Mortgage fixed interest rates decreased by 13.7% in 2024

Mortgage fixed interest rates decreased by 13.7% in 2024, this type of credit representing over 95% of the mortgage loans granted in 2024, while variable interest rates increased by 2%, due to IRCC fluctuations, according to a market report released by online broker Ipotecare.ro and financial consulting and mortgage lending company SVN Credit Romania.

Thus, 2024 started with an average fixed interest rate of 6.71% for mortgage loans granted in Bucharest, the average fixed interest rate for loans granted in the fourth quarter of this year being of 5.79%. This decrease of almost one percent registered on the fixed interest rate segment translated in a RON 200 smaller instalment for the same mortgage loan worth EUR 70,000 granted for a 25-year period, contracted at the end of 2023 and today.

Variable interest rates, which are calculated based on the quotations of the reference interest rate for consumer loans (IRCC), experienced several fluctuations throughout 2024. Today, the average variable interest rate for a mortgage loan is about 2% higher compared to the level registered a year ago, according to SVN’s calculation based on data from the banking sector.

Thus, the average variable interest rate was of 8.21% at the end of 2023. It increased to 8.47% in the first quarter of this year, and then it recorded a decrease, currently being of 8.39%. The instalments of mortgage loans with variable interest rates will further decrease from 1st January, when IRCC will decrease to 5.66%, from 5.99% today. This will translate into a new average variable interest rate of approximately 8.11%, meaning a RON 70 smaller instalment for a EUR 70,000 mortgage loans.

”2024 was the comeback year for the Romanian mortgage market. The downward trend of mortgage interest rates will continue throughout 2025, with room for further interest rates cuts. The offer is extremely varied, with over 250 existing mortgage products and with interest rates starting from 4.8% in the first three years for a 25-year mortgage loan and reaching 10.2% fixed interest rate for a 10-year mortgage, the fixed interest rate being for the entire period. Homebuyers should use a performant online calculator to see what instalment reductions can obtain through refinancing and the amounts they are eligible for”, said Alexandru Radulescu, managing partner SVN Romania | Credit & Financial Solutions.

Mortgage loans worth EUR 7.3 billion were granted in total at a national level in the first ten months of 2024, up 43% compared to the first 10 months of 2023 – please note that this volume also includes refinancings, conversions, transfer and restructurings.

The overall mortgage balance reached EUR 21.7 billion at the end of the third quarter, up 2% compared with the balance registered at the and of 2023, according to the data of the Central Bank (NBR). Mortgage loans represent 58% of all loans in payment, while about 42% are consumer loans.

Our Carbon Footprint Journey with Carbon Tool: CIJ Awards 2024

We take our environmental responsibility seriously. That’s why, for the second year in a row, we partnered with Carbon Tool to calculate and better understand the carbon footprint of our event. This year, we went a step further by incorporating additional data, such as emissions from jury meetings, to ensure a more detailed and accurate picture of our impact.

What Was the Event Carbon Footprint?

The total carbon footprint of the CIJ Awards 2024 event was 6019 kgCO₂e, and here’s how it breaks down:
• Food and Beverages: 2644 kgCO₂e (44%) of total emissions, the largest contributor.
• Commuting and Team Effort:2490 kgCO2e(42%), reflecting travel and staff activities.
• Materials: 323 kgCO₂e (5%)
• Waste: 329 kgCO₂e (5%).
• Electricity: 233 kgCO₂e (4%), showing efficient energy use.

We learned that 96% of our emissions came from Scope 3 (indirect emissions like food, travel, and materials), while Scope 2 emissions (electricity) were just 4%.

What Does This Footprint Look Like?

Carbon Tool wanted to make these numbers easier to understand, so here’s what the event’s carbon footprint looks like in separate common items:

Additionally, these relatable metrics help us engage stakeholders, participants, and partners in our sustainability journey, making carbon reduction a shared goal for everyone involved.

Progress Since Last Year

We’re thrilled to report that our efforts to reduce emissions are paying off, the carbon footprint per participant dropped by 4.85%, from 17.70 kgCO₂e in 2023 to 16.86 kgCO₂e in 2024.
What’s more, this reduction shows the cumulative power of gradual changes. For example, encouraging remote participation for preliminary jury meetings or sourcing local ingredients for the gala could help us drive this number down even further in the coming years. Every small step contributes to a much bigger outcome.

What’s Next? Becoming Carbon Neutral

We’re not stopping at calculation the carbon footprint. Our goal is to reduce even further by considering strategies like:
• Reducing single-use materials.
• Exploring hybrid formats for jury meetings to cut down commuting emissions.
• Improving food planning to minimize waste.
As a shot term option of neutralizing the carbon footprint of this year’s event, we worked with Carbon Tool to offset all carbon emissions through Verified Carbon Offsets.

Building a Sustainable Future

At CIJ Awards, we believe events can celebrate achievements while taking care of the planet. Our partnership with Carbon Tool helps us stay accountable and make progress each year.
Next year, we’re excited to further integrate sustainable practices. Together, we can set the standard for responsible, environmentally conscious events. Thank you for joining us on this journey.

Maidan leases 1,460 sqm space in the Dageco Expozitiei Estate complex

Maidan leases 1,460 sqm space in the Dageco Expozitiei Estate complex, for three functions: the company’s offices, an event hall with a capacity of 170 people and the central catering kitchen.

“With an investment of over half a million euros, we have arranged the ground floor of the C2 building in Dageco Expozitiei Estate in order to accommodate the new needs that have arisen as the company and the team expand. Around the Christmas parties we open Maidan Space, with a capacity of 170 people, for corporate events and personal anniversaries. The architecture is inspired by the maidan of childhood. In the same location, we are also inaugurating our new offices, as well as the central kitchen for the Maidan Catering division, which offers products with authentic tastes,” says Calin Cîndea, one of the founders of Maidan.

The Dageco Expozitiei Estate complex has a total area of over 30,000 sqm, with four mixed-use buildings and a generous parking lot of 500 spaces. The main building accommodates modern offices, with a total area of 13,800 sqm and commercial spaces on the ground floor.

“Maidan will be a new attraction for our office complex and we are glad that they chose this location, as we have the opportunity to offer them a unique space on the ground floor with an exit to a beautiful terrace and a generous parking lot, difficult to find in the northern area of the Capital. Dageco Expozitiei Estate thus outlines a hub of automotive and lifestyle services, which includes dining and leisure spaces. These facilities include restaurant, catering, kindergarten, after-school, café, car dealership and service, gym, playground for children both for the employees of our office buildings and for the employees of the companies in the buildings in our vicinity and for the tenants of the hundreds of new apartments, located in the immediate vicinity, in the Luxuria and Parcului 20 complexes”, says Andrei Guță, Dageco Invest Representative.

“The northern area is of interest both in the office and services segment, and there are still office spaces with generous surfaces, with competitive rents. The large brands of restaurants, educational units and private clinics are expanding in neighborhoods such as Expozitiei, Petrom City and Casa Presei Libere, which address both corporate people in office areas and families in new residential areas, in full development, on the axis where the new metro line connecting the center to the North Railway Station and the airport is being built”, says Nicolae Ciobanu, Managing Partner- Head of Advisory at Fortim Trusted Advisors, member of the BNP Paribas Real Estate Alliance, the company that has an exclusive mandate to lease this project.

Saint Roastery opens a new location in Business Garden Bucharest

Vastint Romania announces its new partnership with Saint Roastery, which will open its first urban café in the garden of Business Garden Bucharest.

“We look for unique spaces where we can reinvent the moment and the experience of enjoying a coffee. We are delighted to have found such a place at Business Garden Bucharest, where we escape the city’s noise and create our first café in the middle of an urban garden. The name says it all: Saint Roastery Botanica. This will be our next story.” stated Ionuț Croitoru, Founder of Saint Roastery. “We will craft the next space outside of home and office—a green oasis where you can spend quality time with colleagues, business partners, family, or friends while enjoying Saint Roastery’s delicious coffee, far from the urban hustle,” added Simona Croitoru, co-Founder Saint Roastery.

“It is a true joy to see how the Business Garden Bucharest community continues to grow with innovative partners like Saint Roastery. Our urban garden offers a unique setting where moments shared with family and friends over a great cup of coffee can turn into memorable experiences, free from the city’s noise,” stated Sorin Macoveiu, Commercial Director Vastint Romania.

The grand opening of Saint Roastery Botanica is planned for spring 2025. The lease transaction was facilitated by CBRE Romania.

“As a strong advocate for local businesses, I am thrilled to have facilitated this partnership. Saint Roastery embodies the spirit of entrepreneurial passion and community-building, making them an exceptional addition to Business Garden. The centrally located pavilion, with its unique design and surrounding green spaces, is perfectly suited to their vision of creating an inviting and vibrant atmosphere. This collaboration promises to deliver a remarkable experience for specialty coffee enthusiasts and the wider community,” said Ileana Mitrache, Senior Consultant A&T Office, CBRE Romania

Romanian Football Federation expands Buftea National Football Center hotel

The Romanian Football Federation (FRF) is expanding the hotel within the Buftea National Football Center, where the national Under 21 team and other national junior and junior teams are training. In addition to the existing accommodation facility and restaurant, a training room and a sports recovery area will be added.

Within the Buftea National Football Center there is a hotel intended for accommodation of football teams that come to the training camp at the sports base, with a capacity of 66 accommodation places, a restaurant, a sports medical office and a meeting room.

The Federation plans to expand the hotel with a multifunctional room upstairs, for training/fitness/schooling, and a sports recovery area on the ground floor. The investment in this project was estimated by the design firm at RON 3.5 million.

Source: Profit.ro

Florin Tanase and Florin Vulturar start the development of Noura Residence

Football player Florin Tanase, currently playing for FCSB, and FIFA agent Florin Vulturar, started the construction of Noura Residence project, located in the northern part of Bucharest. SVN Romania is the real estate consultant and exclusive broker of the project.

Noura Residence will comprise 128 apartments in four buildings with six floors each. The project is among the most advanced on the local residential market, thanks to the use of an innovative heat pump system, through which all residents will benefit from thermal energy at very low costs.

”Noura Residence is the first step on the real estate market as an investor. We chose one of the most sought-after areas by buyers, especially by those who work in the northern areas of Bucharest, and we entered in a partnership with SVN Romania, which is the largest seller of new homes in the country. We combined the positive elements present in other projects to create the ideal product for buyers who want to live in a premium apartment, with top finishes, located in a green area, at a short distance from all points of interests in northern Bucharest,” stated Florin Tanase, the developer of Noura Residence.

The projects is located in Pipera area, near the headquarters of multinational companies such as Mercedes-Benz, Bergenbier, Michelin or TotalSoft. The project will be constructed in one phase, with delivery being estimated for the end of 2026.

”The project that Florin Tanase is developing is well designed, innovative and attractive for buyers, and our experience of over 30,000 new homes traded leads us to believe that it will be a successful project. We will be along side the investor at every stage of the project development, until the delivery of the last apartment. The south of Pipera area is becoming a true residential hub of the city, mainly due to the very easy access to the major business centres in the Pipera and Aviatiei areas, but also due to the good connections to numerous top private education institutions, commercial areas of A3 Highway,” commented Victor Vremera, COO and Managing Partner SVN Romania, the real estate consultant of the project.

Colliers: Transactions of almost EUR 650 million in the first three quarters of 2024

The Romanian real estate investment market closed the first three quarters of 2024 with transactions totalling almost EUR 650 million, a threefold increase compared to the same period last year. According to Colliers’ Q1-Q3 CEE Investment Scene report, transaction activity was mainly driven by industrial and retail assets. At a regional level, investment volume grew by around 24% year-on-year, with Romania recording the strongest performance among the six largest economies in Central and Eastern Europe (CEE-6): Bulgaria, Czech Republic, Hungary, Poland, Romania and Slovakia. Colliers consultants predict that the real estate market outlook remains solid, driven by rising transaction volumes, price stabilisation and capital inflows, suggesting improved conditions through to the second half of 2025, barring any major global disruptions.

“Regional investment increased by 24% year-on-year, but remains 37% below 2022 levels. A broader recovery is expected by 2025, subject to economic stabilisation, inflation control and interest rate trends. Romania had the strongest percentage growth of investment volumes in the region by far in the analyzed period and we expect sustained future interest in our market also next year, not least because of the attractive investment yields offered compared to most other CEE markets”, explains Robert Miklo, Director of CEE Investment Services at Colliers.

In Romania, industrial and retail assets dominated transaction activity for the second year in a row, marking a significant shift from previous years when office assets were the main focus. Across the CEE region, the industrial and logistics as well as office sectors each accounted for 29% of transaction volume in the first nine months of 2024, followed by retail at 26% and residential at 12%. Bucharest offers some of the highest investment yields in the region, with prime assets yielding 7.5% for industrial and office and 7.25% for retail.

“The outlook for real estate in the CEE region remains positive, although it is not immune to external influences and macroeconomic factors that may affect markets and industries, particularly with regard to major trading partners. Economic growth in CEE, especially in contrast to the recession in Germany, together with price stabilisation and the return of institutional capital, signals more favourable conditions until 2026. Transactions are currently focused on value-add and opportunistic strategies, particularly in sectors where prices have adjusted. However, significant price differentials remain, particularly in logistics. Looking ahead to 2025, optimism is cautious, driven by price stabilisation and expectations of interest rate cuts by the European Central Bank, which could stimulate market activity”, concludes Silviu Pop, Director of CEE & Romania Research at Colliers.

Given current market conditions, Colliers experts estimate that regional transaction volumes could exceed EUR 10 billion in 2025.

Annabella opens new store in former Jysk location in Titu

Local retail chain Annabella has opened a new store in Dâmbovița County. The store is located in the town of Titu, in place of the Jysk store and in the vicinity of the German retailer Lidl.

”Super happy with the opening of the new Annabella store in Titu (in the former Jysk location), consolidating on Nicolae Grigorescu Street 50, together with our neighbors Lidl and KiK – an important shopping hub for the community. This expansion marks a significant step for Annabella near the end of this year and I thank all my colleagues who contributed to this success!”, announced Octavian Constantin Doru, the network’s expansion director, on his LinkedIn page.

On August 1, the local network inaugurated its second retail park in Romania, in Râmnicu Vâlcea, and in June 2023, Annabella opened its first Retail Park, in the city of Horezu.

Busch Group expands its presence in Romania

The Busch Group, which includes Busch Vacuuum Romania, Composites Busch Romania and Pfeiffer Vacuum Romania, has decided to strengthen its presence on the local market through new investments in the Nervia Industrial Park in Apahida, Cluj County.

At the beginning of December, Pfeiffer Vacuum Romania inaugurated an extension of the production building by approximately 12,000 square meters. Parts made of state-of-the-art composite materials will be produced in this space.

“This new unit will give us the capacity and opportunity to expand our presence on the market in a competitive and qualitative way,” said Ahmet Muderris, CEO of Composites Busch.

Montenegro opens EUR 3.2 mln tender for Tara bridge construction

Montenegro has opened a EUR 3.2 million tender for the revamp of the Mojkovac-Vragodo road section in the country’s north that includes the construction of a bridge on the Tara river, the according to the government’s transport administration.

The section is part of the Mojkovac-Lubnice road. The bridge will be built close to the village of Podbisce, south of Mojkovac, the transport administration said in a tender notice.

The bidding deadline expires on January 14, the statement read. The required construction works should be completed within 14 to 24 months.

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