Romania’s office market remains attractive due to high yields

The markets for commercial spaces in Romania and Hungary are witnessing a flow of new capital, due to significant yield differences between Eastern and Western Europe. The prime office yield in Bucharest currently amounts to about 7.5%. In Berlin, for example, the prime office yield stands at 3.8%. However, other large German cities, such as Frankfurt, continue to offer significant profits compared to London or Paris, according to real estate consultancy JLL. “Romania and Hungary are two markets that offer quality products with highly attractive yields for prime office space,” said Adrian Karczewicz, Head of Divestments CEE within Skanska Commercial Development Europe. The office market in Bucharest has been supported by the IT&C and outsourcing sectors. The volume of investments on Romania’s real estate market is estimated at EUR 340 million for the first half of 2016, up 80% year-on-year. Almost 48% of the total investment volume was recorded in Bucharest. editor@romania-insider.com