The volume of investments in Romanian real estate increased by 222 percent in the first six months of 2014, compared to the same period last year, to EUR 402 million, according to research from property advisor CBRE.

Investments in the first half of 2014 were 17 percent higher than those recorded for the full year 2013, CBRE shows.

A total of 15 large transactions were recorded, which is the highest number since 2008, with an average volume size of EUR 26.8 million. The total area that was transacted exceeded 692,000 sqm.

Transactions on the office segment represented 58 percent of the total volume. Developers and institutional funds were the most active buyers, with real estate group Globalworth generating more than half of the total volume. Globalworth is a real estate company set up by Greek investor Ioannis Papalekas and listed on the London Stock Exchange.

The type of properties transacted is diverse, ranging from prime properties (like Charles de Gaulle Plaza), to secondary properties (like Auchan Pitesti Gavana) and distressed properties (Pic Pitesti and Pic Oradea), according to CBRE.

Increased investors’ interest led to prime yield for office segment decreasing at 8%. In terms of prime rent, evolution was relatively stable.

“This increase in volume of investment deals comes on the back of increased investors interest in prime products, especially office and retail located in Bucharest. With attractive returns, a growing economy and demand from tenants’ steadily increasing there are sufficient arguments for other major investment transactions to finalize in the next 6 – 9 months,” said Razvan Iorgu, managing director of CBRE Romania.

Land transactions also recorded a rise in terms of number, volume value and type of properties sold. There were three major categories of buyers of land properties: retailers (mainly Lidl, Dedeman, Kaufland, Leroy Merlin) looking to buy properties in prime and secondary cities, industrial occupiers interested in plots of land for the development of factories (Dr. Oetker, Best Food, Continental) and real-estate developers securing prime properties in major cities for future landmark developments (NEPI, Globalworth and Kiseleff Development).

Andrei Chirileasa, andrei@romania-insider.com