Colliers sees uneven recovery for Romanian real estate market in 2021

Romania's real estate market could see a recovery in 2021, but many uncertainties remain, real estate consultancy firm Colliers concludes in a report outlining ten predictions for the local real estate market this year.

Recovery will be uneven across sectors (with tourism in the weakest position), according to Colliers.

The EUR 80 bln from the European Union "should have a much greater impact than in neighboring countries if utilized for reforms needed in the country," the company expects, without mentioning the reasons for this.

Tourism will become more local and more frequent as things return to normal, which should be positive for the real estate sector because of stronger demand for local accommodation.

Remote work will become a permanent fixture, but Colliers consultants believe (quite encouragingly for the office owners) that companies will also want to bring their employees at least three days a week at the office to foster teamwork and corporate culture. However, office tenants reign supreme in 2021, and a vacancy rate above 10% does not bode well for the office owners.

In contrast, the industrial and logistics market ended its strongest year in history for Romania, and 2021 should not be very different as recent trends continue to support the development of warehouses.

Retail continues to be under pressure, but Colliers consultants also see a silver lining.

Investment deals are expected to dip after an excellent year, from around EUR 900 million to around EUR 500-600 mln.

2021 also brings various opportunities in the land market, the firm's consultants say.

Finally, Colliers believes that the robust growth in the residential segment has reached an end. 2021 is expected to be a breather year for residential since wage growth has come to a halt in the private sector while the Government froze civil servants' wages amid fiscal consolidation.

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