Opportunities for Green Costruction and Energy Efficient products, material and technology in Romania and the Central Eastern European region

Opportunities for Green Construction and Energy Efficient products, material and technology in Romania and the Central Eastern European region

 

 

Prepared by John Biggs AIA LEED AP, Manager – SOPOLEC Anca Bieru, Senior Consultant – SOPOLEC Sara Bocaneanu, Senior Consultant – SOPOLEC Sinziana Frangeti, Consultant – SOPOLEC Costin Dragnea, Consultant – RoGBC

Business Advisory Services – Bucharest, Romania office@sopolec.com Tel. +40 21-222-5135

 

 

Updated August 2008

Executive Summary

 

 

Mandated European Union commitments, improving government capability, and increasing interest of leading investors, real estate developers and tenants/occupants’ in achieving greater energy efficiency and environmental responsibility have contributed to a significant increase in the market for green construction in Romania and the surrounding region. Opportunities exist to take a market leadership position for products, materials, technologies, expertise and other service providers across all aspects of the green industry. The need for improved energy efficiency, water efficiency/quality, recycling/waste management, or the marketing and development of solar or wind energy systems, energy efficient geothermal HVAC systems, low-VOC chemical products and other green construction solutions present a significant opportunity for Romania and for the region. Introduction Within the recent past, the following trends have converged to create significant opportunity for “green” development – including construction and eco-efficiency – in Romania and the surrounding region:

increasing competition for existing fossil fuel reserves and falling (or eliminated) energy subsidies and the resulting rising energy prices

unprecedented international political and business enthusiasm and demand for securing reliable sources of energy, reducing dependence on unstable suppliers of oil and combating climate change.

scarce natural resources leading to significantly higher prices for a variety of construction inputs

demonstrated investor interest in green building certification schemes

mandated green procurement targets currently implemented

falling prices for eco-efficient building solutions

significant EU Funding for sustainable development (4.5 Billion Euros allocated between 2007 and 2013 for Environmental initiatives in Romania alone) and a general allocation of 30 Billion Euros to Romania for “Structural Funds” to improve infrastructure, competitiveness, governance, etc.

greater willingness of financial institutions to consider total life-cycle costs in approving project financing

relatively recent introduction of mortgage lending and other forms of construction financing that makes available more purchasing power when planning and designing homes and buildings for better energy efficiency.

implementation in Romania and other member states of the mandatory European Energy Performance Building Directive (EPBD) requiring energy certification for new (2007) and existing (2010) buildings

These trends have converged to create a unique opportunity in developing regions, particularly Romania, where needs for rapid solutions and immediate improvements are critical to long term sustainability and competitiveness. The need for cost-effective, energy-efficient green development in Romania is uniquely suited to innovative businesses and construction firms, who have pioneered the development of the green industry and the institutionalization of green practices within government agencies, public institutions, and throughout the design and construction industry. There are at least six real estate developers constructing buildings using either the US Green Building Council’s LEED certification or the Building Research Establishment’s BREEAM standard

 

 

1. Importantly, Large U.S. and European Real Estate Funds have begun funding buildings in Romania conditioned on achievement of one of the aforementioned certifications. In addition, all building owners/developers will be required to produce, at time of sale, an energy certificate that indicates the results of an energy audit. As noted in many real estate development journals, Romania has been and is projected to be a strong performer in the central and eastern European region because of the size of the Romanian market (22 million), its strategic location, the projected new construction (500K to 800K new housing units) and renovation to replace substandard apartment blocks and because it represents a platform for the region…including Bulgaria, Moldova, Ukraine, Georgia, Serbia, etc., where similar problems exist. Market trends for construction market opportunities in Romania

1 Supported in Romania by BRE International

Strong growth in GDP – 8.5% Q1 2008; 6% projected for 2008 Growing presence of international manufacturers of construction materials

The construction market had significantly accelerated growth, ROI yields were higher than in other West-European countries, attracting investors from Israel, Spain, Greece, Turkey, Germany, Austria, UK, USA, Canada, etc,

33.6% construction growth for 2006, the highest growth of all UE countries (12.6% more than Poland and 10.9% more than Sweden) according to Eurostat sources

25% construction growth in 2007 representing 1.59 billion euro in the construction investments (47% representing commercial space and 37% office space)

For the overall construction market, 2008-2009 will be slower considering global economic events and new stricter lending conditions announced by the central bank. Nevertheless, strategic companies are continuing with planned investments with green RE developments increasing six fold from 2007.

Alignment of Romanian codes and practices with EU requirements ( currently the European Commission is further strengthening its energy efficiency targets for all member states)

Not enough experience (and experienced personnel) in the implementation of large construction and infrastructure projects that utilize higher performing solutions.

Complexity of the problem

 

In general, the primary environmental problems in Romania are of a systemic nature. Energy or manufacturing production and consumption is related to building performance, air quality, water quality, waste management, and noise pollution. The inefficiency of centralized heating and power systems, and the aging infrastructure and building stock across all industries in Romania is well documented. Furthermore, the inter-relationships of the problems are complex, and coordination of improvements or changes between related systems has not been consistent. Consequently, significant environmental improvements may require systemic solutions as well as synergy across a number of environmental concerns. Improvements to energy production or consumption may need to be combined with improvements to buildings, waste management systems, water quality systems, noise reduction measures, or air quality systems in order to create sustainable improvements in Romania.

Therefore, the “professionalization” of many industries is needed in order to develop systemic approaches to development and construction practices. An opportunity exists for training-service providers for training and educational development, as well as engineering and equipment controls services, funded by EU structural funds (where human resource improvement via training is a priority target for funds). There is also funding available for implementation of solution for renewable energy production.

Considering that Romania has to fulfill its commitments to the EU in the area of Renewable Energy Sources (RES) – assuring that by 2010 33% of the total energy consumption in Romania will be produced by renewable energy sources- there are significant opportunities in the market for RES. Public authorities estimate that by 2015, 2.7 billion euros will be spent for RES.

The public funding that will be available in the next year will be spent mainly on projects related to:

water quality and infrastructure

reducing air pollution

implementing efficient waste management systems

rehabilitation of existing district heating units

alternatives for district heating (there are plans for replacing the Large Combustion Plants with smaller and more efficient units)

production of energy out of RES

biodiversity

protection of natural areas

Opportunities for immediate improvement

 

As has been noted by multiple sources, although policies are in place by various funding sources to encourage collaboration and synergy, the administrative and cultural aspects of creating collaborative teams and synergistic solutions for large-scale systemic problems are complex. Therefore, an intermediate measure, particularly for the current boom in building construction, may be the implementation of smaller-scale green construction practices which may over time develop synergy and create precedents for future construction. In short, a successful demonstration project may be the best approach to encourage significant change towards greener development.

 

Green Construction Opportunities

The following are opportunities

 

 

2 resulting from green construction practices as promoted by BRE International using the BREEAM standard, the US Green Building Council using LEED as its primary assessing tool, and the Romania Green Building Council (RoGBC) that is promoting the comprehensive implementation European Performance for Buildings Directive (EPBD)3. Energy efficiency:

2 While the green building certifications currently refer to larger buildings, anecdotally and as evidenced by recent attendance at a green building conference in Bucharest in April 2008 (

 

www.BuildGreenCEE.com), the authors have noticed a significant increase of interest in small scale solutions for individual homes. 3 The recently-formed RoGBC is currently investigating the choice and/or development of a green building certification scheme. Its’ mission is to provide support all green building implementations. More info: www.RoGBC.org

Lighting: The energy-efficient lighting industry – 1. Energy efficient lamps; 2. Energy efficient and lighting-efficient fixtures; 3. Energy efficient and lighting efficient lighting systems (coordination with day lighting and task lighting). – is currently under-represented and under-serviced in Romania for all except the biggest clients utilizing a direct contract with the biggest global suppliers. Starting in 2007, the EU encouraged all member governments to promote the use of energy efficient lighting and to be proactive toward all domestic lighting. However, the subject of modern lighting is complex, and affords service providers the unique opportunity to provide services and consulting for lighting design and planning for commercial applications, consulting and training for construction and facilities personnel, in addition to simply selling units. However, the industry in Romania is mainly composed of retail outlets selling standard units and offering no services. An opportunity exists for sophisticated firms to provide advanced services for the entire region, or to establish manufacturing facilities. Barriers to entry include lack of awareness and costs of installation or maintenance. However, EU backing is creating greater awareness of the issue.

Energy Efficient Motors and Variable Speed Drives: It is estimated by the International Institute for Energy Conservation (IIEC) that 50% of industrial energy consumption [in Romania] is used by electric motors driving pumps, fans, and compressors. Due to the fact that many of the existing motors are either over-sized or over 15 years old and under-maintained, an opportunity exists for manufacturers, suppliers, and service-providers to market products and services for new construction, renovations, equipment replacement, and training for equipment maintenance and controls. Effective use of equipment and variable speed drives (to replace older equipment) has resulted in significant reductions in energy usage and cost savings for both governmental and 

industrial applications. Due to growing EU emphasis on energy efficiency, increasing energy prices, and growing public awareness of the issues, demand for effective products and services is increasing, and funding is available to create cost-effective solutions and incentives. Further, the amount of aging equipment still in use, the increasing demand for energy efficiency, and the current construction boom, presents a unique opportunity for product and service providers in Romania. The US Dept. of Commerce indicates the largest opportunities for US firms are in consulting, engineering, management software, control equipment and other specialized hardware.

 

Tubular Day lighting Devices: An opportunity exists for the marketing and manufacture of tubular day lighting unitized systems in Romania, for single story and low-rise buildings to supplement the use of conventional fluorescent light fixtures. Whereas this technology is well-developed and documented in the US for many mid and low-rise commercial and residential applications (and represented by very few manufacturers), this technology is currently under-developed in Romania and the region. The dominance of mid and low-rise development throughout the region, and the dominance of traditional unitized fluorescent systems, and the criticality of energy efficiency across Europe, makes this energy efficient technology particularly relevant and under-utilized in Romania. Entry barriers include: lack of awareness, and lack of products in the market. EU funding is available to create incentives and offset costs.

Insulation: Opportunities exist for the introduction of materials and competition into the insulation market in Romania, including: various forms of finished or unfinished foam insulation, aerated concrete, insulative concrete materials, insulated panelized wall and roof systems, and insulated wall systems to be applied over the existing typical concrete (or concrete frame) construction. Advanced products or systems are under-represented in Romania and the region, or insulative material markets are dominated by a few firms who have established local manufacturing facilities. Barriers to entry include additional construction costs over typical poorly-insulated construction methods, lack of awareness of the importance of insulation, “traditional” communist-period construction methods, and lack of experience regarding effective design of roof and wall systems for insulation and moisture. Additional opportunities exist for service providers regarding training and expertise regarding effective construction methods for insulation. EU funding is available to offset costs for additional costs for insulation or insulative systems for energy efficiency.

Moisture: Due to the dominance of “traditional” communist-period construction practices, and lack of sophistication regarding the control of moisture, vapor retarders, and thermal separation, opportunities exist for sophisticated construction and design firms experienced with design and construction methods for climate sensitivity and the control of moisture. Control of moisture is a significant problem in ex-communist Europe due to the dominance of concrete structures with poor insulation and poor detailing for control of moisture and thermal separations. Consequently, many “period” buildings show significant signs of deterioration resulting from moisture. Furthermore, many structures currently under construction utilize many of the “traditional” construction practices, with little attention paid to control of moisture, effective insulation, and effective thermal separations. Whereas good practices can ensure long-lasting, efficient buildings; lack of such practices can cause buildings with short life spans and quickly deteriorated performance, causing further wastes in energy and materials. Opportunities exist for materials and service providers capable of providing expertise or systems for effective control of moisture. Barriers to entry include lack of awareness or importance of moisture control in buildings, and additional costs of materials or 

installations. However, funding is available for firms capable of demonstrating cost savings effects or energy efficiencies resulting from effective construction practices.

 

Green Roofs: An opportunity exists for provision of retrofit or new green roof technologies or systems for reduction of solar gain on new and existing roofs. Provision of green roof materials (high-reflectance roofing materials) or green roof systems (plant materials on roof) for shading can assist reduction in municipal runoff levels and improved air quality / natural filtration. Green roof systems are a very old and widespread technology in Europe, particularly Germany, and some sources indicate as much as 10% of roofs in Germany utilize a green roof planting system, with approximately 70% growth in the German market since 1994. However, this technology or market is under-developed in Central and Eastern Europe, and the proliferation of concrete construction in the Romania presents a potentially ideal substrate for this technology, as well as a potential for coordination with various horticultural or unique entrepreneurial opportunities. Due to the well-documented use of this technology in Germany, EU funding is possible to offset costs and provide incentives for developers.

Photovoltaics – Europe is the fastest growing market in the PV industry. Currently approximately 48% of European photovoltaics are supplied from Japan. An opportunity exists to establish the manufacture and implementation of photovoltaics under license on a variety of scales in Romania, for use by individual or commercial/institutional consumers, to capture a portion of the European market. Barriers to entry in central and Eastern Europe have been training, awareness, costs, and investment; however costs and investment can be offset by EU funding sources to make this venture attractive. Note that whereas the local market for PV may not be attractive at the current time, Romania could be suitable as a base for export to other markets.

Solar water heaters: An opportunity exists for off-the-grid building and water heating: to reduce or eliminate load on LCP. Average EU growth rates in this market of approximately 13%, with significant adoption in Austria, Germany, and Greece, and mandatory use in Spain since 2005. However, despite significant market growth and widespread utilization in Europe, this opportunity is significantly under-developed in Romania, especially for medium or large or multi-unit installations by sophisticated firms.

Reduced solar gain on glass: retrofit awnings and horizontal or vertical exterior shading devices for reduced solar gain on glass surfaces and improved energy efficiency in existing and new buildings – opportunity potential throughout the European market with little introduction in central and eastern Europe by advanced manufacturers with integration capability with smart-home technologies. Although reduction or prevention of solar gain on glass has been well-documented as a primary strategy for energy efficiency, few sophisticated exterior shading systems are currently available. Barriers to entry include lack of awareness, lack of products on the market, and costs of installation.

HVAC: An opportunity exists for retrofit solutions for interior or exterior stack ventilation systems for existing buildings to improve natural ventilation, reduce building energy consumption, and reduce reliance on wall AC units. Due to the extent of existing mid-rise, poorly-cooled buildings throughout ex-communist Europe, market potential exists for a creative entrepreneur or manufacturer able to adapt existing technologies or strategies to this problem. Entry barriers include lack of awareness, costs of modification, lack of trained personnel, and the complexities of building ownership for residential apartment buildings (or “blocs”). However, EU funding is available to offset installation or modification costs to make this venture attractive. For new construction projects or a 

major renovation of existing buildings, complete HVAC system that use the ground, water and/or air as a “heat sink” and/or the agent to insure a constant temperature for the living area while exchanging the air can present a welcome addition to the local market.

 

 

4

3

 

Also know as a “heat pump”, “geodesic system”, or “geothermic system”.

Water efficiency and quality:

Water efficiency is not just about selling toilets or pipe in the Romanian marketplace. The European Commission reports in the EU Water Initiative, that “In most developing countries, rural economic growth is critical for overall economic growth”, and that in rural areas “the poorest and most vulnerable rural dwellers are particularly sensitive to lack of [clean drinking] water.” The EU Water Initiative, in place since 2002, encourages all member governments to develop or improve system-wide management practices for water efficiency and water quality as a primary strategy for development and the fight against poverty and disease. Improvement to water management in Romania is critical to long-term growth and development overall. Opportunities exist for manufactures and service providers of all aspects of water management, distribution, treatment, and domestic fixtures to enter the market, promote awareness of the issues, and provide improved products and services and professionalization of the industry in Romania. Although typical low-flush or dual-flush toilets and some applications for “green” residential products may be on the market, and although some measures for water treatment have been implemented in Romania, significant coordination of water management and “green” strategies is lacking, and an opportunity exists for manufacturers and service-providers to take a critical leadership role in promoting (and developing) successful and coordinated water management practices in Romania, and throughout the region.

Opportunities exist not only in urban areas, for district-wide improvements and services, but also in rural areas, to provide products and services for on-site management, treatment, distribution, or collection systems, as well as water-efficient fixtures. Products and services for specific technologies include: Low-flush toilets, waterless urinals and automatic fixtures, retrofit/replacement of existing fixtures, rainwater / gray-water collection and distribution systems for new and retrofit conditions, technologies for improvements to municipal water systems, and on-site filtration and treatment technologies or strategies. Barriers to entry include costs of retrofit or installation (compared to maintenance of current systems), awareness of the issues, and awareness of solutions. However, EU funding is available to offset costs for improved water efficiency or quality.Waste Management / Recycling:

 

Recycling is not just about used bottles and newspapers. The European Commission’s Waste Framework Directive (codified and in force since 2006), states that “the essential objective of all provisions relating to waste management should be the protection of human health and the environment”, and that poor waste management and disposal “may affect the quality of the environment and the smooth operation of the internal market.” Recycling and effective waste management is necessary for long-term economic growth in Romania. Article 3 of the Directive mandates that all member 

governments take actions to prevent or reduce waste, and develop strategies of recycling, reuse, and reclamation. However, recycling and effective waste management is a significant and well-documented problem in Romania, and although there is awareness of the issues by the public and officials, a lack of coordinated waste management persists. In addition, green building certifications reward best practices in construction waste management. Consequently, an opportunity exists for manufacturers and service-providers to take a critical leadership role in promoting and developing successful and coordinated recycling and waste-management practices in Romania, and throughout the region. Barriers to entry include costs of installation or implementation of management practices, and lack of awareness of impact on environmental quality. However, funding is available to offset costs and to provide financial incentives.

 

Opportunities exist for the introduction of recycling processes and strategies, equipment, recycled-content materials, and professionalized recycle/salvage services across all industries, including paper products, glass products, steel products, concrete products, rubber products, wood products, and plastic products.

Additional opportunities exist for provision of engineered wood products and forestry practices for introduction of “alternative” light-gauge and energy efficient construction practices to the region.

Additional opportunities exist for the provision of improved road-building technologies and engineered geotextile materials for improved road performance, retaining wall or landfill applications, and reduced maintenance costs.Low-VOC materials:

 

The European Chemical Policy (REACH), finalized in 2006, aims to protect human health and environmental quality while maintaining competitiveness and. As documented by many sources, prior to 1989, Romania was a leader in the chemical industry in central and Eastern Europe; however, due to lack of investment, many sub-sectors in the industry in Romania have vanished. A report by UN/ECE dated 2000 states “Potential partners [and opportunities] may be found among the chemical firms that already exist in many sub-sectors of the industry, including basic petrochemicals, pharmaceuticals, polymers and plastics, fibers, fine chemicals, paints and varnishes and a host of other products.” An opportunity exists for manufacturers and services providers in the chemical industry to develop sustainable and low-VOC technologies for European or international markets. Entry barriers include costs of development and consequent higher product costs; however, EU funding is available to offset costs and provide incentives.

Specific to construction, opportunities exist for entrepreneurs to develop various petrochemical, polymer, plastic, fiber, paint, varnish, sealant, and adhesive products for construction applications, including for compliance with current low-VOC standards.

Both leading green building certifications reward the use of low (or no) VOC paint and other applications listed above.

Conclusion

 

As indicated above, there are numerous opportunities to enter the Romanian and surrounding market for green products, services, and technology. On the ground experience in construction and other industries has demonstrated that the local market – after reasonable awareness building efforts are made – readily adapts to superior solutions that can demonstrate return on investment. Significantly higher energy costs and mortgage financing has encouraged longer term planning in design and equipment with particular regard to energy efficiency.

 

SOPOLEC

SOPOLEC is a business advisory services firm of U.S. and European-educated resources, with extensive international and local experience. The company assists business entities operating in or looking to enter the Romanian market by providing market entry research, access to a strong network, and strategic advice. The company is founded on the principle that strong ethics and responsible business behavior are vital components of sustained profitability. The company is a founding member of the Romania Green Building Council.

For more information on how SOPOLEC can assist producers and service providers of green construction and eco-efficient products, please contact Steven Borncamp, Managing Director of SOPOLEC at +40 21-222-5135 or steven.borncamp@sopolec.com with any questions.

 

 

Romania Green Building Council Romania Green Building Council (RoGBC) is a non-governmental organization encouraging the market, educational, and legislative conditions necessary to promote high performance construction that is both sustainable and profitable. The Council will also work towards the introduction and implementation of national green building standards and certifications to ensure market transformation and the rapid development of the green building segment. More information can be obtained at www.RoGBC.org SOPOLEC is a meritocracy where professionals are evaluated and promoted on their ability to contribute towards our company’s and client’s objectives without regard to ethnicity, gender, religious views, or sexual orientation. SOPOLEC is a signatory to and abides by the World Economic Forum’s Partnering Against Corruption Initiative. www.SOPOLEC

.com

Some references

Photovoltaics:PV Strategic Plan, http://www.agores.org/Publications/PV2010/Vol2.pdf Solar Water Heaters:

http://www.google.com/search?q=solar+water+heaters+market&hl=en

Green Roofs: 10% utilization: Wikipedia; 70% growth since 1994: http://www.newcolonist.com/greenroofs.html

Lighting: EU quote: http://www.enn.com/today.html?id=12318

Energy Efficient Motors: http://www.ecee.org/pubs/romania.htm#demand

Energy Efficient Motors: http://strategis.ic.gc.ca/epic/site/imr-ri.nsf/en/gr122630e.html Market Trends: PMR Research

Southeast Europe Times: http://balkantimes.com “Romania’s economic growth exceeds expectations” 4 August 2008

Tubular Daylighting Devices: Solatube http://www.solatube.com

Water Efficiency: http://bookshop.eu.int/eubookshop/FileCache/PUBPDF/KH6605701ENC/KH6605701ENC_002.pdf Recycling:

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32006L0012:EN:NOT

Low-VOC: http://www.cefic.be/Templates/shwStory.asp?NID=479&HID=319

Low-VOC: http://www.unece.org/press/pr2000/00trad9e.htm

Funding Assistance: www.sopolec.com

 

 

 

 

 

Subventions for introducing renewable solutions into buildings

Many of you might have heard the news lately – the projects for replacement or completing existing heating systems with renewable solutions (that use solar, wind and geothermal energy) could receive 90% financing from the state. I was very excited at the beginning thinking that finally the Romanian government started to think big and that in this way they are really supporting the market. After digging for more info I realized that there are also few “but” in the whole scheme. I will try to summarize quickly:

Good Points:

1. The subsidy is very big – 90% of the total cost of the project – bigger than in any other European state

2. The access for funding was also open for home owners and association of home owners

3. They are collecting the funds out of the green tax for cars – so the budget won’t be a small one

Not very exciting points:

1. It is a funding stream that is managed by AFM ( Environment Fund Authority) and usually they have very comprehensive procedures for obtaining the funds

2. It is not a subsidy that would apply to anybody automatically; in order to receive money you need to apply for funds

3. The solutions that are to be used in the projects should be bought from authorized distributors; the good news is that the list is still open (for the ones that are interested to be on that list) and it seems that the authorization procedure will be open only in November

4. There are also other types of projects that are funded out of this budget – installing renewable solutions is one priority out of six

Sursa: Romania Green Building Council

Calendare 2009 si felicitari pentru Sarbatorile de iarna – kbc.ro

Ca in fiecare an, compania noastra este incantata sa va prezinte noile colectii de material promotionale pentru sezonul 2008 – 2009. Avem multe modele noi colectiile fiind create pentru a conferi stil comunicarii intre oamenii de afaceri si companii. Alegeti modelele preferate si bucurati-va de toate celelalte avantaje, colaborand pentru personalizare cu un partener cu experienta de 6 ani in acest domeniu. Calendare 2009 si felicitari pentru Sarbatorile de iarna, acum, cu livrare gratuita in Romania.

New Europe Industrial & Logistic Park

Optiuni extremiste pe piata imobiliara

In Romania, cel mai putin afectate de criza imobiliara sunt, in prezent, cele mai mici locuinte de pe piata – garsonierele, si cele mari – apartamentele cu patru camere. Proprietarii din Bucuresti care vor sa-si vanda apartamentele au renuntat, in cazul apartamentelor cu doua si trei camere, la peste 10.000 de euro din pretul cerut, in cinci luni. Conform unui studiu realizat de www.anunturiparticulari.ro, portal imobiliar care analizeaza anunturile publicate de persoane particulare in publicatiile specializate in publicitate imobiliara, s-a constatat o reducere a pretului mediu, in cazul apartamentelor din Bucuresti, cu 10.060 de euro in cazul apartamentelor cu doua camere si cu peste 12.100 de euro in cazul locuintelor cu trei camere. In ultimul an, nivelul cel mai inalt al pretentiilor financiare ale proprietarilor care vor sa-si vanda casele a fost atins in luna martie, cand pretul mediu al unui apartament cu doua camere a fost de 120.720 de euro, in vreme ce in luna august acesta a scazut la 110.660 de euro.

Si segmentul locuintelor cu trei camere a fost afectat de criza imobiliara. Astfel, daca in luna martie pentru un astfel de apartament se inregistra un pret mediu de 157.591 de euro, in luna august pretul mediu cerut de proprietari a scazut la 145.428 de euro. Dupa cum se poate vedea, se inregistreaza o diferenta de 12.163 de euro. Garsonierele au inregistrat cea mai mica scadere de pret. In martie, pretul mediu pentru acest tip de locuinta era de 76.293 de euro si a ajuns la 71.838 de euro in august. Singurele care s-au scumpit au fost apartamentele cu patru camere. Pretul mediu cerut in martie era de 187.198 de euro, pentru ca, in august, acesta sa ajunga la 200.042 de euro. Una dintre cauzele acestei evolutii o reprezinta raportul cerere/oferta. Garsonierele sunt cerute fie de persoane necasatorite, fie de cei care vor sa cumpere o locuinta pentru a o inchiria. Pe de alta parte, apartamentele cu patru camere sunt cautate de familiile cu multi copii, iar oferta este mica deoarece reprezinta, totusi, cel mai mare tip de locuinta de pe piata, iar in cazul achizitionarii unui apartament cu suprafata similara intr-un bloc nou ar fi nevoie de un efort financiar foarte mare. Acestea sunt si locuintele pentru care se inregistreaza cea mai mica oferta din piata. Astfel, de la inceputul anului s-au scos la vanzare 2.225 de apartamente cu patru camere si 6.422 de garsoniere, in vreme ce in cazul apartamentelor cu doua camere s-a ajuns la 10.726 de locuinte, iar in cazul celor cu trei camere la 7.513. „In conditiile in care bancile nu vor gasi solutii sa evite restrictiile de creditare care le-au fost impuse, lipsa finantarilor din piata va determina o diminuare a numarului de tranzactii, ceea ce va duce si la o scadere lenta, dar sigura a preturilor apartamentelor“, spune Silvia Valceanu, general manager www.anunturiparticulari.ro.

Alagoas, Brazil

Ref. 11210 - Alagoas, Brazil
	Prime rental investment in one of Brazil’s fastest growing cities. Beachfront location within a city expansion plan.
Investment Indicators • Below Market Value • Early Entry • Emerging Market • High Rental Potential • High Capital Appreciation • City Centre	Brazil offers investors a growing market with high rental demand and impressive capital growth potential. Paradise Beach is a beachfront city development, appealing to both the domestic and foreign markets. Located on a prime beachfront plot close to Maceio city centre and within the city’s expansion plans The city has over 1 million inhabitants and the property market is fast growing due to a strong domestic demand The foreign market has begun to take a keen interest in the city’s investment potential  No more beachfront land available in the city The city is expanding towards the north, around the development location Maceio is the 71st largest growing city in the world THE INVESTMENT This project is ideal for both a short and long term investment. Strong capital growth High potential rental yields based on a strong domestic demand THE EXIT STRATEGIES The development is located to benefit from both a primary and secondary market, as it is an urban city investment with a front line beach position. The primary market – Domestic Domestic mortgage market set to increase 600% by 2014 Current economic growth within Brazil and increased ability for Brazilians to obtain mortgages, open up such projects to a wider proportion of the domestic market For re-sales and rentals, the market is expected to be supplied by residents of Maceio. With a fast growing middle-class economy and already over 1 million inhabitants, a clear primary market is already in place for this type of investment The secondary market – Tourism Brazil is becoming ever more popular amongst foreigners, and also remains the main destination of choice for Brazilians. Beach-front properties are in high demand, especially those within close proximity of the city centre THE SECURITY IPIN confirms that this project has passed all necessary checks as part of its due diligence process. As the project complies with all legal requirements, IPIN has no hesitation in offering this project to its investor members. Full planning and licenses in place  Five year building warranty 100% freehold units THE DEVELOPER Award winning local developer and construction company, Cerruti Engenharia, a company with a long and strong history in property development. Projects completed by the developers include: Edificio Bertolucci Edificio Montceny Edificio Centro Empresarial Business Tower Edificio Piazza bella Vista Edificio Grand Lavoisier Edificio Citta di Pontremoli The company has won the ADEMI awards for the best new development in the years 2000, 2002, 2003, 2004.
2 bedroom Apartments from 207,810.00 BRL (Convert to GBP) 2 bedroom Duplexes from 488,759.00 BRL (Convert to GBP)

To receive more details about this project or to find many other interesting overseas investment oportunities in Brazil, Cyprus, Dominican Republic, Dubai, Egypt, Morocco, Panama, Turkey, please access our Properties Abroad website.

Reaching the international buyer

Across the globe, despite the impact of the credit crunch, many buyers are still actively seeking opportunities in overseas property and two international magazines, Overseas Property Professional (OPP) and OPP Russia, have recently highlighted Romania as a market for agents to consider for their clients. However, the next stage for the market is for developers to work with agents to drive sales based on this interest.

Whether for investors looking to benefit from rentals or capital appreciation, second-homes buyers or those re-locating to the country, a number of developers have experienced demand from outside Romania. OPP has learnt about buyers coming from the US, Scandinavia, Germany, France, Spain, Israel, Greece and Italy, amongst others – highlighting the appeal of the market for a range of nationalities. In addition, Tibor Fuchsel, territory manager at Overseas Property Professional (OPP), feels the Russian buyer market is one that developers should seek to engage: “Russian buyers are constantly looking for new areas where they can not only invest their money but also buy something unique, Romania has so much to offer them. There is no reason Romania can’t follow the path of Bulgaria in terms of engaging the Russian buyers.  Bulgaria stands at number 1 on the top list of Russian buyers.”

While good news for those developers with property to sell, this does throw up challenges in marketing to so many diverse markets.

For many developers this can seem a daunting task, requiring a re-think of their marketing activities, an understanding of how to interact with agents, and an examination of ways to teach new agents about what the Romanian market offers. However, Tibor Fuchsel, territory manager at Overseas Property Professional (OPP), says: “The shift in mindset isn’t as great as some may fear – the fundamentals of the business remain the same. You want to sell property through an intermediary and – whether you use a domestic agent, based in Romania selling to Romanians’, or an overseas agents selling to their local clients – the relationship is similar.”

This year, OPP and OPP Russia have increased coverage of the Romanian markets, to educate international agents about the opportunities their clients may be interested in. However, Fuchsel says: “To capitalise on this interest, developers also need to ensure they have dialogue with agents, and are working pro-actively to establish, and facilitate, these sales channels. Buyer interest is out there, as OPP has found, but the only way to benefit from this is to engage the companies that will bring you the buyers. OPP strives to facilitate these partnerships, and aims to provide a medium through which developers can reach agents.”

OPP- helping Romanian developers establish overseas networks

For many Romanian developers, selling property to overseas buyers can seem a daunting task, requiring a re-think of marketing activities and an understanding of how to interact with agents. However, in reality, the philosophies of doing business remain the same, according to Tibor Fuchsel, territory manager at Overseas Property Professional (OPP).

Fuchsel says: “The shift in mindset isn’t as great as some may fear – the fundamentals of the business remain the same. You want to sell property through an intermediary and – whether you use a domestic agent, based in Romania selling to Romanians, or an overseas agents selling to their local clients – the relationship is conducted on a similar basis.”

The only real challenge is creating relationships with overseas agents – and this is a challenge OPP is helping Romanian developers meet head-on.

Fuchsel explains: “The OPP brand incorporates two trade magazines, with related websites, and the OPPLive exhibition, where agents and developers meet to learn about new business strategies and conduct business. Using the OPP platform, developers can structure a campaign that successfully uses print, online and face-to-face marketing to reach key agents.”

A typical campaign can be structured to combine the following elements to achieve maximum results:
1) Print advertising in the monthly OPP and OPPRussia magazines to build brand awareness, credibility and trust amongst agents throughout Europe and Russia. It is recommended that campaigns run for a minimum of 3-6 months for maximum effect.
2) Online activity through direct emails and banner advertising to the largest trade database available, consisting of 56,000 agents globally and 7,000 agents specifically from Russia and the CIS, in order to drive direct response and encourage a dialogue (either prior to a face to face meeting at the OPPLive event in November or to follow up after the show).
3) Presence at OPPLive 08 exhibition. This is an opportunity to meet with over 3,000 key agents face-to-face at a 2 day event in London on the 25 and 26 November. The conference and exhibition will allow you to solidify relationships, train agents on selling your development, network with top professionals and attend a range of conferences that will educate you and your team on all elements of marketing and selling your development to an international audience.
Fuchsel concludes: “Despite current economic conditions across the world, there are still many people looking to buy property in new markets. The key is ensuring they know what you offer – and the most direct way to ensure this is to establish an international agent network to do the selling and marketing for you.”