News von den Mitgliedern

Reff & Associates | Deloitte Legal team assisted Smart ID Technology, part of the SARMIS Capital investment fund portfolio, in taking over the majority stake of AB Systems, a manufacturer of durable barcode labels and RFID (Radio-Frequency Identification) smart labels for companies in the automotive manufacturing, logistics and retail sectors. The transaction was signed in March and is subject to the approval of the Competition Council and of the Commission for the Examination of Foreign Direct Investments.

This is the third acquisition made by Smart ID in the last three years, after the takeover of Total Technologies, one of the most important Honeywell technology integrators for industrial automation in Central and Eastern Europe, and of Sceptrum, a provider of ERP (enterprise resource planning) software. The development of Smart ID through acquisitions is part of the company's strategy to become a regional leader in providing innovative technological solutions for automation, identification and automatic data capture, for the industrial, logistics and retail sectors.

"We are pleased to announce this strategic transaction, which strengthens our position in the market and represents an important step towards our goal of becoming a regional leader in automation and automatic identification technology solutions. This acquisition reflects the remarkable potential of the Romanian entrepreneurship and of local collaboration. I would like to thank the team of consultants who made this success possible for their exceptional professionalism, outstanding involvement, extensive experience and proven competence in managing the entire process. Our collaboration was a true demonstration of excellence, and the support provided was essential in achieving this result. It is a proud moment for all of us and an example of the power of collaboration in the Romanian business environment," said Daniel Boangiu, Founder and CEO, Smart ID Technology.

The Reff & Associates Team | Deloitte Legal involved in the project assisted Smart ID Technology in the due diligence process, in the preparation and negotiation of the transaction documentation, and currently assists the company in obtaining the approvals from the competent authorities in the field, through the contribution of Georgiana Singurel, Partner and leader of the commercial law and mergers and acquisitions practice, and Stefan Caramida, Senior Managing Associate, as well as with the involvement of lawyers Elena Costescu, Senior Associate, Andrea Grigoras, Senior Managing Associate, Diana Ivan, Senior Associate, and Maria Marin, Associate.

"We are glad to have been able to support Smart ID Technology and SARMIS Capital in this transaction and we are confident that this partnership between two local entrepreneurs who inspire with their energy and strategic approach and who will benefit from the support of one of the most important local investment funds will take the growth and consolidation of the business beyond the country's borders. This transaction is an example of collaboration between Romanian entrepreneurs with complementary visions and an important step in order to amplify the existing synergies in their activity. We are grateful for the trust and excellent collaboration with our client," said Georgiana Singurel, Partner at Reff & Associates | Deloitte Legal and Leader of the commercial and M&A practice.

Smart ID Technology creates and implements customized and complete process automation solutions for companies with intensive work environments, with the aim of optimizing costs and increasing productivity. With over 12 years of activity, the company has become a leader in the local IT field and the most important supplier and integrator of revolutionary technologies and mobile, automation and robotics equipment for the main industries.

AB Systems is a Romanian entrepreneurial company founded in 2000, specialized in the production of labels and automatic identification solutions (based on RFID and barcodes). The customized services and products offered by the company are used by customers from industries such as automotive and retail, operating in Africa, America, Asia and Europe.

The private equity fund SARMIS Capital, established in 2019 by a local team, invests in companies in most sectors of activity both in Romania and in Central and Eastern Europe. The fund's management team has actively invested in the region for over 15 years, placing over 230 million euros in 20 transactions and obtaining bank financing of over 250 million euros for portfolio companies. SARMIS Capital's portfolio includes, in addition to Smart ID Technology, MG-Tec Industry, BMF Grup and Corporate Office Solutions.

Reff & Associates | Deloitte Legal is recognized as a leading law firm in Romania for the quality of services and ability to deliver solutions on complex legal matters. The areas of practice include banking and finance, competition, employment, energy and environment, insolvency, legal management consulting, litigation, corporate, mergers and acquisitions, public sector and real estate, as well as optimization of legal processes and the adoption of new technologies. The firm represents in Romania Deloitte Legal, a global network with more than 2,500 lawyers in 80 countries.

For more information about Reff & Associates, please visit www.reff-associates.ro. For more information about the global Deloitte Legal network, please visit its dedicated web section.

• Global data centers' electricity consumption is expected to double by 2030 due to the increasing power demands of Gen AI
• AI agent usage is rising, with 25% of organizations using Gen AI expected to deploy it by 2025, increasing to 50% by 2027
• On-device Gen AI is on the rise. By 2025, over 30% of shipped smartphones and about 50% of personal computers (PCs) may have local Gen AI processing capabilities
• The average number of streaming video subscriptions per household is predicted to peak in 2025 at four in the US and 2.5 in Europe, then decline, driving market aggregation

As power-intensive Generative AI (Gen AI) consumption grows faster than other uses and applications, electricity consumption by data centers is forecasted to double to 4% of global electricity consumption by 2030, according to the latest edition of the Deloitte Technology, Media and Telecommunications (TMT) Predictions report. The power needed to support data centers’ most important components, among which storage systems, cooling and networking switches, is expected to reach 96 gigawatts globally by 2026, with AI operations alone expected to consume over 40% of that power.

“Sustainability is as important as transparency for building trust, for ensuring robust governance, for transforming talent and for managing mature data life cycle, which are all instrumental in defining the Gen AI roadmap. The report points out that, on average, a Gen AI prompt request uses 10 to 100 times more electricity than a standard internet search query. Given the use of this amount of power, hyperscalers and data center operators must consider alternative energy sources, innovative cooling methods, and more energy-efficient solutions when designing data centers,” said Andrei Ionescu, Consulting Market Leader, Deloitte Romania.

The report predicts that 2025 will be a year of growth for agentic AI - software solutions designed to complete tasks and meet objectives with little or no human supervision -, as 25% of the companies using Gen AI will launch agentic AI pilots or proofs of concepts in 2025, growing to 50% by 2027. Built on large language models, these AI agents will offer greater flexibility, and a wider array of use cases compared to traditional machine learning or deep learning methods.

As Gen AI solutions grow in versatility, deepfake – videos, photos and audio materials that seem real but are generated by artificial intelligence tools – emerges as a concern requiring organizations to enhance overall security and trust in digital content. To detect fake content and create standards for content authentication, organizations should prioritize tools and vendors that leverage varied and premium data collections and collaboration with peers across industries. At the same time, the report highlights that the end users should be encouraged to cross-check information with reliable sources and utilize multi-factor authentication to help mitigate risks associated with deepfake.

As on-device Gen AI is on the rise, Deloitte TMT Predictions report forecasts that GenAI-enabled smartphones will exceed 30% of total shipments and PCs with local GenAI processing capabilities will be around 50% of the total shipments, rising from an estimated 30% in 2024.

On the streaming front, the report shows that streaming video on demand (SVOD) has reached its limit after peaking at around four subscriptions per consumer in the US and an average of 2.5 in most European markets in 2024 and will start declining in 2025. While standalone subscriptions are expected to decline, SVOD revenues may still rise as providers implement price hikes, tighten password-sharing policies, and enhance bundling options.

The report also forecasts that the market will stabilize with just two or three stand-alone direct to consumer SVOD players per market, complemented by aggregators. Echoing the traditional model of pay TV providers, the report emphasizes a resurgence of aggregation, where intermediaries, such as telcos, pay TV platforms, and tech platforms, will consolidate multiple content sources into single offerings. The report underlines that the model is already visible in the United States, the United Kingdom and France, but also in Central Europe where it’s been estimated that 25% of all SVOD subscriptions are indirect, sourced via pay TV or telco. This shift may reduce costs and create a more sustainable streaming ecosystem.

This year’s edition of the Deloitte TMT Predictions report provides an outlook on technology, media and telecommunications trends that may disrupt and transform the business and consumer ecosystems worldwide.

Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. The firm’s professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Its objective is to make an impact that matters through its approximately 460,000 people worldwide.

Deloitte Romania is one of the leading professional services organizations in the country providing, in cooperation with Reff & Associates | Deloitte Legal, services in audit, tax, legal, consulting, financial advisory, risk advisory, business processes as well as technology services and other related services, through 3,200 professionals.

Please see www.deloitte.com/ro/about to learn more about the global network of member firms.

A multidisciplinary team made of Reff & Associates | Deloitte Legal’s lawyers and Deloitte Romania's financial and tax advisors assisted UE Furniture, a global leading producer of office chairs, armchairs, and sofas, in the acquisition of the family-owned business Rus Savitar, a key player in the local furniture industry. The transaction was signed in November 2024 and was completed recently, after obtaining the required regulatory approvals.

This take-over marks the expansion in our country of the Chinese furniture producer, after its USD 9.5 million investment in a production base in Romania located in Hunedoara County, announced in 2019.

The Reff & Associates | Deloitte Legal’s experts provided assistance to UE Furniture throughout the acquisition process, from the conclusion of the framework agreement on the proposed transaction, during the due diligence analysis phase, as well as in the negotiation, signing and implementation of the transaction. The legal team consisted of Irina Dimitriu, Partner and leader of the real estate practice, Larisa Popoviciu, Senior Managing Associate, who coordinated the entire project, Calin Georgescu-Muresanu, Senior Associate, Andreea Zaharia and Mihnea Radu, Managing Associates. Deloitte Romania’s Advisory team assisted the buyer with financial due diligence and transaction support, through the contributions of Radu Dumitrescu, Partner-in-Charge, Vlad Balan, Director, Ionut Grigoras, Manager, Andreea Voinea, Senior Associate, Marc Nedera and Elena Becheanu, Associates. Also, tax experts Dan Badin, Partner, Laura Bobar, Senior Manager, Ana Bica, Senior Consultant, Stefania Samson, Consultant, and Simona Mergeani, Director, ensured the tax due diligence, the transaction and the transfer pricing assistance.

“This transaction marks a new development phase for our client, whom we also assisted in its initial major investment in our country. This new acquisition is in line with our client’s global investment strategy, and we are glad we have been involved in this strategic transaction in the manufacturing sector,” said Irina Dimitriu, Partner at Reff & Associates | Deloitte Legal and leader of the real estate practice.

UE Furniture was established in 2001 and reported revenues of over 630 million euros at the end of 2023 and 6,000 employees.

Rus Savitar was set up in 1994 and has become an important player on the Romanian furniture market. In 2019, the company was taken over by the Swedish investment fund Greenbridge Partners and returned to its founders in 2024.

Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. The firm’s professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Its objective is to make an impact that matters through its approximately 460,000 people worldwide.

Deloitte Romania is one of the leading professional services organizations in the country providing, in cooperation with Reff & Associates | Deloitte Legal, services in audit, tax, legal, consulting, financial advisory, risk advisory, business processes as well as technology services and other related services, through 3,200 professionals.

Please see Deloitte.ro to learn more about the global network of member firms.

Reff & Associates | Deloitte Legal is recognized as a leading law firm in Romania for the quality of services and ability to deliver solutions on complex legal matters. The areas of practice include banking and finance, competition, employment, energy and environment, insolvency, legal management consulting, litigation, corporate, mergers and acquisitions, public sector and real estate, as well as optimization of legal processes and the adoption of new technologies. The firm represents in Romania Deloitte Legal, a global network with more than 2,500 lawyers in 80 countries.

Opinion article by Burcin Atakan, Partner, Deloitte Romania, Leader of Fraud Investigation Services, Deloitte Central and Eastern Europe, and Emil Borza-Dediu, Manager, Financial Advisory, Corporate Forensic Services, Deloitte Romania

Corruption is a global phenomenon with multiple socioeconomic effects, which contributes to perpetuating social inequality, as well as development gaps between regions and poverty.

Transparency International’s Corruption Perception Index (CPI) results show that the global picture has rather deteriorated over the last 12 years, with fewer countries having managed to improve their indicators than those in which, on the contrary, the situation has regressed. In the European Union the average CPI score has also worsened by 2 points as compared to 2023, down to 62/100, with countries such as Germany (CPI score 75/100), Italy (54/100), France (67/100), Spain (56/100), Slovakia (49/100) and Hungary (41/100) recording decreases in their scoring, while others, such as Romania (CPI score 46/100), stagnate below the EU average.

A global and regional outlook

On February 10^th, the US President has paused the enforcement of the Foreign Corrupt Practices Act (FCPA), with the presidential order stating that it had been abused in a manner that harmed the American interests. Prior to this, the Office of the Attorney General had published a memorandum also stating that the Criminal Division's Foreign Corrupt Practices Act Unit would prioritize investigations related to foreign bribery that facilitates the criminal operations of Cartels and Transnational Criminal Organization (TCOs), and shift focus away from investigations and cases that do not involve such a connection. Therefore, following the aforementioned focus shift from the cases that involved corporate entities, the review of the guidelines and policies that governed investigations and enforcement actions under the FPCA is to be performed by the Attorney General.

The FCPA’s noteworthy feature is that it has a transnational dimension, as it applies to regulated entities that promise, offer or pay anything of value to a foreign official, with corrupt intent, for a business purpose, or authorizes the above. The FCPA applies even if the offense was committed outside the US borders, therefore, it has outreach even on European soil and beyond.

But the FCPA is not the only national legislative act that has transnational applicability, with the UK Bribery Act, which was adopted in 2010, and the French Sapin II Law (Law on Transparency, Fighting Corruption and Modernizing Economic Life), adopted in 2016, having a similar outreach. Actually, the FCPA was a door opener for further regulations and legislations on bribery and corruption at a global level, and the aforementioned transnational legislations coexist with other international instruments, such as the United Nations Convention Against Corruption, regional instruments, such as the EU Convention on the Fight Against Corruption Involving Officials of the European Communities or Officials of Member States, and with the local legislative acts.

The Romanian perspective – a way forward

In 2024, Romania has maintained its CPI score of 46/100, and it ranks at the 65^th position out of 180 countries that were included in the study, alongside countries such as Kuwait, Montenegro and Malta, and below the EU average.

Among Transparency International Romania’s recommendations are improving awareness among citizens about the importance of applying Law no. 361/2022 on the protection of whistleblowers in the public interest – especially in those areas mentioned in Art. 3 as areas where violations of the law can be reported, such as public procurement, prevention of money laundering and terrorist financing, environmental protection, public health –, as well as updating the legislation in the field of public integrity, to remedy the current gaps and inconsistencies, and a Government commitment to an anti-corruption program that will lead Romania to obtain a CPI score of at least 50 points by 2027.

However, the involvement of private entities is also fundamental to strengthen the national ABAC efforts, as corruption and bribery do not solely take place within the public environment, but they also have a private dimension.

When trying to determine the steps to be taken by a private entity in their ABAC (Anti-Bribery Anti-Corruption) endeavors, it is noteworthy that prevention is often the more cost-effective undertaking in comparison to being exposed to corruption. This is because corruption leads to often irreparable reputational and pecuniary damage. As such, the first preventive step is the determination of the inherent risks to which the entity is subjected, the “as-is”, by considering elements such as the industry, size of the enterprise, level of awareness, existence of any relevant policies and procedures and the existence of an internal reporting channel.

Once inherent risks are identified, entities need to consider certain key elements of compliance:

1.  “tone at the top” policy, which implies that management sets in place a “zero-tolerance” approach to any behavior that may be considered as corrupt within its organization and operations;

2.  robust procedural framework by developing and implementing clear internal procedures, in accordance with the entity’s actual business profile and activity, and including reporting channels;

3.  training and awareness – the personnel should be informed and have the necessary know-how to identify any corrupt behavior, risk, or red flag and to undertake the required mitigation steps.

As a closing note, even though the FCPA was paused in the USA, the global challenge to sustain the enforcement of the ABAC regulations locally persists. More importantly, companies and institutions that are seeking for a longer life span should consider sustaining their continuous preventing efforts and vigilance on the topic. Because corruption may never be fully eradicated; however, through the combined efforts of the public and private entities, it may be significantly reduced, so that countries, societies and economies may generate fairness, prosperity and security.

As Kinstellar moves into 2025, Kinstellar highlights some of the key developments in the Romanian employment dispute landscape over the past year. You can read the firm’s summaries of these key trends below, along with its thoughts on where it expects to see more employment litigation activity in the year ahead.

I. Romanian market insights

Two key drivers in Romania this year concerning the increased risk of employment litigation are economic uncertainty, which could lead to company restructurings and related dismissals, as well as the many changes in Romanian legislation relating to whistleblowing and the prevention of discrimination and harassment at the workplace.

Specifically, there are two types of employee lawsuits Kinstellar expects to see often in 2025: (i) harassment, discrimination, as well as whistleblower claims, and (ii) appeals against employment termination.

Harassment, discrimination and whistleblower claims

There is a strong focus on the importance of fair procedures when conducting complex investigations into issues relating to workplace culture and moral and sexual harassment and discrimination, together with significant investment in training, risk frameworks and policy reviews in light of the new Romanian legal obligations on employers to take reasonable steps to prevent moral and sexual harassment and discrimination at the workplace.

Kinstellar has also seen an increase in the number of whistleblowing claims brought against company management. Although some of these are justified, others continue to use whistleblowing as a strategy to turn standard unfair dismissal claims into uncapped claims. Many employees tend to believe that allegations of moral and sexual harassment and discrimination should automatically constitute whistleblowing, which may increase the number of complaints made through company whistleblowing channels.

Appeals against dismissals

The Romanian labour market has faced significant challenges in recent years. From the impact of COVID-19 to rising inflation and rapid advances in AI, these disruptions have triggered economic shifts that have reshaped the professional landscape. In response, companies have resorted to mergers and restructurings, changes that often result in individual, as well as collective dismissals.

The year 2025 began with a significant number of companies making redundancies, particularly in the technology sector. Redundancies of this magnitude can carry both business and reputational risks and need to be handled carefully in accordance with the law to avoid backlash.

II. Three different legal types of employment litigation won for employers in recent months in Romania by Kinstellar’s skilled and agile employment litigation team

Drawing on these trends, Kinstellar is proud to share the Bucharest employment litigation team’s court victories in favour of employers from the past two months, namely:

• a case concerning collective dismissal—Kinstellar was able to demonstrate that the collective dismissal implemented by an employer/Romanian subsidiary of a global group of companies due to regional organisational changes and the unprofitability of some online games was legal and justified in the current global context;
• a case concerning moral harassment and discrimination at work—Kinstellar was able to demonstrate that the annual increase in salaries is at the discretion of the employer/Romanian subsidiary of an international group of companies and that the employer has the right to organise its activities as it deems convenient, including by dismissing some employees if their positions have become objectively redundant;
• a case concerning the unilateral termination of an individual employment contract during a probationary period—Kinstellar was able to demonstrate that the employer/Romanian subsidiary of a global IT company did not perpetrate an abuse of right by unilaterally terminating the individual employment contract if the employer can prove that the employee was not suitable both from a professional perspective, as well as from an ethical perspective; another particularity of this employment litigation was that the employee was in the incentive period (after the parental leave), protected by law against dismissal, but the employee did not inform the employer about this legal situation.

Such judicial outcomes are rare in Romania, where it is usually the employees who win labour disputes, so this is a remarkable achievement for Kinstellar’s skilled and agile employment litigation team and its clients. In Romania, Kinstellar is fortunate to have a strong Litigation team of ten lawyers and an excellent Employment and Labour team of four lawyers, giving the local office the full capacity to offer dedicated and specialised teams to its clients.

III. Takeaway

The takeaway for employers is that, in the event of a dismissal dispute, they will need to prove that the measure was not subjective or unjustified. Thus, an important step before the implementation of dismissals for reasons not related to the employees envisages preparing a financial and business analysis pointing out the solid/serious and real grounds for implementing the dismissal for redundancy. Should the dismissal decisions be established as illegally issued (i.e., if any of the procedural aspects reflected by the law are not properly observed or the reorganisation process is not solidly grounded on its merits), the court shall order its cancellation and oblige the employer to pay damages to the employee, representing up-to-date salaries, as well as other salary rights the employee would have been entitled to under the individual employment agreement, and even moral damages.

Also, in case of a claim raised by an employee, whether it relates to harassment, discrimination or any other issue, the employers will need to demonstrate that they took reasonable steps to enquire as to the nature and substance of the complaint, as well as any remedial action that may be available to them.

The lawyers from STOICA & ASSOCIAȚII succeeded, at first instance, in obtaining the suspension of the enforcement of the rules requiring economic operators in the distribution chain of excise products to include the amount of excise duty in the basis of calculation of the minimum tax on turnover ("IMCA").

By Decision No 1393/2024, the Government limited the scope of taxpayers entitled to deduct the amount of excise duties paid to the Romanian State from the AMT assessment base to excise duty payers only. This untimely measure has had a very serious impact on the organisation of the activities of economic operators in the entire excise goods distribution chain. However, the primary legislation does not expressly limit the scope of the persons who may deduct the amount of excise duty from the base for calculating the HCAA.

The methodological rules have been suspended from application pending the outcome of the annulment action, following the successful outcome of a lawsuit in which STOICA & ASOCIAȚII represented a major company distributing excise goods. The judgement handed down by the Bucharest Court of Appeal is enforceable and represents an interim measure of protection for the taxpayer who has appealed to the court.

"Obtaining this solution, even if subject to appeal, is very important for the company we represent. The suspended rule had major effects on the basis of calculation of the IMCA and implicitly on the amount of the tax, with consequences on the estimated profit margin from the activity of distribution of excise products. Such unforeseeable and contradictory changes may jeopardise the equilibrium of the specific market, all the more so as the suspended rule introduces a veritable 'tax on tax', in breach of essential principles such as the fair apportionment of the tax burden and the rules of competition. The success in court is the result of excellent co-operation between STOICA & ASOCIAȚII lawyers and the project co-ordination team of the economic operator. Valeriu Stoica (Founding Partner) and Constantin Cosmin Pintilie (Managing Associate) were part of the legal team, together with me, and I also benefited from the valuable contribution of other colleagues, taking into account the high degree of complexity of the economic and legal defences necessary in building the case" explained Andreea Stoica, Managing Partner STOICA & ASOCIAȚII.

The first instance judgement suspending the execution of Government Decision no. 1393/2024 is of interest to all actors in the distribution chain of excise products, who are liable to pay the minimum turnover tax, all the more so as the suspension of the effects of certain normative acts is less frequently obtained through the courts.

Established in 1995, STOICA & ASOCIAȚII has gained national and international recognition in the world of law and business, through its entire activity of legal assistance and representation of a vast portfolio of clients. From its foundation to the present day, the lawyers of STOICA & ASSOCIATES have proved to be a strong team, founded on the respect of its principles: Fidelitas, Integritas, Fortitudo. STOICA & ASSOCIATES has acquired an excellent national and international reputation. Its professional performances are recognised in the most important legal guides: Chambers Europe, Legal 500, WTR 1000, IAM Patent 1000.

Bucharest, March 2025: IT companies, manufacturing & industry, and the medical & pharma sectors, have been the most active in the office leasing market over the past 5 years, generating more than half of the new demand for office spaces, according to data from the Cushman & Wakefield Echinox real estate consultancy company.

The net take-up (excluding renegotiation contracts) in Bucharest and major regional cities – Cluj-Napoca, Timișoara, Iași, and Brașov – totaled approximately 1.06 million square meters, between 2020-2024. This area is comparable to the total office stock in the four regional cities or 30% of the stock in Bucharest.

Considering the average office space allocated per employee of 8-10 square meters, it can be concluded that companies have leased office space for at least 100,000 employees in the main cities in Romania over the past five years.

With nearly 7% contribution to Romania's GDP overall formation in 2024, the IT sector generated over 35% of the new demand, representing 375,730 square meters of space contracted nationwide in the last five years, making it by far the most dynamic sector.

In second place, but significantly behind the leader, ranked manufacturing & industrial companies (18.1% contribution to Romania’s GDP) with 9.2% of the volume (98,000 square meters), followed by pharma & medical sector with 9% of the total (95,200 square meters).

The top five also include professional services operators, with nearly 86,000 square meters leased, and financial sector – banks, insurance, etc – with over 75,000 square meters contracted.

The total office space transacted (including renegotiation contracts) during the analyzed period exceeded 2 million square meters, with IT companies responsible for over 40%.

The stock of modern offices in Bucharest and other university centers in the country – Cluj-Napoca, Timisoara, Iasi, and Brasov – amounts for approximately 4.51 million square meters, while projects totaling 390,000 square meters are currently in various stages of development, due to be deliver over the next five years.

In these circumstances, the average vacancy rate of office spaces in the five analyzed cities stands at 13.8%, with the lowest level recorded in Cluj-Napoca - 6.6%, and the highest in Iași -19.4%. In Bucharest, the average vacancy rate dropped to 14.2% at the end of last year.

In terms of prime rents over the past five years, in Bucharest, at the end of last year, they reached a maximum level of €21/sqm/month, representing an increase of 10.5% compared to 2020. In regional cities, rent growth was up to 13%, to a maximum level of €17/sqm/month.

Madalina Cojocaru, Partner Office Agency, Cushman & Wakefield Echinox: "IT companies have continued be the main driver the office leasing market in Romania in the last five years, even though there have been adjustments in space requirements within this sector. With a significant contribution to GDP and continuous expansion, the IT sector has demonstrated a constant need for modern offices, thus stimulating the real estate market. This trend reflects not only the growth of the tech industry but also the transformation of the work environment, where offices become hubs for innovation and collaboration. Currently, the supply of office spaces in central areas of Bucharest is increasingly limited, while demand remains constant. This situation highlights the need for new developments in areas well-connected to public transportation, meeting current work standards. Calea Buzesti, for example, has the potential to become a new attraction for companies and investors following a gentrification process.”

Cushman & Wakefield Echinox is a leading real estate company on the local market and the exclusive affiliate of Cushman & Wakefield in Romania, owned and operated independently, with a team of over 80 professionals and collaborators offering a full range of services to investors, developers, owners and tenants. For additional information, visit www.cwechinox.com.

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2024, the firm reported revenue of $9.4 billion across its core service lines of Services, Leasing, Capital markets, and Valuation and other. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.

Global law firm Dentons has advised the Green Assets Division of MET Group (Swiss based) on the acquisition of a 80 MW photovoltaic project in Romania from Austrian solar power developer and operator Kraftfeld Energy. The project, located in Răscăeți, Dâmbovița County, was acquired at a ready-to-build stage with an engineering, procurement, and construction (EPC) contract already in place.
MET Green Assets Division’s renewable energy portfolio in Romania includes more than 260 MWp of photovoltaic power plants and 10 MW of co-located battery energy storage capacity.

Dentons provided comprehensive legal guidance throughout the entire project, including on the due diligence, structuring of the transaction, drafting and negotiation of the transfer documents, FDI clearance, as well as on the signing and closing. This also involved representation before Romanian authorities.
Additionally, Dentons advised during the negotiation and conclusion process of the EPC matters related to the development of the solar park in Romania, including performance security requirements and procurement procedures. 

Partner and Head of the Energy practice in Romania, Claudiu Munteanu-Jipescu, led the team. The team included counsel Elena Vlasceanu, senior associates Angelica Pintilie and Carolina Baloleanu and associate Alin Dimache (all Energy); partner Bogdan Papandopol, senior associate Luiza Onofrei, associates Diana Ceparu and Geanina Anghel (all Real Estate); counsel Doru Postelnicu and senior associate Andreea Predescu (both Corporate); partner Raul Mihu and associate Iulia Titirisca (both Competition); counsel Maria Tomescu and associate Carmen Banica (both Banking and Finance); senior counsel Oana Voda (Public Procurement); counsel Argentina Rafail and senior associate Simona Radulescu (both Employment).

Claudiu Munteanu-Jipescu commented: "We are honored to have assisted the Green Assets Division of MET Group in the expansion of its renewable energy portfolio in Romania, a key pillar of its European growth strategy. This transaction highlights the continued interest in green energy investments and reinforces Romania’s position as a key market in the sector."
***
ENDS
About Dentons
Across over 80 countries, Dentons helps you grow, protect, operate and finance your organization by providing uniquely global and deeply local legal solutions. Polycentric, purpose-driven and committed to inclusion, diversity, equity and sustainability, we focus on what matters most to you. www.dentons.com
 

Bucharest, March 2025: The average office fit-out costs in Bucharest increased by 12% in 2024 compared with the previous year, surpassing the €1,000/ sq. m threshold. This evolution aligns with regional trends, as most capital cities have seen cost increases ranging between 8-15%, according to data from the Cushman & Wakefield Echinox real estate consultancy company, based on the Fit-Out Cost Guide 2025.

Key factors driving this trend include rising labor costs, fueled by salary increases in the construction sector, and materials’ prices which, despite partial stabilization, remain directly impacted by inflation. Investments in sustainable solutions and compliance with Environmental, Social and Governance (ESG) standards also contribute to higher initial costs, while enhancing long-term energy efficiency.

Andrei Ianculescu, Head of Project & Development Services at Cushman & Wakefield Echinox: "Although raw material prices have not seen significant increases over the past year, finished products have continued to become more expensive, mainly as a result of labor, utilities, transportation and carbon footprint considerations. Labor costs have been having the biggest impact on office fit-out expenses, while the growing demand for ESG standards and green certifications is becoming a priority for tenants. Smart building solutions such as automated lighting, climate control and security systems are also a highly popular, adding value to their respective projects. These technologies not only reduce utility costs through optimized consumption, but also enhance employee comfort, which can positively impact productivity and satisfaction." 

Despite these increases, Bucharest remains one of the most competitive office markets in the CEE region, with an average fit-out cost of €1,056/ sq. m, including all interior works across various specialties, building management systems (BMS), furniture, audio-video equipment, professional services (project management, health and safety coordination and site supervision), as well as contingency costs.

In comparison, fit-out costs in Bucharest are 17% lower than in Warsaw and 14.5% below those in Prague, maintaining the city’s appeal for companies setting up offices in this part of Europe.

Depending on the complexity of the project, materials and solutions used, as well as how the space is delivered to the tenant, fit-out budgets can range from approximately €800/ sq. m to nearly €1,600/ sq. m. The largest share of costs comes from architectural and installation works (50%) and furniture (approximately 28%), both of which being significantly impacted by price increases. Other cost components include audio-video systems, IT technology, project management and design services.

The moderate cost increase in Romania is influenced by a stabilization of the construction market and a slight slowdown in inflation. However, budgetary pressures remain high due to rising labor costs and the volatility of construction material prices.

The most expensive office fit-out markets in Europe include London – €2,671/ sq. m, Hamburg – €2,512/ sq. m, Munich – €2,432/ sq. m, Frankfurt – €2,408/ sq. m and Berlin – €2,333/ sq. m.

Even though the economic challenges and fluctuations in the real estate sector persist, demand for high-quality office spaces remains strong, particularly in areas with developed infrastructure and easy access to public transportation. This trend continues to drive investments in premium fit-out solutions, with a focus on sustainability and smart technologies.

Romania remains an attractive destination for international companies, thanks to competitive costs and a skilled workforce. In this context, the optimization of fit-out budgets is becoming essential for both occupiers and investors.

As businesses rethink their real estate strategies in response to the hybrid work model and employee-centric office designs, the demand for efficient, engaging office spaces will continue to fuel fit-out investments.

Project management services involve overseeing, coordinating and supervising office, retail, residential, mixed-use, industrial and logistics fit-out projects. This includes working closely with design teams, consultants and contractors across all key project phases.

Over the past two years, the Cushman & Wakefield Echinox Project Management Department has delivered projects covering 480,000 sq. m of office, retail, industrial and logistics spaces for both landlords and tenants. In regards to the office segment, the completed projects involved a total budget of approximately €33 million, with the largest one exceeding €2 million.

Cushman & Wakefield Echinox is a leading real estate company on the local market and the exclusive affiliate of Cushman & Wakefield in Romania, owned and operated independently, with a team of over 80 professionals and collaborators offering a full range of services to investors, developers, owners and tenants. For additional information, visit www.cwechinox.com.

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2024, the firm reported revenue of $9.4 billion across its core service lines of Services, Leasing, Capital markets, and Valuation and other. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.

Forvis Mazars Group, the international audit, tax and advisory services partnership, announces the integration of Taxaco Group in Moldova. The Chișinău-based audit, tax and accounting services provider will operate under the Forvis Mazars brand.   

This latest move reinforces Forvis Mazars' commitment to driving growth and innovation in the country and across the Central and Eastern Europe region, building on decades of collaboration with Taxaco Group.

The new office will be led by Managing Partner Iuri Cicibaba, with support from Audit Partner Vera Baciu and Tax Partner Vladimir Melnic.

Iuri Cicibaba, Country Managing Partner of Forvis Mazars in Moldova, commented: “Becoming part of Forvis Mazars is a game-changer for our firm and the Moldovan business landscape. This integration propels us onto the global stage, equipping us with unparalleled resources for our clients and a bold vision for the future. Now, as Forvis Mazars in Moldova, we are committed to redefining excellence in professional services, delivering innovative, high-impact solutions that empower businesses to thrive in an increasingly complex world.”

Cicibaba adds: “Moldova is an emerging market with immense potential, and we have the opportunity to drive progress, deliver excellence, and contribute to the country’s economic development. Our clients will benefit from access to world-class audit, tax and advisory services, from an organisation with a track record in prioritising innovation, integrity, and long-term partnerships. With the support of Dino Ebneter and the Romanian team, our transition is set to be seamless, ensuring that Moldova’s businesses continue to receive the highest level of expertise and support.”

In the past few years, Forvis Mazars Group has significantly expanded its operations in the Central and Eastern European region, entering Bosnia and Herzegovina, Lithuania, North Macedonia, and Latvia. The firm has also shown 13% growth in the region in the last year alone.

Commenting on its official entry to the market, Country Managing Partner of Forvis Mazars in Romania, Dino Ebneter said: “Marking a significant milestone in our regional growth strategy, this expansion underscores our commitment to serving clients across Eastern Europe and strengthening our presence in emerging markets. By leveraging our 30-year established presence in Romania and our extensive global capabilities, we are well-positioned to make a meaningful contribution to Moldova's business ecosystem. Our team will remain focused on delivering the same high-quality services and professional excellence that Forvis Mazars is known for worldwide.”

Ebneter concluded: “We are excited about the opportunities this new chapter of our relationship and latest growth opportunity brings, and we look forward to building on the relationships we’ve established, to drive continued growth and success for businesses in Moldova and beyond.”

This latest news comes shortly after the announcement of a new governance model and leadership positions at Forvis Mazars Group.

-ENDS-

Contact(s)

Iuri Cicibaba, Country Managing Partner, Forvis Mazars in Moldova

icicibaba@taxaco.biz

Emilia Popa, Head of Marketing, Communication, and Business Development, Forvis Mazars in CEE
Emilia.Popa@forvismazars.com  / +40 741 111 042

About Forvis Mazars Group

Forvis Mazars Group SC is an independent member of Forvis Mazars Global, a leading professional services network. Operating as an internationally integrated partnership in over 100 countries and territories, Forvis Mazars Group specialises in audit, tax and advisory services. The partnership draws on the expertise and cultural understanding of over 35,000 professionals across the globe to assist clients of all sizes at every stage in their development.

Visit forvismazars.com to learn more.

• Price and product quality, the main criteria in choosing the brand of the next car

Consumer interest in electric cars continues to decline in the world’s largest markets, in favour of the internal combustion engines, that are gaining ground in consumer preferences in Germany (53%, up from 49% in 2024), Japan (41%, up from 34% in 2024), India (54%, up from 49%) or China (38%, up from 33%), except in the USA where, however, classical engines hold a high share in consumer options (62% vs. 67% in 2024), according to the Deloitte 2025 Global Automotive Consumer Study. On the other hand, regardless of engine type, price and product quality remain the main criteria in choosing the brand of the next car for consumers in Germany (62%) and the United Kingdom (62%), and respectively in the USA (58%), the United Kingdom (62%) and South-East Asia (65%), while vehicle performance ranks first in South Korea (59%).

Those who still plan to buy an electric car are motivated by environmental concerns, in India (63%), and Germany (54%), and by the lower fuel costs, in South-Est Asia (64%), Japan (61%) and the United Kingdom (59%). On the other hand, the government incentive programs are among top three arguments in favour of purchasing an electric car only in Germany (33% of consumers).

”The declining interest in electric vehicles represents an additional challenge for automotive players, especially for those in the European Union, which, on top of the growing global competition, are facing regulatory pressure to reduce CO2 emissions. The lower demand for electric cars is also confirmed by the European Automotive Manufacturers Association, which indicates that EU sales registered a 5.9% decrease in 2024 compared to the previous year. In these circumstances, the European automotive industry needs more flexibility in the transition to green vehicles and climate requirements adapted to market conditions, and European authorities are already taking steps in this direction. At the same time, the largest automotive manufacturers are calling for a reshape of the programmes to stimulate the electric cars production, given that in recent years several European states, including Romania, have restricted or even eliminated the subsidies granted for the purchase of such vehicles,” said Bogdan Barbu, Tax Partner, and Automotive Industry Leader, Deloitte Romania.

According to the study, the share of consumers who intend to switch to another brand of vehicle at their next purchase is increasing - to 76% in China (up from 73% in 2024), 71% in South-Est Asia, 51% in the United Kingdom or 46% in Germany, which indicates an increasing competitive landscape across the market. In addition, loyalty for domestic brands is declining. Except for those in Japan (76% are loyal to domestic producers), consumers consider the country of provenience is not important as long as the vehicle meets their needs – the United Kingdom (68%), China (52%), Germany (50%), and the USA (47%).

Regarding battery-electric cars, participants in the study are generally concerned about range (Germany – 54%, the United Kingdom – 52%), price (Germany – 45%, the United Kingdom – 49%), charging time (Japan – 49%, the United Kingdom – 47%), public charging infrastructure (Germany – 43%), and battery safety (South Korea – 49%). Another concern in this case is related to the batteries recycling and the entity responsible for it. While consumers in Japan and South Korea consider that car manufacturers should be responsible to manage the batteries for the entire life-cycle (35%, and 31% respectively), Germans put the battery manufacturer first (21%), and consumers in China (26%), South-Est Asia (25%), and the United Kingdom (19%) believe there should be a dedicated entity in charge of recycling.

The Deloitte 2025 Global Automotive Consumer study was conducted among approximately 31,000 consumers in 30 countries, including 13 European states – Austria, Belgium, the Czech Republic, France, Germany, Hungary, Italy, Netherlands, Poland, Spain, Sweden, Turkey and the United Kingdom.

Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. The firm’s professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Its objective is to make an impact that matters through its approximately 460,000 people worldwide.

Deloitte Romania is one of the leading professional services organizations in the country providing, in cooperation with Reff & Associates | Deloitte Legal, services in audit, tax, legal, consulting, financial advisory, risk advisory, business processes as well as technology services and other related services, through 3,200 professionals.

The banking sector’s exposure to the commercial real estate market (CRE) (excluding the residential segment) exceeded RON 100 billion in September 2024, accounting for half of its total exposure to non-financial corporations.  

This increase, driven by the use of commercial real estate properties as collateral, highlights the sector’s crucial role in supporting Romania’s economy, according to data from the Cushman & Wakefield Echinox consultancy company based on reports issued by the National Bank of Romania (BNR).

Nearly 60% of these loans are secured by real estate assets, while the remaining share represents direct exposure to companies in the sector. Direct bank exposure increased by 10% in 2024, compared with a 6% rise in indirect exposure.

Romania's banking sector exposure to construction and real estate companies stands at 21%, one of the lowest in both Europe and Central and Eastern Europe.

In comparison, the exposure levels in the Czech Republic (35%), Poland (24%) and Hungary (22%) are notably higher, while Nordic countries such as Sweden (62%), Norway (49%) and Denmark (47%) show significantly greater exposure. On the other hand, South European nations, including Greece (10%), Malta (14%) and Italy (15%) report considerably lower exposure levels.

Vlad Saftoiu, Head of Research at Cushman & Wakefield Echinox: "With a banking exposure of just 21% in construction and real estate, Romania benefits from a good balance between prudence and opportunity on this highly important economic sector. This exposure, among the lowest in Europe, suggests a significant potential for growth and development, offering room for investments and innovation in the real estate market without overburdening the banking system. The steady increase in lending within this sector illustrates growing confidence and a strong appetite for commercial properties, promising a dynamic future for Romania’s real estate market."

Even though the quality of the CRE loan portfolio is still lower than the one pertaining to the aggregate total of loans given to non-financial corporations, it has seen relevant improvements in the last few years. Therefore, the ratio of non-performing loans related to construction and real estate companies was of 4.3% in September 2024 (-0.1 percentage points vs. September 2023 and -4.5 percentage points vs. September 2019), while the one for loans secured by real estate collateral (other than those granted to companies operating in the construction and real estate sectors) dropped to 4.9% in September 2024 from 6.1% a year before.

The vast majority of CRE loans (86%) have a debt service coverage ratio above 2, which shows that the companies which took these loans have the capacity to cover at least twice the annual debt service payments.

According to the latest assessments of the vulnerabilities related to the commercial real estate sector in Romania, risks remain manageable and the trend is constantly improving, taking into account the signs of recovery in the commercial real estate market.

The construction and real estate sectors play a crucial role in the overall financial stability due to their size and interconnections with both the financial system and the broader economy.

The gross value added in construction and real estate had a 15.3% share in the GDP (Q2 2024), illustrating an increase compared with 2 years beforehand (13.8% in Q2 2022), thus pointing to the relevance of these sectors in regards to financial and economic stability, but also to a substantial spillover risk to the real economy.

Moreover, the construction and real estate activity Romania was above both the EU average (14.9% share in the GDP in Q2 2024) and also the levels recorded in some of the peer economies in the region (Bulgaria – 10.8%, Poland – 11.2%).

Companies active in construction and real estate account for 15% of total non-financial corporations (~126.000 in 2023) in Romania, employ 12% of the national workforce (~486.000) and hold 20% of the assets related to non-financial corporations.

Construction and real estate companies have a higher level of indebtedness compared with the average for the entire non-financial sector, but the overall trend has been downward over the past few years. Thus, the level of indebtedness (debt-to-equity ratio) was of 181.7% in 2023 (as compared with 158.2% for all non-financial corporations), down from 210.6% in 2022.

Cushman & Wakefield Echinox is a leading real estate company on the local market and the exclusive affiliate of Cushman & Wakefield in Romania, owned and operated independently, with a team of over 80 professionals and collaborators offering a full range of services to investors, developers, owners and tenants. For additional information, visit www.cwechinox.com.

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2024, the firm reported revenue of $9.4 billion across its core service lines of Services, Leasing, Capital markets, and Valuation and other. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.

CMS, with one of the largest corporate/M&A legal practices in Europe, has released the 17^th edition of its European M&A Study, offering exclusive insights into the evolving deal landscape.

With an unprecedented 582 private M&A transactions across 27 European jurisdictions, The Study reveals how investors are navigating a buyer-friendly market, heightened geopolitical uncertainty and evolving regulatory landscapes. The Study shows the number of transactions CMS advised on in Central and Eastern Europe increased by more than 30% compared to 2023. Standout performers include Romania, which ranks as the second most active by deal count (18), registering an 80% increase compared with 2023.

Key market trends: M&A resilience in a changing political and economic climate

Despite ongoing political and economic challenges, M&A activity in 2024 remained strong, with a notable increase in the complexity of deal structuring. The Study identifies a buyer-friendly shift in deal structuring, with the increased use of purchase price adjustments (PPA) and earn-outs, counterbalanced by a rise in warranty & indemnity (W&I) insurance — typically a seller-favourable trend.

Key findings and takeaways:

1. Pricing & structuring: Buyers play hard on value protection

Purchase price adjustments (PPAs) surged, reflecting buyers’ push for financial security amid market fluctuations. The number of deals in CEE with PPA clauses increased by 10% from 2023.

Earn-outs gained traction, particularly in politically sensitive sectors like energy and technology, where regulatory uncertainty is a key concern.

2. Risk allocation: Buyers demand greater protection

MAC (Material Adverse Change) clauses are being deployed more frequently, particularly in transactions exposed to political shifts or regulatory intervention. The highest number of deals with MAC clauses were registered in CEE at 32% of deals.

Buyers also negotiated longer limitation periods for warranty claims, reinforcing a growing emphasis on deal security. The majority of deals in CEE had limitation periods of more than 24 months, while most limitation periods within other European regions were for 24 months or less.

3. W&I insurance: A key tool in the buyer-friendly market

W&I insurance usage increased by 8%, fuelled by declining premiums and broader adoption across mid-sized and large transactions.

The UK led the trend, with insurance playing a critical role in risk mitigation strategies. The use of W & I insurance also showed a small increase in CEE (up 3%).

4. ESG & AI: Theory vs. reality in M&A

Despite increasing regulatory focus, ESG considerations remain secondary in deal structuring.

AI is making deeper inroads, with 32% of legal tech applications in M&A transactions incorporating AI-driven tools.

Looking ahead: Confidence in an evolving market

With M&A deal flow stabilising and debt markets improving, 2025 is set to bring new opportunities for strategic investors. However, buyers must remain agile, balancing market optimism with heightened due diligence and regulatory awareness.

Horea Popescu, Managing Partner of the Bucharest office and Head of the Corporate M&A practice in CEE, says: “In the current M&A landscape, investors must navigate the complex geopolitical environment and regulatory challenges, and the CMS European M&A Study 2025 highlights the importance of agility and thorough due diligence in securing successful transactions. Despite challenges, the CEE M&A market remained resilient. The number of deals CMS advised on in the region increased by more than 30% compared to 2023 and is the second highest number of deals since 2014. More than 45% of those were fuelled by strategic entry into new markets, showcasing the scope and strength of our M&A offering across the region."

Rodica Manea, partner in the Corporate/M&A Team in CMS Bucharest, adds: “As buyers increasingly take the lead in M&A deals, the emphasis on risk allocation and financial security has never been greater. The increased use of purchase price adjustments and earn-outs reflects their push for financial security and value protection. The rise in W&I insurance usage further underscores the importance of risk mitigation strategies. Looking ahead, buyers must remain agile, balancing confidence in an evolving market with regulatory awareness to seize new opportunities in an evolving landscape."

Louise Wallace, Head of the CMS Corporate/M&A Group, commented: "M&A isn’t just about transactions—it’s about strategy. Our latest Study captures the key dealmaking trends shaping 2025 and beyond, equipping clients with the insights they need to navigate complexity with confidence."

Read the full CMS European M&A Study 2025 here: LINK

Almost 60% of participants expect the total value of transactions to increase in 2025. The level of optimism ranges between 64% in the Czech Republic and 24% in Romania

Construction labor cost and availability become the main concern of real estate developers in Central Europe in 2025 (26%), surpassing project financing, the dominant issue in recent years, followed by construction costs (20%) and plot acquisition for future developments (18%), according to Deloitte 2025 Real Estate Confidence Survey for Central Europe, conducted in several countries in the region, including Romania. On the other hand, almost 60% of participants in the study expect an increase in the value of real estate transactions in the near future, with the level of optimism ranging from 64% in the Czech Republic to 24% in Romania.

The study highlights that the real estate sector in Central Europe is demonstrating resilience and adaptability in the face of global uncertainties, geopolitical tensions, and economic fluctuations.

More than 50% of participants anticipate an improvement in market activity this year, up from 40% a year ago, while the share predicting a decline has fallen to 14%, from 16% in 2024. However, while in countries such as Poland and the Czech Republic, the perception is in line with the regional average, in Romania, 41% of participants predict a deterioration and only 18% expect market activity to increase.

The perception on the economic climate has also improved in the region over the past year – 36% of participants expect a positive development (compared to 29% a year ago) and only 19% anticipate a deterioration. Romania also stands out in this regard, with 57% of participants estimating a worsening of the economic climate and only 14%, a favourable evolution. By contrast, the Czech Republic and Poland exceed the regional average, with 45% and 40% of participants respectively confident about the overall economic outlook.

The fiscal framework will remain stable in the near future in the region, according to 71% of participants, while the majority of those in Romania (70%) expect increase of tax burden.

In terms of sectors perceived as the most dynamic in the next five years, green energy infrastructure leads in the region (67%), but also in the main countries participating in the study - Romania (78%), the Czech Republic (75%) and Poland (68%), followed by data centers (55%) and healthcare (36%).

"The results of the study indicate the market evolves and, despite the current challenges, players are adapting to the new realities and prioritize 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," said Irina Dimitriu, Partner Reff & Associates | Deloitte Legal and Real Estate Industry Leader at Deloitte Romania.

A notable addition to this year's study is the inclusion of ESG (environmental, social and governance) requirements as a distinct challenge for real estate companies (12%). And while the real estate market is still in the process of adapting to these requirements, most participants expect ESG-compliant properties to become up to 15% more expensive than non-compliant ones in the coming period.

Deloitte has been conducting the Real Estate Confidence Survey for Central Europe since 2019 to find out how professionals in the field perceive the market. 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% operate across Central Europe markets.

Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. The firm’s professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Its objective is to make an impact that matters through its approximately 460,000 people worldwide.

Deloitte Romania is one of the leading professional services organizations in the country providing, in cooperation with Reff & Associates | Deloitte Legal, services in audit, tax, legal, consulting, financial advisory, risk advisory, business processes as well as technology services and other related services, through 3,200 professionals.

Please see Deloitte.ro to learn more about the global network of member firms.

The European luxury retail industry continued its growth in 2024, albeit at a more moderate pace compared with previous years. European luxury retail sales increased by 4% vs. 2023, but below the growth rates recorded in 2023 and 2022, which stood at 7% and 23%, respectively. This shows that the market has entered a phase of normalization following the post-pandemic boom, according to the latest Cushman & Wakefield European Luxury Retail 2025 report.

Although expansion continued in 2024, the number of new store openings declined and luxury brands began adopting more selective strategies, focusing on expanding existing stores and investing in premium commercial properties. In 2024, only 83 new stores opened across 20 shopping streets in 16 European cities, compared with 107 in 2023. The majority of these openings were in Paris, Milan and London – Europe’s key luxury markets.

In the CEE and SEE regions, the Czech Republic, particularly Prague, stood out, with five luxury brand store openings in 2024.

Romania is shaping up as an emerging luxury market, although this sector’s development has been hampered by the limited availability of suitable high-street retail spaces. However, Calea Victoriei could become an increasingly relevant destination for luxury brands in the near future, given the announcement of several investment projects aimed at refurbishing historical buildings which could accommodate premium retailers.

The expansion has been kickstarted by Louis Vuitton, which opened a store last year within the InterContinental Athenee Palace Hotel and the Italian brand Zegna, which recently launched a mono-brand store in a historic villa near Calea Victoriei. The next wave of luxury entries includes Dior, Saint Laurent, Celine, Valentino, Hermès, Chanel and Guerlain, as announced by Hagag Development Europe, which will dedicate approximately 4,000 sq. m to luxury retail following the complete refurbishment of Stirbei Palace.

Raluca Zlate, Senior Consultant Retail Agency, Cushman & Wakefield Echinox, “An analysis of the performance evolution of the leading luxury brands in Romania shows that their cumulative sales grew by 120% between 2019 and 2023, despite a relatively low number of new store openings during that period. However, the market has yet to reach its full potential and creating a favorable environment for these brands is essential to attracting new names in Bucharest and this includes modern retail spaces adapted to the specific needs of luxury retailers. These brands seek to open stores in landmark buildings with distinctive architecture, generous spaces and the ability to offer exceptional shopping experiences. Unfortunately, aside from a few dominant shopping centers and ground-floor spaces in 5-star hotels, the current availability of such spaces is nearly non-existent.”

The scarcity of premium retail spaces is one of the factors which has slowed down the pace of new luxury store openings across Europe. On the continent’s major luxury shopping streets, the vacancy rate has dropped below 5% and, in some cases, (e.g., Via Montenapoleone, Bond Street, Avenue Montaigne) there are no available spaces at all.

This lack of suitable locations has hindered expansion. The limited supply of commercial space has driven rental prices up by 3.6% in 2024, reaching record highs in cities such as Milan and Paris. As a result, luxury brands have been forced to find creative solutions for expansion, such as converting upper floors or basements into retail spaces.

At the same time, the shift toward larger stores has led luxury brands to prioritize expanding and modernizing their existing locations rather than opening new ones, transforming them into more spacious venues with VIP areas and personalized experiences.

Additionally, rising luxury prices have affected aspirational buyers, prompting brands to reassess their expansion strategies and focus on ultra-premium locations.

Another emerging trend is that instead of leasing new spaces, major luxury groups such as LVMH, Kering and Chanel have opted to acquire entire buildings to secure long-term control over the most desirable locations.

Despite the slowdown in growth, demand for luxury goods remains strong, driven by the high-end segment and the resurgence of international tourism which increased by 11% compared to 2023, surpassing pre-pandemic levels for the first time.

Among the most active luxury groups in expansion, LVMH led the way with 15 new store openings in 2024 and significant investments in real estate acquisitions for brands such as Louis Vuitton and Dior.

The Swiss group Richemont inaugurated 11 stores, mainly for its watch and jewelry brands (Cartier, Van Cleef & Arpels), while Kering limited its expansion to just three new stores, but continued to acquire properties for future growth. Rolex, OTB Group and Patek Philippe were also among the most active luxury retailers.

This year, the luxury retail market is expected to continue its cautious expansion, with strategic investments and moderate sales growth. Brands will remain focused on exclusivity, flagship locations and integrating retail with hospitality experiences. At the same time, competition for premium retail spaces will remain fierce, pushing brands to explore innovative solutions to expand their presence in key European markets.

Consumer behavior shifts will also play a crucial role in shaping retailer strategies.

Cushman & Wakefield Echinox is a leading real estate company on the local market and the exclusive affiliate of Cushman & Wakefield in Romania, owned and operated independently, with a team of over 80 professionals and collaborators offering a full range of services to investors, developers, owners and tenants. For additional information, visit www.cwechinox.com.

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2024, the firm reported revenue of $9.4 billion across its core service lines of Services, Leasing, Capital markets, and Valuation and other. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.

• The 500 largest family businesses generate US$8.8t and employ more than 25 million people across 43 jurisdictions
• Nearly half participated in M&A activities in the last two years
• More than a third have a legacy extending beyond a century

Family-owned enterprises continue to be a major driver of global economic growth. The world’s 500 largest family businesses generate US$8.8t in revenues – a 10% increase from the 2023 index – and employ 25.1 million people worldwide across 43 jurisdictions. The aggregate revenues of these businesses, if compared to GDP by country, equate to the world’s third largest economy, ranking behind only the US and China. These and other findings were published today in the 2025 EY and University of St.Gallen Global 500 Family Business Index, which is a biennial ranking of the 500 largest family businesses in the world by revenue.

Europe remains home to almost half (47%) of the companies on the index, with North America housing 29% and 18% being based in Asia. Regarding industry sectors, retail has the largest representation, leading with 20%. The second largest sector is consumer (19%), the third is advanced manufacturing (15%) and the fourth is mobility (9%).

Despite today’s challenging business environment, mergers and acquisitions (M&A) remain a cornerstone of growth and capital strategy for these types of companies with the top 500 well positioned to take advantage and seize opportunities. Forty-seven percent have engaged in one or more transactions in the last two years and of the disclosed deals 34% completed transactions exceeding US$250 million.

Seeking long-term value, being agile and having an innovative approach is what gives these businesses a strategic advantage and speaks to why 34% of the companies have more than a 100-year legacy and 85% have been operating for more than 50 years. At the top end of the spectrum, a Japan-based company has been running for more than 400 years, and two European companies have been operating for more than 300 years.

Raluca Popa, Partner, Tax and Law, Strategic Growth Markets leader, EY Romania: "In a world marked by rapid changes and uncertainties, family businesses stand out for their resilience and innovation. Their commitment to creating long-term value not only supports their success but also significantly contributes to the global economy. We are already seeing many family businesses led by new generations in Romania, demonstrating a concern for modern governance structures. Given their remarkable adaptability and strategic vision, these enterprises will continue to play an essential role in ensuring sustainable growth for future generations."

***

About the Global 500 Family Business Index

The EY organization and University of St. Gallen have published the EY and St.Gallen Family Business Global 500 Index every two years since 2015. It includes the 500 largest family-controlled businesses based on revenues. The 2025 EY and University of St.Gallen Global 500 Family Business Index highlights the extent to which the world’s largest family enterprises are contributing in distinctive ways to the global economy.

About EY Romania

EY is one of the world's leading professional services firms with 392,995 employees in more than 700 offices across 150 countries, and revenues of approx. US$51.2b in the financial year that ended on 30 June 2024. Our network is the most integrated worldwide, and its resources help us provide our clients with services allowing them to take advantage of opportunities anywhere in the world.

With a presence in Romania ever since 1992, EY provides, through its more than 1000 employees in Romania and the Republic of Moldova, integrated services in assurance, tax, strategy and transactions, and consulting to clients ranging from multinationals to local companies.

Our offices are based in Bucharest, Cluj-Napoca, Timisoara, Iasi and Chisinau. In 2014, EY Romania joined the only global competition dedicated to entrepreneurship, EY Entrepreneur Of The Year. The winner of the national award represents Romania at the world final taking place every year in June, at Monte Carlo. The title of World Entrepreneur Of The Year is awarded in the world final. For more information, please visit: www.ey.com

CMS announces promotions in Romania

CMS is pleased to announce the promotions of Alina Tihan to Finance partner and Andrei Tercu to co-head of Tax as of April 2025.

Alina is a key member of the firm’s Finance team and becomes the tenth partner in Romania. With over 20 years’ experience in banking and finance law, Alina advises banks, investment funds, and real estate investors on financings, restructurings, and regulatory matters across Romania and the CEE region, leveraging her extensive international expertise in leading transactions.

Andrei has over 19 years’ experience in the tax area. He advises a broad range of clients on international structuring matters; acquisitions and group restructurings; due diligence; local tax compliance; and tax litigation.

Horea Popescu, Managing Partner, CMS Romania: “Alina and Andrei are exceptional professionals with deep expertise in their respective fields, and their remarkable skills in managing a broad range of projects have earned them both the trust of clients and the respect of colleagues. With Alina stepping into the role of Finance partner and Andrei now co-leading the Tax department alongside Roxana Popel, I am confident that their leadership will continue to strengthen our position in the market and inspire future growth.”

Ana Radnev, Head of Finance, CMS Romania: “Alina’s promotion to partner is a well-earned recognition of her expertise and the strong, collaborative spirit she’s demonstrated over the years. Her profound understanding of complex transactions, combined with her ability to connect with clients and colleagues, has made her a true pillar of our team. I’m excited for the future and confident that Alina’s leadership will inspire continued growth and success for our finance practice.”

Alina Tihan, Partner, CMS Romania: “I’m honored to have a dedicated team by my side, and together, we will keep shaping new possibilities while delivering innovative, strategic solutions in the dynamic world of finance. Our goal is to empower our clients to navigate challenges and seize opportunities with confidence in Romania and across the CEE region.”

Andrei Tercu, Co-head of Tax, CMS Romania, adds: “I am thrilled to take on this new role and look forward to contributing to the continued success of the firm and of our tax practice together with Roxana.”

CMS promotes 56 to partnership

Alina’s promotion is one of 56 new partner promotions across CMS, spanning 28 cities in 18 countries worldwide, reflecting the firm's international strength and depth. Notably, women represent 48% of these promotions, highlighting CMS's steadfast commitment to diversity and inclusion within the legal profession.

***

About CMS

Founded in 1999, CMS is an integrated, multi-jurisdictional organisation of law firms that offers full-service legal and tax advice. With 85 offices in 49 countries across the world and more than 6,300 lawyers, CMS has long-standing expertise both in advising in its local jurisdictions and across borders. From major multinationals and mid-caps to enterprising start-ups, CMS provides the technical rigour, strategic excellence and long-term partnership to keep each client ahead in its chosen markets.

The CMS member firms provide a wide range of expertise across 19 practice areas and sectors, including Corporate / M&A, Energy & Climate Change, Funds, Life Sciences & Healthcare, TMC, Tax, Banking & Finance, Commercial, Antitrust, Competition & Trade, Dispute Resolution, Employment & Pensions, Intellectual Property and Real Estate.

For more information, please visit cms.law