www.business-review.eu Business Review | July-August 2022
6 REAL ESTATE
Construction industry facing new challenges in second half of 2022 Rising materials prices and labour costs, staff shortages, supply chain issues, and depleted stocks are some of today’s biggest challenges for players in the construction industry. In terms of opportunities, we can anticipate an increase in large companies’ interest in ESG policies and sales being driven by the fact that housing demand still significantly exceeds the supply. By Claudiu Vrinceanu a long time to recover. Externally, there is the uncertainty caused by the war in Ukraine and its effects. One of these effects is the increase in energy prices, and people are preparing for what comes next. Also, let’s not forget about the supply chain bottlenecks which are causing delays and even further price increases,” says Speedwell co-founder Jan Demeyere.
BUYERS BEING MORE CAREFUL TO COMPENSATE FOR HIGH INFLATION The development of the Romanian construction market is intertwined with current regional and global circumstances. The ecoDemand for high-quality building materials and modern HVAC solutions will increase
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nomic contraction will put considerable pressure on everything related to this segment.
The current geopolitical and macroeco-
(environmental, social, governance) policies
The industry will also be affected by the rising
nomic developments are a source of
is an important opportunity for the construc-
cost of building materials and energy and the
uncertainty impacting all sectors. The
tion market. IMMOFINANZ expects signifi-
expected interest rate hikes. Buyers will be
construction industry is particularly chal-
cant renovation projects for old buildings to
increasingly cautious as they try to offset high
lenged in terms of sourcing and accessing
reduce the carbon footprint or to add spaces
inflation. "Developers are much more conser-
materials and the remainder of the year will
with landscaping interventions. Demand for
vative in planning new speculative projects,
be demanding. At IMMOFINANZ, we are cur-
high-quality building materials and modern
rently engaged in refurbishment works at the
HVAC solutions will increase. More projects
myhive Victoria Park office building, and we
are also expected to adapt energy supply sys-
are preparing to start an extensive refurbish-
tems, focusing on using renewable energy.
ment of landmark property Bucharest Finan-
There are many elements that will influ-
cial Plaza," says Fulga Dinu, Country Manager
ence the construction market in the second
for Operations at IMMOFINANZ Romania.
half of this year. We can also mention infla-
There are also present challenges that are
tion, higher interest rates, the significantly
eventually going to bring up opportunities for
delayed—or even completely absent—con-
the economy. For instance, the very high en-
struction permits that will result in fewer
ergy prices are creating a further incentive to
active building sites, and the rising prices for
expand climate-neutral solar energy genera-
the available stock of residential units. “This
tion as quickly as possible. IMMOFINANZ sees
is a period where the public sector should
this as an essential contribution to the fight
fully cooperate with developers to make sure
against climate change and a great opportu-
the construction market doesn’t end up in a
nity and competitive advantage.
recession and isn’t forced to cut jobs. The cost
The interest of large companies in ESG
of the latter will be immense and might take
Fulga Dinu, IMMOFINANZ Romania
