Almost 70% of the value of real estate transactions made in Romania in 2017 were carried out by investors from outside Europe, from countries such as Singapore, South Africa, or USA.
The profile of investors interested in the local real estate market is in the process of diversification, according to DTZ Echinox.
The largest investors that invested in the local real estate market last year included the groups Growthpoint and NEPI from South Africa, GIC from Singapore or the US group Lone Star, the owners of the company GTC, together with the French group Catinvest or the Czech group PPF Real Estate.
Ten years ago, when Romania joined the European Union, the most active investors came from Austria. Other important sources of capital for the local real estate market were countries like Germany, France or the Great Britain.
The local real estate market saw an increasing liquidity in 2016, said Tim Wilkinson, Partner in DTZ Echinox. The yields for the “prime” properties in Bucharest amounted to 7% on the retail segment and 7.25% on the office segment. Compared to those from other capitals in the region, the yields in Bucharest were higher.
The office segment was the most attractive one in 2016, with a share of 44% of the total value of transactions. It was followed by retail (31%), and industrial (25%).