At Forbes Business Bridges 2025 in New York, Simona Pelin, CEO of S&P Group, shared her insights on strategic leadership, long-term value creation, and the evolution of Romanian entrepreneurship on global markets.
Here are the main insights:
First of all, I want to start saying thank you so much for having me here today and putting together such a beautiful event with such young people and such talented entrepreneurs. So the first step to Romania would be if you decide to buy a beautiful apartment at one, then visiting the beautiful stores from Taylor Jewelry and then end up at Alma Spa would be a great start. Can I answer your question? Of course, based on my experience in America, investing in the USA is pretty safe. talking about transparency legal precision and we have access to a such a big date of pace that we know exactly when to buy what to buy and when to sell but the problem with the usa lately means the very high taxes The administrative cost of the properties that would make it impossible for investors to make a higher yield than 3% if we are lacking.
On the other hand, Romania, one of my favorite countries in the world, got attention not only from entrepreneurship from USA but from the entire Europe. Okay, Romania has also pro and cons. Of course, let’s
(…)Within Cluj, Timișoara and Bucharest, we have access to investment of multinational companies. Also, we have such talented people in technology, and we have a very young generation, very educated. And now that creates a need for residential housing and a major development. It’s true the prices are high when you compare with the income of the people who are in Romania, but still so much. potential and so much growth when you compare the real estate market in Romania with Western In my opinion, I think for the last three years, the properties doubled in Romania. I can tell you that because I did invest in Romania lacking my side. I was just visiting Romania and wondering how much I miss my country. And then I started looking at real estate. And of course, it’s impossible to not see what beautiful projects one has in Romania.
So I started investing in Romania and I realized What a great adventure was for me. But of course you gotta take a risk. A lot of people doesn’t know Romania, so you gotta take the risk in every business. When I realized what we have in taxation regarding, you know, the profit in an investment, the taxes, and that incentive cost, you make a yield between probably seven and 10%. No, here I have 3%, but of course here I buy distressed property, but that took me like 15 years to find them, to find a solution how to acquire them and how to keep them. So I’m lucky until five years ago I was making 7-8%, but right now, specifically after the pandemic, I think everywhere in America you’re lucky if you get 3%. And my brother was also in real estate, a very successful broker for Douglas Elliman.
I’m sure he can be one of the witnesses how difficult it is to make, you know, the… in today’s environment in America.
Q: There is a preview tour following the last panel of discussions which is going to be all about real estate. What do you see next for the real estate market in America? Because actually there are people in Romania looking at the States to invest, to buy, to build. What do you think coming up next year in terms of real estate?
That would be a really good question. If I get the answer, that would be great. But of course, America will It be… would be a great place to invest because you have stability, you have a legal protection here. Romania has the potential to grow and you can find great investments in Romania and you can just wait for the market to catch up and great potential in growing your assets there. But as I said, in America right now, it’s very difficult due to all the taxation. And I think right now America is looking honestly to invest in countries like Europe, who they are very stable politically. Economically, they definitely improved so much in the last couple of years. And actually, a lot of my clients, they’re looking to invest in Romania right I now. think that all of us represent Romania.
We are a little bit unofficial ambassadors of Romania because our success defines also success for Romania. And I think the more we promote our country and the real estate investments there, the more, you know, support we’re going to have in improving the economy in
Q: What’s your next project in real estate? What are you looking at?
Yes, actually I just left Romania like three days ago and also three days ago I decided to make another fast investment there. And actually today I’m apologizing, I was a bit late because I had to wire the money. So yes, Romania I think it’s going to be a great objective for a lot of investors and a lot of multinational companies. And I think we still have at least 30 to 35% room to grow.