Real estate markets in Central and Eastern Europe (CEE) are performing better than those in Western Europe and Romania in particular is a hidden gem, according to Victor Capitanu, CEO and co-founder of Bucharest-focused residential developer One United Properties.
Talking to PropertyEU at Mipim, Capitanu highlighted the stronger sense of optimism in CEE compared to Western Europe, with the region’s growth potential presenting a strategic opportunity for investors.
Romania, One United’s home market where it has carved a niche with residential and mixed-use projects in the capital Bucharest, is particularly attractive, he said, noting that it is one of the fastest growing economies in Europe.
‘Furthermore, Romania's capital market is increasingly recognised by major indexes. While FTSE Russell classifies it as a developed market, Morgan Stanley MSCI is expected to include Romania on a watch list of emerging markets this year. This highlights the significant potential for future growth.’
Although One United Properties has some developments in Constanta, it is currently focused solely on Bucharest, due to its large population (almost 3 million), strong economy (GDP of €100 bn by end-2024) and increasing affordability.
The company has nine construction sites under way with a GDV of €1.15 bn. Capitanu highlighted two projects currently under development in Bucharest. One Gallery is a commercial development on the site of a former Ford factory (€90 mln GDV), while the Mondrian Hotel (partnership with Ennismore) is set to become ‘the most desirable space to stay in Bucharest’ once it opens in 2026. The company is also building a 20,000 m2 campus for chip manufacturer Infineon Technologies, set to become ‘one of the most sustainable office buildings in Europe’.
Recently, One United Properties has also ventured into standalone commercial projects. It already owns a 25,000 m2 shopping centre and is currently building another comprising 14,000 m2.
The company is credit risk averse and has focused on raising equity through private placements before going public, and additional capital increases since the 2021 listing. This has resulted in a strong balance sheet with a low loan-to-value ratio – well below the industry average.
‘We also encourage significant down payments from our clients when they purchase units,’ said Capitanu. ‘Last year, this client financing approach generated nearly €275 mln in new sales from almost 1,000 units sold. We do utilize bank debt as well, finding it to be readily available and competitively priced,’ he added.
Looking ahead, Capitanu said his company may consider entering other markets besides Bucharest in the medium term, but is not in a rush to do so, as it is already in a good market position.
