The value of real estate transactions in Romania rose to 180 million euros in the first three months of this year. Over half of the transactions targeted office projects in the Capital, while approximately 30% involved industrial and logistics projects. According to specialists, international investors are attracted by Romania’s stable macroeconomic indicators and more attractive yields compared to other markets in the region.
Over 50% of Real Estate Transactions in Romania: Office Projects in BucharestThe first three months of 2016 brought real estate transactions worth 180 million euros nationwide, according to analyses by Jones Lang LaSalle. Sales of office projects in Bucharest were in the spotlight, with the value of these transactions reaching 96 million euros. At the same time, industrial and logistics projects attracted over a third of real estate asset transactions in the first quarter, totaling 57 million euros. The remainder of the transactions involved retail spaces, with a total of 28 million euros.
„Compared to the same period last year, transactions with commercial properties – offices, industrial, logistics, and retail spaces – increased in the first quarter of this year by over 30%. This year, we also see increased interest in the Romanian real estate market from new investors, attracted by the attractive yields they can obtain compared to other markets in the region, such as Poland, the Czech Republic, or Hungary. This year marked the entry into Romania of one of the world’s largest investment funds, Blackstone, through the European platform Logicor,” explain JLL representatives, who represented Logicor in the acquisition of Immofinanz’s portfolio of logistics and industrial projects in Romania.
The Logicor-Immofinanz transaction is one of the largest concluded in the first quarter. Other significant acquisitions included the full takeover of the City Gate office project from the Bluehouse fund by GTC and the acquisition of the Cubic Center office building, owned by Adval Asset Management, by Alpha Bank.
Prime yields on the local market decreased in the first quarter by 25 basis points and stand at 7.5% for the office market and 9% for industrial projects. For the upcoming period, we do not estimate a significant decrease in yields.
„The outlook for this year is positive given the economic growth, projected to be one of the highest in Europe, and also due to the availability of quality projects and the maintenance of significant differences between yields in Romania and those in Poland or the Czech Republic,” conclude JLL specialists.
Source: Imopedia/Media
Frequently Asked Questions
What was the total value of real estate transactions in Q1?
The total value reached 180 million euros, representing an increase of over 30% compared to the same period last year.
Which sector dominated the Romanian real estate market?
The Bucharest office sector dominated the market, accounting for over 50% of all transactions, with a total value of 96 million euros.
What are the current yields for office and industrial spaces in Romania?
Prime yields stand at 7.5% for the office market and 9% for industrial and logistics projects.