\n\t \n<\/p>\n
\n\tEXPO REAL has ended, but the lessons, trends and results of this exhibition will define the market’s direction until the end of the year and the first quarter of 2012. Then we will wait for MIPIM to see what to expect during the next year as well. But let us focus a bit more on EXPO REAL.\n<\/p>\n
\n\tI spoke with tens of people there, even with the ones who were not registered in the official catalogue and they appeared just during the exhibition. It is clear that Romania is not a priority for European investors, plus the absence of Romania through an organized representation with a number of stands, official etc. does not improve the established opinion.\n<\/p>\n
\n\tFour categories of foreign investors for Romania<\/strong>\n<\/p>\n \n\tBut still there are many people interested in investing in Romania. Who are they? I would prefer to categorize them in four different groups, as their approach and interests are different.\n<\/p>\n \n\tInvestors already active in Romania<\/strong>\n<\/p>\n \n\t1. Investors who suffered big losses and are searching for an exit<\/strong>\n<\/p>\n \n\tThey have entered the market during the last years before the crisis, probably in 2007 and 2008. Since then they saw their investment losing value, their bank pressuring them and (usually) their consultant saying that it was not his fault.\n<\/p>\n \n\tWhat do they search for now<\/strong>? Any decent solution that would solve their problem, even selling with (big) losses. A minority of them is willing to re-invest in their properties, adding value.\n<\/p>\n \n\tWhat is the impact of their word of mouth?<\/strong> Very negative for the country (not that there are many people out there who care about this…)\n<\/p>\n \n\tWhat is the impact of any transaction they might conclude<\/strong>? It will be considered as a sale of an asset at distressed price. These sales are also necessary for the market to define its bottom.\n<\/p>\n \n\t2. Investors who invested in the past and are willing to do it again<\/strong>\n<\/p>\n \n\tThere are many companies and private investors who entered the Romanian market during 2000 – 2006 and they finalized transactions at attractive prices. Even during 2007 or 2008, there were still some projects that had “value for money”, with an owner that is still happy today.\n<\/p>\n \n\tWhat do they search for now<\/strong>? After a long period of silence, they are more active than in the past. They know what their priority is, very well; they have connections and a good market approach, so they will invest again once an opportunity appears.\n<\/p>\n \n\tWhat is the impact of their word of mouth?<\/strong> Very good. They recognize the problems and mistakes that this market has, but they continue their activity, being cautiously positive. They are factors of stability for the market.\n<\/p>\n \n\tWhat is the impact of any transaction they might conclude<\/strong>? They are the ones that everyone watches before they make a decision. If the key players of a market are inactive, the newcomers feel that there is a reason for this and they halt their moves as well.\n<\/p>\n \n\tInvestors interested in entering the Romanian market<\/strong>\n<\/p>\n \n\t3. Investors who are ready to invest<\/strong>\n<\/p>\n \n\tThe number is not impressive, as it used to be in the past. But they are very determined. Many of them have offices in Romania or collaborate with consultants for quite some time. They have identified the basics and they also have quite good relationships with the banks, in order to obtain financing, when this is possible.\n<\/p>\n \n\tWhat do they search for now<\/strong>? They have studied the market carefully for quite some time and they have chosen the segment that they want to invest in. They demand good offers but for them the price is not the only criteria to decide upon.\n<\/p>\n \n\tWhat is the impact of their word of mouth?<\/strong> Just their presence in Romania is a “vote of trust” in the country’s potential. They are about to enter so their investment will mean “new money entering”. They add to Romania’s investment profile.\n<\/p>\n \n\tWhat is the impact of any transaction they might conclude<\/strong>? Bigger than any other category, as a new investment by a new player means a lot, becomes subject of discussion and analysis and attracts attention. Everything a country needs.\n<\/p>\n \n\t4. Investors who “ are thinking about investing”<\/strong>\n<\/p>\n \n\tAfter some “dry” years, we have many new investors who are considering investing in Romania. They are neither sure, nor ready to do so, but they check the country, its pros and cons. They try to identify the right people to talk to, the right locations and vital details that determine the success of a potential investment of theirs.\n<\/p>\n \n\tWhat do they search for now<\/strong>? Some of them are “open to suggestions” and check various segments. Others follow their expertise and concentrate on a single segment. They’re not actually searching to buy something, they just want to find out what each offer really means.\n<\/p>\n \n\tWhat is the impact of their word of mouth?<\/strong> Many of them are not 100% decided, so their friends hear them developing their arguments for investing in Romania or not. They influence many people and their questions are spread more than the answers they get.\n<\/p>\n \n\tWhat is the impact of any transaction they might conclude<\/strong>? Most of them will not seal any transactions before they feel ready to do so. But still there are projects where we see investors moving forward, taking advantage of an opportunity. In this case the impact is very positive, but only if the market considers this move as a clever one and not as a “spontaneous” one.\n<\/p>\n \n\tWhat is your opinion? Can you think of more categories of investors in Romania today?<\/strong>\n<\/p>\n \n\tOn Monday:<\/strong>\n<\/p>\n \n\tSteve Jobs and the Romanian Real Estate professionals. We respect him, but do we really follow his ideas?<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" EXPO REAL has ended, but the lessons, trends and results of this exhibition will define the market’s direction until the end of the year and the first quarter of 2012. 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