Investment in Romania’s commercial real estate market has remained healthy during the pandemic, a new report shows.
Some 309 million euros were invested in the first half of 2021. That is about one-fifth lower than in the same period the previous year, BNE Intellinews reported citing the report.
The reason for the drop was the smaller size of a deal, an average of 21 million euros. The number of transactions increased.
“Investors (still have) the appetite for commercial properties in Romania, encouraged by the swift macro-economic recovery,” the report from JLL said.
Romania’s economy grew by 13% in the past year, the statistics institute said on Tuesday. The gross domestic product rose by 1.8% in the second quarter. It was the fourth consecutive quarter of growth.
The capital Bucharest is the hotspot for real estate investment. It accounts for around 69% of the total transaction volume the first six months of the year.
Timisoara and Oradea in western Romania are other magnets for investment. Iasi, the biggest city in northern Romania, is also attracting funds.
According to the ‘CEE Investment Market’ report, the office sector accounted for almost 64% of all transactions. Industrial space came next with 24%, followed by hotels, 9%, and retail, 3%.
The biggest deal so far this year was the Campus 6.2 & 6.3 buildings in Bucharest which sold for 97 million euros.
Industrial and logistics space has been in demand. However, as noted by JLL, “the limited investment activity in this segment is due to lack of product as the market is dominated by strategic players who very rarely sell”.
“We expect that investment volumes in 2021 will be close to the total registered in 2020, although in this period accurate predictions continue to be difficult to make,” JLL said.
JLL is a global commercial real estate company with its headquarters in Chicago, U.S.
It noted that the „vaccination process was going strong.”
„Considering the significant amount of sidelined capital targeting real estate, these forecasts may improve,” it added.