Estimates for 2012 real estate deals in Romania down to EUR 300 mln

The volume of investments in commercial properties in Central and Eastern Europe was down by 60 percent in the last three months compared to the first quarter of this year, to EUR 327 million, according to the latest study made by the consulting company DTZ.

In Romania, real estate deals of EUR 99 million were closed in the first quarter, while in Q2 there were only EUR 25 million worth of real estate transactions. DTZ experts anticipate a EUR 250 to 300 million in real estate investments in Romania this year, below the initial estimation of EUR 400 to 450 million for the whole of 2012. In Bucharest, premium properties are expected to attract foreign investors in the next period. "Linked to this, we anticipate a moderate increase in the volume of transactions for the second half of 2012,' said Cristian Ustinescu, investment director of DTZ. The volume of investments for the entire year is expected to be between EUR 250- 300 million, below the initial estimation of EUR 400 to 450 million. "The estimate is based on the fact that banks will bring bad loans assets on the market, which is part of the deleveraging ", he went on. While Romania stayed weak transactions in the first part of the year, investments in the Czech Republic increased in the second quarter, reaching a value of EUR 159 million, after a poor first quarter recorded only EUR 20 million worth of real estate transactions. On the other hand, Poland, which in recent years has dominated Central and Eastern European market, recorded a sharp decline from EUR 717 million in the first quarter to only EUR 122 million in the second quarter. The office buildings segment is the most popular with investors in Central and Eastern European markets, rising to 60 percent of investments in the second quarter. Retail investment valued EUR 106 million in the second quarter, well below the quarterly historical average of EUR 471 million recorded from 2010 to present. At the opposite end of the spectrum, investments in office buildings have remained high - EUR 207 million, however this figure is below the historical average of EUR 389 million. Ioana Toader, ioana.toader@romania-insider.com (photo source: Sxc.hu)