In an increasingly competitive premium residential segment, the Cloud9 Evolution project is strengthening its position “by focusing not on volume, but on quality, functionality, and urban coherence,” as explained by Radu Grigorescu (Chief Commercial Officer Cloud9 & Investment Associate Alfa Group) on the Forbes Forward show.
“Buyers are no longer looking just for a modern apartment, but for an entire ecosystem that supports their lifestyle,” stated Radu Grigorescu. In this context, proximity to offices, schools, retail, and recreational areas often matters more than the actual price of the home.
The Cloud9 Evolution project involves a total estimated investment of 170 million euros, split into two development phases: 90 million euros for the first phase and 80 million euros for the second. The first phase includes 612 residential units, already sold in a proportion of more than 50%, while the second phase, currently under construction, will bring another 536 apartments to the market.
“We have started works for the second phase, we have just finished the excavation stage, and we are about to sign the contract for the structure,” Grigorescu notes.
According to him, recent years have brought significant pressure on construction budgets. One of the most important obstacles for developers remains the sharp rise in costs. “In the last two years, construction material prices have increased by 15–20%, and the availability of qualified labor remains a real issue,” Grigorescu explains.
To this, fiscal changes are also added. “The elimination of tax facilities will undoubtedly have an impact on the final price of apartments.” Even if adjustments are not always spectacular from one quarter to another, the cumulative effect on new developments could be significant.
All of this inevitably reflects in the final price of apartments, not only in the case of Cloud9 Evolution but across the entire market. The increases are not explosive from one month to another, but over time they become significant for buyers.
Bureaucratic bottlenecks also add to this, and obtaining construction permits has been one of the main concerns for developers in Bucharest, affecting investment timelines and the entire delivery chain. For this reason, areas with clearer urban planning regulations and more efficient administrative structures are preferred, favoring investments in the northern part of the capital.
Beyond residential, Alfa Group has also announced its intention to expand into other asset classes, including the logistics segment, according to Grigorescu.
The company also owns office buildings such as Eminescu Offices and Oscar One, and last year completed the acquisition of part of Iride Business Park, where the vision is one of reconversion with mixed uses: residential, office, and retail.
“The office market is going through a major transformation. Hybrid work models have reduced the importance of traditional physical space, and we are looking at adaptable, energy-efficient projects integrated into mixed-use areas,” explains the Alfa Group representative.
In the case of Iride, the start of the concept and design stage is expected in the near future, with details “to be made public later.”
Additionally, the group is interested in expansion beyond Bucharest and is analyzing opportunities in cities with strong university centers and high economic dynamism, such as Cluj-Napoca, Iași, Timișoara, Brașov, or Constanța.
“We do not want rapid expansion, but coherent growth based on real data and a deep understanding of each market,” emphasized Radu Grigorescu on Forbes Forward.
Referring to the “15-minute city” concept and its implementation within Cloud9 Evolution, he stated that inside the complex a private school is planned, an investment of approximately 3 million euros, scheduled for delivery at the end of next year, along with a fitness and wellness center, green spaces over one hectare, and proximity retail facilities.
A convenience store is already operating in phase I, and for phase II a separate building with underground parking is planned, in which the school and wellness spaces will be integrated. Operators for these functions are currently in advanced discussions.
In total, the complex will reach approximately 2,000 apartments, including Cloud9 Residence and the two phases of Cloud9 Evolution, creating the critical mass needed to support educational and commercial infrastructure within the community.
As for the structure of current demand, it indicates a balance between investors and end buyers. “We have approximately 40% investors and 60% end users, but we estimate that the ratio will shift toward 70% end buyers and 30% investors,” Grigorescu adds.
Estimated returns for rental-oriented investments are 5–7% annually, but the appreciation of properties delivered within Cloud9 Residence reached between 50–70% from 2021 until now, according to the Alfa Group representative. He explains the growth in the context of the project’s positioning, existing infrastructure, and the accelerated development of the northern area.
For the period 2025–2027, Grigorescu anticipates a phase of market rebalancing, considering that well-founded projects will continue, while speculative developments will gradually be phased out.
“Even if access to credit is more limited compared to the post-pandemic period, the housing shortage in Bucharest remains significant, and real demand has not disappeared,” concludes Radu Grigorescu.
Source: Forbes Romania
