The volume of commercial real estate transactions in Romania, including offices, retail, industrial and logistics projects, and hotels, reached EUR 410 million in the first half of the year (H1), 21% more than in the same period last year.
The properties in Bucharest accounted for almost 90% of the total, according to the report published by real estate consultancy firm JLL Romania.
The largest segment was that of offices, which accounted for 85% of the total market.
"Many ongoing transactions stopped during the restrictions imposed by the spread of COVID-19, between March 15 and May 15. Towards the end of the first half, however, the activity on the investment market showed signs of normalization, and some large transactions resumed," explained Andrei Văcaru, Head of Capital Markets JLL Romania.
The largest transaction in the first half of the year was the sale of approximately 61.5% of GTC's portfolio.
Other notable office transactions were the acquisition by the Dedeman group of the third phase of The Bridge, the acquisition of Global City Business Park by Arion Green Investment, and the takeover of 50% of Renault Business Connect in Western Bucharest by Globalworth.
Local investors are beginning to play a growing role in the market, JLL Romania concluded based on H1 data. Romanian buyers accounted for 28% of the volume of transactions in 2019 and 35% in the first half of 2020.
The most active local players were Dedeman, One United, Lotus Center, and Element Industrial. In terms of yields, Romania is still well-positioned, the report reads.
Prime yields on the office and retail markets remain at 7%. In the industrial market, they stand at 8%. Retail and industrial market yields are at the same level as 12 months ago, while office yields have shrunk by 0.25pp.
(Photo: Yukniphotoshot/ Dreamstime)
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