Is the Romanian real estate market ripe for disruption?

The Formula One driver, Emanuele Pirro, drives innovation—literally. In 2010 Edison Labs achieved 1.84 l/100km at 112.65 km/h average with the Edison2, driven by Pirro, during the XPRIZE Competition, proving that the technology for the Very Light Car is already here and at a very affordable cost. You can already drive this car thousands of kilometers with just one tank of fuel. So, what’s missing to make this car an everyday reality? According to Emanuele Pirro, the right mentality.

In Romania the volume of real estate transactions in 2018 was over EUR 900 million, and the ongoing transactions with office buildings in 2019 will be over EUR 500 million, according to Colliers representatives. With developers intensifying their activity in all sectors of real estate, is Romanian real estate market ripe for disruption?

 

Here are three signs that show it might be:

 

Fast adoption of innovative solutions proposed by companies leveraging new possibilities, enabled by the latest technological advances that disrupt traditional markets. UBER, AirBnb and Bitcoin to name three.

Together with the Institute for Evaluation and Strategy - IRES - UBER conducted a study in Bucharest and Cluj among young people between 18 and 35, to see what role technology plays for them. 9 out of 10 use digital services, 85% recommend such services to others, the most recommended apps being mobile banking and UBER, followed by WhatsApp.

 

A large number of IT companies that are looking to move from outsourcing to product development. Romania’s IT&C sector is projected to account for 12% of GDP by 2025, up from its current value of 6%, according to Marian Popa, the head of DB Global Technology’s IT center in Bucharest. Currently, Romania has about 150,000 employees in the IT sector, who produce around EUR 10 billion of a the country's EUR 170 billion GDP.

 

The launching of PropTech Romania, Romania’s first platform to bring together real estate players, investors, startups and tech companies, fostering innovation, digital transformation and collaboration. When they announced their launch, InvestCluj was pleased to join them, and to be part of an exciting new development.

 

So, what are the three signs we’ve looked at? Fast adoption, a large pool of IT companies and existing networks that drive towards innovation.

Like Emanuele Pirro, let’s jump into the car of innovation with the right mentality, because the future belongs to those companies that embrace digital transformation.

 

Mihaela Katerina DOBROIU (Founding Director, InvestCluj)

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