The volume of real estate investments in Romania in the first quarter (Q1) increased by 21% compared to the same period last year to EUR 145 million, even in the absence of the expected large-sized deals that were deferred.
"The emergency measures were lifted in Romania in mid-May, so we expect to better understand the extent of the coronavirus' impact on the economy and the real estate market at the end of the second quarter," according to real estate consultancy firm JLL that compiled the report, quoted by Economica.net.
Both office and retail yields at the end of the first quarter remained at 7.00%, while the primary industrial yield was 8.00%.
The expectations for the volume of the market in the first quarter were much higher, as there should have been two large transactions with a combined value of over EUR 400 mln, including the sale of the NEPI Rockcastle office portfolio in Romania. However, none of them was eventually closed.
Overall, office transactions represented around 54% of the total deals in Q1, while the industrial segment accounted for almost 31%, with the rest being mixed properties, hotels, and residential properties.
The largest transaction recorded in the first quarter of 2020 was Globalworth's acquisition of a 50% stake in Renault Bucharest Connected, a 47,000 sqm office property. Globalworth thus became the sole owner of the building.
(Photo: Fabrika Pixel/ Dreamstime)
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