The total investment transactions on Romania’s real estate market last year stood at EUR 608 million, down 41% from the previous year, and an optimistic scenario in the context of the Covid-19 indicates a total investment volume of EUR 750 mln this year, with a minimum of EUR 500 mln under the most pessimistic scenario, shows an analysis by local real estate consultancy firm Crosspoint.
“We do not expect the investment market to undergo a dramatic change in 2020 compared to the previous year,” said Codrin Matei, Managing Partner Crosspoint.
The significant decrease in volume in 2019 was partly due to the fact that a number of major transactions initiated at the end of the year were to be completed in the first half of 2020.
Due to the complexity of the processes and the impossibility of predicting the impact of recent events on all sectors of the economy, it is possible that the completion of transactions may be deferred over a longer period.
“It is much too early for predictions regarding the real estate market, but given that 2019 continued the series of positive evolution in recent years and that we are approaching the current situation from a much stronger position than in 2007-2008, the impact may not be so violent.
The market is more liquid, the degree of indebtedness for individuals is much lower and the wages are higher.
However, it all depends on the duration of the pandemic, the measures taken by the Government to sustain the economy, and especially on how investors, developers and owners will approach the situation,” according to Codrin Matei.
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