Romania’s real estate market to surge this year amid deferred deals

The volume of real estate investments in Romania will exceed EUR 1.1 billion in 2020, compared to EUR 683 mln in 2019, according to a report by real estate consultancy firm JLL.

The office segment will be the most liquid class of real estate assets and could rise from 60% to 80% of the total market.

The hotel segment is becoming increasingly active and JLL expects hotel deals as well.

As regard the dynamics of the overall market, large volume (some EUR 700 mln) of deals scheduled for completion last year were deferred for 2020 and this explains both the weaker performance in 2019, when the market fell below expectations, and the outstanding surge in 2020.

The EUR 700 mln of “pipeline projects” represent contracts already signed or pending due diligence, shows the JLL analysis.

“Transactions of more than EUR 700 mln in total are in advanced stages, and for the whole year it is very likely that the volume will exceed EUR 1.1 bln, a record level for the last six years," said Andrei Văcaru, chief of Capital Markets JLL Romania.

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