In a video interview recorded at CEE Property Forum 2025 in Vienna, Marius Persenea, COO of Iulius Group, shares his outlook on financing conditions, lender appetite, ESG priorities and the next big themes shaping real estate development across CEE.
What are your expectations for funding conditions in 2026?
I think funding conditions will be quite stable, comparable to this year. At the same time, I expect more lenders to become interested in the region, particularly from Western Europe.
Some are already present, but my understanding is that more will follow in the coming years because margins are attractive in this part of Europe. There is a clear need for funding and still plenty of room for development. From this perspective, 2026 could even be a better year than 2025.
Are there factors that are worse for 2026 than they were for 2025?
The main question concerns public finances at the state level — how budgets will perform and how spending will be allocated, for example, towards defence and other priorities. That uncertainty remains.
However, when it comes to commercial real estate and the private sector, things currently look quite stable.
How are financiers perceiving refurbishment projects — are they content with the ESG factor or concerned about costs?
ESG has been a hot topic for at least the past five to seven years. For many lenders — and for us — it is no longer really a discussion point because sustainability has already been integrated into our strategy.
At Iulius, we started implementing sustainability measures as early as 2010, including parks and green areas in our core projects. Today, we are simply enjoying the results of work that began almost two decades ago.
ESG has become a normal practice. We know what needs to be done, and everyone accepts it. It’s time to move on to other, more pressing topics.
What do you think could be the next hot topic for real estate developers?
For developers in CEE, liquidity remains the key issue. The market here is now mature, with more than 20 years of development history. Across the region, there are substantial portfolios of office, retail, mixed-use and logistics assets, amounting to billions or even tens of billions of euros.
One of the big themes is the still incomplete integration between CEE and Western European real estate markets. In practice, many players still operate separately in their home markets rather than across borders.
CEE has largely caught up with the rest of Europe, so I believe the time has come for a true merger of these markets and greater cross-border activity.
Is Iulius itself looking into that type of expansion?
At the moment, we are not looking to expand internationally because we are fully focused on our national market. We concentrate on regional capitals, where we have strong expertise and long-term presence.
These are markets we helped create and develop, and they are now enjoyed by both national and international players. For the next five to ten years, we plan to continue focusing on Romania, as it remains a very good place to invest.
