Colliers: Investors looking for Romanian real estate assets in need of upgrade

While big institutional investors will continue to set the tone and generate the bulk of activity in the Romanian real estate investment market, an increasing focus could be seen from add-value investors snapping up assets that require capex in order to become competitive. Going forward, the market will probably see an increase in such deals, particularly amid slowing economic growth and rising interest rates, according to Colliers’ latest research report on the real estate investment market in Romania.

The first half of 2022 closed with a total value of investment transactions worth EUR 336 mln in Romania, up by some 13% compared to the first semester of 2021, with office assets accounting for nearly 63% of volumes, according to the Colliers report.

With a handful of large deals at various stages still ongoing despite the somewhat uncertain backdrop in the global economy, the year could end with a total volume closer to or even higher than EUR 1 bln.

“Looking at the activity of investors on the Romanian market in recent years, we observe somewhat of a balance between new investors and recurrent investors in terms of transactions executed. At the present time, investors continue to manifest a healthy interest in local assets and even though some have not yet pulled the trigger on local purchases, Romania remains on their radar”, says Robert Miklo, director of investment services at Colliers

The first half’s biggest transaction saw S IMMO purchase Portland Trust’s EXPO Business Park, a newly developed office project in the northern part of Bucharest for over EUR 110 mln.

(Photo source: Colliers)