Commercial real estate deals in Romania could reach EUR 900 mln this year

The volume of investments in Romanian commercial real estate projects could amount to EUR 900 mln this year, in an optimistic scenario. This level would be similar to that recorded in 2020, according to real estate consultancy firm JLL.

In the first half of this year, the real estate deals in Romania totalled EUR 309 mln, almost 22% less compared with the same period of last year. Transactions of over EUR 400 mln are currently under negotiation in Romania, mainly involving office buildings and retail schemes, JLL estimates.

The firm says that, for the moment, yields for local office and industrial/logistics assets are at the same level as 12 months ago, while retail yields have increased by 25 bps over the year.

“Romania offers very attractive investment opportunities on the property market from the perspective of prices. The current yield values are still well above those registered in the last peak (2007) and those currently quoted in the rest of the region,” commented Andrei Vacaru, Head of Capital Markets JLL Romania.

“We expect this opportunity to be reflected in the next period in a higher investment volume, although this year transactions will most likely not exceed the 2020 level,” he added.

Prime yield may come under pressure for logistic and potentially office, in line with regional evolutions, but this will also depend on financing availability and terms. Prime office yields in Romania are now at 7.00%, prime retail yields at 7.25%, while prime industrial yields are at 8.00%.

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