Real estate investment deals in Romania drop by a third in first nine months of 2021

The total value of real estate investment transactions in Romania surpassed EUR 540 million in the first nine months of 2021, around half of the value corresponding to deals closed in the third quarter, according to Colliers Romania consultants. The investment market decreased from EUR 820 million in the same period of 2020.

Moreover, a contraction in investment returns was felt for prime industrial and office assets.

Underlying demand in the market remains robust, but the lack of product impacts overall volume, according to the Colliers consultants. Still, several big-ticket items stay on the agenda for the next quarters, mostly in the office sector.

Atenor’s sale of Hermes Business Campus to Hungarian fund Adventum for EUR 150 million marked the biggest deal of the quarter and the biggest single asset deal since the sale of the Radisson Blu hotel in 2017.

CTP purchased a 110,000 sqm warehousing portfolio located in several towns from Zacaria for EUR 60 million, and South African REIT Fortress entered the local logistics market by purchasing the newly developed ELI Park 1 near Bucharest from Element Industrial/Paval Holding for about EUR 30 million.

“Two fresh industrial and logistics deals took the total for industrial investments this year to over EUR 150 million or 30% of total volume, a significant jump from EUR 80 million for the whole of 2020 and almost EUR 60 million in 2019 and 2018. As this sector will record transactions of over EUR 200 million by the end of the year, 2021 will be one of the best years in history in terms of the share of industrial assets in overall volumes, and yields on such assets are likely to compress in Romania as well,” explained Robert Miklo, Head of Capital Markets at Colliers.

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