Romania’s real estate market plunges to six-year low in 2019

The volume of transactions in the Romanian real estate sector was slightly below EUR 500 million in the first three quarters of 2019, at a level comparable to that seen in the same period last year, and will edge up by a mere EUR 100-200 mln in Q4 to result in a yearly total of EUR 600-700 mln, the lowest level in six years, according to real estate consultancy firm Colliers.

The reason for the subdued activity in Q4 is that several large transactions were postponed for 2020.

"At the beginning of the year, there were real chances for the market to cross the EUR 1 billion threshold, but several large transactions were postponed to 2020. Thus, the volume for the whole year will be in the area of EUR 600-700 million, the lowest value in the last 6 years,” commented Mihai Pătrulescu, Senior Associate Investment Services at Colliers International Romania.

However, there is enough good news, he added, because only the transactions with office buildings planned for next year are worth about EUR 600 million, maybe even in the first part of the year.

Another positive fact is that large players have been active on the Romanian market this year, he added.

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