Central European developers shift focus to labour costs

Business Forum
Construction labour cost and availability have become the primary concerns for real estate developers in Central Europe, according to a new survey by Deloitte. This shift sees it surpassing project financing, which has been the dominant issue in recent years.   

Almost 60% of participants anticipate an increase in the value of real estate transactions in the near future. However, levels of optimism vary across the region, with the Czech Republic reporting 64% and Romania showing a more conservative 24%.

The study suggests that the Central European real estate sector is demonstrating resilience amidst global uncertainties, geopolitical tensions, and economic fluctuations. Overall, more than 50% of participants expect market activity to improve this year, a rise from 40% a year ago.

Romania presents a slightly different picture, with 41% of participants predicting a deterioration in market activity. This contrasts with the regional trend and the more positive outlook in countries like the Czech Republic and Poland.

Irina Dimitriu, Partner at Reff & Associates | Deloitte Legal and Real Estate Industry Leader at Deloitte Romania, said: "The results of the study indicate the market evolves and, despite the current challenges, players are adapting to the new realities and prioritise the areas with important growth potential in the coming years – green transition, technology and healthcare. Romania's distinctiveness is rather related to the overall economic developments and the prospects for adjusting macroeconomic imbalances because, if we look at the predictions regarding the availability of real estate assets in the near future, we see that players in our country expect an increase (58%), above the region average (54%). Romania also presents challenges in terms of the anticipated changes in the real estate legislation – the new Code of Land Planning, Urbanism and Construction comes with many changes and complex secondary legislation that requires time for preparation, implementation and compliance effort from market players. "

Looking ahead, green energy infrastructure is seen as the most dynamic sector in the next five years, leading in both the region and in Romania.

Three groups of stakeholders participate in the study - developers, investors and market advisers. In the 2025 edition, the most respondents came from the Czech Republic (32%), Romania (19%), Poland (13%), Hungary (4%), while 32% operated across Central Europe markets.

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Business Forum  |  25 March, 2025 at 5:17 PM
Business Forum  |  25 March, 2025 at 3:01 PM