Colliers: Romanian Eurobonds' 8% yields depress price of local properties
Romania's 10-year Eurobond yield recently surpassed the 8% level compared to below 2% three years ago, and the spread versus Germany has visibly widened as the yield of Germany's 10-year Bunds climbed to 2.4%, up only about 3pp, real…
Andrei Chirileasa · Journalist
· Updated · 1 min read
Romania's 10-year Eurobond yield recently surpassed the 8% level compared to below 2% three years ago, and the spread versus Germany has visibly widened as the yield of Germany's 10-year Bunds climbed to 2.4%, up only about 3pp, real estate consultant Colliers argues in a newsletter.
"In other words, Romania's spread compared to Germany has increased significantly over the last three years", explains Bogdan Mitroi, director of Colliers' Valuation and Advisory Services department, which provides company valuations.
"Real estate assets' values in Romania are under pressure [of the rising risk-free yield set by RO bonds]," Colliers concludes.
The real estate consultants explain that the evolution of government securities, in terms of volumes and yields, is also a measure of the risk-free rate.
(Photo source: Colliers)
