Development is booming in almost all segments of the Romanian market, but developers still need to overcome a number of legal and regulatory challenges before they can start building. Then, once construction is complete, they must realise that tenants have become more aware and more “choosey”. Răzvan Gheorghiu-Testa, Partner at Țuca Zbârcea & Asociații and Head of the firm’s Real Estate Practice Group reviewed some of the issues that may arise when developing or leasing a new building in Romania.

S Immo has completed the upgrade of the Sun Plaza shopping centre in Bucharest and reopened all reconfigured areas to the public. The €30 million remodelling has added 11,000 sqm of new retail space to the shopping centre.

Strabag SE, through its Romanian subsidiary, has been awarded the contract to build a 110 m tall office tower in central Bucharest. The contract has a value of about €39 million. Completion is scheduled for October 2019.

Israeli-owned company Hagag Development Europe plans to invest €70 million in new projects in the Romanian capital. The developer has recently acquired two buildings on Calea Victoriei for €20 million and a 3 ha land plot near the Pipera forest. Hagag will invest a further €50 million in the procurement and development of the projects.

GTC closed 2017 with a €105 million development profit. The company acquired Belgrade Business Center (17,700 sqm) in September 2017 and the Cascade office building (4,200 sqm) in Bucharest in August 2017 for a total sum of €46 million. GTC presented its 2017 financial results.

Cushman & Wakefield launched its latest Łódź real estate market report at MIPIM. The report, prepared in cooperation with the Investor Service and International Cooperation Bureau of the City of Łódź Office, contains an overview of the city, its growth potential, numerous revitalisation projects and commercial property market. Its key findings were presented at the Łódź stand at MIPIM by Zuzanna Krech, a Negotiator in the Office Agency of Cushman & Wakefield, and representatives of the city’s authorities.

Warsaw, Poland’s capital and largest city, has a population of more than 1.75 million. It is also the country’s biggest labour market and home to many university-level schools with a strong R&D sector. It boasts a relatively low unemployment rate which stood at 5.6% at year-end 2017 and the highest gross monthly salary averaging €1,300 (PLN 5,432). Warsaw is growing at a rapid pace, combining modernity with history, new business districts with green areas, the latter accounting for 28% of the city’s total area in 2017, and investing in both public transport and alternative means of transport (including 400 km of cycle lanes as at the end of 2017). Cushman & Wakefield has launched its latest report Warsaw 2020 on Warsaw’s future and major developments transforming the city’s skyline

Skanska invests €41 million in the first phase of a new office development in Gdansk, Poland. The first phase of the project will be 14 stories high with a total leasable area of about 23,300 square meters and two levels of underground parking.

Skanska has commenced construction works of the second office building in its Nowy Rynek complex, developed in Poznan in close proximity to both Dworzec Glowny railway station and Poznan's Old Town. Ultimately, the area of 3.8 ha will include buildings with various functions, an urban market which will be open to the public, and other areas that will promote recreation and entertainment.

Prologis has already fully leased its new 28,300 sqm speculative facility now under construction at Prologis Park Prague-Uzice in the Czech Republic. Construction of Building 3 began in January 2018 and was launched due to high demand for space at the fully occupied park.