On such a market, the report shows, in order to further develop the real estate sector, it must be able to adopt and adapt to new technologies and business models such as the concept of "space as a service".
 "We see a continuation of the development of the local real estate market on both the residential and the office buildings sectors, on the background of the favorable macroeconomic environment. Residential prices, for example, have grown steadily, as have the request, despite the rise in funding costs. At global level, we notice a significant value change from the passive brick and mortar component to a more dynamic approach with a greater focus on operational. This is important for investors - who, on the one hand, need to manage risk but who, on the other hand, are looking for innovative and cost-effective solutions to gain access to operational expertise and innovation, or they will need to to bear the losses", says Francesca Postolache, Partner, PwC Romania.
While global leaders interviewed for this report agreed that the real estate market is currently having a delayed cycle, many have suggested that strong global prospects and high occupancy rates could prolong this cycle even further. An increase in transactions across Europe and record levels of transactions in Asian markets - such as Hong Kong and Singapore - support this idea. 
At the same time, core asset prices remain a challenge, which - combined with a stronger focus on positioning, economic strength and living standards - causes investors to turn to alternative sectors such as logistics and second wave cities such as Copenhagen in Europe and Raleigh / Durham in the United States. Rising interest rates and inflation will also exert pressure on industry, particularly in Europe and the United States. According to those interviewed, the interest rate risk is now higher compared to six months ago.
"In 2017, in Romania, the transaction market reached a record high. For the real estate sector, 2017 was particularly prolific, the value of transactions exceeding € 1 billion, with an increase of at least 10% over the previous year. From a transactional perspective, the most dynamic sectors were the hotel, followed by the retail and industrial sectors, "says Anda Rojanschi, Partner D & B David and Baias. (source: traficmedia.ro)