideration as the redevelopment progresses.
The two nominations demonstrate contrasting approaches to refurbishment within Romania’s commercial property market. H Herăstrău Park concentrates on improving the technical and operational performance of an individual building, supported by architectural improvements to its common areas. Palas Iași involves the wider repositioning of a mixed-use destination through substantial investment in retail facilities, public spaces and connections with the surrounding city.
Despite these differences, both projects illustrate the commercial rationale for retaining and improving existing properties. Refurbishment can provide an alternative to demolition and reconstruction, allowing owners to preserve established locations, retain useful building components and respond to changing market requirements. However, the environmental and financial benefits depend on the nature of the works undertaken, the performance achieved and the long-term operation of the refurbished asset.
For the CIJ Awards Romania 2026 jury, the Refurbishment of the Year category presents an opportunity to assess the quality and effectiveness of different approaches to property renewal. Relevant considerations include the extent of the transformation, architectural quality, technical improvements, sustainability measures, commercial relevance and contribution to the surrounding urban environment. The assessment will also need to recognise the different development stages of the two nominations, distinguishing completed improvements from works and facilities that remain under construction.
The nominations reflect a broader direction in Romania’s property industry, where investment in existing buildings and commercial destinations is becoming an important element of long-term asset management. Whether through the technical renewal of an established office property or the comprehensive redevelopment of a major mixed-use complex, the projects demonstrate how refurbishment can contribute to the continued relevance of existing real estate within changing urban markets.
The winner will be determined through the CIJ Awards Romania 2026 judging process, with the professional jury accounting for 61% of the final result and online voting representing the remaining 39%. The successful nominee will also qualify for the HOF Awards 2027, where leading real estate projects and companies from participating markets will compete for further regional recognition.
