Offices in Romania, 20 times cheaper than in Hong Kong

The office market in Romania is more than 20 times cheaper than in Hong Kong, which is the most expensive market in the world. “The local market has seen a considerable increase in appetite for investment in the past few months, exceeding the general expectations for the traded volume in 2014. A record annual investment volume was recorded, of some EUR 1.1 billion,” Horatiu Florescu, president and general manager of The Advisers/Knight Frank,

told local news agency

Mediafax

.

Based on local parameters such as the level of rents or the yield, an investment of USD 100 million (some EUR 86 million) can provide the buyer an area of some 32,000 sqm of Class A office spaces in Bucharest, according to Florescu. On the other hand, Hong Kong is the most expensive market in the world, investors being able to buy only 1,427 sqm of office spaces with the same amount of USD 100 million. Singapore comes second in the ranking. Here, USD 100 million would be enough to purchase over 3,500 sqm of office spaces. In Tokyo, the amount is sufficient for 3,643 sqm, while, in Paris, investors can buy 3,995 sqm with USD 100 million. Among countries in Central and Eastern Europe, Warsaw – with 16,407 sqm and Prague – 22,038 sqm, are more expensive than Bucharest. The prices in Bucharest are similar to those in Kuala Lumpur, where USD 100 million are enough to buy 34,200 sqm of office spaces. Irina Popescu, irina.popescu@romania-insider.com