Reality Consult GmbH International management consultancy for Real Estate and Facility Management Market Study 2014 Facility Management in Central and Eastern Europe, and in Bulgaria 2014-10-23 Peter Prischl, Managing Director
Europe is growing together, also in Real Estate and Facility Management Reality Consult s Facility Management CEE Market Study 2014 Facility Management FM as an integrated management approach to workplaces and facilities including related services has grown from beginnings in 1980 (foundation of International Facility Management Association IFMA ) to one of the largest economic sectors (fifth largest in Germany). The countries of Central and Eastern Europe CEE have developed enormously since 1990. The EU is growing more and more into a true union of diverse countries. Facility Management was originally considered a local business, but together with all other facets of the real estate services industry it has developed further, first into a national and now into an international or even a global business. Reality Consult has done a full market study of the FM market in CEE in 2014, after a first study in 2010. 2
CEE is divided into three sub-regions for more significant study results Geographical scope of the study Mid-European Region (ME) Austria (AT), Czech Republic (CZ), Hungary (HU), Poland (PL), Slovakia (SK) South-European Region (SE) Albania (AL), Bosnia and Herzegovina (BA), Croatia (HR), Kosovo (XK), Montenegro (ME), Serbia (RS), Slovenia (SI) South-East-European Region (SEE) Bulgaria (BG), Macedonia (MK), Moldova (MD), Romania (RO) 3
How much, how big? FM market indicators FM market volume Level of outsourcing Building stock Building pipeline Service providers 4
FM market indicators give a consistent picture: FM market indicators per region 5
Most developed region in CEE: Mid-European region Market maturity - Austria is a developed market, all other countries are emerging markets FM volume - Highest in Austria and Poland Germany 6
Mid-European region Level of outsourcing - ME region has an outsourcing level under 40% on average, which is still the highest one in the whole CEE - Only Austria is coming closer to the German benchmark of more than 50% services being outsourced Germany 7
sq m per 1,000 inhabitants million sq m Mid-European region Building stock - Austria and Poland have the biggest building stock - Only Czech Republic has a lead in industry and retail stock, compared to office Office Retail Industry 14 12 10 8 6 Office Retail Industry 4 2 0 Austria Czech Republic Hungary Poland Slovakia 4.500 4.000 3.500 3.000 2.500 Building stock per inhabitant 2.000 1.500 - Vienna s office stock per inhabitant is considerably higher than in the other countries 1.000 500 0 Austria Czech Republic Hungary Poland Slovakia 8
Mid-European region FM service providers - Highest density of FM service providers among the regions - 57 FM service providers with total of 170 subsidiaries - Most balanced density of FM service providers 9
Croatia Serbia Slovenia Bosnia Albania Kosovo Montenegro Germany billion EUR billion EUR Good potential and a big need for professionalization in FM: South-European region Market maturity - The only emerging markets in the region are Croatia and Slovenia, all other countries are pre-emerging markets FM volume - Highest in Croatia, Serbia and Slovenia External FM volume Avg. External volume Internal FM volume Avg. Internal volume 2,0 1,8 1,6 1,4 1,2 1,0 0,8 0,6 0,4 0,2 0,0 0,90 0,30 50 45 40 35 30 25 20 15 10 5 0 10
Level of outsourcing in % Level of outsourcing in % South-European region Level of outsourcing - Highest professionalization of FM services in Slovenia with approximately 37% of FM services being externally assigned - Average outsourcing percentage in the SE region: 24% External services Internal services Avg. External services Avg. Internal services 90 80 70 60 50 40 30 20 10 0 76,36 % 23,64 % 11 Germany 60 50 40 30 20 10 0
sq m per 1,000 inhabitants South-European region Building stock - Limited to the capital cities of each country - The biggest stock in Zagreb: 2.5 million m 2, followed by 1 million m 2 in Belgrade Office Retail Industry 2.500 2.000 1.500 1.000 Building stock per inhabitant - On average 635 m 2 office space is available on 1,000 inhabitants 500 0 12
South-European region FM service providers - Lowest density of FM service providers in CEE - 28 FM service providers with 55 subsidiaries - Most of them in Croatia and Serbia 13
billion EUR billion EUR Heterogeneous region with Bulgaria in the lead: South-East-European region Market maturity - Only emerging market in the region is Bulgaria, all other countries are pre-emerging markets FM volume - Highest in Bulgaria and Romania External FM volume Internal FM volume Avg. External volume Avg. Internal volume 6 50 5 45 40 4 35 30 3 25 2 1,76 20 15 1 0,57 10 5 0 Bulgaria Romania Macedonia Moldova Germany 0 14
South-East-European region Level of outsourcing - Highest professionalization of FM services in Bulgaria with approximately 36% of FM services being externally assigned - Average outsourcing percentage in the SEE region: 25% 15
South-East-European region Building stock - Restricted only to the capital cities of each country - With a total stock of more than 5.5 million m 2 Romania is leading in property in SEE region Building stock per inhabitant - The average of 700 m 2 GLA per 1,000 inhabitants slightly higher than in SE region 16
South-East-European region FM service providers - 43 FM service providers with 64 subsidiaries - Romania is the most attractive market for FM service providers in the region 17
So what about Bulgaria? General economic development GDP growth 2013: +0,9% Annual average growth of 3% for the period 2014-2018 is expected! GDP growth 2014: + Good economic basis for FM! 18
The shift in building stock: the offices dominate! Building stock and building pipeline of capital i.e. Sofia Building stock Building pipeline -------------------------------------- ----------------------- Office 1,7 Mio m2 = 1,3 m2 / inhab. no data Retail 0,8 Mio m2 = 0,6 m2 / inhab. 89.000 m2 Industry 0,7 Mio m2 = 0,5 m2 / inhab. 10.000 m2 19
The Bulgarian Facility Management market is already an emerging FM market! Level of outsourcing = main indicator for FM market maturity External FM market volume: 0,7 billion EUR Level of FM outsourcing: 36% Highest in South- East-European region! 20
Bulgaria has many international Facility Management companies Facility Management service providers in Bulgaria International and local players 12.Hypo NOE First Facility 1. ABB Group 13.ISS 2. Acticum 14.Johnson Controls 3. AIG Lincoln 15.MT&T Property&Facility Management 4. Atrium 16.OKIN FACILITY 5. Bilfinger HSG Facility Management 17.Siemens Building Technologies 6. CBRE 18.Simacek 7. Cushman & Wakefiled 19.Sodexo 8. Dalkia 20.TVO Europe 9. Dr. Sasse Facility Management 21.UTI 10.Dussmann 22.Vinci Facilities 11.Facility Optimum 23.Voith Industrial Services 21
Who is yet to come? Path to professionalization of Facility Management Moldova Albania Kosovo Romania Macedonia Bulgaria BIH Serbia Montenegro Croatia Poland Czech Republic Hungary Slovenia Slovakia Austria 22
Q & A?! 23
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